Donna Shader, manager of the Winter Park Hotel, is consider-

ing how to restructure the front desk to reach an optimum level

of staff efficiency and guest service. At present, the hotel has

five clerks on duty, each with a separate waiting line, during

the peak check-in time of 3:00 p.m. to 5:00 p.m. Observation

of arrivals during this time shows that an average of 90 guests

arrive each hour (although there is no upward limit on the num-

ber that could arrive at any given time). It takes an average of

3 minutes for each front-desk clerk to register each guest.

Donna is considering three plans for improving guest ser-

vice by reducing the length of time guests spend waiting in line.

The first proposal would designate one employee as a quick-

service clerk for guests registering under corporate accounts, a

market segment that fills about 30% of all occupied rooms.

Because corporate guests are preregistered, their registration

takes just 2 minutes. With these guests separated from the rest

of the clientele, the average time for registering a typical guest

would climb to 3.4 minutes. Under plan 1, noncorporate guests

would choose any of the remaining four lines.

The second plan is to implement a single-line system. All

guests could form a single waiting line to be served by which-

ever of the five clerks became available. This option would

require sufficient lobby space for what could be a substantial

queue.

The third proposal involves using an automatic teller

machine (ATM) for check-ins. This ATM would provide ap-

proximately the same service rate as a clerk would. Given that

initial use of this technology might be minimal, Shader esti-

mated that 20% of customers, primarily frequent guests, would

be willing to use the machines. (This might be a conservative

estimate if the guests perceive direct benefits from using the

ATM, as bank customers do. Citibank reports that some 95% of

its Manhattan customers use its ATMs.) Donna would set up a

single queue for customers who prefer human check-in clerks.

This would be served by the five clerks, although Donna is

hopeful that the machine will allow a reduction to four.

Discussion Questions

  1. Determine the average amount of time that a guest spends

checking in. How would this change under each of the

stated options?

  1. Which option do you recommend?