Activity-Based Management for a Hotel Consider the following actions of a hotel chain trying to manage the costs of its check-in process. Required Match each of the process improvements listed with how it delivers cost reductions. Process Improvement Delivers Cost Reduction

1. Guests may now check in online rather than in person.

2. Guest information is added to forms based on computerized reservation rather than waiting until guest checks in.

3. The hotel closes for two months in the "low" season.

a. By reducing the frequency of activity.

b. Improving the efficiency of the activity.

c. By both (a) and (b).

1. Guests may now check in online rather than in person.

c. By both (a) and (b).

2. Guest information is added to forms based on computerized reservation rather than waiting until guest checks in.

b. Improving the efficiency of the activity.

3. The hotel closes for two months in the "low" season.

a. By reducing the frequency of activity.

Explanation:

You can measure efficiency in business activity by getting the quotient of an actual output rate of a worker by a determinate standard output rate. This comparison will improve or get closer to 1 if guests' information is added to forms based on computerized reservation rather than waiting until guest checks in. Thus, a person in a hotel lobby counter will do her/his work more efficiently if s/he has access to the guest's computerized reservation instead of waiting for the guest to submit her/his information in the check-in process.

This business activity has a particular frequency as a service business related to seasons. A low-season closing follows to a zero frequency, therefore, there are no expenses related to a service which the business is not offering.

Finally, as guests may now check-in online rather than in person, this combines frequency and efficiency in business, thus, the business would not have to pay for a worker on the counter to ask and fill in forms at the hotel check-in process.