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TABLE OF CONTENTS
INTRODUCTION
GENERAL INFO ABOUT THE PROPERTY
SELECTED ROOM TYPES
Business Single Rooms
Business Double Rooms
Junior Suites
SELECTED FACILITIES
MД©diterranД©en
SД©rД©nitД© Spa
“Aquarius” Recreation Lounge
“Rainer III” Seminar Hall
MAJOR COMPETITORS
Hotel Mirabeau
Hotel Hermitage
Hotel Columbus
Le Meridien Beach Plaza
CALCULATIONS RELATED TO ROOMS DIVISION ACTIVITIES
�Market Condition Approach’ and Rack Rates
�Rule of Thumb’ Approach and Construction Cost
Calculating the Actual Expected Revenue
Calculating the Potential Revenue
Calculating the Yield
Calculating the RevPAR
Overbooking: Potential Revenue Matrix
EVENTS TAKING PLACE FROM 14TH MAY TO 27TH MAY 2007 IN MONACO REGION
DETERMINING DAILY DEMAND FOR THE TWO-WEEK PERIOD
PLANNED REVENUE MANAGEMENT STRATEGIES
General Strategies used on days with high demand
General strategies to be implemented on low-demand days
CONCLUSION
APPENDIX
REFERENCES
INTRODUCTION
Developing efficient revenue management strategies for a hotel is a task that requires a wide-ranging study of the external business environment in a given locality. In addition, careful forecasting and proper calculations should be in place, so that service pricing and other revenue strategies are matched with anticipated demand. Proper demand forecasting for a given period of time and place, includes taking into account major events that occur in the area for the time being.
Our report is aimed at presenting how revenue management strategies are to be developed and implemented into a four-star hotel downtown Monaco for the period between 14th and 27th of May, 2007. In support, appropriate calculations of Actual and Potential Revenue levels, Yield Percentage, RevPAR, and other estimates relating to Rooms Division activities are accurately performed and displayed.
In the following pages, we motivate and demonstrate how our upper-mid-range service hotel operates in an environment of competition. We also determine our revenue management strategies in order to accomplish what we consider a well thought-out campaign to maximize profits.
GENERAL INFO ABOUT THE PROPERTY
We are opening a four-star service hotel called Excelsior in Monaco, located in the city center. The hotel has 149 rooms of three types including: 50 Business Single, 90 Business Double, and 9 Suites. The maximum amount of guests Excelsior can accommodate is 248. A single room can accommodate only one person. Double rooms and suites can have up to two guests. We choose to have the following facilities at our hotel: a recreation lounge, a piano bar, a conference hall accommodating 100 people, one fine-dining restaurant, and spa. The function for the given facilities and the motivation behind choosing the specific types of rooms is explained in detail further below.
The property consists of 3,565m2 of built area reserved for rooms and 1,435m2 of area set aside for additional facilities.
SELECTED ROOM TYPES
The Excelsior in Monaco has three different room types.
Business Single Rooms
The Business-Single-Room zone of our hotel consists of 1000m2. Each room has 20m2of area. Exselsior’s business single rooms have the following additional guest amenities:
Air conditioning
Balcony
In-room safe box
Mini-bar
Luxurious toilets with bathtubs
Seaside view
Wireless internet access
Satellite TV
Telephone
All of the single rooms at the Excelsior hotel can accommodate no more than one person per room , due to limitations of area.
Business Single rooms at the Excelsior hotel are exclusively designed to accommodate individual leisure or business travelers who come to Monaco to experience or be part of the organizational body of various events throughout the year.
Business Double Rooms
The Business-Double-Room zone at Excelsior takes up 2250m2 of space, each room having 25m2 of area. The following extra guest commodities are in place in addition to what Business Single already have:
Large bathrooms with Jacuzzi bathtubs
A coffee sit-out for small business or leisure meetings
The Business Double rooms are bigger in size than the Business Single and can accommodate up to two people per room. Our Double rooms meets the needs of business and leisure clientele wishing to stay in a more spacious environment providing more amenities.
Junior Suites
Designed to satisfy the most demanding part of our guest mix, the nine suites at Excelsior hotel are lavishly decorated, full of space, and offer high-end technology to exceed the expectations of its occupants. With the exclusive permission from the Royal Monegasque family, we have named each of our nine Junior Suites after a Royal Member:
Prince