RDM Lesson 4 /5 - Price calculation (2023)

• rooms divison management
• MBO
• Studiejaar 2

Bleisure guest ...

1. are business travellers who combine their business trip with extra days off (so they are partly tourists).
2. are business travellers who spend the night in the hotel for their work but are away for work during the day.
3. are tourists who mainly spend the night in a hotel to spend the day relaxing in the vicinity of the hotel.
4. are tourists who not only spend the night in the hotel, but also spend a large part of the day there (for example all-inclusive hotels).

Sustainable entrepreneurship consists of paying attention to the 3 Ps.
What are those 3 Ps?

The profit margin you can achieve on your products depends on several factors, including:

1. the goals and sub goals set.
2. the period in which the guest wants to stay.
3. the purchasing plan
4. the kind of product you are selling

With supply-driven special offer:

1. The hotel approaches guests from previous years by sending them the room offer on request
2. The hotel itself composes a package deal to be sold via the website.
3. The hotel composes an offer and sends it specifically to a specific customer who has requested it
4. The hotel proactively approaches guests from previous years by sending them the room offer.

What is meant by Rate Parity?

What are the specific features of an allotment contract?

1. The risk for the sale lies with the hotel, there is a release date.
2. The sales risk lies with the hotelier
3. Tour operators gets room in option
4. Unsold stock can be returned free of charge

What does MICE stand for?

1. Corporate business
2. Morning meeting, incentives, lectures, evening shift.
3. Meetings, incentives, competitors, events
4. Meetings, incentives, conferences, events

What price does the customer find most attractive?

1. One night in a hotel for € 45
2. One night in a hotel for € 41
3. One night in a hotel for € 49
4. One reduced night in a hotel from € 70 to € 59.

ROOM RATE 

Fixed Cost 

Variable Cost 

Profit Margin

ROOM RATE

FIXED COST | VARIABLE COST| PROFIT

SPECIAL ROOM RATES ARE BUILT AS FOLLOW:

VARIABLE COST + PROFIT (MARGIN) 

If the occupancy rate decreases:

1. the fixed costs decrease, but variable costs remain the same.
2. the fixed costs remain the same, but variable costs decrease.
3. the fixed costs increase, but the variable costs remain the same.
4. the fixed costs remain the same, but variable costs increase.

Assignment

Responding to a corporate (sales) inquiry

You will design your own package deal for this accordingly...

SAMPLE

page 76

Tip

What you need to consider while creating an advantage package deal: 

1. Calculate your fixed costs, variable costs and profit.

2. Indicate the package price of the room.

3. Indicate what else you specify and explain any discounts.

4. Indicate what your ultimate profit is

Other discount (for example, completion of quotation is deducted from profit) 

Sample sales quotation

Price rounding

Psychological pricing (rounding the total price down with only 1 euro can make a huge impact. Besides that,

rounding the total price down by 124.56 instead of 123,56 will wrap up the  last digit with a 9; which even sells better than a round number of 6000 (it sounds even much cheaper).