Mr.
...Single Rooms 3
Business Double Rooms 4
Junior Suites 4
SELECTED FACILITIES 5
Méditerranéen 5
Sérénité Spa 5
“Aquarius” Recreation Lounge 5
“Rainer III” Seminar Hall 5
MAJOR COMPETITORS 6
Hotel Mirabeau 6
Hotel Hermitage 6
Hotel Columbus 6
Le Meridien Beach Plaza 7
CALCULATIONS RELATED TO ROOMS DIVISION ACTIVITIES 7
‘Market Condition Approach’ and Rack Rates 7
‘Rule of Thumb’ Approach and Construction Cost 8
Calculating the Actual Expected Revenue 9
Calculating the Potential Revenue 9
Calculating the Yield 10
Calculating the RevPAR 11
Overbooking: Potential Revenue Matrix 12
EVENTS TAKING PLACE FROM 14TH MAY TO 27TH MAY 2007 IN MONACO REGION 12
DETERMINING DAILY DEMAND FOR THE TWO-WEEK PERIOD 13
PLANNED REVENUE MANAGEMENT STRATEGIES 14
General Strategies used on days with high demand 14
General strategies to be implemented on low-demand days 15
CONCLUSION 16
APPENDIX 17
REFERENCES 19
INTRODUCTION
Developing efficient revenue management strategies for a hotel is a task that requires a wide-ranging study of the external business environment in a given locality. In addition, careful forecasting and proper calculations should be in place, so that service pricing and other revenue strategies are matched with anticipated demand. Proper demand forecasting for a given period of time and place, includes taking into account major events that occur in the area for the time being.
Our report is aimed at presenting how revenue management strategies are to be developed and implemented into a four-star hotel downtown Monaco for the period between 14th and 27th of May, 2007. In support, appropriate calculations of Actual and Potential Revenue levels, Yield Percentage, RevPAR, and other estimates relating to Rooms Division activities are accurately performed and displayed.
In the following pages, we motivate and demonstrate how our...
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