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Revenue MNGT case study brighton hotel

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Par   •  3 Juillet 2014  •  3 262 Mots (14 Pages)  •  1 123 Vues

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STAGE 1- SWOT ANALYSIS

STRENGHTS

 Location of the Brighton Townhouse Hotel: It is close to the sea, to the Royal Pavilion Theatre and to the railway station.

 The Hotel is physically accessible from the airport in London, an hour train.

 The Hotel has been recently renewed. It is in a good condition.

 Recent purchase of 20 extra studio rooms.

 Popular Brasserie/Bar.

 The turnover is low means that it’s a good result.

 The fact that the Labour cost is low means that, they have it under control. Employers are pretty happy to work there and which makes a good quality of service.

 It’s a Boutique Hotel.

 Personalized level of service.

WEAKNESS

 The pricing strategy for the 2 different current targets: £140 for the business, £95 for leisure.

 The segmentation strategy is not enough developed.

 No revenue management strategy as there’s only 2 fixed room rates.

 Food cost is very high.

 Fixed costs and variable cost are not normal. Most of them are fixed costs, where as they should have some variable costs.

 Concerning the brasserie and the bar: too much dishes which make the food costs too high.

OPPORTUNITIES - REGARDING BRIGHTON

 It’s a young and dynamic city.

 Every year Brighton hosts plenty of cultural events and all kinds of festivals.

 83% of all travellers are domestic tourists.

 17% of the travellers are from European countries. The majority comes from Germany and the Netherlands.

 Brighton is one of the most popular English coastal resorts.

 Tourists genders are represented as followed: 58% women 42% men.

 Potential first-tier conference destination in the UK.

 Physically accessible by all kinds of transportations.

 The city has a good heritage and is an architectural city.

 The city is safe and attractive.

 Socially inclusive.

 Tourism economy: £407 million.

 Lots of local employment.

 Lots of beaches, country sides and coastlines.

 The city is a high media profile, energetic & cosmopolitan.

 The city has growing sustainable credentials.

 Proximity to the Downs (National Park).

 Boutique hotels are becoming more and more popular.

 In 2012, London had the best hotel occupancy comparing to European major cities. In 2013, London occupied the 3rd place which makes Brighton a good venue to the travellers that haven’t found a place to stay in London, as it is not too far from the capital.

 It is hoped that local legacy might include improvements in skills within the tourism sector.

THREATS -REGARDING BRIGHTON

 Many competing sites as restaurants, brasserie-bars, hotels and boutique hotels.

 Only 52% of travellers stay over-night in hotels. They are rather hosted by family, friends, youth hostels, or in caravans for example.

 Day visitors more and more numerous.

 Travellers stay only 2.5 days.

 Slow hospitality industry development.

 Lack of local skilled labour.

 Hope that Brighton Centre re-development comes forward.

STAGE 2- BOOKING, SEGMENTATION AND PRICING STRATEGIES

CURRENT SITUATION OF THE HOTEL

Before the hotel hired us as assistants of the manager in the aim of helping him regarding the hotel’s last year performances, the hotel was doing great on their lifestyle but realized they needed to expand their offers.

Indeed, The Brighton Townhouse Hotel was practicing a pricing strategy with two fixed rack rates: The rack rates were £140 for business customers and £95 for tourist ones.

As fresh graduates and thanks to our expertise we have learned at school, we recommend to the manager on rethinking the pricing, booking and segmentation strategies.

You’ll find as followed how we see things.

BOOKING STRATEGY

Concerning the booking strategy, we recommend to put in place special rates depending on the booking date as early booking that are applied in most hotel worldwide, or for example, if the customer chooses a non-refundable, non-changeable, no cancellation basis.

Customers will be able to book their room on a third-party website as “www.booking.com”. No partnership with Expedia.com because we have seen after a study that the rate parity and commissions are not good for the Hotel.

According to an online booking study, 64% of English travellers book directly on the hotel website. That’s much more than French or German travellers which represent each 47% and 30%.

All the leisure segmentation will have the possibility to book online on the Hotel’s website or on a third-party booking website as mentioned before, or even more personalized, by contacting our Reservation Manager.

Concerning, corporate groups, we recommend that this important activity has to be taken cared by the Sales Manager or any sales executive which has to be an expert on conferences, seminars, incentives… Basically, companies have a direct contact with the sales person, which is a more personalized service and approach for their stay. They need to feel that the Hotel wants the best for them, they want the best deal,

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