Riviera Marriott Resort And Spa Revenue Management Tourism Essay

The Riviera Marriott Resorts and Spa as explained in the instance are a reasonably new hotel sing the fact that they had to reconstruct the hotel sue the hurricane that hit four and a half old ages ago and it has been two and half old ages since re-launch, the hotel has tried to pull the clients to see their hotel and have been making a good occupation at it. At present the clients can be divided into three classs viz. the Transient Segment, Group Segment and the Wedding Segment. The transient section is the chief beginning of gross for the hotel as most of the guest stay for an norm of 4.0 darks and this section can besides be sub-segmented into local/in-country market and leisure transient market, as for the group section include regular beginning of gross throughout the hebdomad with concern groups covering the weekdays and inducement groups busying during the weekends and eventually the nuptials section is a popular and has a strong demand for it in the state.

Are your Particular Corporate Accts / Wholesaler Accts valuable to your hotel? Why?

At the hotel there is a centralised shared service gross revenues team that focal point on the US Corporate and group concern and there are besides some specializers that work on the sweeping section, in add-on to that there is besides a focal point on sweeping section in the adjacent states and this clearly identifies that this history is valuable to the hotel sing the fact that a batch of focal point is given by the gross revenues and selling section. Another ground for this history being so valuable is another fact that a big part of the gross comes from the group section which every bit mentioned before are chiefly concern groups therefore it can clearly be identified that this history aid to increase the tenancy of the hotel and is a immense gross shaper for the hotel.

What changes if any would you do to your season day of the months? Do seasons differ?

In footings of seasons there is a seasonal consequence but it is non a really immense consequence sing that the seasonal forms in short is high from December 22 to April 30 and August 16 to September 30 where as the demand is acceptable during May 1 to August 15 and October 1 to December 21, therefore it can be suggested that no alterations be made in the seasonal day of the months and even though there is a lessening in demand for groups and transient during these periods and group demand decreases a batch during the Christmas Holidays, there is besides another market which is the nuptials section that would be if attracted a good beginning of gross during this period.

What group section is most valuable to your hotels? Why?

As mentioned before groups section is one of the major section for the hotel and that this section can be divided into two sub-segments these are the concern group and the inducement group. The concern group are for the hotel the most valuable group section as this group usually stay during the weekdays where as the inducement group merely occupy the hotel during the weekends therefore it can clearly be identified that the concern group is the most valuable group section for the hotel.

What recommendations would you do to pull new valuable clients to your finish?

The Riviera Marriott Resort and Spa have truly worked on pulling their clients and have done a good occupation by pulling the right mark section but even though there are a few markets that the hotel are either non willing to or unable to pull some of them are crew members, contract suites, and long staying invitees. The crew members may non be the best beginning of gross in footings of suites but this will besides convey gross in nutrient and drink and other installations particularly the watering place. The contract suites on the other manus would be a great option for this hotel as these suites will convey good gross to the hotel and at the same clip this helps to increase the RevPAR and tenancy of the hotel.

Last among the suggestions are the long staying invitees now these guest can be both leisure and concern invitees but sing the fact that they live in the hotel for more than a hebdomad automatically effects the gross of the hotel and all the major hotels around the universe attempt to concentrate their selling squad to pull these groups or persons and sing the fact that the Riviera Marriott is a Resort will assist to pull these type of invitees to utilize the watering place and other recreational installations that the hotel has to offer.

What RM issues do you see at this belongings?

The occupation of a RM is to happen ways to pull clients utilizing pricing schemes and one of the most normally used scheme is the length of stay pricing which the hotel fails to take advantage of as they already have an overall position on the length of stay of their two major sections which is the transient whose mean length of stay is 4.0 darks and as for the groups its around 3.5 darks therefore it can be a good chance to utilize this pricing scheme to pull these invitees chiefly during the low seasons and this houseman will besides assist to make newer mark markets as reference in the earlier subdivision.

On the other manus the pricing scheme of the hotel is really basic and is non the best signifier of pricing to pull clients to the hotel as the pricing scheme is chiefly to offer a seven-day-a-week leisure benchmark rate with seasonal rates, this may be effectual but does non assist to pull more clients and alternatively the hotel should see to utilize other pricing schemes like Psychological Pricing or Demand-Based Pricing. Psychological Pricing is when monetary values are offered that affect the emotional factors of the clients e.g. 199 $ and non 200 $ ( Marketing Teacher Ltd, 2011 ) , this may non be the best scheme for the resort but could be used as an alternate scheme when required. The Demand-Based Pricing is when the monetary value for a merchandise or service alterations depend on the addition or lessening in demand of that merchandise or service ( Coulthurst, 2003 ) , this on the other manus would be a great scheme to see as this manner the monetary values would be more regulated and therefore would besides assist attract clients even during the off-seasons.

Working Questions B

How is the hotel presently executing vs. the rivals?

The Riviera Marriott Resort and Spa after the hurricane catastrophe reopened the resort with a new expression luxury and upscale hotel and is considered to be one of the most keen resorts in this popular tropical community. Almost everything in the hotel was upgraded and some of these ascents are the Club 15 which is like a hotel inside the hotel, here the invitee is provided a more sophisticated and rare experience for a higher monetary value and besides the ratio of staff to the invitees is higher therefore making a more elegant and individualized service. There are 4 eating houses that are on an expensive scope in add-on to that there is an extra haute culinary art booming to help with the insouciant menu options. The resort besides provides the all new Inspiration Spa which is believed to be one of the highest-rated watering place in the part with dramatic positions and the design emphasizes the local heritage and incorporates the nature in its design.

In comparing to the Riviera Marriott Resort and Spa some of the rivals besides took advantage of the desolation cause by the hurricane and reestablished themselves as luxury hotels, these hotels and resorts add newer characteristics like watering place and other comfortss to make a more expensive and epicurean experience for the invitees and on the other manus the business district countries took this chance to make less expensive hotels and have the added advantage of stores and night life. In other words though the Riviera Marriott Resort and Spa have done a great occupation with developing a resort that will run into the turning demands of the market, the rivals have non stayed off from that end and have besides developed themselves to a epicurean degree so as to give strong competition of other hotels in the part but this does non intend that it has a great consequence on the Riviera as they provide an even higher degree of luxury by opening the Club 15 that will vouch an added value to the hotel and is besides a alone merchandising point for the hotel.

Looking at your STR study aa‚¬ ” list 3 inquiries you would inquire yourself as a Revenue Leader with justification.

RevPAR is entire tenancy multiplied by ADR and RevPAR Index is the hotels RevPAR divided by Segments RevPAR multiplied by 100 ( Smith Travel Research, Inc. , 2011 ) . ADR is the room gross divided by the suites sold and ADR Index is the hotel ADR divided by the aggregative group of hotels ADR multiplied by 100 ( Smith Travel Research, Inc. , 2011 ) . The Occupancy Index on the other manus is the hotels tenancy divided by sections tenancy multiplied by 100 ( Smith Travel Research, Inc. , 2011 ) .

The List of 3 inquiries that a Revenue Leader should inquire is:

What is the assorted information required for the intent of placing the assorted indexes?

What are the factors that are act uponing the autumn in ADR Index even though there is the RevPAR index and Occupancy Index has been above the 100 grade?

What were the causes of the addition and lessening in the RevPAR, ADR Index and Occupancy Index?

The grounds for inquiring these inquiries is the fact that there is no information offered in the instance in relation to the rivals current state of affairs and besides there are no information about the current state of affairs of the Riviera Marriott Resort and Spa. Another ground for inquiring this inquiry is that the instance does non place the cause and consequence for the assorted alterations which makes it harder to cognize if the addition or lessening of the RevPAR, ADR and Occupancy Index as even it is seeable that there is and increase or diminish in the current indexes it is no smart to give sentiment on whether the resort is executing good or non without any justification.

How the hotel gained or lost market portion compared with the anterior twelvemonth? Discuss grounds for this based on specific public presentation indexs?

As mentioned before the Riviera Marriott Resort and Spa has late been reopened but have had several issues even after the gap which has cause troubles in the running of the resort as the reopening day of the months were moved about three times until eventually holding a soft gap but this cause a major bead in the repute of the company and the front office had done everything in their manus to see that the procedure went swimmingly as several reserves were made by the invitee and were therefore asked to re-arrange their trip of were relocated to other hotels in add-on to this a immense sum of compensation was given to the invitee so as to maintain them satisfied. Other factors that effected the Riviera were the Global Health Epidemic and the force created by drug trade. But even after sing this it can be justified that the hotel has performed better than most of their rival as merely by looking at the indexes mentioned in the earlier subdivisions it can be identified that the hotel has managed to maintain their tenancy and RevPAR above the industry norm rate which means that they have done a good occupation lasting in the catastrophes incurred by the hotel.

Working Questions C

Sing the competition aa‚¬ ” has at that place been any recent alterations ( new hotels, redevelopments and so forth ) ?

The competition for Riviera Marriott Resort and Spa has been tough sing the fact that after the devastation caused by the hurricane all the rivals have used post-destruction clip to upgrade their edifices by adding several services viz. spa and comfortss and on the other manus the business district hotels already had an added advantage of holding stores and a great dark life which has added to the competition.

The hotels offering the watering place installations have become more epicurean and the more expensive and on the other manus the business district hotels offer lower monetary values than the epicurean 1s therefore doing the competition a spot more complex for the Riviera but sing the fact that they have every bit good upgraded themselves by offering high category luxury installations and comfortss to vie with this new competitions.

Is your competitory set valid? Do you urge alterations?

The competitory set of the Riviera Marriott Resort and Spa are the Siesta, the Ritz Carlton and Le Meridien, which are luxury hotels and resorts and have a direct consequence on the Rivieraaa‚¬a„?s tenancy and besides act upon the RevPAR and ADR of the hotel as the clients are on the same degree category and sing the fact that Riviera Marriott Resort and Spa has upgraded themselves to a more epicurean resort and are offering newer installations to pull these clients but at the same clip it would be better for Riviera to see some more resorts or hotels who come near to their degree as these hotel can hold an consequence on the demand of the suites of the hotel and the fact that non all clients nevertheless rich they may be prefer to populate in a epicurean hotels and resorts but alternatively prefer to populate in smaller resorts so as to experience the tradition of the state and its civilization.

How would you better your Occupancy Index and ADR Index in the hereafter?

Occupancy Index and ADR Index are two of the most of import information for a gross director and place the yesteryear and present status of the hotel or resort. One manner to increase these two indexes is by increasing the tenancy and this means that the hotel demand to broaden the market section and expression for newer clients, as at this point of clip the hotel are pulling the right mark market but are excessively focused on them therefore they are non willing to look for newer markets and this is non assisting their current tenancy.

Sing the fact that the ADR index is low compared to the other rivals this means that there should be focus set on seeking to increase it compared to the rivals and every bit mentioned before ADR depends on the gross for a room divided by the suites sold and this is straight influenced by tenancy therefore it is of import for the hotel to increase their tenancy as presently the last old ages tenancy was merely 45.3 % which by any hotels criterions is below mean as most of the hotels should seek to accomplish at least 70 to 80 % tenancy. This can besides be done by altering the pricing scheme and at this point of clip is seven-days-a-week pricing scheme which should be changed to demand based pricing or twenty-four hours pricing scheme therefore besides assisting the room gross in the ADR.