Competition on net profit
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Competitions
In the game, there are two types of competition:
- Competition on net profit: your entrepreneurial achievement, reflected in net profit, added up over the years.
- Competition on creativity: based on how your creativity is assessed by your coach. The more points you get, the higher your hotel's rank in this competition.
Every team will always automatically participate in both game competitions.
Do you have to compete?
A competition is fun, but some teams choose to run their hotel in a proper way without caring too much about the competition, which is just fine! You can end the management game and earn your study points (ECTS) without winning any competition as long as you meet the requirements we have set for the project. Logically, the teams scoring best are more likely to get a higher mark. So a good ranking contributes to your marks, but a bad ranking doesn't have to be bad news for your evaluation.
Your evaluation of the total of the game depends on much more than just the ranking: the most important thing is consistency, living up to your strategy and the quality of your tasks, assignments of decisions.
But if you are really into competing on net profit, you can do this be trying to make the most net profit or by concentrating on others aspects of the hotel. As stated, your task is to keep (make) the hotel financially healthy and to keep it independent.
Competition on net profit
The competition on profit means that a ranking is made every operational year in all of the cities. Of course, you are not alone! If all teams are very creative, you have to be even more creative to be outstanding and to attract the customer in this way (see the page on competition)! The competition on net profit is based on your entrepreneurial skills, which is reflected int your net profit. This profit will be added up profit over all the years that have been played (cumulative). This realized net profit is stated in your Key metrics, only visible to you.
This means that you can have a very good operating year in year 1, and a less successful but still acceptable year two. This could mean that your overall position in the ranking on net profit might not benefit that much because of the second year result, but still you good stay number one overall due to he good results of year 1. This also goes the other way around: with just one year with a high net profit, a hotel can climb several places in the total ranking.
Tips on how to do well this competition
The quality of your assignments, decisions and explanations has a big influence on the number of guests you get allocated that year. The more guests you get, the more turnover, the more possibilities to make a profit and get a high ranking.
When you look at the operating review, private to your own company, you can on the financial management-side basically do two things to get a higher net profit;
- reducing the costs
- or trying to get more revenues by
- selling more
- selling at higher prices
There are all kinds of financial and economic logics in this. You can sell more by
- selling more to new customers or
- selling more to 'old' customers
- upgrade the sales of existing customers
- less costs
You can try to reduce costs, but this will have its effect on the hotel and on its customers. So, the question is: will the savings you make on the costs outweigh the loss of revenues? And how about your customers, staff and general image?
Spending more has to be 'earned back' by additional revenues. Do additional costs bring enough extra revenues to take this risk and does it eventually add up to your profit?
You are not alone out there; there are a lot of competitors (see the page on competition)! So the basic idea is that you don't go over their top with your decisions (and costs).
Overall winners on net profit of this game
When all of the hotels have finished their competition there will be one winner per city
- on net profit: the team with the highest profits reserve after all of the years
- on creativity: the most creative team after all of the years.
In the final week we there will also be a overall winner in both categories, out of the total of all of the cities!
→ Go! Following the Introduction Game play? Step 8/10 is the page Competition on creativity
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