LU 1

January 31 Schrikkeljaren 2000 29 feb

February 28(normal) or 29 2004 29 feb
March 31 2008 29 feb
April 30 2012 29 feb
May 31 2016 29 feb
June 30 2020 29 feb
July 31 2024 29 feb
August 31 2028 29 feb
September 30 2032 29 feb
October 31 2036 29 feb
November 30 2040 29 feb
December 31

Important Formulas

ADR = Room rev/Number of rooms sold

ADR = Revpar/ Occ
Mean = Total revennue/ # of units sold -> avg price
Mode = Most frequent number
Madian = The middle number

Occupancy rate = Room numbersold/ roomnumbers available

Occupancy rate = Revpar/ADR
Revpar = ADR* Occupancy rate
Revpar = Room rev/Number of rooms available
Room revenu = Revpar*number of rooms available
TrevPar = Total revenu/Number od rooms Available
TrevPac = Total revenu/Numberof guest
RevPac = Room revenu/number of guest
GOPPAR = Income afterunditributed operating expenses/ Rooms available for Sale
GOPPAR = (Total revenue-controllable expeses)/Rooms available for sale
Ratio = The ratio shows a relationship between the 2 measures.
Index = New/old *100
Absolute variance = New-old
Relative Variance = (New-old)/old*100
Contribution margin = Rooms sold* (ADR-VC)
Total VC = Room nights*VC per roo,
Total VC = F&B revenu*VC% of F&B
Customer Worth = (Primary revenue + Peripheral revenue - Aquisition costs) * Propensity
(Total Primary revenu + Total Peripheral Revnue -Total Acquisition Cost)
Customer Worth in CMCustomer worth -VC room - VC F&B
Transient Room loss (inDisplaced Room nights *(ADR-VC per Room)
Transient F&B loss (in Displaced Room nights *(F&B rev per RN-VC F&B)
Channel efficency % = ( Room revnueper stay - Distribution cost per star)/Room rev based on the price paid by the g
Conversion rate = (# conversions (sales)) / (# total amount of clicks)
CPA = cost per click / conversion rate
CPA = nber of clicks needed to make 1 sale x cost per click

Revenue profitability ratios

ROS (return on sales) =NI/revenu
ROI (return on investmeNI/Investment
ROA (Return on assets)NI/Total Assets
ROE (Return on Equity)NI/Equity
Gross Profy Margin = (Revenu-COS)/Revenu

Indexes
MPI = (Occ%my hotel/Occ% compset) *100
ARI = (ADR my hotel/ADR compset) *100
ADR Compset = (ADR my hotel/ARI) *100
RGI = (RevPar my hotel/RevPar compsert)*100
RGI = (MPI*ARI)/100

Market = My property +competitors

Marketshare = My performance / Market performance (performance = revenu)
Marketshare = Me/(Me+Competitors)
Room Supply Share (FaiHotel available rooms/total market available rooms
Room demand share Rooms sold by hotel/ Rooms sold in total market
(volume Share or
market share) =

Room revenue share Hotel room revnue/total market room revenu

(value Share) =

Week = Sunday till Saturday

Comparable day = Same day of the same week last year
Weekday = Sunday till Thursday
Weekend = Friday and Sathurday
 Weigted average: Sumproduct(X;Y)/Sum(X)
29 dagen in feb X% Y
366 in year 0.5 10
0.3 6
0.2 4
7.6

ADR is always Weigted average Average

Occupancy 90% 60% 75.00%
ADR 100 80 92
RevPar 90 48 69
Days 30 31
91.8421053

Weighted Avarage
cmr amount price
0.6 100 5
0.8 150 2

Weigted Average = 67.50%

Solving an equation: Solving an equation

Fil in de formula with a blank sell
Go to data -> What if analysis -> Goal seeking Formulate the formula, use a blank
x= 300 Go to gegevens --> Wat als analysis
Formula = 80

Formula=
x=
based on the price paid by the guest

Don't forget
An index is never a percenatge
Below 100: You are perfoming less vs competitors

Abbove 100: You are performing better vs competitors

Your hotel can be either party of your compset or not
 Usefull total Calculations!!!
Capacity Occ% adr revpar roomsold rev
Hotel A 250.00 0.76 195.00 148.20 190.00 37050.00
Hotel B 475.00 0.80 215.00 172.00 380.00 81700.00
Hotel C 125.00 0.92 235.00 216.20 115.00 27025.00
Hotel D 650.00 0.54 155.00 83.70 351.00 54405.00
Total 1500.00 0.69 193.22 133.45 1036.00 200180.00
193.22

lving an equation

rmulate the formula, use a blank sell for x

o to gegevens --> Wat als analysis --> doel zoeken --> op waarde (= uitkomst formule) --> door wijzigen van cel(= cel van lege x )

1210.45918 formule 23
80.70 x 0.72
wijzigen van cel(= cel van lege x )
LU3

weighted average SOMPRODUCT(selecteercellen;selecteer cellen)

Weight ADR
10% 100
15% 120
5% 90
10% 110

43.5
Weighted average example
july = 31 August = 31
Occupancy 90% 60%
ADR 100 80 4278
REVPAR 90 48 138
30 31
June 30 July 31
Occupancy 90% 60% 45.6
ADR 100 80 4188
REVPAR 48

Simple moving average

exercise 1
61% 83% 87%
moving average:
73.00%

76,5%= 59% 62% 90%

46% 59% 75% 83% 81% 70% 51% 42% 76% 81% 75%
 average General formula: W1 x Y1 + W2 x Y2 + ….+ Wn x Yn ​
75% W1 + W2 + … +Wn​
92 W = weight of each variable of which the mean is to be calculated​
69 Y = variables of which the weighted average is calculated

average
74.75%
91.84
#VALUE!

59% 61% 85% 91% 54% 64% 87%

72.50% 72.50% 73.00% 74.00% 72.75% 73.50% 74.00%

51% 42% 76% 81% 75% 46% 59% 75% 83% 81% 70%

formula 0.67
x 50.00%

outcome 67%
is to be calculated​
calculated

89% 59% 62% 90%

73.50% 74.75% 74.25%

51% 42% 76% 81% 75% 61%

Forumulas

occupancy% ADR
rooms sold 160 rooms revenue
rooms available 200 rooms sold
80

occupancy ADR
revpar 29.1 Revpar
ADR 109.9 Occupancy%
26.48

% change = new - old / old x 100

index
MPI:
MPI = occ% my hotel / occ% compset x 100 occ% my hotel
occ % compset
ARI = ADR my hotel / ADR compset x 100

RPI/RGI= RevPAR my hotel / RevPAR compset x 100

or RGI= MPI x ARI / 100

Index > 100 --> good

Index < 100 --> bad index with unknown

ARI
adr my
adr comp

104= 111 / x
104 * x = 111
111= 104 * x
111 / 104 = x
x * 100 = adr compset

Check it by filling in orginial senario

 (new-old)/old *100

rooms revenue % change

129391 rooms sold 20 new
676 ADR 92 old
191.41 1840

Revpar if you now % change but not old or new

39.77 room rev. 95 / (1+1%)
13.28% rooms available 95 * (1+1%)
299.47 #DIV/0!
403.8926829268
Revpar
ADR 349.64
Occupancy 88.55%
309.61

ARI RGI
94% ADR my hotel 299.47 Revpar my hotel 309.61
94% ADR compset 305.6 revpar compset 312.78
100.45 97.994 98.99

RGI
MPI
ARI
0

with unknown

104 or ARI 108.85

111 adr my x
x adr comp 183.66

103,29= x / 183,66
x = 103,29 * 183, 66
x / 100 = adr my
= adr compset

t by filling in orginial senario

4.74586
ld)/old *100

capcity occ adr

189.4 200 72.50% 205
71.9 250 78% 197
163.421418636996 150 82% 188
300 71% 179
now % change but not old or new
% change er af halen
% change er op tellen
total 900 75.11 191.41

Solving an equation

Formulate the formula, use a blank sell for x

Go to gegevens --> Wat als analysis --> doel zoeken --> op waarde (= uitkomst

Formula= 1210.45918367347 formule

x= 80.70 x

forumula % change

( new - old ) / old = 2,5%

2,5%= (new - old) / old

(2,5%*old)+old = (new-->goal zoeken)

 rooms sold rooms rev revpar
145 29725 148.625
195 38415 153.66
123 23124 154.16
213 38127 127.09
0 0 #DIV/0!
0 0 #DIV/0!
0 0 #DIV/0!
676 129391 143.77

n --> op waarde (= uitkomst formule) --> door wijzigen van cel(= cel van lege x )

23 formule 220
0.72 x
Market share

Room Supply Share = Fair Share = Hotel Available Rooms/total market Available Rooms (eq
Room Demand Share = Rooms Sold by Hotel/Rooms sold in total market (also called volume
Room Revenue Share = Hotel Room Revenue/Total market Room Revenue (also called valu

Total Market includes our own hotel!​

Market = my property + my competitors​
Marketshare = my performance / market performance OR ​
me / (me + competitors)
 market share/ room demand share= rooms supply share / fair share

rooms sold my hotel available my hotel rooms

rooms sold tot. Market total market available rooms
#DIV/0!

tal market Available Rooms (equates to “fair share”)​

otal market (also called volume share or market share)​
oom Revenue (also called value share)
/ fair share room revenu share / value share

hotel room revenue

total market room revenue
#DIV/0! #DIV/0!

room revenue
rooms sold 57.5
ADR 435
25012.50

room revenue
rooms sold 315.1
ADR 446
140534.60
 1-Apr 8-Apr
22-Apr 22-Apr
-21 -14

Forecasting booking curve

Lesiure DBA -1 DBA 0 DBA 7

30-Jun
7-Jul
14-Jul
21-Jul
28-Jul
average leisure #DIV/0! #DIV/0! #DIV/0!
pick up -1 #DIV/0! #DIV/0!
Total sum leisure 0 0 0
pick up between each total DBA 0 0

Business DBA -1 DBA 0 DBA 7

30-Jun
7-Jul
14-Jul
21-Jul
28-Jul
average business #DIV/0! #DIV/0! #DIV/0!
pick up -1 #DIV/0! #DIV/0!
total sum business 0 0 0
pick up between each total DBA 0 0

total average both segment #DIV/0! #DIV/0! #DIV/0!

booking pace
forecast= TB + (actual - OTB same time last year)

OTB today actual OTB last year

Transient 1625 1680 1555
groups 105 105 108
contract
total
difference total

Remember to calculate all segments!!!

26-Apr 26-Apr
19-Apr
7
 1-Apr 8-Apr
29-Apr 29-Apr
-28 -21

DBA 14 DBA 21 DBA 28 DBA 35 DBA 42

#DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!

#DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!
0 0 0 0 0
0 0 0 0 0

DBA 14 DBA 21 DBA 28 DBA 35 DBA 42

#DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!

#DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!
0 0 0 0 0
0 0 0 0 0

#DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!

forecast budget difference Will it reach the budget?

1750 1750 0
 102 100 2
0 0
1852.00 1850
2
 forecasting error
DBA 49 DBA 56 date forecast
Monday 70
Tuesday 69
Wednesday 68
Thursday 70
Friday 71
#DIV/0! #DIV/0! Saturday 73
#DIV/0! #DIV/0! Sunday 70
0 0
0 0

DBA 49 DBA 56

Absolute total value

MAD
Average # of rooms sold
#DIV/0! #DIV/0! MAPE
#DIV/0! #DIV/0!
0 0
0 0

#DIV/0! #DIV/0! deviation = (actual room reservation - forecasted roo

Mean Absolute Deviaton= (Sum of absolute value of

average # of rooms sold = (sum of actual room reser

MAPE= MAD / Average # of rooms sold

forecast % error = MAPE

Lower than 3% > good forecast accura
Between 3% and 5% > acceptable For
Higher than 5%
 actual deviation Absolute deviation get rid of the minus
64 -6 6
57 -12 12
60 -8 8
61 -9 9
69 -2 2
75 2 2
65 -5 5
0
0
0
0
0
0
44
6.28571429
64.4285714
9.76%

eservation - forecasted room reservation)

(Sum of absolute value of Deviation / # Deviation)

(sum of actual room reservations) / # of days

f rooms sold
ood forecast accuracy​
% > acceptable Forecast accuracy​
 1-Nov
8-Nov
15-Nov
22-Nov
average
DBA -1 DBA 0 DBA 7 DBA 14 DBA 21 DBA 28 DBA 35

122 124 98 78 62 43 26
134 136 102 80 63 48 31
128 132 98 79 58 47 28
124 128 98 75 57 38 31
127 130 99 78 60 44 29
DBA 42 DBA 49 DBA 56

13 7 0
11 8 0
15 5 0
17 8 0
14 7 0
LU5 Price leader method
LU5

Top seats 20 30 40 60
2000 1500 700 300
40000 45000 28000 18000

good seats 20 30 40
1000 700 300
20000 21000 12000

Basic seats 20 30
700 300
14000 9000
2000
1700

1000
Segment/customer worth

segment/customer worth = primary revenu (room revenu) + periphereal revenu ( other r

pheriphereal revenue = other revenue or ancillary revenue

+ periphereal revenu ( other revenue - acquisition costs (fees, comissions)- room costs - pheripheral costs

room revenue F&B pheriperal revenue

rooms sold 90 spend per night 230
ADR 145
room revenue 13050.00 people 180
comissions 10.00%
1305
minus com. 11745.00

per year 4286925 per year 7555500.00

tot 11842425.00
pheripheral costs

FB rev. 41400
Displacement
Normal displacement - When you know your group rate
1. Calculate what you loose
- Calculate total number of Displaced Transient RN's
- Calculate Total Transient Lost Value (Rev/CM) - room revenue & peripheral revenue
2. Calculate what you gain
- Calculate the Total Group Gained Value (Room Rev, F&B rev, etc) pay attention to use total rooms req
3. Compare them and provide recommendation (Rev/CM)

Breakeven point 5 step model (when you dont know your group rate)

1. calculate total nr. of displaced transienst

2. calculate total displaced CM transient lost value (rooms + f&b + other rev.)

3. deduct value of CM group peripheral items (meeting+fb)

4. divide this nr. by the nr. of requested group rooms --> TO GET CM PER GROUP ROOM

5. Add VC per RN (1unit) to this number. CM GROUP ROOM + VC = BREAKEVEN ROOM RATE

(room rate x displaced rooms = room revenue)

Example after calculating break even:

They decide to quote a rate of 90 euros for the group.
Calculate the add. Profit (or loss) the hotel will make if accepting the rate

(new rate (90 euros) - breakeven room rate) * # of rooms

Additional CM or profit:
conversion displacement
 Displacement rooms

pheral revenue transient. occupancy%

trans. occupancy rooms
y attention to use total rooms requested!! ( x number of days)
group request. rooms

r group rate) Displaced rooms

Total displaced rooms

ER GROUP ROOM Breakeven 5 step model

EAKEVEN ROOM RATE total nr. displaced rooms

ADR
1. displaced
room revenue
VC per room
tot. VC
CM rooms

F&B, other CM transient

2. Total transient CM

CM total Group pherip. items

3. CM transient - peripheral group

total requested group rooms

4. CM per group room

 VC per RN (1 unit)
5. Breakeven room rate

Breakeven 5 step model

total nr. displaced rooms

ADR
1. displaced
room revenue
VC per room
tot. VC
CM rooms

F&B, other CM transient

2. Total transient CM

CM total Group pherip. items

3. CM transient - peripheral group

4. Profit required
profit required added=
total requested group rooms
4. CM per group room

VC per RN (1 unit)
5. Breakeven room rate
 tot # rooms= 150.0

day 1 day 2 day 3 day 4 day 5 day 6

64.00% 68.00%
96 102 0 0 0 0

90 90

36.0 42.0

78.0

F&B transient rooms displaced rooms

ADR room occ
78.0 180

320 fb 70.00
78.0
24960.00
22
1716
23244.00

4095.00 group pheriperal items (F&B+meeting etc.)

req. rooms per day total guests LOS
27339.00 75 75
tot. Rooms req.
15165.00 225

12174.00

180

67.63
 22
89.63

adding extra profit

tot rooms 240
165.0 guest 480

260
165.0
42900.00 costs
32 reception 65
5280 breakfast 35
37620.00 lunch 40
dinner 120
19470 party 55
band 5500
57090.00

54305.00

2785.00 dinner 5544

10000 + lunch 2016
12785.00 breakfast 2268
300
42.62 tot cm fb 9828

32 meeting cm 1344
74.62
costs - 504

10668.00
day 7

Let op: formule goed door trekken!!!

78.0
vc CM rooms
12636.00

4095
tot cm 16731.00

F&B price pp # people times of days VC

breakfast 12 75 3
lunch 22 75 2
dinner 38 75 3

meeting rooms price per meeting room nr. of rooms # days VC

meetings rooms 340 2 2 38

rev - VC=
person total revenue VC CM
480 31200 66% 20592
1440 50400 66% 33264
960 38400 66% 25344
960 115200 66% 76032
480 26400 66% 17424
10% 550
tot cm 173206

tot cm #REF!
minus VC CM

70% 1890
70% 2310
70% 5985

10185

minus VC CM
 1208

tot. CM grou 11393.00

Multiple segment rate calculating max. revenue

1. make the demand curve equation

2. use the lowest rate (p) to calculate Q

then look at how many rooms are still left by looking at Q

3. calculate next segment with P (lowest rate) or if max. capcity is reached, use full capacity

4. with that P (what they are willing to pay at full capacity), you do P x Q (numbers of rooms
 dynamic
multiple
single

apcity is reached, use full capacity (Q) to calculate new P

, you do P x Q (numbers of rooms left (first Q - nr. of rooms)

It only reaches capacity if it is more then the total hotel rooms capacity !!
calculte without reaching capacity :
Solving an equation

Formulate the formula, use a blank sell for x

Go to gegevens --> Wat als analysis --> doel zoeken --> op waarde (= uitkomst formule) --> door wijzige

Formula= 1210.459184 formule 23

x= 80.70 x 0.72

forumula % change

( new - old ) / old = 2,5%

2,5%= (new - old) / old

(2,5%*old)+old = (new-->goal zoeken)

tkomst formule) --> door wijzigen van cel(= cel van lege x )

formule 413.99 formule 73.5

x 424.61 x 0.49

49.00
 Capacity management

total rooms
day 1 day 2 day 3 day 4 day 5
ROH

A
B
C
D
E
F

0 0 0 0 0
1 3 3 5 4
-1 -3 -3 -5 -4
1 3 3 5 4
 total rooms
day 6 day 7

A
B
C
D
E
F
g
h
i
j

0 0
4 4
-4 -4
4 4 24 tot unconstrained.
zondag maandag dinsdag woensdag
MLOS 3 Box Closed t d
 Overbooking formula

tot rooms 350

IH 273
CO 80
193
CI 157
350 3%
5.00% un. SO 4
354 4%
4.00% Early depart. 7.72
346.28 5%
11.00% no shows 17.27
329.01
walk in 10

rooms occ. 339.01

overbooked 10.99

When % is not given

Un. SO 4 Early depart. 7
CO 80 IH-CO 193
% un. SO 5.00 % early depar 3.63
example:
tot rooms 420

IH 350 -
CO 70
280 +
CI 140
420
un. SO 2.1
422.1
Early depart. 11.2
410.9
no shows 7
403.9
walk in

rooms occ. 403.90

overbooked 16.10

No show = from arrivals x no show

Early departures= in house – departures x early departure
Unexpected stayover= unexpected stay over x departures

No shows 18
CI 157
% no shows 11.46
Distribution channel efficiency

channel efficiency= (room revenue p. stay - distribution co

if net rate is given calculate revenu always w

Agency model
Channel Guest rate
own web 157
booking 157
expedia 157

Merchant model
Channel guest rate
prestiga 162
m revenue p. stay - distribution costs p. stay) / room revenue based on the price paid by the guest

given calculate revenu always with net, even if guest rate is given!!!!

LOS booking fee comission % comission. in nr. Room rev. p stay

2.4 4 0 376.8
2.4 3 15% 56.52 376.8
2.4 1.5 18% 67.82 376.8
0 0

LOS Net Rate room rev. guest Room rev. p stay

2.4 120.77 388.80 289.848
0.00 0
0.00 0
0.00 0

occ rooms sold

2 27.50% 55 158 110
1.5 26.50% 53 158 79.5
1.8 19% 38 158 68.4
4 16% 32 158 128
178
385.9
28124
843720
Channel eff. room nights total revenue
98.94 % 0.00
84.20 % 0.00
81.60 % 0.00
#DIV/0! % 0.00

Channel eff. room nights total revenue

74.55 % 0.00 calculate rev. always with net rate!!
#DIV/0! % 0.00
#DIV/0! % 0.00
#DIV/0! % 0.00
0.00 :total revenue hotel

17380
12561
10807.2
20224
ays with net rate!!
Cost per click

Cost per Aquisition

CPA= cost per click / conversion rate
OR number of clicks needed to make 1 sale x cost per click

chan. eff. With CPA cost and without comission %

Channel Guest rate LOS booking fee own website
my own 157 2.4 4

total
Channel guest rate LOS Net Rate
138 4 110

When calculating efficiency with CPA costs name room rev. per stay in answer!!!!
 costs per click 0.5
conversion rate% 1.25% or
CPA= € 40.00

CPA costs total costs Room rev. p stay Channel eff.

40 44.00 376.80 88.32 %
0.00 0.00 #DIV/0! %
0.00 0.00 #DIV/0! %
0.00 0.00 #DIV/0! %

room rev. guest Room rev. p stay Channel eff.

552.00 440.00 79.71
0.00 0.00 #DIV/0!
0.00 0.00 #DIV/0!
0.00 0.00 #DIV/0!

m rev. per stay in answer!!!!

how many click are needed to make one sale? conversion rate
# of clicks
cost per click 1.2 how many book from that number of cli
conversion rate% 2.00% conversion rate
1/conversion rate= 50.00
CPA= € 60.00

# of clicks needed to make 1 sale 150

cost per click 0.6
CPA= € 90.00

cpa 44
cost per click x
convers% 1.75%
%
% 103,29= x / 183,66
% x = 103,29 * 183, 66
% x / 100 = adr my
 150
from that number of clicks 1
0.67 %
LU8
Global Distribution Systtem (GDS)
A computerised network system that enables transactions between travel industry service providers (h
Strong rate fences

TMCs: Travel management Companies (NO PUBLIC RATES)

Is a global organization that manage organizations business travel programs
- They are abl
price, end-use
- They propos
(because they
Examples: BCD travel, Carlson wagonlit travel (CWT)
TMCs use Global Distribution Systems (GDS) to book flights & hotels for their clients.

Consortias
Groups of independent travel agencies that join forces and combine resources to increase their indust
Consortias can provide marketing programs, educational events and networking opportunities to enha

Group Intermediaries (NO PUBLIC RATES)

Organizations whose primary objective is to organize seminars, events, MICE, Incentive
Examples: BCD travel, Carlson wagonlit travel (CWT)

Maintaining consistent rates (and availability) for the same product in all online distribution channels,
– Ensures an even playing field among all channels
– Protects a hotel’s relationships with its partners
– Ensures higher listing in search results
– Many tools exist to keep an eye on your parity

Agency Model VS Merchant model

Agency Model – commissionable model – Booking.com :
The hotel pays the internet intermediary a commission – rooms revenue only for selling its “available r
The hotel has the control over price and availability. Including on BB

Merchant Model – mark-up model – wholesalers, bedbanks, expedia:

Based on the agreement, an online intermediary takes a hotel’s negotiated rate and mark it up to rese
The mark-up’s range is agreed between the hotel and the online intermediary

Prebuy / Bulk Buy Agreement

When the leisure demand is strong, Travel Agents are willing to prepay a certain amount of rooms in a

Marketing opportunities to drive online business

1 Driving Awareness: Online marketing campaigns
- Adevertising on a pay per click basis (PPC)
Conversion rate is the % of clicks that results in a sale:
Conversion rate = (# conversions (sales)) / (# total amount of clicks)
Cost per acqu
paying custom
marketing suc
CPA = cost per click / conversion rate
CPA = nber of clicks needed to make 1 sa 52

5 main models in online advertismenet

• PPI (pay per impression): pay everytime your add is visible
• CPM (Cost per mile): pay every thousand times an add is visible
• PPC (pay per Click) : set a bid per click (% or $)
• PPS (Pay per Sale): pay (usually a %) everytime you get a sale from the advertisement – most commo
• PPI (Pay-per-install): pay everytime there is an installation of an application

2 Prospect: Metasearches and Social Media

Meatsearches:
from various
place. Eg. Tri
Social Media: Increase brand awareness, analyse guest reviews, Improve customer engagement

3 Opportunities: OTA marketing

OTAS are a gr
campaigns as
potential trav

4 Action: Your own website

The most obvious online distribution channel for your hotel is your own website
An ideal platform to convey your brand values and deliver a marketing message that appeals to your ta
The only online distribution channel where hotel can generate direct sales

Channel Contribution Formula

The focus is on highest revenue customer with the lowest required support with the highest
lifetime value that books through the lowest cost channel.
Channel Contribution % = Channel ABC revenu/ Total revenu generated by all channels
Example
Rooms sold ADR Rev Channel contribution %
5425 72 390600 63.91%
2175 75 163125 26.69%
1222 47 57434 9.40%
Tyoes of Fees/Commission Total: 611159 100.00%
A percentage o
Comsssion% =selling the ho
Booking Fee =A fixed amount per stay paid to the intermediary for selling the hotel’s rooms. $4 per stay
Net rate-hotelThe rate at which the hotel sells to the intermediaries (merchants), also referred to as wh
Guest Rate = The rate that the guest pays to the wholesaler

Channel effic
distribution i
• It evaluates the portion of revenue paid by the guest that is kept by the hotel
Channel efficency % = ( Room revnueper stay - Distribution cost per stay)/Room rev based on the price
Err:508
Total disdribu(Total stay*distribution cost per stay)+commision per stay

Segments and their Distribution Channels

Transient OT Booking.com, Expedia, ebookers.com etc.
Corporate ac TMC
Business/ Lei Event organizer
Transient BA Hotels own website

LU 9
Action plans and theory questions

How to generate/boost more sales through own website:

- evaluate options and invest in Google Ads;
- offer “Best Rate Guarantee”
- optimize hotel website (i.e. include visually attractive and updated content,
- design offer
off on your F&

Making descions in converting rooms to e.g pools, or meeting rooms

Name other important considerations besides revenu or CM that should be taken into account:
- What is the long term expectation for development of the weekend leisure and weekday transient de
- Maintaining the pool and the cost that come with it.
- Required investement for the conversion

It is believed that GOPAR is a better KPI than Revpar:

then why do we not use Goppar in our benchmarking reporting (STAR reports) with our competitors
- Cost are generally not shared among competiors
- Hotels are not willing to share this information

What revenu management techniques:

- Time duration: Latenight offers/early bird offers
- Forecasting: Early booking/ Discount
- Product: Menu engineering, upselling
- Restriction control: minimum spend per guest

Rate fences and exmples:

Rate fences are rules or restrictions that determine specific conditions in order to book a room at a cer
- Student rates only available if Student ID is shown
- Group rates are not available in the month before arrival
- A lower non refundable price that needs to be paid in advance
- Minimum lenght of stay
- Promotional code to enter acces to discount
- Offer available more than 30 days prior to arrival
- Early bird conditions (need to book more than 30 days in advance)
- Prepayment, cencellations until 7 days prior to arrival
Reduce expenses in times of crisis:
- Close facilities (resaurants, pools)
- Maintenance and other operating expenses: delayed maintenance, capex dissolution
- Reduced salaries
- Lay offs
- Renegotiaded contracts

Demand Generation tactics:

- Special rate - Outdoor dining
- Vouchers - Delivery
- Staycations
- New segements
Disadvantages of a price follower method
- Doesnt tahe in consideration your cost structure
- Doesnt asses the value proposition of your hotel vs compset
- You are too dependent on your competitors
- It doesnt consider eleasticity of demand and it may affect your demand too much and decrease your

Actions to increase the roomnights for the transient segement

- Any action related to online campaign to drive more awareness and more booking on your website
- Increase the discount offered to loyalty members
- Research new special corporate
- Include breakfast in certain rates
- Develop special packages to increase attractivity of your hotels offering

Shortcomings of using the pick-up method as a forecasting tool

- Internally driven
- Only looks at the past not the future
- Requires a lot of historical

Atctions for if bugdet of the group is not reached

- Transfer group rooms to transient; more opportunity to sell transient at this point
- Last minute group ofers to drive demand in group
- Design attractive group packages

What is the biggest risk associatied with overbooking/ what prevents hotels from overbooking:
- Loss of possible high value guest
- You may legal issues e.g Japan
- Walk to competition when sister properties are not available

What to implement if a hotel does not sell out

- Overbook the hotel
- Could lower the rates a bit on hotels own website
- Google adds or any other action that would help to boost the websites visibility

Which hotel is more likely to overbook the hotel: Tourist hotel or busuniness hotel
- Tourist hotel, tourist are less likely to be loyal returning guests than business travelers. This will make
- Or business hotel because business guests have a higher no show rate

State whether their is rate parity across channels

- There is rate parity if all rates are the same and if differentiating rates are available on GDS
As they are only bookable trhough agents and not publicly available

Will distribution channels object to the rate at the own hotels webiste?
- As long as the hotel rate on the own website is higher than on the distribution channels other distribu
- If the hotel rate on own website is lower than on distribution channels they will mind!!

Action point to improve rate integrity

-Rate integrity: sell rate to the guest to be the same on each channel.

Disadvantage of having no rate parity/ integrity

- Diffrent selling rates can be confusing to the guest and can cause complaints from channels that are m

Diffrent strategies
Rate Driven stHigh ADR Lower occ
Improved mixRaise rates for low rate segements and slightly reduce rates for high segment
KPI's Highest profitability (GOP%), selective rate changes, increase rates for low segements red
High Volume Ks PI's: Low ADR and High Occ compared to compset, high F&B revnue

Name the diffrence between the fair share and the value share
The diffirence is that value share takes occupancy and ADR in to consideration and fair share only look

Metasearch website = a website which compares prices between different channels for a sercvice prov

Opaque distribution channel

It allows hotels to sell excess supply/distress inventory at lower rates without disrupting rate parity
It allows hotels to employ price discrimination and customer segmentation.
Example: Hotwire, travelocity

Reason for spike pick (sudden strong pick up)

- Shorlty announced event

Alternatives for forecasting when past year is not reliable:

- You may use the most recent past data (eg. Use April 2021 to forecast May 2021 instead of using prev
-You may try to assimilate the new trends with a similar event in the past (eg; COVID and SARS), or COV
- You may use
you may use da
- You may rel
Tourism Board

Specific actions yo improve performance

- Limit sales in group segement (by increasing rates), in order to sell more to transient at a higher rate
- Limit sales in contract segement for next year, starting in a few weeks (by increasing rates), in order t

More likely to accept a group

- regular hotel business is tourist, no loyal guests displaced
- Low break even rate, could charge high price still wel below transient rates
Less likely to accept a group
-Low profitabilty if group repeat, confrence is in a diffrent country each year
- Head office is in Frankfurt, not Amsterdam so o future business
- Not a high profile company (not well known with the larger public)
ravel industry service providers (hotels, airlines) & travel agencies.

or their clients.

resources to increase their industry footprint including buying potential, benefits, & commission levels.
networking opportunities to enhance a relationship with a set of preferred suppliers.

s, MICE, Incentive

n all online distribution channels, regardless of the commission the OTA makes

nue only for selling its “available rooms”.

tiated rate and mark it up to resell it to customers.

ay a certain amount of rooms in advance at a certain price to resell them at their own time.

he advertisement – most commonly used model for online retail

ove customer engagement

wn website
g message that appeals to your target audience

upport with the highest

ed by all channels

annel contribution %

ling the hotel’s rooms. $4 per stay

merchants), also referred to as wholesale rate.

tay)/Room rev based on the price paid by the guest

uld be taken into account:
leisure and weekday transient demant

R reports) with our competitors

Marginal analyses

s in order to book a room at a certain rate

capex dissolution
and too much and decrease your revenue

d more booking on your website

nt at this point

hotels from overbooking:

tes visibility

uniness hotel
business travelers. This will make the cost of walking lowe

es are available on GDS

istribution channels other distribution channels will not mind

els they will mind!!

mplaints from channels that are more expensive, causing the to rank lower in the search results on their site

ates for high segment

rease rates for low segements reduce volume
h F&B revnue

ideration and fair share only looks at supply

erent channels for a sercvice provider

without disrupting rate parity

ast May 2021 instead of using previous years’)

past (eg; COVID and SARS), or COVID with 9/11

more to transient at a higher rate

ks (by increasing rates), in order to sell more to transient at a higher rate
lts on their site