Market Performance Index: Evaluating Hotel Performance and Maximizing Revenue

Market Analysis and Competitor Environment

Reflecting on the Market Performance Index (MPI), Average rate Index (ARI) and the Revenue Generation Index (RGI), evaluate your hotel’s performance against the selected competitors.

• Propose at least three (3) rate management tactics to support the improvement of the hotel’s competitive position and maximise revenue.

• Outline at least three (3) strategies that the Revenue Manager would need to enact to support the successful execution of the proposed tactics.

The success of any Revenue Manager is measured in many ways and being able to analyze data and develop strategies for improvement is one of them. As part of any good Revenue Managers role, they need to be able to analyze data, develop strategies and communicate these strategies to colleagues. Being able to effectively communicate strategies to colleagues and other industry bodies is a necessary requirement of a successful Revenue Manager. As such, gatherings and meetings to discuss strategies are a common occurrence in the hospitality and tourism industries. This assessment is aimed at consolidating the knowledge from Modules 1, 2, 3, 4. It supports students in developing their skills in research, knowledge of the distribution systems and revenue management in tourism and hospitality industries.

Students are to assume the role of a Revenue Manager for William Blue Hotel, a major 5-star hotel in an Australian state capital city of your choice. You have been tasked with analysing last month’s performance and developing strategies to improve future performance. Using the data provided in the STR report (see below), you are required to:

• Summarise the current occupancy, average daily rate and RevPartrendsfor your hotel from the data provided.

• Briefly analyse the market/competitor environment (based on the city selected).

• Provide a brief overview of three (3) potential competitors for the hotel (based on the city).

• Reflecting on the Market Performance Index (MPI), Average rate Index (ARI) and the Revenue Generation Index (RGI), evaluate your hotel’s performance against the selected competitors.

• Propose at least three (3) rate management tactics to support the improvement of the hotel’s competitive position and maximise revenue.

• Outline at least three (3) strategies that the Revenue Manager would need to enact to support the successful execution of the proposed tactics.

Students should submit the Decision-Making Simulation and Analysis via the Assessment link in the main navigation menu in Product Distribution and Revenue Management on the learning portal. The Learning Facilitator will provide feedback via Grade Centre in the learning portal. Feedback can be viewed in My Grades.

1. Students should make significant references to the subject material and substantial wider reading. A minimum two (2) academic (books & peer-reviewed journal articles) & two (2) other sources (newspaper article, trade publications, websites, etc.) must be used. These should be referenced in the APA style, both in-text and in a reference list. References to ‘Wikipedia’ or similar unsubstantiated sources will not be accepted.

2. The assignment is to include in-text citations and a reference list following the latest APA referencing style. The APA referencing guide can be located in the Academic Skills resource in the learning portal.

3. Extensions cannot be granted by the lecturer after the submission date. In the event of serious illness or unusual circumstances, a student may apply for Special Consideration in accordance with the rules and regulations governing this application, but it is important that such requests be made as soon as the circumstance is known.