Difference between revisions of "Leisure targetgroup"

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''→ Go! [[:Category:Hotel info]]'' <br>
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{{Running competition}}
{{Running Game}} __NOTOC__ __NOEDITSECTION__  
== Market ==__NOEDITSECTION__
There is a kind of over-capacity in the market which makes it hard to reach occupancy rates above 60% during the weekends. But for any
individual hotel there is enough demand to get the hotel well-occupied during weekdays and the weekends.


== Sales prices ==__NOEDITSECTION__
== Size of the Market ==
Revenues comprises the average (sales) prices times the number of bookings (occupancy rate).  
There is an [[overcapacity]] in the market which makes it hard to reach [[occupancy rate]]s 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.
A maximum occupancy rate would mean that all 100 rooms are occupied during all of the weeks, so 52 weeks x
<br>
100 rooms. Also, check the page for information on the [[business targetgroup]] which will mainly be the guests for the weekdays. Weekdays account for 3 of the seven weekdays and this means (rounded up) 43% of the total of all available hotel nights.
We distinguish two different targetgroups, customers and markets
* [[leisure targetgroup|leisure market and mainly leisure guests]]
* [[business targetgroup|business market and mainly business or corporate guests]]
We now look at the first one.


Prices in the weekend (especially interesting for leisure guests) in the past ranged from € 80 last-minute price to € 100 [http://traveltips.usatoday.com/rack-rate-hotels-107299.htmlr rack rate] per room per night. So this gives you an indication.  
== Sales prices ==
The weekend bookings make rounded up 43% of the total of booked rooms when you take over the management, and as you take over these revenues make up € 704,340 mainly booked by leisure guests.<br>
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. <br>
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|business targetgroup]] which tell you, business guest will mainly be the guests for the weekdays.


You start off with a price-range of €80 to €100 for the weekends, so an average € 90 per room per night in the weekend. So € 704,340 divided by € 90 means 7,826 room-nights sold. As you take over in year 0 there is a total of ten hotels in your city, so all together the demand for weekend rooms was 10 x 7,826 = 78,260 room nights. After all of your decisions and the decisions of your competitors, this demand will never be the same in the years when you run the hotel. It depends on many of your decisions. But keep these numbers in mind as you make your decisions.  
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 [https://www.xotels.com/en/glossary/rack-rate rack rate] price during the weekend days. This rack-rate is the (highest) published price with no discounts, no special deals or commissions. <br>
On the page [[occupancy rate]] the revenues have been calculated. You can find all numbers in the [[operating review]].  


== Maximum weekend days == __NOEDITSECTION__
== Type of customers ==
The maximum number of hotel nights to be sold on the weekends for your hotel would be: 3 out of seven days, so 43%:  <br>
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. <br>
52 weeks x 100 rooms x 43% x 7 days = 15,652 nights/days (note: number of nights per year in calculations is 52 weeks * 7 nights = 364). <br>
The records do show information on revenues and guest nights.


At the average room price (€ 90) that would generate the maximum revenue from selling rooms at this price of € 1,408,680. <br>
== Guest nights ==
The revenue from renting the rooms in the weekend in year 0 is € 704,340 So € 704,340 ./. € 1,408,680 = 50% of the possible revenues at the prices you start off with, so a 50% occupancy rate. <br>
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.
The € 1,408,680 gives an indication of the maximum growth (if there are enough rooms asked for). Of course, things change if you have a higher occupancy rate AND a higher sales price.<br>
So making additional costs (next to the fixed ones and the variable ones you can't avoid) this calculated maximum on the market gives you an indication of what you could make as extra costs which could still be earned back. Or, even better, lead to more profit.  


== Type of customers ==__NOEDITSECTION__
== Total guest nights ==
There is no specific information on the type of leisure customers: we do know they mainly book on the weekends.
* Weekends = 13,304 guest nights: 56% of all guest nights.
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 per room, still a large group of people who travel alone.
* Weekdays = 10,374 guest nights: 44% of all guest nights.
* Total = 23,678 guest nights: 100%.
Most guest nights are by leisure guests.


<br><hr>
== 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.
<br><br>
''→ Go! Following the Introduction to the Hotel? Step 8/10 is the [[Business targetgroup|Business targetgroup page, click here.]]''
<hr>
''→ GO! [[#top|Top of this page]]''
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<center><small>''Emerald Forest Hotel'' offering an <font color="green">'''emerald''' </font color="green">hotel experience!
<center><small>''Emerald Forest Hotel'' offer an <font color="green">'''emerald''' </font color="green">hotel experience!
| Run your own hotel in this management simulation.</small></center>
| Run your own hotel in this management simulation.</small></center>

Latest revision as of 13:44, 12 September 2023

→ Go! Category:Hotel info  

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.

→ GO! Top of this page

Emerald Forest Hotel offer an emerald hotel experience! | Run your own hotel in this management simulation.
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