Final Exam...27/04
The Rules:
1. The exam will take 1 + 1/2 hours maximum.2. If the class starts later than 9 AM or 11 AM, the time will be deducted from the allotted 1 1/2 hours.3. If you finish before the allotted time, feel free to take a break.4. Everyone should be back in the classroom at 10:30 or 12:30, accordingly. We'll cover answers and basic corrections then.
5. Any student NOT back for the correction phase the grade = 0
6. The exams will be different for Groups A + B
7. Those with any problems or issues, let me know by 26/04...no consideration/change can be made after that date.
OK, see you on Thursday.
Class 19/04...Calculating Displacement
Sometimes the Sales department needs to take rooms that could be sold by the Front office...usually at a higher rate. This would result in revenue displacement.
In order to assure the hotel does not leave any revenue 'on the table', the FO and Sales office must calculate how much revenue needs to be collected from the Group,
before the sales proposal is sent, in order to assure no displacement.
The formula-
1. Number of rooms to be taken by the sales office (from Front Office), by night
2. Difference between FO ADR and Group Room Rate
3. Total Room nights in the Group booking
4. Number in 2 is divided by the number in 3.
5. Add the number in 4 to the planned group rate quote...making it higher.
Now for some class exercises.
For class Wednesday 19/04...take a look at the various businesses owned by EasyGroup...EasyJet, EasyHotel, EasyPizza.
What is the basic business model for all his businesses? If you say, 'sell at low cost'...then you haven't looked deeply enough.
Post you answers here as a comment by 18/04. You will have to register, but it only takes 1 minute.Very funky site...worth a look...
Sketch in London
For class 27/04...as no alternatives for the project have been proposed, the grade for the course will be based on an in class final. You may bring your notes, print outs...and calculations.
To prepare, you will need to understand ProfPAR principles, selection of online distribution channels, strategies for increasing RevPAR, 'long tail' economic theory and calculating displacement.
Any problems, let me know before the due date.
April classes...Aren't we lucky...we'll have classes together, Thursdays, until the end of April. So here is the program:-06/04 - Online Distribution - options for hoteliers; tools to manage channels and rates; booking enginesAssignment - due for 13/04-Please research online 3 European reseller sites - no OTAs (e.g. Opodo, EBookers, SNCF, etc.)-On a word doc provide: 1. Link to the site 2. Profile target customers (Do NOT say everyone, too vague) 3. Your opinion - should a hotelier choose your sites for online distribution, why, why not?-Email to me by 12/04 - cemhi@yahoo.fr-13/04 - We will view your sites and opinions in class. Discuss the final presentation assignment, which will be the basis of your grade.1. Presentations will be in class on 27/04.2. Teams of 4 - 2 to design Hotel profit mix, 2 to design distribution mix - total hotel revenue picture + strategies3. Presentations must be on a USB key or emailed previously - no tech excuses on day of presentation.4. 10 minute maximum - time to present; inspire questions and commentsAssignment for 20/04 - show me you hotel choice; needs to have banquet space-20/04 - Review of Profit maximization tactics-27/04 - Presentations - problems, questions - let me know before the due date.
Questions due 27/03...based on required readings.
1. Calculate RevPAR using the formula in the GOPPAR article. PLease use the numbers from the class exercise, below:
Splendid ResortBase Inventory - 200 Rooms
Rack Rates175 - Single
225 -Double
Segment Rooms Occupied Rate
Weekend Package 65 150
CRS 30 210
VIP Group 15 200
Incentive Group 18 185
Family Plan 26 215
Comp 2 0
Please CalculateTotal Rooms Revenue
ADR
% Occupancy
RevPar -
Recalculate using GOPPAR formulaIs the number the same - or different, why?2. What is the key concept put forth in the article: RM = Profit Management?
3. What is meant by revenue mix? How is related to OBM?
Confirmed
Special RM Session on 01/04 (No Joke!...April Fool's Day) - 9:30 AM - 12:30The required reading for the session is Online Hotel Sales + 3rd Parties a PDF download.
If you can not be there, no worries...we'll post results here in the blog. If RM does not fit into your future plans, you need not attend the session.
Reading for class 30/03. Hotel Industry Distribution Guide. See you then.
Readings for Class 24/03...GOPPAR reading is past due, we will discuss the concepts in class.
Please read
Revenue Management = Profit Management ....you will need to download the PDF from the linked page.
RevPAR results for cities in Europe, also a PDF.
We will have a quiz on all the readings. The quiz is 'open book' that is to say you may use your notes and printed documents.
Please bring a calculator as we will have an in class exercise.
