Leisure targetgroup
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Size of the Market
There is an overcapacity in the market which makes it hard to reach occupancy rates above 60% during the weekends. It is not clear whether this is due to the demand side of the supply side. For any individual hotel, though, there is enough market demand to get the hotel profitably occupied during both weekdays and weekends.
We distinguish two different targetgroups, customers and markets
We now look at the first one.
Sales prices
Weekend days account for 3 of the seven weekdays and this means (rounded up) 43% of the total of all available hotel nights (see occupancy rate). These weekend days are booked by leisure guests.
The revenue of the rooms 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 weekend days, so 52 weeks x 100 rooms x 3 days (Friday - Saturday and Sunday). So 15,600 rooms nights booked.
The page for information on the business targetgroup which tell you, business guest will mainly be the guests for the weekdays.
Prices during weekend days in the past were ranging from € 80 to € 100 maximum per room per night, including breakfast.
- the € 80 price has been the last-minute price during the weekend days.
- the € 100 price has been the rack rate price during the weekend days. This rack-rate is 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 all numbers in the operating review.
Type of customers
There is no specific information on the type of leisure guests: However, we do know that they mainly book on the weekends. The hotel has always primarily aimed for the business guests and secondly for the leisure guest. The type of customers attracted so far is an average of the leisure guest. Not a lot of families with children (probably due to the location in the city) and, an average room occupancy of 1.7 people per room, still a large group of people who travel alone.
The records do show information on revenues and guest nights.
Guest nights
The latest available numbers of the hotel show a 50% occupancy rate in the weekends: so out of the possible 15,600 room (nights) 7,826 room (nights) are sold. So an occupancy rate of the rooms of 50%. This will bring the number of guest nights at this moment at 7,826 x 1,7 (average people per room) = 13,304 guest nights. So on an average in the last year 13,304 guest nights have been recorded.
Total guest nights
- Weekends = 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%.
Most guest nights are by leisure guests.
Total revenues from guests
- Weekends = € 704,340 in revenue: 36% of total room revenue.
- Weekdays = € 1,244,880 in revenue: 64% of total room revenues.
- Total = € 1,949,220 in revenue: 100% of total room revenues .
The highest revenues are generated by business guests.
When your assignment is managing one of the new establishments, this still will be the benchmarks you start with, and refer to.
→ Go! Following the Introduction to the Hotel? Step 8/10 is the Business targetgroup page, click here.
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