Question
Finally, to assess the RM efforts regarding the weekday sales during the high season, the revenue management team seeks to conduct a competitive weekly performance
Finally, to assess the RM efforts regarding the weekday sales during the high season, the revenue management team seeks to conduct a competitive weekly performance analysis with their two neighbouring full-service hotels. Fortunately, they just received the newest STR report with their two closest direct competitors' data. By request, the data differentiate between weekdays and weekends, which allows them to assess the effectiveness of the hotel's revenue management strategies on distribution channels.
After the decision for the website and the loyalty program distribution channel, the following observations were made.
High Season, weekday | Hilton London Metropole Convention & Spa (After the engagement of the third-party merchant) | STR DATA of the competitive set performance (Weekday) |
OCC | 90% | 70% |
ADR | $130/ room night | $190/room night |
REVPAR | $117/ room | $126/room |
To conduct a comparative, competitive analysis by using the occupancy, ADR and RevPAR results (See table above), and
- Evaluate the hotel's performance relative to its STR competitive set for the low season weekend data by calculating all penetration indices (occupancy, ADR and RevPar indices). (6 marks)
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