Decisions

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What can you do?

In the game you have a number of possibilities to influence your hotel.

• The Team file which you have a private login link to. In this file you present your strategy and the links to your web site and social media. In this file you also do all your explanations of your decisions.
• Your Team finances spreadsheet: only accessible with your private link via your Team file, any hotel has its own. None of this is visible on the platform. In this file each hotel van follow:
  • tab 1 the decisions tab where you fill out your decisions on prices and expenses
    • on this page you have to confirm at decision 14 that your decisions have been accounted for in depth in your Team file.
  • tab 2 the results tab where your hotel finds its results after each year, only after releasing by your coach.
  • tap 3 for additional calculations which can be handy in some cases.
• The social media, websites etc. (on the first page of your Team file there should be links to all your social media and website(s) used)
• Other live actions of your team: sometimes required, like the Trade Fair but maybe also at your own initiative.

We know look at the (financial) decisions you make each year.

Your hotels Team finances

Look at the screenshot below: this is what you will see: your hotels private Team finances.

Your Team finances

This is an example of the spreadsheet as it looks after four years. In this example all of the years are filled out, of course if you start you will only see column, the prologue (the history), filled out and the rest will be empty. The history, filled out with decisions from the past made by Christina Bergman will always be available and is your first point of reference. As you can see she didn't spend anything on the group of costs we now call team decisions on expenses, numbered 07 to 13 in cell B18-B24. They are marked n/a, not available, so not used in the past.

Outlines on decisions

Christina Bergman has decided that she only wants to be informed with the main outlines of your choices. Therefore the number of items you can make decisions on is limited. These decisions need to be filled out in the Team finances spreadsheet and explained by you in your Team file. These decisions form the backbone of your new policy in running the hotel. The historical figures to be found in the Team finances are the so called prologue, so the year before you taken over, so Christina's last year. She did not spend any money on some of the expenditure groups, like marketing expenses. So you will see the indication n/a not available.

Rules on the decisions and further information on their limitations.

- Please take into account that your hotel has 364 days and nights per year (52 weeks * 7 nights)
- the basic occupancy rate of hotel used to be 50%
- the number of rooms in your hotel is 100
- the weekend days are 43% of the total number of nights (rounded-up)
- the weekday days are 57% of the total number of nights (rounded-up)
- the average number of guest in a room is in the weekend days is 1,7
- the average number of guest in a room is during the week days is 1,0
- We completely refrain from (adding) VAT and or other taxes on profit for now
- You cannot change the number of rooms of your hotel
- You cannot sell the property
- The effects of all of your decisions only last for one year!

List of the decisions

An example of a Team finances spreadshet with decisions and results is available at example Team finances team Z01
You can not edit this example. The requested explanations for this demo-team Z01 - not filled out - are to be made in: example team Z01 Team file Underneath you will find the list of financial decisions you will have to make each year. Adapt them to your new plans and strategy each year. On filling them out, remember that (for now) you can only change the cells with a blue background and only in the active year. Do NOT (try to) change other cells and only fill out the year you are supposed to.
Each year, use the decisions 14, the Team file to explain your decisions to Christina and your coaches. Of course your actual decisions go along with these explanations. These are very important and account for the biggest part of your decisions and if they have the effect you hoped for and contribute heavily to your mark. Make especially calculations to justify your choices.

The above situation is the situation as you take over the hotel and shows Christina Bergman's decisions last year. After each year the next column should be filled out by your team, i.e., column D for year one, column E for year two etc. And, only the BLUE highlighted part.

You should change the hotel's name in cell B1 immediately in the first year.

• Ranges

In all decisions made there are a few ranges built in to make it possible for you to make your decisions appropriately and to prevent you from going bankrupt. Running this hotel consists of more than just filling out numbers in a spreadsheet, therefore you have to explain things in the Team file and we encourage you to behave like an entrepreneur throughout the entire game.

• Euros

Only make your decisions in euros, don't use cents or other currency. In filling out the amounts do not use € signs or . or , just use the numbers also no decimals!

• Price systems

You can use psychological pricing, flex prices, dynamic pricing, revenue management or whatever system you want to use in your decisions. The better your explanations in your Team file (and especially your calculations) are, the better your company's results will be, the higher your entrepreneurship mark and so the more customers you get by an higher occupancy rate.

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Team decisions on prices

Example decisions on prices filled out after 4 years in Team finances.

As you can see in the example: if you mouse over the description of the decision (like cell B10 in this example) you will get more information what the decision is all about. You are allowed to fill out the blue cell according to this instruction. You will get a warning in red if you exceed the amounts or fill out something wrongly.

You will have to decide what prices you will charge (per room per night) for hotel's week days or weekend days which serve the two current markets. There is not much information on the past yet. In the pages on room you can read a bit more as well as in the page on prices.

• 1. Weekend last-minute room-price per night
  

In the past (prologue, year0) the average price was € 80. You can change this by a maximum of 20% (more or less) each year. The last-minute price is the minimum price you will accept. The system will automatically allocate a number of guests for this rate.

• 2. Weekend rack rate room-price per night
  

In the past (prologue, year0) the average price was € 100. You can change this by a maximum of 20% (more or less) each year. The rack rate price is the highest price you will get. The system will automatically allocate a number of guests for this rate.

• 3. Weekdays last-minute room-price per night
  

In the past (prologue, year0) the average price was € 100. You can change this by a maximum of 20% (more or less) each year. The last-minute price is the minimum price you will accept. The system will automatically allocate a number of guests for this rate.

• 4. Weekdays rack rate room-price per night
  

In the past (prologue, year0) the average price was € 140. You can change this by a maximum of 20% (more or less) each year. The rack rate price is the highest price you will get. The system will automatically allocate a number of guests for this rate.

You can make a decision on an average room-price. This will not be the price published, that's up to your marketing approach and you can elaborate on that in your explanations. For any price chosen, let's say € 80, it means that there will always be an average of € 10 in there for the breakfast. So in fact you would get an average of € 70 for the room-use.
And, as this is an average, it is of no importance for now or your decisions how many people will stay in the room.
→ Limitations
Do not change any of these four prices by more then 20% each year. This is build in to protect your hotel from too extreme changes.

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The market for banqueting is totally different and separated. Your hotel offers two choices in the type of banqueting offer.

• 5. Banqueting standard price per person per day

In the past (prologue, year0) the average price was € 25. This is automatically linked to the occupancy rate.

• 6. Banqueting premium price per person per day

In the past (prologue, year0) the average price was € 30. This is automatically linked to the occupancy rate.

→ Limitations
Do not change any of these prices by more then 50% each year. This is build in to protect your hotel from too extreme changes.

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Team decisions on expenses

Other things you will have to make decisions upon decisions 07 till 13. On mouse over in the file you'll get more info on these choices. All these decisions bring extra costs compared to the past, as Christina did not spend money on these elements.

Team decisions on expenses in Team finances spreadsheet.

• 7. Marketing expenses

No expenses made on this in the past: n/a means not available.
This is the total spending for all paid marketing actions in the past: maybe this is on the shy-side? There was very little going on at the Emerald Forest Hotel, especially nothing on social media or affiliates and also not in bartering. So probably this is a decisions you can't afford to leave out.
→ Limitations
You can use any amount between € 0 and € 100.000 per year. This is build in to protect your hotel from too extreme changes and costs.

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• 8. Extra staff rewarding expenses

No expenses made on this in the past: n/a means not available.
Apart from the salaries, there were some extra's paid to the staff depending on their sales (if part of their job) or on their performance (others). In addition, sometimes there were special occasions for which something extra was paid.
→ Limitations
You can use any amount between € 0 and € 100,000 per year. This is build in to protect your hotel from too extreme changes and costs.

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• 9. Extra depreciations of investments

No expenses made on this in the past: n/a means not available.
You start off a new company: so, in the past this was € 0. These are the depreciation costs related to your NEWLY planned investments. Check the specific investments page on this. You can only explain expenses, not investments which you probably will make. So be sure to check the page on investments!
→ Limitations
You can use any amount between € 0 and € 250.000 per year. This is build in to protect your hotel from too extreme changes and costs.

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• 10. Environmental expenses

No expenses made on this in the past: n/a means not available.
This are expenses related to clear air, to green energy, to social responsibility, ecological footprint etc. All above the minimum required by legislation.
→ Limitations
You can use any amount between € 0 and € 100,000 per year. This is build in to protect your hotel from too extreme changes and costs.

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• 11. Additional maintenance expenses

No expenses made on this in the past;: n/a mean not available.
As you can see on the footage available the hotel is in need for some additional maintenance in the rooms, facilities etc. Be sure these are not investments, but small items which do not require depreciation systems but will be considered costs directly and totally assigned to the applicable year.
→ Limitations
You can use any amount between € 0 and € 100.000 per year, there is a history on the hotel. You have to explain the amount carefully , check the specific investments page on this.

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• 12. Market research expenses

No expenses made on this in the past: n/a means not available.
These are the cost for buying information from Top Research which will be analyzing the past year and it will be visible, if bought, on your results page after any year.
→ Limitations
You can use chose the amount from the choice box so € 0 buys you no information, € 25.000 buys you for the small package, € 50.000 buys you the medium package and € 75.000 gets you the large package. Make sure you explain very clearly in your explanations why you think buying this will benefit your company. The company Top Research will carry out the research and report to you.

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• 13. Other expenses

No expenses made on this in the past: n/a means not available.
This could be anything apart from the groups mentioned above. So things like supporting the distributions chain, good courses or maybe costs on legal issues and governmental- or city-fees. Maybe contribution to tourist information offices activities.
→ Limitations
You can use any amount between € 0 and € 100.000 per year, remember there is a history on the hotel. This is build in to protect your hotel from too extreme changes and costs.

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Explanations in the Team file

Explanations in Team file.

• 14. Explanations in Team file

Not in use in the past.
Each year you have to explain your latest decisions in your Team file. Only if your are really ready entirely, set the choice box from No to Yes! So the default setting will be No
→ Limitations
You have to explain all of your decisions every year. Be sure only to work in the applicable year!

No decisions or no explanations

If any team fails in delivering the decisions or explanations before the deadline this is a serious problem. This will end in a low entrepreneurship mark and thus jeopardize your gameplay mark. If there is no decisions filled out, the decisions from last year will be filled out, will will have a very bad impact on your occupancy rate.

Costs and results

If a year has passed, you will see the results, only after they have been released. This part is accessible in your Team finances by clicking at the bottom on the "Results" tab. With the costs mentioned above and the revenues made in the past, the results of Emerald Forest Hotel were realized: you can find this in the results. So, if you change the costs (increase the expenses), understand that you have to earn these extra costs back (or your profit will go down rapidly)!

Compensating for the extra expenses or benefiting from them can only be done in a few ways:
- Make costs that -by making them- bring down other costs (for instance, in using ICT, less staff is needed);
- More revenues by choosing higher prices, so a higher profit per sold product;
- More revenues by achieving a higher occupancy-rate, so more sales.

So fill out the decisions and explain clearly what you are aiming for in doing so. Do stick to the deadlines!

All the costs which you have made extra through your decisions will be brought directly to the results of the year you are playing and will be immediately visible there. This will be at the end of each playing year.
Spending the maximum on all possible costs looks like a bad idea! You have to earn back all these expenses, so you will have to make clear choices and keep the profit in mind! So the numbers mentioned are not a gift, nor a budget: it just gives you an indication of the (maximum) possibilities without getting in serious financial trouble. So, if you would decide to spend to the maximum on all options you could have in extra costs (per year):

• decisions 1-6 are no expenses but bring revenues
• decisions 7 maximum € 100.000
• decisions 8 maximum € 100.000
• decisions 9 maximum € 250.000
• decisions 10 maximum € 100.000
• decisions 11 maximum € 100.000
• decisions 12 maximum € 75.000
• decisions 13 maximum € 100.000
• decisions 14 brings no expenses.

The maximum grand total on expenses is € 825.000,-. Keep in mind that the profit in history (the prologue, year0) was € 486.307! To the total costs were € 2.430.595. Creating all expenses will rise the costs by more then 33%! You probably will make a loss now. So think all of the expenses well over and elaborate in the Team file on how your decisions will keep the company healthy.
Once again, these are the maximum and any euro spend you have to earn yourself.

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Emerald Forest Hotel offering an emerald hotel experience! | Run your own hotel in this management simulation.