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| [[Category:Hotel info]] | | [[Category:Info pages]] {{Template:New Skin Box}} |
| ''→ Go! [[:Category:Hotel info]]'' <br> | | ''→ Go! [[Introduction to Hotel]]''</div><br> |
| ''→ Go! [[04LV E-manual]]'' <br>
| | {{Template:New Skin Box}} |
| {{Running competition}} __NOTOC__ __NOEDITSECTION__ | | == Competition in the market == |
| | A way to check the competition is by looking at three types of competition: |
| | * Generic competition (time and money) |
| | How many people travel, and what is their average income? How/where do they usually spend their money? |
| | What are their sentiments? Consumers can only spend their money - and their time - once. Try to use some realistic figures from the real local situation in your country. |
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| In the game we do have two types of competition:
| | * Specific competition (or lodging alternatives). |
| * the commercial competition in the market of your hotel trying to make profit and beating the competitors. More on this on this page.
| | If consumers decide to spend their money on lodging, they can choose to stay in a hotel, a campsite, [https://www.airbnb.com use Airbnb], stay with friends and relatives etc. |
| * the competition in the game. You are playing this game with a build in ranking, a competition as well!. There are two rankings on which you can focus in this game.
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| ** [[Competition on net profit]]
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| ** [[Competition on creativity]]
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| == Competition in the market == __NOEDITSECTION__
| | * Selective competition (with direct competitors) |
| You are playing this game in a competition: all of the teams start with the same history. The main outlines of your tasks in running the hotel are:
| | If consumers choose a hotel, other competitors offering the same product in the same market are the most likely competitors. The competition is now mostly based on ''brand'' and ''product specifications''. We call these the direct competitors. In the city the Emerald Forest Hotel is located in, their are approximately ten other hotels, which the Bergman's consider to be (direct) competitors. <br> |
| * keep the hotel financially healthy, and run it in a profitable way. This does not mean you have to go for maximum profit: you can have other targets as well, as long as you make (acceptable) profit.
| | Of course there are other theories on competition, like [https://www.investopedia.com/terms/p/porter.asp Porter's 5 Forces] or check [https://www.credera.com/blog/management-consulting/seven-favorite-frameworks/ Seven favorite frameworks] or info on a [[Comp set]]. |
| * keep it independent (no joining a big company, no selling the assets or the entire hotel etc.).
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| You will compete with a number of teams for customers in a city. The customers will be "divided" between the 10 competing teams/hotels. The market will develop depending on the actions of all of the hotels in their city. So a market can develop differently in one city, because all of the teams go, for instance, for price-leadership.
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| | In the Game itself, there are also two [[Creativity competition|competitions]], one on creativity and one on profit. |
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| Basic options to grow in [[occupancy rate]] are:
| | == Cooperation == |
| * lure customers away from your competitor
| | Because normal economic competition rules apply, hotels are not allowed to work ''too'' closely with each other on prices; making price-covenants with competitors is forbidden and illegal. It is considered important, that customers have free choice and that there is serious competition. Creating an organisation which covers the interests of several hotels or all hotels (for instance, in a promotion) is a normal thing, and not done yet in the city. This could for instance, be a [http://en.wikipedia.org/wiki/Destination_marketing_organization DMO]. Any serious [[cooperation]] could bring advantages to the hotels teaming up, if there is a legal ground (an agreement) and described obligations and advantages for all parties. Obviously, it will also incur some costs. |
| * the market in your city grows by the teams' activities or it might grow by itself.
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| * have a better adapted offer for the customers (better fulfilling their needs and wants)
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| === Theory on market competition === __NOEDITSECTION__ | | == Secret == |
| A way to check the competition is by looking at three forms of competitions. | | A lot of information on competitors is freely available. Some information should be kept secret not only for the sake of your hotel, but also by law (privacy regulations like [[GDPR]]). Your operating review, as anything in your [[Team file]], is ''for your (hotel) eyes only''. If problems arise, you could [[Accusation|accuse]] another hotel of an illegal act, or for that matter, be accused. You could get [[Fine|a fine]] related to (for instance) legal issues or, for that matter, [[Bonus|bonuses]]. <br> |
| * Generic competition on time and money.
| | <br> |
| How many people travel, what, its the average income? What, on an average, do they spend their income on?
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| What are the consumer's sentiments? Consumers can only spend their money - and their time -once. Try to use some realistic figures from you real local situation.
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| * Specific competition on alternatives.
| | ''→ Go! Following the Introduction to the Hotel? Step 5/10 is the [[City| City page, click here]]''<br> |
| If they decide to spend their money on leisure, they can choose to stay in a hotel, a campsite, with friends and relatives etc. Try to use some realistic figures from your real local situation.
| | <hr></div><br> |
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| * Selective competition with your direct competitors: so the consumers choice for a brand.
| | {{Footer}} |
| If they opt for a hotel, the other competitor offering practically the same products
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| are the most likely competitor. The competition is now mostly based on brand and product specifications.
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| === Together ===__NOEDITSECTION__
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| As the normal economic competition rules apply to your [[city]], you are not allowed to work too close together on prices: making price-covenants with competitors is forbidden. Creating an organization which covers the interests of several hotels or of all of the hotels (for instance, in a promotion) is allowed. This could be a [http://en.wikipedia.org/wiki/Destination_marketing_organization DMO]. Any serious cooperation could bring advantages to the partners if there was a serious ground (an agreement) and described obligations and advantages for all parties.
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| It is important is that the customers have to have a free choice.
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| === Secret === __NOEDITSECTION__
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| A lot of information on your competitors is available to be gathered freely. Some information should be kept secret not only for the sake of your hotel, but also by law. If problems arise you could [[Accusation|accuse]] another hotel of an illegal action, or for that matter, get accused f. Coaches could also give you [[Fine|a fine]] related to (for instance) legal issues or, for that matter, [[Bonus|bonuses]] .
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| === Same choices === __NOEDITSECTION__
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| You might find out that some of the competitors have the same plans as you have: well, welcome to the real world: that’s life!! The same goes for logos and hotel-names, though this might make things complicated for the guests. You can get some of this information from the market (at the [[Trade Fair]] and during the game). You can adapt to these findings: if this concerns your [[name]] and [[logo]], this is tricky and expensive (if done do so before year 1). If it means your strategy, adapt it over slowly, otherwise customers will not understand what you stand for.
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| === Self-defeating prophecy === __NOEDITSECTION__
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| Very much related to the [[prisoners dilemma|prisoner's dilemma]], we would like to explain an interesting problem in the market. As in reality, you do not know in advance what your competitors are going to aim for. So if market research shows that the leisure market will grow, this will almost certainly happen. But if this market grows just by 5% and all of the hotels anticipate this development, there will far too many hotel rooms contracted to this market and the average occupancy rate will drop (even though the market has grown)! <br>
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| This could also mean that other markets -which did not seem too interesting before- become very interesting. This situation is very realistic and means that you can react in what is called an anti-cyclical way: you are acting in the opposite way to that suggested, because you are anticipating how you think ''your competitors'' will react.
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| This also means that it is a good idea to keep your decisions to yourselves.
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| == Competitions in the game == __NOEDITSECTION__
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| There are two competitions in the game which each run separately in any city. The first one is
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| * the [[Competition on net profit|Competition on net profit]], the second one is
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| * the [[Competition on creativity| Competition on creativity]].
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| All teams will automatically be participating in both of these competitions, and you a top three will be ranked in both by your results, plans, behaviour and all of your work.
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| As you will understand a competition like the one we are playing means there can only be one number one, and there will always be seven teams outside of the top three at any time. This does not mean that being outside the top three mans these teams are doing a bad job. Sticking to your strategy is the most important thing: having a high ranking on profit is just a nice ''topping'' or an extra. It is hard for you (and partly even for us) to directly influence this, keep that in mind. The competition on <br>
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| ''→ Go! Following the e-Manual? Step five is the page [[Names|Names, click here]]''
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| <hr>
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| ''→ GO! [[#Top|Go to the top of this page]]
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Competition in the market
A way to check the competition is by looking at three types of competition:
- Generic competition (time and money)
How many people travel, and what is their average income? How/where do they usually spend their money?
What are their sentiments? Consumers can only spend their money - and their time - once. Try to use some realistic figures from the real local situation in your country.
- Specific competition (or lodging alternatives).
If consumers decide to spend their money on lodging, they can choose to stay in a hotel, a campsite, use Airbnb, stay with friends and relatives etc.
- Selective competition (with direct competitors)
If consumers choose a hotel, other competitors offering the same product in the same market are the most likely competitors. The competition is now mostly based on brand and product specifications. We call these the direct competitors. In the city the Emerald Forest Hotel is located in, their are approximately ten other hotels, which the Bergman's consider to be (direct) competitors.
Of course there are other theories on competition, like Porter's 5 Forces or check Seven favorite frameworks or info on a Comp set.
In the Game itself, there are also two competitions, one on creativity and one on profit.
Cooperation
Because normal economic competition rules apply, hotels are not allowed to work too closely with each other on prices; making price-covenants with competitors is forbidden and illegal. It is considered important, that customers have free choice and that there is serious competition. Creating an organisation which covers the interests of several hotels or all hotels (for instance, in a promotion) is a normal thing, and not done yet in the city. This could for instance, be a DMO. Any serious cooperation could bring advantages to the hotels teaming up, if there is a legal ground (an agreement) and described obligations and advantages for all parties. Obviously, it will also incur some costs.
Secret
A lot of information on competitors is freely available. Some information should be kept secret not only for the sake of your hotel, but also by law (privacy regulations like GDPR). Your operating review, as anything in your Team file, is for your (hotel) eyes only. If problems arise, you could accuse another hotel of an illegal act, or for that matter, be accused. You could get a fine related to (for instance) legal issues or, for that matter, bonuses.
→ Go! Following the Introduction to the Hotel? Step 5/10 is the City page, click here
→ GO! Top of this page
. . . Emerald Forest Hotel offer an emerald hotel experience! Run your own hotel in this management simulation . . .
