Business targetgroup

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Size of the market

There is overcapacity in the hotel market, which makes it hard to reach occupancy rates above 60% during weekdays. It is not clear whether this is due to the demand side of the supply side. But, for any individual hotel there is enough demand in the market to get the hotel profitably occupied during both weekdays and weekends.
We distinguish two different target groups, customers and markets

• leisure market and mainly leisure guests
• business market and mainly business or corporate guests

We know look at the second.

Sales prices

Revenues comprises the average (sales) prices times the number of bookings. A maximum occupancy rate would mean that all 100 rooms are occupied during all of the weekdays, so 52 weeks x 100 rooms x 4 days (Monday, Tuesday, Wednesday and Thursday). Also, check the page for information on the leisure targetgroup which will mainly be the guests on the weekends. Weekdays account for 4 of the seven weekdays and this means (rounded up) 57% of the total of all available hotel nights (see occupancy rate).

Prices during weekdays (especially interesting for business guests) in the past were ranging from € 100 to € 140 maximum per room per night, including breakfast.

• the € 100 price has been the last-minute price during the weekdays.
• the € 140 price has been the rack rate price during the weekdays. The (highest) published price with no discounts, no special deals or commissions.
  

On the page occupancy rate the revenues have been calculated. You can find the numbers in the operating review.

Type of customers

There is no specific information on the type of customers: we do know the business people mainly book on the weekends. The hotel has always in the first place been aiming at the business target groups and in the second place on the leisure guests. The type of customers attracted so far is an average of the business target groups. The average room occupation during the weekdays (due to the business guests) is 1.0 per room. Business guests tend to have a single use of rooms.

The records do show information on revenues and guest nights.

Guest nights

The last numbers of the hotel show 50% occupancy rate during weekdays: so out of the possible 20,800 room nights 10,374 room night are sold. So an occupancy rate of the rooms of 50%. This will bring the number of guest nights at this moment at 10,374 x 1,0 (persons per room)= 10,374. So on an average in the last recorded year 10,374 guest nights have been recorded.

Total guest night

• weekends days 13,304 guest nights: 56% of all guest nights
• weekdays 10,374 guest nights: 44% of all guest nights
• Total 23,678 guest nights: 100%

Total revenues from guests

• weekends days € 704,340 revenues: 36% of total revenues from rooms
• weekdays € 1,244,880 revenues: 64% of total revenues from rooms
• Total € 1,949,220 revenues: 100% of total revenues from rooms

Highest revenues from the business guests.

→ Go! Following the Introduction to the Hotel? Step 9/10 is the page Operating review

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