2018 / 2019
Hotel Name : Hotel Americano
PBL Group : HM_HOM_2FI_C & HM_HOM_2FI_D
Module / Study Year : 2018/2019
Hots Instructor : Joke Tasma
Group Members : Thijs Bannink
Mandy van der Weide
HOTS version: Stendenuniversity6.nethots.net
Table of contents
Element 1: Group Goal 3
A. The 25 KPI's of the trial year and year 1 and the differences of these KPI's. 3
B. Did you reach your goal yet, and if not what was the difference of your deviation? 6
C. Explain as complete as possible what the reason was for the deviation. 8
D. Which KPI's (minimum 3) did you take into consideration to support your mission and explain their impact. Please display the corresponding positioning matrix (matrices) 8
E. Changes in the way, how we will try to achieve our goal explain them. 10
F. (Possible) pitfalls. 10
Element 2: Budget (Max. 2 pages, excluding Budget in appendix) 10
Appendix: FORMAT BUDGET YEAR 2 AND 3 11
Element 1: Group Goal
A. The 25 KPI's of the trial year and year 1 and the differences of these KPI's.
Key indicators Result trail year Results year 1 Explanation
REVPAR $ 40.33 40.86 REVPAR is the costs per available room. Looking at the results of the trial year and the first year you can see that we rise with 0,53$
Gross Operating Profit (IBFC %) 15.93 11.60 Before we had 15.93% and now we have 11.60% which means that we pay less profit before all the fixed charges.
Rooms Market Share % (Transient business) 16.46 11.82 We had a 16.46% in our trial year and in our first year we have a 11.82% that means that we decreased with 4.64%. Which is not in our favour because then everyone is going to other hotels.
Relative Market Share % 17.3 15.0 Last time we measured 17.3% in our own market share now we have 15.0% market share that means the we decreased 2.3%. And that people prefer other hotels more than us.
ROCE % - Pretax profit/Capital Employed
-1.78 -5.91 In our trial year we had a -1.78 what means that we don't employ how we were supposed to. And in the 1st year we scored a -5.91. That is with a difference of -4.13. And it shows that we did worse than last time.
Guest Satisfaction Survey(%) 51 63 First we scored 51% on the guest satisfaction survey and now we scored 63% that shows that we increased with 12%. And let us see that guests are more satisfied now.
Staff Satisfaction survey (%) 58 57 We decreased with 1%. Which is not bad but we need to make sure our staff is happy so we need to improve this.
Total Revenue ($) 4,306,289 4,139,542 We decreased with 166.747 dollars. What can be explained because we made a mistake in the first few months for the costs of our food in the restaurant. And we decided to pay more for advertising.
Room Revenue ($)
1,864,078 1,859,051 Is a difference of 5027 dollars. In the trial year we decided to build more rooms and upgrade the rooms a lot quicker. And in the first year we made a plan. So this is actually better because we have less rooms but still a high room revenue.
Gross Operating Profit, GOP ($)
685,898 480,253 We decreased with 205.645 dollars. Which is explainable because we have less rooms than in the trial year so we need to pay less after all our expenses are paid for.
Gross Operating Profit (GOP %)
15.9 11.6 We decreased with a 4.3% and means that we keep less money when all our expenses are paid for.
Fixed Property & Equipment ($)
5,509,768 5,371,110 We have a difference of 138.658 dollars. This is for all the changes we made in our hotel and can be explained by that we now did not get more rooms.
Working Capital ($)
-399,451 54,28 With a difference of 399,396.72 dollars we increased our working capital. Would mean that we paid all our debts and obligations and our now making profit.
EBITDA (earnings before interest, taxes & depn)($) 484,84 279,195 We increased or earnings with 278.710,16 dollars. And means that we make more money before all our interest, taxes and depts are paid for.
Profit before Taxes ($) -91,013 -320,372 We decreased with 229.359 dollars and shows that we have less profit than in our trial year.
Owners' Equity ($) 4,750,000 4,750,000 Our owner's equity stays the same.
Income Tax Rate (%) 30 30 Also the tax rates stays the same.
Income after Taxes ($) -91,013 -320,372 Our income after taxes also decreased with 229.359 dollar.
Average Daily rate ($) 73.04 67.60 Our average daily rate also decreased with 5,44 dollars. Which can be explained by the fact that we decided to lower our room rates because that was more fitting for our hotel. Although when it was summer season we increased our room rate.
Occupancy % 55.22 60.44 Our occupancy increased with 5,22%. This time we looked more at the events given within the town and decided to make our marketing more focused on that. We also invested more money in the marketing in general.
Public Awareness 39.71 49.11 Same for the public awareness we focused on our marketing and made it more known for everyone not only business guests or leisure guest. Also we were more active on social media.
Hotel Quality Index 36.80 40.77 We increased the hotel quality index with 3.97 which means that we match the expectations of the guest better than before.
Annual Staff Turnover (%) 63.85 65.13 The percentage of people that leave our hotel is higher than in the trial year. Which is not beneficial for us. We need to find a way to change this.
Rooms Available 45,021 45,327 We increased this with 0.306 %. It shows that we overall always have rooms available and it also shows that we always have more than the half of the rooms sold on given time.
Number of Rooms Sold 25,125 27,5 We increased this with 2,375% and gives the fact that we sell more rooms per day than in the trial year.
B. Did you reach your goal yet, and if not what was the difference of your deviation?
Compotator sales report occupancy in %.
Team/Hotel: 1 2 3 4 5 6 7 8
Weekday Room 15.2 10.4 25.2 9.6 20.0 20.0 19.8 17.2
Weekend Room 14.7 10.9 24.3 12.5 20.5 24.8 22.9 17.9
• In January we didn't reach our goal. This might be because we didn't spend enough money on advertising.
Weekday Room 18.6 16.6 34.8 24.8 21.8 28.6 23.2 16.0
Weekend Room 16.3 13.3 32.0 18.9 24.3 32.3 25.6 16.3
• In February we were still one of the hotels with the lowest occupancy. This month we spend 700 on online advertising
Weekday Room 64.4 30.6 65.0 32.8 36.6 55.6 41.0 25.6
Weekend Room 59.5 33.9 56.5 22.7 34.9 47.5 41.3 25.9
• In March we had a better occupancy. We had nearly the highest occupancy from the group. This month we changed the room rate. Weekday: 90,- Weekend 85,-
• We invested in tower re use stickers
• Guests get 5% discount after a 3 nights stay
• Advertised for group brunis 500,-
• We allowed overbooking and we allowed expedia.com and booking.com to make bookings.
Weekday Room 44.8 29.6 48.4 34.4 28.4 43.2 31.8 23.2
Weekend Room 47.2 37.1 45.6 29.3 34.7 44.0 34.9 23.7
• This month we were still were the second group with the highest occupancy from all the groups
• Changed rate: Weekday 80,- Weekend 90,-
• Restaurant refurbish level 2
• Invested in Extra parking
Weekday Room 45.8 30.4 37.4 39.2 30.8 44.6 23.2 20.2
Weekend Room 48.3 36.0 36.8 27.2 32.5 50.1 26.1 25.6
• In May we achieved the highest occupancy from the group. This was 45.8% in the weekday and 48.3 in the weekends. Overall the other hotels had a quite low occupancy.
• We invested in advertisement costs + 1500,-
Weekday Room 73.8 51.0 44.8 55.2 46.8 61.4 28.8 36.2
Weekend Room 79.2 65.6 47.5 43.2 55.2 69.9 35.5 42.9
• This month June we were still the leader with the highest occupancy from all the other hotels.
• We changed the following items:
• Rates: Week 95,- Weekend 92,50
• Advertised weekday newspaper 1000,-
• Website discount 10%
Weekday Room 98.8 74.2 68.6 80.0 59.4 73.0 48.4 55.2
Weekend Room 100.0 86.4 81.3 91.7 69.6 88.0 49.6 70.7
• In this month we were the only hotel was was fully booked in the weekends. In the weekday we had the highest occupancy score as well.
• Changed room rates Weekend 100 Weekday 95
• Conference opened 110,- (weekday discount 5%)
Weekday Room 100.0 64.4 96.2 81.0 59.0 84.6 86.6 72.2
Weekend Room 100.0 81.3 100.0 98.7 75.5 100.0 88.5 79.2
• This month the weekdays and weekend was fully booked. Hotel 3 and 6 was also fully booked in the weekend. In this month the town was really busy with guests.
• We changed the rates 70,- for events
Weekday Room 98.0 69.6 78.0 71.6 56.4 66.2 68.0 63.6
Weekend Room 100.0 87.2 99.2 79.2 65.6 80.3 60.3 70.1
• In September we had still the highest occupancy. We advertisement in daily 1500 newspaper
Weekday Room 79.8 62.2 60.6 57.4 44.4 49.0 51.8 54.8
Weekend Room 78.9 66.7 66.9 56.8 46.7 58.9 44.3 55.2
• In October we had still the highest occupancy. Refurbished 25 rooms level 1
• Changed the following Rates: Week 90,- Weekend 95,-
Weekday Room 58.0 47.8 32.8 29.8 30.4 32.4 33.4 38.6
Weekend Room 55.2 44.0 35.2 25.9 24.0 32.8 27.7 31.2
• We invested in Events advertisement on the local radio. In This month we were still the leading hotel in occupancy.
Weekday Room 66.0 51.0 57.0 45.6 36.6 50.4 44.8 48.2
Weekend Room 84.3 70.7 69.3 59.2 48.3 55.7 43.7 63.7
• December was our last month. Our goal was to get the highest occupancy. This month we had the highest comparing to all the other groups.
C. Explain as complete as possible what the reason was for the deviation.
In the month May we achieved our goal to get the highest occupancy. From that month we had the most guest from all the hotels until the end of the year. To investigate how we achieved our goal we have to go back to the previous months from January until April. The following items had the biggest impact on our occupancy:
• We spend more money on advertising
• We focused more to the target audience. This means we check what kind of events there were in town and we focused our advertising on these people.
• Changed rates: weekday: 80,- and weekend 90,-. Guest got 5% discount after a 3 night stay
• Invested in towel re use stickers
• We allowed overbooking and we allowed expedia.com and booking.com to make bookings.
• We refurbished our Restaurant to excellent
• Extra car parking was finished.
D. Which KPI's (minimum 3) did you take into consideration to support your mission and explain their impact. Please display the corresponding positioning matrix (matrices)
Our goal is to be the best in the occupancy in comparison to the other hotels.
REVPAR Guest wants to pay the best price per room and have good quality. If you have you room price to high, guest will not book a room in your hotel and your occupancy will not be as high as possible.
Rooms market share% To sell the most rooms, you need to compare your hotel to your competition. And take a look at your competitor sales. That meaning is that if the competitor have lower prices and the same facilities, the guests will probably go to the competition.
Relative market share% You need to measure your own share in the market. You look in the market to you competitors. Go to competitor status and compare the facilities and the status you competition offer.
E. Changes in the way, how we will try to achieve our goal explain them.
There are a couple of changes in the way we want to achieve our goal. The first year we had to buy a lot of facilities for our hotel, because without facilities, the hotel do not attract guest. In the beginning we were most of them time busy with the points that would fit by our hotel. Looking at the occupancy, the first months we did not have one of the highest occupancies. But overtime the hotel growth and the occupancy grow and was most of the time the highest occupancy.
So, looking at the changes we will make to achieve our goal again in year 2 and 3, we can say the following. We are going to spend more money on advertising. We allow overbooking, allow expedia.com and booking.com to make bookings for our hotel. With the advertising, we will advertise at moments when there will be events.
F. (Possible) pitfalls.
A possible pitfall could be that we would spend too much money on advertising and that our cost grows at lot. Also, a pitfall is finding the right balance between the rates, because some guest finds a certain rate to expensive while someone else finds it a reasonable price.
Element 2: Budget
Why do we set a budget?
You need a budget so you have an overview of all the costs you think you have the next year (or month). It is necessary to set a budget, because you need to know what you think you are going to spend and begin to pay the depts.
GOAL in % to increase sell 2nd year (compare to year 2)sell 3rd year
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