Tourism and Hospitality Revenue Management. price please
A2: Assessment Details Assessment details Due date: 21st September, Week 9 @ 23:59pm Worth: 30% Style of assessment: Report style Max. Word Limit: 2000 words. Excluding calculations for part 2.1, which is not included in the total word count. Submission: Your written report will be submitted via L@G through the assessment submission link. Marking: Your assignment is assessed based on understanding of key concepts and its applications in the context of each part. Hurdle Statement All students are required to complete the electronic coversheet as well as participate with equal efforts in this task. Academic Integrity Be aware that the lack of the coversheet submission leads to a deduction of 10% of the total report mark per day. About the Task All tasks are based on the fundamental, theoretical and conceptional learning in this course. You will work on a major project of preparing an analysis and assessment of the revenue management practice established by an allocated hotel. Hint 1. Show the workings for part 2.1. 2. Use appropriate referencing of primary resources[footnoteRef:1], where possible. [1: A primary resource refers to the original source and not a source which provides a summary of a primary source. ] Important Note – Extensions: If you have compelling circumstances you will need to apply for an extension by emailing me with valid reasons and documentation before the due date. Important Note – Late Submissions: As per university policy for late assignment without prior approval: - 10% (i.e. 1.5 marks) for every 24 hours that the assignment is late (not including weekends). - A 100% penalty applies after 5 working days. Formatting of word document. Format: Times New Romans Line Spacing: 1.5 Margins: 1cm (left) 3 cm (right) 2.5 (top and bottom) 7252THS A2 Individual Assessment Hotel Revenue Management Practise Analysis Reference style: APA 6 | Page Task Description Revenue Management strategies include a wide range of opportunities to increase revenue in all the departments of the hotel. The hotel can utilise the different concepts to maximise and optimise revenues; however, not all can be used at the same time. Some of the concepts of the RM practices relate to pricing, inventory, marketing and distribution channels. Your task is to identify the current industry trends affecting the successful implementation of revenue management strategies and tactics in the global and Australian hotel industry. From the macro-perspective, it is crucial to include these opportunities and threats into effective revenue management practices for the individual business and property. Hence, you are required to analyse and assess the RM performance of a specific property based on the theoretical concepts discussed in class and your observation from the publicly available information of the group and property level. Everyone in your group is allocated to a specific hotel as seen under your group link. Please ensure to contact me in case of any changes you may agreed on in your group. Hotel Cases: Case 3 Cairns Shangri-La Hotel The Marina Cairns http://www.shangri-la.com/cairns/shangrila/ 1. Revenue Management 1. Discuss reasons and the purpose of establishing an effective Revenue Management system in the hotel industry. 2. Identify current trends within the industry, which may pose opportunities and/or threats to the revenue growth and management within the whole hotel industry. 3. Comment on the following statement: “AirBnB as main disruptor within the industry will replace the traditional hotel”. Ensure to incorporate RM related concepts to support your argument. 2. Hotel Analysis 2.1 Group Level Analysis: 1. Use the STR data and the hotel’s group data provided in the Appendix 1 & 2 to assess the whole hotel group’s current, relative RM performance in the market and national comparison. Calculate the market penetration index and comment on the hotel group’s comparative performance. 2. Are there any issues with using the national and market average STR data or the group data for a valid comparison with the competitive set? 3. Identify any current or future initiatives on the corporate group level, which may affect the effectiveness of revenue management strategies on the individual property level[footnoteRef:2]. [2: Hint: The strategic outlook and goals may pose significant opportunities to facilitate and expand the implementation of effective RM practices on the individual property level. ] 2.2 Property Level Analysis 1. As revenue management varies by the property and other characteristics, identify the following information of your property as starting point of your revenue management analysis, and outline the different departments which are potential sources of revenue generation for the hotel under investigation. Number of Rooms Under 100, 100-250, 251 – 500 , over 500 Ownership Branded or independent Type of Property Full-service, limited-service, convention/ conference, Resort Location City center, smaller center, Suburban, Airport Hotel/Resort Name Address Hotel Web site 2. Discuss, whether the regional area of operation of your hotel is undergoing significant trend changes regarding the MLoS, change in market segments, arrivals from specific countries and new supply of accommodation. During the analysis it was felt that the hotel has included many pricing strategies and tactics across departments. Using the publicly available and accessible information, analyse, assess and evaluate the property specific revenue management strategy and tactics established in the operations. 3. Identify the foundation pf the RM strategy implementation of your property. a) Review market segment mix and focus, as well as seasonal changes. b) Assess the pricing position in the immediate competitive environment (1 -2 competitors for comparison purposes is sufficient). 4. Assess the RM strategies and tools, the hotel applied to its products, services, trading periods and market segments based on your observations through the group and property website, and other booking sites. Ensure to relate your observations to the underlying theoretical concepts. Analyse main aspects of the RM decision-making framework the revenue managers of your property considered when implementing strategic and tactical revenue management practices: a) Room-related Pricing Structure/Tools b) Inventory Control/Management Strategies related to different room types c) Distribution Channel Strategies i. Global distribution systems ii. Proprietary website/ direct channel (Promotions) iii. Third party channel management d) Non-room related services and packages Note: 1. Ensure to address the existing loyalty programs and their role in the RM strategy. 2. To assist you in unveiling some of the underlying tactics, the analysis of the hotel’s booking strategies around future major events in the area within the coming year assists your endeavour. Examples could be around national holidays, such as Australia day, Christmas, Easter, ANZAC day, Queen’s birthday[footnoteRef:3] , New Year’s Eve; or reginal events, such as Grand Finale Friday and Melbourne Cup, Sydney Festival and Mardigras, Great Barrier Reef Master Games and Cairns Show. [3: The date differs between NSW and Qld. ] 2.3 Conclusion: 5. If you assumed the regional penetration indices applied to your property, evaluate the effectiveness of the current RM strategy and identify potential recommendation for improvements. Appendix App. 1 STR National and Market Data Dec 2017 (Rolling annual) Occupancy Average daily rate (ADR) (denominated in USD) Revenue per available room (RevPAR) (denominated in USD) Australia (national wide) 76.2% +0.9% $ 149.62 +1.8% $ 114.01 +2.8% Markets Melbourne 83.1% -0.6% $ 148.82 +0.6% $ 123.67 +/- 0.0% Sydney 85.9% +1.1% $ 184.02 +4.7% $ 158.08 +5.9% Cairns 84.8% +1.8% $ 120.82 +7.6% $ 102.45 +9.5% Gold Coast 71.6% -1.3% $ 150.42 +1.3% $ 107.70 +/- 0.0% Source: CBRE Research, STR, Q4 2017 NOTE: Due to reason of comparison of the STR data to the annual reports, all AU$ denominated ADR & RevPar quoted by the STR are converted into AUD based on the spot rate on the 31th Dec. 2017 (AUD/USD close:0.8001). App. 2 Hotel Group Operational Measures (denominated in US$) Case 3: Shangri-La Hotel - The Marina (in US$)