Competition on net profit

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Competitions

In the game, there are two types of competition:

• Competition on net profit: your entrepreneurial achievement, reflected in net profit, added up over the years.
• Competition on creativity: based on how your creativity is assessed by your coach. The more points you get, the higher your hotel's rank in this competition.

Every team will always automatically participate in both game competitions.

How is the ranking done?

Your coach each round evaluates your entrepreneurial assignment: this mark highly influences the algorithm that decides on the occupancy rate of your hotel. The higher the occupancy rate, the more rooms are booked. Now the automated system will create (using benchmarks) your revenues (depending on the prices you chose). The system also automatically calculates the related costs: some fixed, some related to this occupancy, some of your own choice. Your will see your net profit per round; this profit decides on your ranking in the competition.
So, the better your explanation on your prices and chosen costs, the better your assignment, the better your coach will grade you. You will not see this, but the effect, combined with all things above, results in the profit and the profit competition ranking.

Do you have to compete?

A competition is fun, but some teams choose to run their hotel in a proper way without caring too much about the competition, which is just fine! You can end the management game and earn your study points (ECTS) without winning any competition as long as you meet the requirements set for our Game. Logically, the teams scoring high profits are likely to have had their assignments evaluated better. So good assignments contribute to your ranking, but a bad ranking doesn't have to be bad news for your evaluation. Beware that there is also some luck and the link to the strategy. Your hotel might have a very good explanation on the profit or is even aiming less at profit.
Your evaluation of the total of the game depends on your assignments: a most important thing in this is consistency, living up to your strategy. This is evaluated by the marks you get for the assignments.

But if you are really into competing on net profit, you can do this be trying to make the most net profit or by concentrating on others aspects of the hotel. As stated, your task is to keep (make) the hotel financially healthy and to keep it independent.

Competition on net profit

The competition on profit means that a ranking is made every operational year in each city individually. Of course, you are not alone! If all teams are very creative, you have to be even more creative to be outstanding and to attract the customer in this way (see the page on competition)! The competition on net profit is based on your entrepreneurial skills, which is reflected int your net profit. This profit will be added up profit over all the years that have been played ('all of the years', cumulative). This realized total net profit is stated in your Key metrics, only visible to your team.

This means that you can have a very good operating result in year 1, and a less successful but still acceptable year 2. This could mean that your overall position in the ranking on net profit might not benefit that much because of the second year's result, but still you good stay number one overall due to the good results of year 1. This also goes the other way around: with just one year with a high net profit, a hotel can climb several places in the total ranking.

Tips on how to do well this competition

As stated, the quality of your assignments, decisions and explanations has a big influence on the occupancy rate you get allocated that year.
When you look at the operating review, private to your own company, you can on the financial management-side basically do two things to get a higher net profit with a specific occupancy rate  ;

• trying to get more revenues by
  • selling more
  • selling at higher prices
    

or:

• reducing the costs
  

There are all kinds of financial and economic logics in this. You can sell more by - selling more to new customers or
- selling more to 'old' customers
- upgrade the sales of existing customers
- less costs

You can try to reduce costs, but this will have its effect on the hotel and on its customers. So, the question is: will the savings you make on the costs outweigh the loss of revenues? And how about your customers, staff and general image?

Spending more has to be 'earned back' by additional revenues. Do additional costs bring enough extra revenues to take this risk and does it eventually add up to your profit?

You are not alone out there; there are a lot of competitors (see the page on competition)! So the basic idea is that you don't go over their top with your decisions (and costs).

In your competition 29NL we do not focus on this, makes the assignments but the knowledge from above might come handy.

Overall winners on net profit of this game

When all of the hotels have finished their competition there will be one winner per city

• on net profit: the team with the highest net profits reserve after all of the four rounds
• on creativity: the highest average creativity points after all of the four rounds

In the final week we there will also be a overall winner in both categories, out of the total of all of the cities!

File:Jv medals 1.jpg

→ Go! Following the Introduction Game play? Step 8/10 is the page Competition on creativity

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