Selling Hospitality Chapter 2 Buyers and Sellers in
Selling Hospitality Chapter 2 Buyers and Sellers in the Hospitality Industry Copyright © 2006 Thomson Delmar Learning All Rights Reserved
Selling Hospitality Order takers Demand creators Copyright © 2006 Thomson Delmar Learning All Rights Reserved
Selling Hospitality Order takers Demand creators – “It’s not what you book, it’s when you book it. ” Copyright © 2006 Thomson Delmar Learning All Rights Reserved
Revenue Management Yield REVPAR Copyright © 2006 Thomson Delmar Learning All Rights Reserved
Revenue Management Yield = revenue potential divided by revenue realized REVPAR Copyright © 2006 Thomson Delmar Learning All Rights Reserved
Revenue Management Yield = revenue potential divided by revenue realized REVPAR = revenue realized divided by rooms available Copyright © 2006 Thomson Delmar Learning All Rights Reserved
To Book or Not to Book Group Business 100 -room hotel Forecasted transient demand: – March 31 = 70% – April 1 = 55% Transient rate = $140 Copyright © 2006 Thomson Delmar Learning All Rights Reserved
To Book or Not to Book Business 100 -room hotel Forecasted transient demand: – March 31 = 70% – April 1 = 55% Transient rate = $140 100 -room hotel Potential group booking for 95 rooms: – March 31 = 100% – April 1 = 100% C rate = $95 Copyright © 2006 Thomson Delmar Learning All Rights Reserved
To Book or Not to Book Business 100 -room hotel Forecasted transient demand: – March 31 = 70% – April 1 = 55% Transient rate = $140 100 -room hotel Potential group booking for 95 rooms: – March 31 = 100% – April 1 = 100% C rate = $95 REVPAR = $87. 50 Copyright © 2006 Thomson Delmar Learning All Rights Reserved
To Book or Not to Book Group Business 100 -room hotel Forecasted transient demand: – March 31 = 70% – April 1 = 55% 100 -room hotel Potential group booking for 95 rooms: – March 31 = 100% – April 1 = 100% Transient rate = $140 C rate = $95 REVPAR = $87. 50 REVPAR = $92. 25 Copyright © 2006 Thomson Delmar Learning All Rights Reserved
To Book or Not to Book Group Business 100 -room hotel Forecasted transient demand: – March 31 = 70% – April 1 = 55% Transient rate = $140 100 -room hotel Potential group booking for 95 rooms: – March 31 = 100% – April 1 = 100% C rate = $95 REVPAR = $87. 50 = $92. 25 Never decline the business; REVPAR instead, decline the rate. Copyright © 2006 Thomson Delmar Learning All Rights Reserved
Characteristics of Organizational Buyers Derived demand Size, frequency, and planning horizon Buyer sophistication Copyright © 2006 Thomson Delmar Learning All Rights Reserved
Organizational Buying Process Recognition of needs Request for proposals from multiple vendors Resolution of concerns Evaluation of alternatives Copyright © 2006 Thomson Delmar Learning All Rights Reserved
Organizational Buying Process Purchase Recognition of needs Request for proposals from multiple vendors Resolution of concerns Evaluation of alternatives Copyright © 2006 Thomson Delmar Learning All Rights Reserved
Pursue Failure Babe Ruth is remembered for the 714 home runs he hit, not for the 1, 130 times he struck out. Copyright © 2006 Thomson Delmar Learning All Rights Reserved
- Slides: 15