RevSim can be a very valuable tool if used correctly. While there are a few different modules with this program, we will focus on forecasting, rates, and channel management. This weeks assignment is an individual assignment in which you gather forecasting and rate information based on the data provided.
Start by reviewing the attached PowerPoint and completeing the attached worksheet.
HOSP3077 Revenue
Management
Revenue Simulation
In this simulation, each team
is a hotel. There are seven,
300 room hotels in your
competitive set. In essence,
you are competing with the
other 6 teams.
The goal of the revenue simulation is simple, beat the competition. This is
done by carefully forecasting the rooms sold and determining the
appropriate rates for each segment. In this simulation you will be scored
on Market Share and RevPAR.
The segments are different then the ones discussed in
class. While we are committed to using industry
standards, there are still organizations that are
somewhat rouge.
Rate Segments per Uniform System
of Accounts for the Lodging Industry
Transient
Retail
Discount
Negotiated
Qualified
Wholesale
Group
Corporate
Association/Convention
Government
Tour/Wholesalers
SMERF
Rate Segments used for
RevSim
Premium
Bar Standard
Package
Guaranteed
Qualified
Contract
Tour
Large Group
Small Group
The following steps are to used for the first
assignment
Log-in using the URL and Leader Access Code that is provided
Each team member needs to login and go to the information
tab. This tab contains the necessary reports to make
informative decisions. The reports you want to open and save
are:
•
•
•
•
Property Description
Net Room Rates – Last Year
Occupancy and Market Mix
Channel Demand and Transaction Costs
Rooms Available per Day
Weekday Rooms (23 X B1)
Weekend Rooms (8 X B1)
Total Rooms Available: January
Complete the Rooms Tab on the RevSim
worksheet. Use the Occupancy and
Market Mix Report to calculate room
totals per segment. You need to make a
decision as to what percentages to use
from the report.
300
0
Weekend/Weekday Occupancies (prior year)
Weekday Occupancy
Weekend Occupancy
Total Occupancy
%
Market Segment Mix Weekday (prior year)
Premium
Bar Standard
Package
Guaranteed
Qualified
Contract
Tour
Large Group
Small Group
Totals
Market Segment Mix Weekend (prior year)
Premium
Bar Standard
Package
Guaranteed
Qualified
Contract
Tour
Large Group
Small Group
Totals
%
Rooms
#VALUE!
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Rooms
#VALUE!
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#VALUE!
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#VALUE!
#VALUE!
#VALUE!
0% #VALUE!
%
Rooms
#VALUE!
#VALUE!
#VALUE!
#VALUE!
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#VALUE!
#VALUE!
#VALUE!
0% #VALUE!
Premium
Bar Standard
Package
Guaranteed
Qualified
Contract
Tour
Large Group
Small Group
Complete the Rate Tab on the RevSim worksheet. You want to
use the Net Room Rates – Last Year report. You need to
make a decision as to what rates to use from the report. You
can also increase / decrease rates at your discretion.
Direct
Premium
Bar Standard
Package
Guaranteed
Qualified
Contract
Tour
Large Group
Small Group
Use the Channel Management report and complete the
Channel Management Tab on the RevSim worksheet.
GDS
OTA
Rooms Available per Day
Weekday Rooms (23 X B1)
Weekend Rooms (8 X B1)
Total Rooms Available: January
300
171
156
327
Weekend/Weekday Occupancies (prior year)
Weekday Occupancy
Weekend Occupancy
Total Occupancy
%
57%
52%
55%
Rooms
97
81
180
Market Segment Mix Weekday (prior year)
Premium
Bar Standard
Package
Guaranteed
Qualified
Contract
Tour
Large Group
Small Group
Totals
Market Segment Mix Weekend (prior year)
Premium
Bar Standard
Package
Guaranteed
Qualified
Contract
Tour
Large Group
Small Group
Totals
%
Rooms
0
0
0
0
0
0
0
0
0
0
0%
%
Rooms
0%
0
0
0
0
0
0
0
0
0
0
Premium
Bar Standard
Package
Guaranteed
Qualified
Contract
Tour
Large Group
Small Group
Direct
Premium
Bar Standard
Package
Guaranteed
Qualified
Contract
Tour
Large Group
Small Group
GDS
OTA
PROPERTY DESCRIPTION
MARKET PROFILE








Lead line: “…restore yourself at the city center of culture and heritage.â€Â
Market Image: Unpretentious luxury and charm, integrating the best in technology and comfort.
8 years old
Book value: Building $49M + FFE $9M = $58M or $197K per room.
Full service
City Center – waterfront site
4 Star
Servicing business, leisure, tour, contract, large group, and small group segments
FACILITIES





300 guest rooms: 50 premium and 250 standard
One restaurant – 125 seats with adjoining 50-seat bar lounge section
2,000 square feet of conference and event space in flexible configurations for up to 200 persons
Exercise room
Small pool and outdoor recreation area.
SERVICES





For-fee parking ramp
Digital national and international telephone service
Guest laundry and dry cleaning
Guest room digital entertainment
Room Service
REFURBISHMENT
With the exception of general upkeep and maintenance, the hotel facilities have not been refurbished
since opening. The refurbishment planned for two years ago had to be postponed due to the softening
economy and subsequent lack of funds.
NET RATES
Net Rates were soft last year due to general economic conditions and deferred maintenance on
the property. Improving economic conditions and increased capital investment should support
higher room rates.
Last Year Net Rate Summary (rounded)
Quarter 1
Quarter 2
Quarter 3
Quarter 4
(Est.)
Premium
180
190
210
190
Bar Standard
150
160
180
160
Package
200
210
230
210
Guaranteed
130
140
160
140
Qualified
130
140
160
140
Contract
130
140
150
140
Tour
120
150
150
130
Large Group
120
150
150
150
Small Group
130
140
160
140
ADR
Gross Price Points and Limits
The following price points and limits are expected as the economy rebounds. The best rate
strategy is the one that produces the highest departmental profit. Generally, higher rates reduce
occupancy but increase profit, but only to a point. When rates approach the price point limit in the
market, occupancy can drop dramatically to the point that profit is severely affected. There would
probably be no occupancy at the price limit.
Room
Type
Maximize
OCCUPANCY
Strategy
Maximize
RATE
Strategy
Price
LIMIT
Premium
175-229
230 – 349
350
Standard
150-194
195-299
300
Discounted
120-164
165-249
250
OCCUPANCY AND MARKET MIX
Area occupancies were lower this year than the previous year. However, the market segment mix and
weekday-to-weekend ratios remained similar to previous years.
Weekends include two nights: Friday and Saturday
Occupancy
Quarter 1
Quarter 2
Quarter 3
Quarter 4 (Est.)
Total
Weekday Occupancy %
48
58
69
52
57
Weekend Occupancy %
45
55
65
43
52
Total Occupancy %
47
57
68
49
55
Market Segment Mix
Quarter 1
Quarter 2
Quarter 3
Quarter 4
(Est.)
Premium
8
12
12
11
Bar Standard
30
26
23
28
Package
10
9
8
10
Guaranteed
10
10
8
12
Qualified
9
9
9
9
Contract
8
8
8
8
Tour
5
8
16
7
Large Group
11
11
6
8
Small Group
9
7
10
7
100
100
100
100
Premium
5
5
5
5
Bar Standard
26
26
29
26
Package
8
8
8
8
Guaranteed
8
8
12
10
Qualified
8
8
7
7
WEEKDAY: %
TOTAL WEEKDAY %
WEEKEND: %
Contract
8
8
8
8
Tour
12
14
16
13
Large Group
11
11
6
11
Small Group
14
12
9
12
100
100
100
100
TOTAL WEEKEND %
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