Essay: Revenue Yield Management For InterContinental Sydney And Sir Stamford At Circular Quay.

Factors Affecting Revenue and Occupancy Rates

Question:

Compare the Price Movement of the Hotel rates against the rates of the OTA's Web Sites and against each other.

The report deals with the stating the overview of revenue yield management for the understanding of revenue/yield for InterContinental Sydney and Sir Stamford At Circular Quay.  Some of the main form of the discussion of the report has been seen to be included with the various types of the components which have been seen to be associated to the explanation of what was happening in the market at this such as sporting events, holidays, conventions.

InterContinental Sydney

Size – The InterContinental Hotels & Resorts is seen to be situated across more than 60 countries and has a total overall 180 number of hotels. The hotel is further considered as world one of the most major luxury hotel and resort brand (Rosman & Stuhura, 2013).

Market- Jörg is seen to be appointed as a director of the board and responsible for handing the various types of needs of the customers. The hotel has spent more than 70 years in the hospitality industry and the main attraction is seen with an overall collection of luxury rooms and suits with sweeping views in the Sydney Harbour Bridge, Royal Botanic Gardens and Sydney Opera House.

Location- The hotel is observed to be situated in 117 Macquarie Street, Sydney 2000 Australia.

Sir Stamford at Circular Quay

Size - Sir Stamford or the Raffles Hotel is identified as a colonial style luxury hotel, in the year 1887. The total number of suits supporting this hotel in Sydney is depicted as 103. The five-star hotel is further seen to consist of 105 generously sized guest rooms along with 15 hotel luxury suits.

Market- The main operation of the hotel was seen to be started privately owned in Singapore and later on grew investors some other locations. The main market attraction of this hotel has been seen with its location near Sydney Harbour and Sydney Opera House. The majority of the features and seen in types of French opening doors into Ju balconies thereby offering a scenic view of the wonderful city.

Location- The hotel has been seen to be situated in 93 Macquarie Street, Sydney, NSW 2000 Australia (Bashir & Nasir, 2013).

Based on the several types of offering of service it has been seen that recently there is a boom in the growth of Australian sector in Sydney. It has also seen that the competition has increased in the previous year. Several researchers believe that the increasing competition has led to decreased revenue in the hospitality sector. Due to the stable global economic condition the Australian tourism industry has been favourably supported with occupancy rate of more than 68% (Rosman & Stuhura, 2013). The month of November and December is seen as a special attraction to the tourists visiting in Sydney due to Christmas and year ending celebration. More number of customers is seen to be pre-booking hotel rooms due to the occurrence of several types of sporting events in Sydney such as volley fest which is seen to take place between 18^th November to 26^th November. Some of the other types of the main events for the tourist attraction have been seen in terms of Rolex Sydney Hobart yacht race which is scheduled to be held on 26 December 2017 in double Bay and constructed in the waters of Sydney Harbour on the Tasmanian Sea (Alhelalat, 2015).

Comparison of Rates and Availability

Intercontinental, Room Rates for 12th-14th October

The comparison of the rates of both the hotels has been considered with 12th October – 14th October (Week 4) and 2nd November – 4th November (Week 7). (Jones, Hillier, & Comfort, 2016). In the time period of 12.10.2017 to 14.10.2017, there is no such major event observed in Australia, this is identified as a lean month for the travellers. Due to this the rates at Intercontinental Sydney has been discerned to be priced lowest with only $ 307 at the hotel website directly. Among the OTAs there is no booking option available at Wotif.com. This is due to the same reason as there is no such major event in this week. Similarly Booking.com rate is slightly higher with $ 67. It has been further discerned that during the month of September there are few major events such as Family & Community Day (ACT) Queen’s Birthday (WA) and Grand Final Friday, due to which the rates at the hotel and the OTA are considerably high. This is evident with $ 600 for the month of September in the hotel website directly and $ 581 in both the OTAs.

Sir Stamford, Room Rates for 12^th- 14^th October

Sir Stamford at Circular Quay is not able to offer any bookings for accommodation in the beginning of fourth week. This is mainly due to the higher amount of demand from the customers. However, booking.com is able to book hotel rooms at a much higher price of $ 584. Similarly, later in the month of October booking.com is able to book rooms at a charge of $ 531. The rates are slightly higher on booking.com on week 4 due to higher GST and Internet handling charges. It has been further seen due to similar reason the rates at booking.com is higher on 12^th October with an increasing amount of $ 70. The changes in the rates of the hotel among the OTA’s web sites is higher due to the tie-up with various types of travel agencies which is not seen in case of direct booking from the hotel website. It needs to be further discerned that as  there is no such major event observed in Australia during 12^th October to 14^th October there is no availability of the of booking options in website of Sir Stamford at circular quay and Wotif.com. However, if an individual wants he/she can book rooms through Booking.com with a charge of $ 496. This moth is identified as a lean month for the travellers. On comparing the amount with other moths such as 21.09.2017 and 28.09.2017, this rate is considerably lower. This is evident with the high rates of $ 517 in 21.09.2017 from the Sir Stamford hotel website and $ 584 from Booking.com. This is again due to similar reasons for availability of events such as Family & Community Day (ACT) Queen’s Birthday (WA) and Grand Final Friday, due to which the rates at the hotel and the OTA are considerably high. (Mo Kwon et al., 2013).

Impact of Holidays and Events

Intercontinental, Room Rates 2th-4th November

As per the consideration of the room rent it has been discerned that the booking charges at Wotif.com and Booking.com is the same for InterContinental Sydney in 7^th week for booking of Deluxe King Room with Eastern Harbour View. The week seven booking has shown several changes as there is more number of sports events in the month of November than October in Sydney (Jayawardena et al., 2013). However, in the month of November the other travel agencies are not seen to be having any tie-ups with car hire service henceforth, there is no possibility of splitting up the commission amount. This is evident with higher booking charges in wotif.com and booking.com with $ 422.5 and $ 437.5, as compared to only $ 411 in the online website of InterContinental Sydney. The Intercontinental hotel has not seen to available for booking on 02/11/2017, due to no major public, sports or recreational events during this time period. This has been further seen to be evident non availability of any rooms for booking at Intercontinental Sydney. However due to several events in the month of September such as Family & Community Day (ACT) Queen’s Birthday (WA) and Grand Final Friday, the rates are competitive in nature.  In the seventh week the available and the demand of the hotel room has been discerned to be the lowest.

Sir Stamford, Room R/ates 2th-4th November

The seventh week the OTA and the hotel is able to offer similar rates for booking of accommodation you to limited demand for Deluxe King room. This is due to increased competition and presence of holidays and sports event during that month. There have been some major events identified in the month of November, such as Recreation Day celebrated on 6 November 2017 and Melbourne Cup in 7 November 2017. However, there been no such major events during 2th-4th November, due to this Sir Stamford at circular quay is not available for booking. However the competition is stiff during the rest of the months such as October and September, due to available of several major events. Some of the similar amount of the rates has been evident with $ 479, in hotel and OTAs this due to a situation of stiff competition on 21/09/2017. The completion has been seen to be slowed during 28/09/17 and the rates have come down to $ 439.

Conclusion

Researchers have been seen to be of the opinion that the increasing competition has led to decreased revenue in the hospitality sector. Due to the stable global economic condition the Australian tourism industry has been favourably supported with room occupancy rate of more than 68%. The month of November and December is seen as a special attraction to the tourists visiting in Sydney due to Christmas and year ending celebration. The rational for the fluctuations in the rates of OTA and hotel online booking facility is seen with several types of tie-ups with other services such as car hire and travel agency.

References

Alhelalat, J. A. (2015). Hospitality and Non-Hospitality Graduate Skills Between Education and Industry. Journal of Business Studies Quarterly, 6(4), 46–55. Retrieved from https://search.ebscohost.com/login.aspx?direct=true&db=buh&AN=103651138&lang=de&site=ehost-live

Bashir, S., & Nasir, M. (2013). Breach of psychological contract, organizational cynicism and union commitment: A study of hospitality industry in Pakistan. International Journal of Hospitality Management, 34(1), 61–65. https://doi.org/10.1016/j.ijhm.2013.02.004

Jayawardena, C. (Chandi), Pollard, A., Chort, V., Choi, C., & Kibicho, W. (2013). Trends and sustainability in the Canadian tourism and hospitality industry. Worldwide Hospitality and Tourism Themes, 5(2), 132–150. https://doi.org/10.1108/17554211311314164

Jones, P., Hillier, D., & Comfort, D. (2016). Sustainability in the hospitality industry. International Journal of Contemporary Hospitality Management, 28(1), 36–67. https://doi.org/10.1108/IJCHM-11-2014-0572

Mo Kwon, J., Bae, J. (Stephanie), & Blum, S. C. (2013). Mobile applications in the hospitality industry. Journal of Hospitality and Tourism Technology, 4(1), 81–92. https://doi.org/10.1108/17579881311302365

Rosman, R., & Stuhura, K. (2013). The Implications of Social Media on Customer Relationship Management and the Hospitality Industry. Journal of Management Policy & Practice, 14(3), 18–26. Retrieved from https://search.ebscohost.com/login.aspx?direct=true&db=bth&AN=94484542&site=ehost-live%5CnZ:%5CMy Dropbox%5CLiteratur%5CRosman, Stuhura (2013). The Implications of Social Media on Customer Relationship Management and the Hospitality Industry.pdf