Question:
This assessment addresses the following learning outcomes:
- Examine how supply and demand forecasting drives revenue management and appraise its value as an operational tool across the hospitality industry.
- Evaluate revenue management’s position in optimising distribution and pricing strategies
- Make appropriate pricing recommendation from trend analysis statistics
You have recently been hired as a revenue manager at a hotel in a medium sized Australian city. The hotel has recently taken over by a different owner and has been refurbished, the hotel was previously sold as a 4 star hotel, but the new owner wants to market it as a 5 star hotel. The hotel has 200 rooms, one restaurant and 12 conference rooms.
Choose the city you want to use in your example (must be population of 100,000 – 300,000). By using 3rd party websites – chose your competitive set,
- Chose 3 weeks in the next three months where the rates fluctuate
- Create a revenue grid taking into account
Your competitors rates
You’re on the books figures (you must define these)
Occupancy forecast (you must define this)
Answer:
Revenue Grid
|
Particulars
|
January
|
March
|
April
|
|
Hotel Name
|
Week 2 ( Price in dollars)
|
Week 1 ( Price in dollars)
|
Week 4 ( Price in dollars)
|
|
Sydney Harbor Marriot Hotel
|
191
|
180
|
195
|
|
Nonvoter Sydney Darling Harbor
|
190
|
175
|
191
|
|
Shangri-La Hotel
|
180
|
175
|
185
|
|
Pier One Sydney Harbor (Books Figure)
|
185
|
180
|
190
|
Average Daily Rate
Sydney Harbor Marriot
|
January
|
|
Sydney Harbor Marriot
|
Monday
|
Tuesday
|
Wednesday
|
Thursday
|
Friday
|
Saturday
|
Sunday
|
|
Occupancy Forecast
|
115
|
117
|
101
|
108
|
142
|
155
|
160
|
|
Occupancy Rate In Dollars
|
191
|
191
|
191
|
191
|
191
|
191
|
191
|
|
Average Daily Rate for January
|
1.66087
|
1.63248
|
1.89109
|
1.76852
|
1.34507
|
1.23226
|
1.19375
|
|
March
|
|
Sydney Harbor Marriot
|
Monday
|
Tuesday
|
Wednesday
|
Thursday
|
Friday
|
Saturday
|
Sunday
|
|
Occupancy Forecast
|
176
|
162
|
159
|
163
|
172
|
188
|
190
|
|
Occupancy Rate In Dollars
|
180
|
180
|
180
|
180
|
180
|
180
|
180
|
|
Average Daily Rate for March
|
1.02273
|
1.11111
|
1.13208
|
1.10429
|
1.04651
|
0.95745
|
0.94737
|
|
April
|
|
Sydney Harbor Marriot
|
Monday
|
Tuesday
|
Wednesday
|
Thursday
|
Friday
|
Saturday
|
Sunday
|
|
Occupancy Forecast
|
165
|
152
|
167
|
173
|
176
|
176
|
180
|
|
Occupancy Rate In Dollars
|
195
|
195
|
195
|
195
|
195
|
195
|
195
|
|
Average Daily Rate for April
|
1.18182
|
1.28289
|
1.16766
|
1.12717
|
1.10795
|
1.10795
|
1.08333
|
Novotel Sydney Darling Harbor
|
January
|
|
Novotel Sydney Darling Harbor
|
Monday
|
Tuesday
|
Wednesday
|
Thursday
|
Friday
|
Saturday
|
Sunday
|
|
Occupancy Forecast
|
92
|
98
|
101
|
122
|
126
|
131
|
135
|
|
Occupancy Rate In Dollars
|
190
|
190
|
190
|
190
|
190
|
190
|
190
|
|
Average Daily Rate for January
|
2.06522
|
1.93878
|
1.88119
|
1.55738
|
1.50794
|
1.45038
|
1.40741
|
|
March
|
|
Novotel Sydney Darling Harbor
|
Monday
|
Tuesday
|
Wednesday
|
Thursday
|
Friday
|
Saturday
|
Sunday
|
|
Occupancy Forecast
|
83
|
87
|
96
|
91
|
111
|
109
|
117
|
|
Occupancy Rate In Dollars
|
175
|
175
|
175
|
175
|
175
|
175
|
175
|
|
Average Daily Rate for March
|
2.10843
|
2.01149
|
1.82292
|
1.92308
|
1.57658
|
1.6055
|
1.49573
|
|
April
|
|
Novotel Sydney Darling Harbor
|
Monday
|
Tuesday
|
Wednesday
|
Thursday
|
Friday
|
Saturday
|
Sunday
|
|
Occupancy Forecast
|
97
|
100
|
103
|
107
|
105
|
112
|
120
|
|
Occupancy Rate In Dollars
|
191
|
191
|
191
|
191
|
191
|
191
|
191
|
|
Average Daily Rate for April
|
1.96907
|
1.91
|
1.85437
|
1.78505
|
1.81905
|
1.70536
|
1.59167
|
Shangri-La Hotel
|
January
|
|
Shangri-La Hotel
|
Monday
|
Tuesday
|
Wednesday
|
Thursday
|
Friday
|
Saturday
|
Sunday
|
|
Occupancy Forecast
|
67
|
72
|
83
|
83
|
89
|
92
|
100
|
|
Occupancy Rate In Dollars
|
180
|
180
|
180
|
180
|
180
|
180
|
180
|
|
Average Daily Rate for January
|
2.68657
|
2.5
|
2.16867
|
2.16867
|
2.02247
|
1.95652
|
1.8
|
|
March
|
|
Shangri-La Hotel
|
Monday
|
Tuesday
|
Wednesday
|
Thursday
|
Friday
|
Saturday
|
Sunday
|
|
Occupancy Forecast
|
76
|
79
|
68
|
73
|
80
|
82
|
88
|
|
Occupancy Rate In Dollars
|
175
|
175
|
175
|
175
|
175
|
175
|
175
|
|
Average Daily Rate for March
|
2.30263
|
2.21519
|
2.57353
|
2.39726
|
2.1875
|
2.13415
|
1.98864
|
|
April
|
|
Shangri-La Hotel
|
Monday
|
Tuesday
|
Wednesday
|
Thursday
|
Friday
|
Saturday
|
Sunday
|
|
Occupancy Forecast
|
89
|
89
|
85
|
84
|
88
|
92
|
103
|
|
Occupancy Rate In Dollars
|
185
|
185
|
185
|
185
|
185
|
185
|
185
|
|
Average Daily Rate for April
|
2.07865
|
2.07865
|
2.17647
|
2.20238
|
2.10227
|
2.01087
|
1.79612
|
Pier-One Sydney Harbor
|
January
|
|
Pier-One Sydney Harbor
|
Monday
|
Tuesday
|
Wednesday
|
Thursday
|
Friday
|
Saturday
|
Sunday
|
|
Occupancy Forecast
|
112
|
113
|
110
|
115
|
119
|
124
|
130
|
|
Occupancy Rate In Dollars
|
185
|
185
|
185
|
185
|
185
|
185
|
185
|
|
Average Daily Rate for January
|
1.65179
|
1.63717
|
1.68182
|
1.6087
|
1.55462
|
1.49194
|
1.42308
|
|
March
|
|
Pier-One Sydney Harbor
|
Monday
|
Tuesday
|
Wednesday
|
Thursday
|
Friday
|
Saturday
|
Sunday
|
|
Occupancy Forecast
|
142
|
138
|
133
|
145
|
151
|
157
|
158
|
|
Occupancy Rate In Dollars
|
180
|
180
|
180
|
180
|
180
|
180
|
180
|
|
Average Daily Rate for March
|
1.26761
|
1.30435
|
1.35338
|
1.24138
|
1.19205
|
1.1465
|
1.13924
|
|
April
|
|
Pier-One Sydney Harbor
|
Monday
|
Tuesday
|
Wednesday
|
Thursday
|
Friday
|
Saturday
|
Sunday
|
|
Occupancy Forecast
|
148
|
155
|
153
|
159
|
166
|
161
|
163
|
|
Occupancy Rate In Dollars
|
190
|
190
|
190
|
190
|
190
|
190
|
190
|
|
Average Daily Rate for April
|
1.28378
|
1.22581
|
1.24183
|
1.19497
|
1.14458
|
1.18012
|
1.16564
|
Reference List
Harbour, N. 2017. Novotel Sydney on Darling Harbour | Darling Harbour Hotels. [online] Novoteldarlingharbour.com.au. Available at: https://www.novoteldarlingharbour.com.au/ [Accessed 7 Apr. 2017].
Marriott. 2017. Sydney Harbour Marriott Hotel at Circular Quay. [online] Available at: https://www.marriott.com.au/hotels/travel/sydmc-sydney-harbour-marriott-hotel-at-circular-quay/ [Accessed 7 Apr. 2017].
Pier One Sydney Harbour, Autograph Collection. 2017. Luxury Hotels New South Wales | Pier One Sydney Harbour. [online] Available at: https://www.pieronesydneyharbour.com.au/ [Accessed 7 Apr. 2017].
Shangri-la.com. 2017. Hotel in Sydney - Luxury 5 Star | Shangri-La Hotel. [online] Available at: https://www.shangri-la.com/sydney/shangrila/ [Accessed 7 Apr. 2017].
