Download presentation
Presentation is loading. Please wait.
1
STRATEGIES OF SPANISH AND EUROPEAN CITY HOTELS IN THE FACE OF THE LOW COST PHENOMENON
Authors: Dr. Josep-Francesc Valls, ESADE Professor, Director of the International Tourism an Leisure Symposiumi, ESADE Dr. Mar Vila, Professor in Departament of Financial Management and Control, Director of the Tourism Management Centre, ESADE
2
Mostra Quantitative research: survey with closed questions Sample: 746 city hotels belonging to Keytel Response raate: 12,37 % 54 % Spanish 46 % rest of Europe Error: 9.56 % Qualitative reserach: survey with closed questions Sample: 33 Spanish hotels of 3, 4 and 5 stars belonging to chains
3
Average prices between 2000 and 2004
Spain Europe Have gone up: 64 % Have gone down: 16,3 % Same: 19,8 % Have gone up Have gone down Same Source: ESADE-Keytel
4
Discount applied last year
Spain Europe Less than 10% Between 10% and 20% Between 20% and 30% Over 40% No discount Source: ESADE-Keytel
5
Net operating profit between 2000 and 2004
Spain Europe Have gone up: 45 % Have gone down: 17 % Same: 38 % Same Fell 10% 10% growth Fell by more than 30% Growth of more than 30% Fell by between 10% and 20% Fell by between 20% and 30% Growth of between 10% and 20% Growth of between 20% and 30% Source: ESADE-Keytel
6
Average prices between 2000 and 2004
Spain Have gone up Have gone down Same Source: ESADE-MAGMA
7
RevPar between 2000 and 2004 Spain
Increased by 10% Increased between 11% and 20% Same Decreased by 10% Decreased between 11% and 20% Decreased between 21% and 30% Decreased by more than 30% Have gone up: 39 % Have gone down: 49 % Same: 12 % Source: ESADE-MAGMA
8
GOP between 2000 and 2004 Spain Have gone up: 33 %
Comparison GOP Increased by 10% Increased between 11% and 20% Same Decreased by 10% Decreased between 11% and 20% Decreased between 21% and 30% Decreased by more than 30% Have gone up: 33 % Have gone down: 57 % Same: 10 % Source: ESADE-MAGMA
9
Average price, RevPar and GOP between 2000 and 2004
Spaiin, by categories FOUR STARS Gone down Gone up THREE STARS Same Average price RevPar GOP Gone down FIVE STARS Gone up Same Average price RevPar GOP Gone down Gone up Same Average price RevPar GOP Source: ESADE-MAGMA
10
Current importance of channels of commercialisation
Europe GDS Direct sales Travel agencies Own website Tourism operators External reservation line Chance/spontaneous Website of other company Other commercialisation channels Current importance of reservation line GDS Own website Direct sales Chance / spontaneous Travel agencies Tourism operators Spain Website of other company External reservation line Other commercialisation channels Current importance of reservation line Source: ESADE-Keytel
11
Should prices come down in the future?
Spain Europe Yesí: 16% No: 44% NS/NR: 40% Yes No Ns/Nr Source: ESADE-Keytel
12
Will the average price stay the same in the future?
Spain Gone down Gone up Same Source: ESADE-MAGMA
13
Will RevPar stay the same in the futurs?
Spain Yes No, will go up No, will go down Ns/Nr Source: ESADE-MAGMA
14
Will GOP stay the same in the future?
Spain Yes No, will go up No, will go down Source: ESADE-MAGMA
15
Will the average price, RevPar and GOP stay the same in the future?
Spain Ns/Nr Will go down Will go up Same Aver. price RevPar GOP Source: ESADE-MAGMA
16
Will the average price, RevPar and GOP stay the same in the future?
Spain, by categories FOUR STARS THREE STARS Gone down Gone up Won’t change Future average price Future RevPar Future GOP Gone down Gone up Won’t change FIVE STARS Future average price Future RevPar Future GOP Gone down Gone up Won’t change Future average price Future RevPar Future GOP Source: ESADE-MAGMA
17
Future importance of channels of commercialisation
Europe GDS Own website Direct sales Tourism operators Travel agencies External reservation line Chance/spontaneous Website of other company Other commercialisation channels Current importance of reservation line Spain GDS Own website Direct sales Chance/ spontaneous Travel agencies Current importance of reservation line Tourism operators Website of other company External reservation line Other commercialisation channels Source: ESADE-Keytel
18
What price should a room be sold at?
Spain Europe At any price: 9 % Usually be kept: 87 % Always be kept: 4 % Room must be sold at any price Prices should usually be kept Prices should always be kept Source: ESADE-Keytel
19
In what services/activities could prices be increased?
Europe Price of room Other prices Price in restaurant Price of sundry services (phone, laundry, etc.) Price of take-away food Price of terrace/swimming pool Prices of events and weddings Price of visits and excursions Price of meeting services and rooms Spain Price of room Other prices Price of take-away food Price of meeting services and rooms Price in restaurant Price of sundry services (phone, laundry, etc.) Prices of events and weddings Price of visits and excursions Price of terrace/swimming pool Source: ESADE-Keytel
20
What attributes of service do customers value most?
Europe Value of category Value of brand The hotel being cheap Personal treatment received Quality of services provided Personality of establishment The hotel being expensive or the most expensive Quantity of services provided The hotel being the cheapest Existing elements at the destination Hotel product (accommodation, restaurant, etc) Spain Value of category Value of brand Hotel being expensive or the most expensive The hotel being cheap Personal treatment received Quality of services provided Personality of establishment Hotel product (accommodation, restaurant, etc) Quantity of services provided The hotel being the cheapest Existing elements at the destination Source: ESADE-Keytel
21
Summary: More than a third of European city hotels surveyed have not increased their prices in the last five years (36 %). In 16 % they have gone down. They have mostly sold without discounts or with a 10 % discount. Net profits of these hotels have not increased in 55 % of hotels. Have gone down in 38%.
22
In Spain, almost half the city hotels selected had not increased their prices, their RevPar went down in 61 % and GOP in 67 % hotels: niether occupation nor operating expensees management had corrected the effect of falling prices. Three-star hotels most frequently state their prices have increased, but not RevPar or GOP. Four-star hotels have mostly decreased their average price, and their RevPar and GOP still more. The five-starts have mostly increased their average price, and have been able to maintain this increase both in RevPar and GOP.
23
A change is being seen in the commercialisation channels towards websites of others companies and own websites; tourism operators and travel agents are losing ground; direct sale, GDS and reservation lines are still valid. In the future, the scenairo is between uncertain and not very optimistic: expectations of falling prices (by 16 %: 21 % in Spain, 11 % in the rest of Europe). Situation more acute in qualitative research; expectations are also falling also for RevPar and GOP: little confidence in management. Three-star hotels are the most pessimistic; five-stars, least pessimistic.
24
Price structuring must generally maintain prices, according to thet hoteliers surveyed.
Services or activities where price can be increased cary between Spain and Europe: sundry (phone, laundry) and restaurant, followed by room and events. Attributes considered to be most valued by the customer are treatment received and quality of service. And least valued, those related to price and brand.
Similar presentations
