Enterprise Hospitality Management, Outsourcing Economics and Value Creation: A Case Study

Every organization has several stakeholders including customers and vendors, who often visit organization frequently, and in many cases have to stay overnight and in some cases for several days. Enterprise hospitality management (EHM) in a large business firm accordingly becomes an important organizational function as customers, vendors, and other trading partners visit the company every now and then. In view of the importance of EHM, large firms generally maintain their own guesthouses or transit accommodation for the company visitors. However, there can arise many situations when numbers of visitors are much more than they can be internally accommodated in the company guesthouse. Visitors in such situations either have to be turned away or accommodated in hotels for which most organizations generally have some contractual arrangement with them. In this paper it has been attempted to study comparative economics of guesthouse versus hotel accomodation by collecting and analyzing complete one year hospitality data including several hospitality parameters. It was found that at existing levels of visitors movements in the organization, maintaining the company's own guesthouse is very much desirable and economically viable, and accordingly visitors should be diverted to hotels only when guesthouse occupancy is 'full' otherwise they should be accommodated in the guesthouses only.