Explore the theoretical constructs and frameworks available to hospitality managers through the interpretation of key financial and other operating data for an international hospitality business and secondly to apply effective revenue management techniques to the resources of a selected hospitality business. Assessed Learning Outcomes 1.Design a revenue management strategy for a hospitality enterprises. Assessment Details The Luzern Townhouse Hotel Case Study The Luzern Townhouse Hotel is a budget boutique hotel located in the proximity of the railway station and theatre in the Hirshchengraben area of Luzern. The hotel falls into the 3 star caory with 60 well appointed and stylish, twin studio type rooms. The property was converted from office buildings in 2010 and was acquired by its present owners 3 years ago. The hotel is open throughout the year and currently offers two tariffs on a per room basis: Monday to Thursday nights for primarily a business market and Friday to Sunday nights for a tourist market. The mixed market approach shows the guest mix as tourists 58%; business customers 37% and conference 5%. The average length of stay is approximately 2.5 nights. The tariff and occupancy statistics are shown in Appendix 1. The hotel operates a 50 cover French style brasserie and bar on the ground floor of the property, the brasserie benefits from a separate street level entrance and is popular with local residents as well as hotel guests. Whilst the brasserie operates independently of the hotel and has its own manager it also provides breakfast service for hotel guests as well as service of light snacks and drinks in the hotel lobby. The hotel is currently managed by the owners. They also employ a permanent team to service the rooms who are employed on a full and part time basis. The owners have good relations with their staff and labour turnover is minimal. The attached spread sheet includes: ?Appendix 1. The hotel tariff, hotel occupancy and rooms revenue data. ?Appendix 2. The hotel operating statements and final accounts for the past year. ?Appendix 3. An abridged balance sheet and a statement showing details of the acquisition of the new property. The hotel owners have recently purchased a 15 year lease on another office building for SFr 2,500,000 with the intention of converting it into a further 20 hotel studios, this property is adjacent to the hotel property. Both the hotel and the new acquisition are in a good state of decoration and repair and whilst the owners have limited financial resources at this stage, it is envisaged that a limited capital budget of SFr 1,500,000 will be available for refurbishment of the property. The SFr 4 million development is to be funded by a SFr 2 million investment from the owners and a bank loan of SFr 2 million at 6% interest. The owners have employed you, a hotel school graduate, as assistant manager since their recent acquisition. They have developed the hotel over the past three years and are happy with their current life style but believe their expertise is limited, in particular when considering the poor rooms performance of the past year, the need to expand the business and the implications of the acquisition of the new property. YOU ARE REQUIRED TO: Prepare a report for the owners to advise them on the current and future financial situation of the hotel, the report should include the implications and possibilities through the acquisition of the new property and your proposals to improve room sales and profitability over the coming year 1.An outline of a revenue management strategy to include a pricing structure and room packages for The Luzern TownHouse Hotel. (Guide: 2500 / 3000 words) This outline should focus on: (1) A review of current room rates (2) Increasing accommodation revenue through developing existing markets (3) Identifying new accommodation markets e.g. business and leisure (4)Give examples of accommodation and food packages for business and/or leisure markets and other possible sources of revenue for the hotel (5)A sales and promotion strategy for the hotel. 2.The owners are considering taking over the restaurant once the current outsourcing arrangement ends. To support this strategy you should carry out an evaluation of the restaurant operation (Appendix 4) using Menu Engineering techniques and propose to the owners a revenue management strategy (Guide: 1000 - 1500 words) (6)Classify each dish according the menu engineering matrix (7)Make recommendations for alternative dishes / menus (8)Review the pricing strategy so as to maximise profit contribution for the brasserie (9)Recommend a range of strategies for the brasserie to maximise cover turnover (10)Recommend possible closer synergies with the hotel operation with the intention of increasing both hotel occupancy and revenue generation for the whole operation (11)A sales and promotion strategy for the restaurant.
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