Bài thuyết trình: Hotel revenue management (Quản trị khách sạn)

Bài thuyết trình: Hotel revenue management (Quản trị khách sạn) hướng đến trình bày các vấn đề cơ bản về peak period revenue opportunities; communication; market segmentation; opaque pricing; performance measurement. Hy vọng tài liệu là nguồn thông tin hữu ích cho quá trình học tập và nghiên cứu của các bạn.

T  CH C KHAI THÁC HÀNG  Ổ Ứ

KHÔNG 1

GVHD: Nguyễn Nam Thanh

Thực hiện: Nhóm 6

Veritec Lodge

 A hotel with 300 rooms.

 An annual occupancy percentage of 65%.

Table 13.1 Impacts of increasing  occupancy percentage

Incremental  revenue gain 

(%)

Table 13.2 : Impacts of increasing  occupancy percentage

Annual 

occupancy 

(%)

Annual  revenue ($ million)

Incremental  revenue gain 

(%)

Annual net  revenue  ($000)

Incremental  gain in  profits (%)

5 opportunity areas

Improved  pricing  and  demand   management during  peak  

demand periods

Communications: among hotel staff  and with prospective customers

Market segmentation

Opaque pricing

Performance measurement

management

3 objectives

   Using forecasts of future room supply

   Demand at alternative price levels

 An effective pricing program

Stimulate additional 

demand 

by promotional prices 

Table 13.3 Comparison of impacts from LOS controls versus increasing price

In this scenario, not all of the hotel rooms are occupied on Wednesday night, reflecting the uncertainty associated with holding back rooms for longer  stay  reservation  requests.  In  actual  implementation  of  LOS controls, some hotels have claimed revenue increases of 8­10 percent 

or  even  more  when  compared  to  increasing  rates  on  peak  nights (Aeronomics, 1992)

Accepting  reservation  requests  beyond hoteL      capacity.  Although not strictly an element of  pricing,  another  component  of  a  successful  pricing  program  is  determining  how  many reservation  requests  to  accept  beyond  the  hotel’s  capacity.  As  the  number  of  future  cancellations  and  no­shows  are  not  known  with  certainty,  this  reflects the level of risk the hotel is  willing to take to ensure that every  room  is  occupied  on  a  soldout  night.

Unoccupied  rooms  on  a  sold­out  night  are  termed  spoiled  rooms.  These  are  rooms  that  could  have  been  sold but are not, because the  hotel  decided  to  stop  taking  reservations,  effectively  turning  away  demand  in  advance  of  the  check­in  date.  Unoccupied  rooms  on  dates  that  are  not  sold  out  are  not  spoiled  rooms,  as  there  was  insufficient  demand to fill them. Spoilage  can  be  measured  as  a  percentage  of  available  rooms  or  as  an  absolute  number.

Many  hoteliers  take  a  conservative  approach  to  managing spoilage.  That  is,  they  are  cautious  about  the  number  of bookings taken in excess of the hotel’s capacity. They are willing 

to let a few rooms go empty on a sold­out night in order to avoid the situation where guests with reservations show up to check­in, but the hotel does not have rooms to accommodate them

to  realize  that  this  forces  potential  guests  to  stay  at  competitor properties,  rather  than  allowing  them  to  stay  at  their  most preferred  location.  If  the  hotel  does  have  empty  rooms  on  the sold­out night, then not only did the hotel give up revenue it could have  received,  but  the  hotel  also  ends  up  falling  short  on customer satisfaction

The  following  example  illustrates  why  this  foregone  revenue  can  be  significant  and  worth  pursuing.  In  addition,  the  example  provides  some  insight into why we call this invisible revenue.

Consider a hotel with 250 rooms, a 70 percent  annual  occupancy  rate,  an  ADR  of  $150  and  30  sold­out  nights  during  the  year.  Further,  assume  a  two night average length of stay and that the average  occupancy on sold­ out nights is 97.6 percent. That  means that on, six rooms are empty on dates that the  hotel stopped accepting reservations

What is the financial impact of reducing the  number of empty rooms on sold ­out dates to  three? 

It may be worth noting that with 97.6 percent 

occupancy on sold­out nights, there may not be  strong pressure for analysing why the occupancy  rate was not higher. Reducing spoilage by 50 

percent to three rooms, that is, increasing the 

occupancy rate from 97.6 percent to 98.8 percent 

on a relatively small number of nights per year  may not be deemed worthy of significant effort. 

When approached from an annual revenue or  occupancy perspective, the impacts seem minor

•   Annual occupancy rate would increase by 

approxi­mately 2/10 of 1 percent.

•   Annual revenue would increase by approxi­ 

mately ¼ of a percent.

The impact of the incremental revenue on  the hotel’s profitability is much larger.

 If the hotel’s profits were 5 percent of gross 

revenue and if 80 percent of the incremental room  revenue from selling these three additional rooms 

on the 30 sold­out nights goes to the bottom line

The hotel’s annual profits might increase by more  than 4 percent!

NOW THAT probably would attract the a ttention 

of many hotel executives

When more aggressive booking policies are adopted, a hotel also needs to adopt policies and procedures that enable staff to deal effectively with guests with reservations wanting to check ­in when the hotel does not have rooms available.

And that’s why we frequently refer to the revenue that comes from decreasing spoilage as invisible revenue No one may pay attention to its absence, but when the additional revenue has the potential to increase the hotel’s profits

by several percentage points, everyone appreciates its presence.

Does this mean that more expensive rates should always be quoted first?

For example, when a customer enquires about the lowest rate available, it may simply be best to start with that rate rather than force the customer to first listen to the wonderful options that come with more expensive rooms

Hotels with the most successful pricing programs have also recognized the value of obtaining input from

multiple departments.

MARKET  SEGMENTATION

 Weekday hotel occupancy tends to be low, although weekend occupancy rates are quite high Competitor chains tend to have stronger brand equity and loyal followings due to their loyalty programs Thus far, EZStay has not initiated a loyalty program

 Less than 10 percent of EZStay’s guests pay the full rack rate

These rates vary by hotel, ranging from $69 to $129 More than

60 percent of the guests receive a discount of at least $20

 Although EZStay’s rates are generally similar to its competitors, perhaps slightly lower, its physical product is equal to and

probably better than most of its competitors Many corporate

travelers, however, tend to stay at competitor properties This may

be due in part to EZStay’s regional rather than national presence and also due to its lack of a loyalty program

 The pricing department has organized a meeting to discuss what actions it might take to improve the financial position of EZStay What should be done?

Which market segments currently provide customers?

Provides a framework for evaluating how to prioritize deeper penetration into the customer segments that currently provide customers versus stimulating demand from other customer segments, as this helps frame the challenges with stimulating additional demand from different sources

Which segments are not currently providing many

customers but could be?

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2 questions simultaneously

untargeted pricing action Frequently, this translates into offering a discounted price

action that is targeted to reach a specific set of customer segments

that currently provide the hotel with many guests In our experience, this second approach tends to be a far more effective way of increasing revenues and profits

 To illustrate the potential risks of a broad discounting program, consider a hotel that receives an average price

of $70 for its rooms and has an occupancy rate of 55 percent

 To stimulate demand, suppose the hotel reduces its price to $56, approximately a 20 percent reduction

 How much additional business does the hotel need to generate to ensure that the discount increases its revenues and profits?

 To generate less revenue than what was earned at the higher rate , is rather high Demand for the hotel has

to increase quite significantly for the discount to be profitable

 As increased occupancy levels result in additional variable cost, the occupancy level required to break even is higher.

worth pursuing.

One way to attract  COPORATE  TRAVERLES  in the absence of a 

of stay

Additional  and 

potentially more 

significant   amenities  can be 

offered

• Note that the potential for revenue dilution is

very small.

• The frequent traveler package is estimated to b

e dilutionary only if it attracts less than one

incremental guest per night

It is also possible that the  program will be      

 

financially beneficial if it

 induces some guests to   

    “buy up.”

Aimed at attracting  less price       

 sensitive guests

EZStay has incentivized

travelers to try one of their

properties

rather than stay at a competitor

property, but has done so in a

way that minimizes

the risk of revenue dilution.

­OPAQUE PRICING IS A WAY THAT COMPANIES  SELL THEIR MERCHANDISE AT HIDDEN, LOWER  PRICES. 

­ One type of price discrimination.

­The target product is one who will purchase a 

product or service primarily  based on price and  not based on the company’s amenities, reputation,  etc…

 The website will reveal the name of the hotel  but doesn’t allow for  refunds , changes or 

cancellations

 Use these rates for dates that you do not feel  you will sell out, and using the opaque 

system, you will receive revenue for rooms  that you would normally not sell.

 Quiet periods

 Guests are demanding too much for what they pay, or  whether resorts are raising people’s hopes

delivering the desired experience

 Capacity control and pricing decisions are highly intertwined

 Consider a somewhat simplified situation where you have only one room left to sell in a hotel for

an upcoming Tuesday night

 You receive a request for a one­night stay from someone who is willing to pay $120 for that night

 If you turn down the request, you believe there is

a 50 percent chance that you will receive a request for a four­night stay from someone else who is willing to pay $120 per night

 But, if you turn down the request you believe there is a 50 percent chance that the room will go empty on Tuesday night

 1 What should you do?

 2 Does the hotel’s reservation system support what you want to do?

 3 How do you demonstrate that you made the right decision?

The scenario in which you refuse the one­night stay reservation request

in anticipation of receiving a four­night stay request, but that demand does not materialize and you end up with an empty room

In short, you may have taken the action that in the long term would maximize the hotel’s profits, but not necessarily have done so in this particular instance Performance measurement tools become absolutely essential

 Having suitable performance measures, quantifying the impacts

of your pricing decisions and providing feedback to staff on the impacts of their pricing decisions are critical for estimating the level of success of a hotel’s pricing program and justifying investments to further enhance it

 As the saying goes, “you get what you measure.” Choose the wrong performance measures and your hotel is likely to be led down paths that are not as financially productive Performance measures such as occupancy and average daily rate are only part

of what’s important

 Revenue per available room, or REVPAR, provides a way of combining both of those measures into a single performance measurement While that’s better, it’s still not enough as REVPAR also reflects the impact of factors external to price

 It is important to define measures that estimate the impacts of pricing decisions In some cases you can use narrowly defined performance measures, such as those that focus on spoilage levels In other cases, more elaborate methods such as the method of comparable challenges may be needed This method enables making quantitative estimates of the impacts of pricing decisions by normalizing for market conditions existing

at the time of the decision

accuracy than more standard approaches such as year­ over­year comparisons or comparisons to competitive sets

As discussed in this chapter, pursuing profit maximization through enhanced pricing capabilities requires a combination of advanced pricing analytics and adopting appropriate internal business processes Although the financial benefits of improved pricing may be as great, if not greater, than those resulting from changes in operations or purchasing supplies (Marn et al., 2004), the benefits are not nearly as obvious; implementing performance metrics and establishing feedback mechanisms designed to measure, illuminate and communicate these benefits are essential to establishing an effective pricing program Otherwise, a hotel’s scarce resources of staff time, as well as money for investing in business improvements, are likely

to be prioritized for other areas