Marketing Rooms

Marketing Rooms

1. Rack Rate

   • Room size
   • View
   • Furnishings
   • # persons occupying room

2. Special room rates

   • Corporate / commercial rates
   • Promotional rates
   • Family rates
   • Package rates
   • Complimentary rates

3. Hubbart Formula

   • Desired profit - income taxes - fixed charges - operating expenses

4. Rule-of-thumb approach

   • Sales each room at $1 for each $1,000 of construction cost per rooms
   • Doesn't consider contribution of other facilities and servicies

5. Cost and revenue

   • Expenses
     • Fixed
       • Not influenced by occupancy level
     • Variable
       • Change more or less proportionally to occupancy

6. Break-even point

   • income = expenses and costs

7. Market segmentation

   • Segments
     • Groups of consumers with similar needs and wants
       • Geographic
       • Demographic
       • Behavioural
     • Key market segments
       • Individual business travellers
       • Corporate meetings
       • Conventions
       • Trade shows and expositions
       • Tour groups
       • Free Independent Traveller
       • Government agencies
       • Inclusive tours and in-house packages
       • Incentive groups

8. Reports and statements

   • Daily operations report
     • Summary of the hotel's financial evolution 24-hrs period
   • Rooms revenue report
     • Variance between actual revenue and potencial one
   • Room's division income statement
     • financial information about hotel operations for a given period
   • Travel agent report
     • room and revenue of every travel agent

9. Rooms management

   • short-term
     • checkouts
     • Arrivals
     • Special events
     • Day of the week
     • Type of booking
     • Competitors' availability
     • expected walk-ins / no-shows
   • Long-term
     • Historical information
     • Market trends
     • Segmentation
     • Allotments
     • Special events