Business competition
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Competitions
In the Game, there are two types of competition:
- Business competition: your business achievement, reflected in net profit, added up over the years.
- Creativity competition: based on how your creativity is assessed by your coach. The more creativity points you get, the higher your hotel's rank in this competition.
In the market, there is also fierce competition; check out how to handle this on the competition page.
Every team will always automatically participate in both game competitions.
How is the ranking done?
Your coach evaluates your entrepreneurial or business assignment each round: This mark highly influences the algorithm that decides on the occupancy rate of your hotel. The higher the occupancy rate, the more rooms that are booked.
Now the automated system will create (using benchmarks) your revenues (depending on the prices you chose).
The system also automatically calculates the related costs: some fixed, some related to this occupancy, some of your own choice. You will see your net profit per round; this profit determines your ranking in the competition.
So, the better your explanation on your prices and chosen costs, the better your assignment, the better your coach will grade you. You will not see this, but the effect, combined with everything above, results in the profit and the profit competition ranking.
The Business mark doesn't affect the creativity competition, the creativity mark does affect your occupancy rate and so your net profit, and therefore your Business ranking.
Do you have to compete?
Competing 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 set for our Game. Logically, the teams scoring high profits are likely to have had their assignments evaluated better. So good assignments contribute to your ranking, but a bad ranking doesn't have to be bad news for your evaluation. Be aware that there is also some luck and there is the link to the strategy. Your hotel might have a very good explanation on the profit or is even aiming less at profit.
Your evaluation of the total of the Game depends on your assignments: A most important thing in this is consistency, living up to your strategy. This is evaluated by the marks you get for the assignments.
But if you are really into competing on net profit, you can do this by trying to make the most net profit or by concentrating on other 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 each city individually. 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 Business competition is based on your skills as entrepreneurs, which is reflected in your net profit. This profit will be added up over all the years that have been played ('all of the years'). This realized total net profit is stated in your Key metrics, only visible to your team.
This means that you can have a very good operating result in year 1, and a less successful but still acceptable year 2. This could mean that your overall position in the ranking on net profit might not benefit that much because of the second year's result, but you could still stay at number one overall due to the 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 in this competition
As stated, the quality of your assignments, decisions and explanations has a big influence on the occupancy rate you get allocated that year.
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 with a specific occupancy rate:
- trying to get more revenues by
- selling more to old customers (repeaters) or to new customers
- selling at higher prices
or:
- reducing the costs
There is much financial and economic logic in this.
You can try to reduce costs, but this will have an 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?
Additional costs (spending), on the other hand, has to be 'earned back' by additional revenue. 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, do not go over the top, in your decisions.
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 profit reserve after all of the operational years ('total of the years').
- on creativity: the highest average in creativity after all of the operational years ('after all of the years').
In the finale, an overall winner in both categories will be announced as well out of the total of all of the cities!
→ Go! Following the Introduction to Game play? Step 8/10 is the Creativity competition page.
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