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{{Running competition}}
{{Running competition}}
== Size of the market ==__NOEDITSECTION__
== Size of the market ==__NOEDITSECTION__
There is [[overcapacity]] in the hotel market, which makes it hard to reach [[occupancy rate]]s above 80% during weekdays. But for any
There is [[overcapacity]] in the hotel market, which makes it hard to reach [[occupancy rate]]s above 60% during weekdays. It is not clear whether this is due to the demand side of the supply side. But, for any
individual hotel there is enough demand in the market to get the hotel profitably occupied during both weekdays and weekends.
individual hotel there is enough demand in the market to get the hotel profitably occupied during both weekdays and weekends.


== Sales prices ==__NOEDITSECTION__
== Sales prices ==__NOEDITSECTION__
Revenues comprises the average (sales) prices times the number of bookings.
Revenues comprises the average (sales) prices times the number of bookings.
A maximum occupancy rate would mean that all 100 rooms are occupied during all of the weeks, so 52 weeks *
A maximum occupancy rate would mean that all 100 rooms are occupied during all of the weekdays, so 52 weeks x 100 rooms x 4 days. Also, check the page for information on the [[leisure targetgroup]] which will mainly be the guests on the weekends. Weekdays account for 4 of the seven weekdays and this means (rounded up) 57% of the total of all available hotel nights (see [[occupancy rate]]).
100 rooms. Also, check the page for information on the [[leisure targetgroup]] which will mainly be the guests on the weekends.


Prices during weekdays (especially interesting for business guests) in the past were ranging from € 100 to € 140 maximum per room per night including breakfast.  
Prices during weekdays (especially interesting for business guests) in the past were ranging from € 100 to € 140 maximum per room per night, including breakfast.  
* the € 100 price has been the last-minute price during the weekdays.
* the € 100 price has been the last-minute price during the weekdays.
* the € 140 price has been the [https://www.xotels.com/en/glossary/rack-rate rack rate] price during the weekdays. The (highest) published price with no discounts, no special deals or commissions. <br>
* the € 140 price has been the [https://www.xotels.com/en/glossary/rack-rate rack rate] price during the weekdays. The (highest) published price with no discounts, no special deals or commissions. <br>
On the page [[occupancy rate]] the revenues have been calculated.You can also find the numbers in the {{operating review]].


The business target group will be of importance during the [[weekdays]]: so Monday to Thursday night (4 nights per week). Thus, the weekdays make up 4/7 of the total days, so around 57% of all days. <br>
== Type of customers ==__NOEDITSECTION__
During weekdays the rooms will be occupied by 1 person only. The total number of available nights during the weekdays is 100 rooms for 365 days and with 4/7 part weekdays, so about 57% is a maximum of 20,748 room nights available on weekdays. <br>
There is no specific information on the type of customers: we do know the business people mainly book on the weekends. The hotel has always in the first place been aiming at the business target groups and in the second place on the leisure guests. The type of customers attracted so far is an average of the business target groups. The average room occupation during the weekdays (due to the business guests) is 1.0 per room. Business guests tend to have a single use of rooms.
The occupancy rate has been 50% over the years, so 10,374 weekdays are occupied as you take over, at an average price of ((€ 100 + € 140)/2) € 120 so € 1,244,880. This is the revenue from renting out the rooms only. There are additional revenues from food & beverage and other revenues linked to the room's occupancy.<br>


As you take over in Year 0 and there is a total of 10 hotels in your city, altogether the demand for weekdays rooms was 10 hotels x 10,374 = 107,740. After all of your decisions and the decisions of your competitors, this demand will never be exactly the same in the years when you run the hotel. It depends on many of your decisions. But keep a close look at this benchmark!
== Guest nights == __NOEDITSECTION__
The last numbers of the hotel show 50% occupancy rate during weekdays: so out of the possible 20,800 room nights 10,374 room night are sold. So an occupancy rate of the rooms of 50%. This will bring the number of guest nights at this moment at 10,374 x 1,0 = 10,374. So on an average in the last recorded year 10,374 guest nights have been recorded.


== Maximum in this target group == __NOEDITSECTION__
== Total guest night ==
The maximum number of hotel nights to be sold during the weekdays would be: 4 out of 7 nights so 57%: <br>
* weekends days 13,304 guest nights: 56% of all guest nights
364 days x 100 rooms x 57% so 20,748. At an average price of € 120 and 100% occupancy, this means a maximum of € 2,489,760 revenues on renting out the weekdays, mainly aiming at the business target group. The occupancy rate was 50% so the revenues from the weekdays, as you take over are € 1,244,880.<br>
* weekdays 10,374 guest nights: 44% of all guest nights
As shown by ([http://epp.eurostat.ec.europa.eu/statistics_explained/index.php/Tourism_statistics_-_occupancy_rates_in_hotels_and_similar_establishments experiences in the market]) even 50% is rather high on an average during a year. Keep that in mind! Of course, the price is the other factor influencing the revenues.
* Total 23,678 guest nights: 100%


This information gives an indication of the maximum growth. Of course, things change if you have a higher occupancy rate AND a higher sales price.<br>
== Total revenues ==
So making additional costs (next to the fixed ones and the variable ones you can't avoid) this just calculated maximum gives you an indication of what you could make on extra costs which still could be earned back. Or, even better, lead to more profit.
* weekends days € 704,340 revenues: 36% of total revenues from rooms
 
* weekdays € 1,244,880 revenues: 64% of total revenues from rooms
== Type of customers ==__NOEDITSECTION__
* Total € 1,949,220 revenues: 100% of total revenues from rooms
There is no specific information on the type of customers: we do know the business people mainly book on the weekends. The hotel has always in the first place been aiming at the business target groups and in the second place on the leisure guests. The type of customers attracted so far is an average of the business target groups. The average room occupation during the weekdays (due to the business guests) is 1.0 per room. Business guests tend to have a single use of rooms.
Highest revenues from the business guests.


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Revision as of 15:27, 30 December 2019

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Size of the market

There is overcapacity in the hotel market, which makes it hard to reach occupancy rates above 60% during weekdays. It is not clear whether this is due to the demand side of the supply side. But, for any individual hotel there is enough demand in the market to get the hotel profitably occupied during both weekdays and weekends.

Sales prices

Revenues comprises the average (sales) prices times the number of bookings. A maximum occupancy rate would mean that all 100 rooms are occupied during all of the weekdays, so 52 weeks x 100 rooms x 4 days. Also, check the page for information on the leisure targetgroup which will mainly be the guests on the weekends. Weekdays account for 4 of the seven weekdays and this means (rounded up) 57% of the total of all available hotel nights (see occupancy rate).

Prices during weekdays (especially interesting for business guests) in the past were ranging from € 100 to € 140 maximum per room per night, including breakfast.

  • the € 100 price has been the last-minute price during the weekdays.
  • the € 140 price has been the rack rate price during the weekdays. The (highest) published price with no discounts, no special deals or commissions.

On the page occupancy rate the revenues have been calculated.You can also find the numbers in the {{operating review]].

Type of customers

There is no specific information on the type of customers: we do know the business people mainly book on the weekends. The hotel has always in the first place been aiming at the business target groups and in the second place on the leisure guests. The type of customers attracted so far is an average of the business target groups. The average room occupation during the weekdays (due to the business guests) is 1.0 per room. Business guests tend to have a single use of rooms.

Guest nights

The last numbers of the hotel show 50% occupancy rate during weekdays: so out of the possible 20,800 room nights 10,374 room night are sold. So an occupancy rate of the rooms of 50%. This will bring the number of guest nights at this moment at 10,374 x 1,0 = 10,374. So on an average in the last recorded year 10,374 guest nights have been recorded.

Total guest night

  • weekends days 13,304 guest nights: 56% of all guest nights
  • weekdays 10,374 guest nights: 44% of all guest nights
  • Total 23,678 guest nights: 100%

Total revenues

  • weekends days € 704,340 revenues: 36% of total revenues from rooms
  • weekdays € 1,244,880 revenues: 64% of total revenues from rooms
  • Total € 1,949,220 revenues: 100% of total revenues from rooms

Highest revenues from the business guests.


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