Presentation on theme: "AGENDA I. Value II. Value Selling III. Evaluating Your Potential Guests IV. Regrets & Denials V. The Competition VI. STAR Report VII. The."— Presentation transcript:
AGENDA I. Value II. Value Selling III. Evaluating Your Potential Guests IV. Regrets & Denials V. The Competition VI. STAR Report VII. The Revenue Management Game VIII.QUIZ
Understanding Value Understanding Value Value is not only associated with price, but quality for the price paid, with limited time and stress in buying and receiving the product. What items at your hotel represent value to the guest? Guests see value through friendly, efficient service and staff, clean comfortable surroundings, easy to understand & consistent pricing, ease of booking, 100% satisfaction guarantee, hotel location, breakfast, and room amenities.
Value Selling Creating value for the guest, includes experience, service, amenities, and room types – not rate. Help guest understand what is included in the rate before quoting. Selling the overall package is key to success!
Evaluating Potential Guests Just as guests evaluate our value to them, we need to evaluate what value they bring to us. Is every guest right for your property? Items to consider if guest or piece of business is right for your hotel. –Volume, Method of Payment, Booking Channel, Time of Year, T/A Commission, Arrival/Departure pattern, No. of people in party, Length of stay, Cost of delivery.
REGRETS VS. DENIALS Regrets- potential reservations not booked when there is inventory available. Common regret reasons are rate, room type not available, location, and restriction policies. Denials- a reservation request not booked due to no inventory availability WE REGRET THEY DENY.
Competitive Advantage Competitive Advantage What separates you from your competitors? Remember many of your competitors have similar amenities. Intangibles, such as friendly and efficient service, give us a strategic advantage over the competition. Your competitive advantage is key in Value selling.
Competitive set A group of hotels chosen to serve as a standard set of suitable competitors against which performance is measured, specifically used in Starcast report.. Who’s in your competitive set? Why are they in your set? Competitors are usually chosen based on location, product similarities and / or price similarities
STAR Report A tool that allows a hotel to manage REVPAR and measure success against the hotel competitive set. Performance measured by rate, occupancy, and REVPAR.
ADR Average Daily Rate Determined by dividing the total room revenue by total rooms occupied. Ex. 125 room hotel sells 100 rooms and shows $8,250 in revenue. $8,250/100 rooms = $82.50 ADR
REVPAR REVPAR REVPAR = Revenue Per Available Room. Amount of money a hotel earns for each Room/Suite they have available for sale. 2 Ways to Calculate: 1. Total room revenue / Number of total rooms available 1. Total room revenue / Number of total rooms available 2. ADR x OCC 2. ADR x OCC REVPAR is key in measuring hotel performance
Example of STAR Report
THE REVENUE MANAGEMENT GAME
REVMAX GAME You are the Director of Revenue Management of a five bedroom hotel. Goal: To sell every room, every day, at the most profitable amount you can. Remember rooms are perishable and if they don’t sell there is still a cost attributed to having them! You will receive a series of 15 calls to book your hotel, your objective is to decide AT THAT MOMENT which calls/reservations to take and which to regret.
GAME DIRECTIONS After each call is provided, decide whether to take the call at that rate. If you ACCEPT, fill in the rate in the boxes that it corresponds to. If you REGRET, you do not fill anything in. YOU CAN NOT INSERT A RATE AFTER THE CALL IS OVER!
GAME RATE STRUCTURES Corporate $115 Advance Purchase $85 AT & T $90 Government $75 Travel Industry $70
Sample of the Game Sheet
Quiz Part 1 Front Desk Training Quiz Helping guests to understand all that is in our rates, before quoting a rate, is called what?____________ ____________ How do you calculate Occupancy? –Total rooms available/total rooms sold –Total rooms sold/total rooms available –Total room revenue/total rooms sold –Total room revenue/total rooms available What tool allows a hotel to manage RevPar and measure its success against the hotel’s competitive set? __________ ___________ How do you calculate ADR? –Total room available/total rooms sold –Total room revenue/total rooms sold –Total revenue/total rooms available –Cost of line item/total The hotel’s room revenue for the month of October was $200,000. The hotel sold 2,500 rooms this month. What is the hotel’s ADR?
QUIZ Part 2 There are 2 ways to calculate RevPar. Show one. RevPar stands for __________ _________ __________ _________. A group of hotels chosen to serve as a standard set suitable competitors against which performance is measured, specifically used in the Star Report. _______________ ______________ List 3 items in which we evaluate guests on to determine if they are right for our property. List 3 items at your hotel that represent value to the consumer. A regret is recorded when: –When a guest calls to book a reservation and the hotel is sold out. –When a guest calls to book a reservation and the hotel has availability, but the guest decides not to book. ___________ is a reservation request not booked due to no inventory available.