Cesim Hospitality is an interactive and fun learning environment that improves the participants' business competencies and employability on running a hotel and its restaurant. Find out more here: https://www.cesim.com/simulations/cesim-hospitality-hotel-restaurant-management-simulation-game/

1. CESIM HOSPITALITY
Introduction
Simulation for hotel and restaurant
management

2. 2
Cesim Hospitality is an interactive hospitality simulation game which
focuses on running a hotel and a hotel restaurant. The simulation can be
used with different configurations: hotel only, restaurant only, or including
both hotel and restaurant.
The simulation integrates concepts from various hospitality management
related functions, including revenue management, distribution strategy,
menu engineering, housekeeping, maintenance, staffing, and
procurement.
The use of the simulation is done with an on-line platform that provides
flexibility and independence of the delivery formats. Participants only need
a computer with internet connection and a browser.
Competition against other teams makes the learning experience engaging
and fun.
What is Cesim Hospitality?

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To develop the participants’ capabilities in identifying, analysing, and acting
on the key operational & environmental variables that influence hotel and
restaurant operations
To enhance fact-based analytical decision-making and illustrate the financial
implications of operational decisions by linking the decisions to cash flows
and bottom line performance
To review concepts and ideas concerning the hospitality industry as well as
general business management, deepening their understanding by
demonstrating them in a concrete context
To give students practical experiences in teamwork and problem solving and
excite competitive spirits in a dynamically evolving marketplace
Learning Goals

4. 4
Learning Process
Applying new ideas
Analysis & planning
Observations & reflections
Results & teamwork
Generalizing from the
experience
Lectures & discussion
Concrete experience
Decision making

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The simulation is completely web based. There is no need to install
any separate applications and the simulation can be accessed from
any computer that has an internet connection.
The simulation platform allows team members to work virtually if they
wish. Each team member has her/his own account that enables them
to make decisions and scenarios on their own and later combine the
outcomes with the other team members on the [decision checklist] -
page.
The platform also includes a communications forum that can be used
to communicate within teams and between all teams in one market.
Web Based Solution

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Participants are provided with a decision-making tool that helps them to
practice with different scenarios as well as analyse the outcomes of their
decisions and projections. In addition, the simulation generates a range of
reports that will help the teams to analyse and benchmark their own
performance against their competitors. The participant section includes:
[Home] - Overview page with deadlines
[Decisions] - All decisions are made under ’Decisions’
[Results] - Results become available in this area after each deadline
[Schedule] - Simulation schedule is available on this page
[Teams] - Teams and team members in your market can be viewed here
[Communications] - Access to the discussion forums for team and market
[Readings] - Access to the decision making instructions and case description
Participant access to the simulation

7. Instructor tools
 Courses
 Course creation and administration (incl. moving participants from one team to
another, deleting participants)
 Course scheduling (round deadlines etc.)
 Access to activity logs and metrics
 Access to individual team-member’s area
 Access to results and teams’ decisions for review
 Sneak-preview on results
 Analyzers that show instructors how e.g. demand is calculated
 Decision logs
 Case management
 Instructor can create, modify and share new and existing cases
 Materials
 Instructor can upload and share materials to participants
 Discussion forums

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Each simulation market (universe) consists of 2-12 teams, with 1-8
members in each. The number of parallel simulation markets is not
limited, making it possible to utilize the simulation for any number of
students in the class.
All teams are starting from exactly the same position, with similar
market shares and profits. Equally, teams face the same operating
environment during the simulation.
Note that the teams compete against other teams in their own
market, not against a computer. The decisions of each team
influences the other teams’ results and the market development
overall.
Simulation Organization

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As an instructor you have the option to run the simulation with both hotel and
restaurant or only with either one of them. You can also enable breakfast
module if you want.
The default configuration consists of restaurant and hotel, without breakfast. If
you want to change the configuration you need to go to Case management
and follow these:
1. Click ”Create new case” and name it. The parameters now appear under
”Your cases”
2. Click ”Edit parameters” and click the box Modules
3. Select the desired modules
4. Go back to case management and click ”Assign”
Note that you can also change all the other parameters with the same steps
as presented above.
Please do not hesitate to contact support@cesim.com whenever you plan to
use a custom configuration. Our support is ready to assist you.
Course Configuration Options

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1. Go to http://www.cesim.com and choose “Register” on the top.
2. Fill in your email and other details and select the language and the time
zone.
click <next>
3. Enter the course code that is given by your instructor.
click <next>
4. Enter license code IF required. (Note that if the license code is required
you must enter a valid code or proceed to the online payment options.
Otherwise the registration will not continue.)
click <next>
1. Choose your Team. In large courses you may also be asked to select
your Universe.
click <next>
2. Click “Finish” and your registration is almost done.
3. Check your email and click the activation link.
4. Login with your email and password at www.cesim.com.
Student Registration Process

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Flow of Operations
Introduction
Practice
Round (s)
Strategy and
Objectives
Decision
making (x 5 – 12)
Conclusion
and Analysis
Decision making with
the web interface
System
calculates
the results automatically
at the given deadline
Results from the
previous round and
market info for the new
round available
Analysis
and
planning
Note that it is not possible to modify the decisions after the round deadline. If the team has not saved its
decisions for a round, the system will automatically use the results of the previous round.
After the introduction, the teams
familiarize themselves with the
decision making process via a
practice round (max 3). The results of
the practice round will not have any
influence on the actual game results.
The instructor decides the number of
actual decision making rounds (5-12)
and decision making follows the
cycle on the right.

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The main objective for the teams is to deliver sustainable,
profitable growth. In Cesim Hospitality this is measured by
cumulative profits during the decision-making rounds.
The instructor may, at his/her discretion, choose to use other
criteria to measure the performance of the teams.
Main Objective & Winning Criteria

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Decision making is round based. One decision making period
corresponds to two weeks of real time.
In the beginning of the game, so called ‘initial round results’ are
available. These can be used as a starting point for the practice
round decisions. After the practice round, the situation is cleared
back to the initial, and decisions will be made for the first round.
The manual and the case description should be read before the
practice round. The market outlooks should be read before starting to
make decisions for each round. A new market outlook containing
information about the market development becomes available as
soon as the previous round has passed.
Decision Making Fundamentals I

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Decisions are entered in the grey cells. These will be used in the
actual calculation of the results.
Estimations are entered in the blue cells. These will not be used for
the calculation of the results, but they are important because together
with the decisions they form the basis for the budgets.
Drop-down menus are used for decisions where there are some
specific options to choose from.
Remember to save the decisions before the deadline.
Decision Making Fundamentals II

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Crown Hotel Arkadia is a 140 room hotel in the city of Arkadia. The
hotel has been operational for 20 years and gained a good reputation
during these years. There are three groups of customers in this hotel;
leisure customers, business customers and conference customers. In
addition, the hotel operates a restaurant.
The team will develop and execute operational strategies and the
success will depend on the team’s capability to manage revenue and
cost both in lodging and food & beverage operations. Careful
analysis, good planning, and team-work are the main keys to
success.
Please note that the default case includes both hotel and restaurant,
but the instructor may decide to make only hotel or restaurant
available for decision-making.
Case: Crown Hotel Arkadia

16. Decisions: Front desk
• The front desk includes reception and sales office
• Each decision-making period is two weeks
• Hotel has 140 rooms that are sold for current period, next period, and
next-to-next period separately for weekdays and weekends
 Weekdays include 4 days and weekends 3 days
 Total room-night capacity for weekdays for two weeks 140 x 4 x 2 = 1120
 Total room-night capacity for weekends for two weeks 140 x 3 x 2 = 840
• Decisions:
 Room rates and sales estimations for each rate type
 Promotion decisions
 Front desk manager focus
 Front desk staffing

17. Decisions: Food and Beverage
• Restaurant decisions are made for kitchen and dining
room
• Decisions:
 Staffing
o Number of kitchen and dining room staff for weekdays/weekend
o Permanent and temporary staff decided explicitly. Flexible staff will
be hired automatically if needed
o Kitchen understaffing leads to reduced customer satisfaction
 Menu design by ingredient, preparation style, and time spent in
detailing
 Pricing and sales estimations
 Dining hall table arrangement; crowded – sparse
 Beverage selection (limited - wide)

18. Decisions: Housekeeping
Housekeeping handles cleaning and tidying of rooms
and other facilities, laundry, garden and plant watering
etc. The main duty for housekeeping is the daily room-
cleaning routine.
 Decisions:
 Overall housekeeping target level
 Type of housekeeping outsourcing firm used
 Head housekeeper focus
 Housekeeping priority selections

19. Decisions: Maintenance
• The maintenance function keeps the facilities in
condition, makes repairs and directs renovation
projects
• Decisions:
 Maintenance priority; Which facility and/or type of project is done
during the round. Only one can be selected per round.
 Maintenance manager focus to be selected

20. Decisions: HR
• Human resources strategy must be aligned with the overall
strategy of the firm.
• Teams can utilize permanent staff, temporary staff, and
flexible staff. Each of these has different costs and skill levels.
Human resources decisions influence both employee and
customer satisfaction.
• Teams decide the staffing for each function separately by
setting the target amount of permanent and temporary staff.
Flexible staff will be utilized automatically in case the
permanent and temporary are insufficient.
• As part of the human resources decisions, teams decide staff
compensation policy, key personnel compensation policy,
temporary staff policy, and training policy.

21. Decisions: Procurement
 Decisions about ingredient and beverage purchases for
the restaurant, and room consumables for the hotel.
 Decision about how much to purchase should be based
on the starting inventory and sales estimation for the
round
 In case of insufficient purchase the gap will be filled but
with higher costs
 Spoilage happens if too many items are purchased
and/or sales are less than anticipated

22. Outcomes of the decisions
The decisions of each team have several kinds of consequences
 Immediate results for the team, shown in reports after the round
 for example, room vacancy and total revenue – see Reports
 Longer-term effects for the team, affecting success in later rounds
 for example, staff skill level reached
 Cumulative degree of success with respect to a winning criteria
 such as cumulative profit
 Effects to the success of other teams competing in the same group
 for example, low room price attracts customers that could otherwise find their
way to the other teams’ hotels
 Competitor reactions
 for example, if a mid-price, excellent-service strategy seems to work brilliantly for
one team, other teams are likely to emulate this approach on later rounds,
leading to intensified competitive pressures

23. Reports
 Key figures report
 Hotel operations and satisfaction report
 Restaurant operations and satisfaction report
 Personnel report
 Facilities report
 Financial reports
 Financial statements
 Cash and borrowing calculations
 Revenue splits (different splits: weekends/weekdays; rooms/restaurant)
 Cost splits (different splits: weekends/weekdays; rooms/restaurant)
 Key ratios

24. 24
Cesim
Arkadiankatu 21
00100 Helsinki, Finland
Tel. +358 9 406 660
www.cesim.com
contact@cesim.com
Support
support@cesim.com
More Information