The ∆² Revenue Plan Turning the budget into the business plan

The ∆² Revenue Plan : Objectives ►A►A►A►A deep understanding of the source of plan year revenues by each market segment ►A►A►A►A fact based definition of competitors by major business area ►A►A►A►A price structure embedded in competitive reality that optimises both revPAR & RGI ►A►A►A►A fully resourced plan to achieve plan goals ►A►A►A►A format that allows direct comparison with sales & marketing activity & allocates ownership to responsible team members

What do I get at the end of it? ∆² Revenue Plan Outputs ►T►T►T►Three year revenue evolution (prior, current, plan) by defined market segment ►P►P►P►Plan year revenue as the direct top line input to the P&L ►S►S►S►Set of validated kpi’s to be used as ongoing measurement tool ►L►L►L►Logical price:product positioning to comp set in key markets and plan to achieve best in class performance

The ∆² Revenue Plan Forecast Model ‘ to know where you’re going, know where you start’ Forecast uses comparisons to same periods in prior year to stretch current year goals

The ∆² Revenue Plan ™ Input Model Rooms forecast backfilled by market sector and compared to prior year

The ∆² Revenue Plan ™ Relative Quality Analysis Detailed competitive shopping exercise replicates buyer behaviour to rank hotel and competitors against what guests say is important

The ∆²Revenue Plan Analysing competitor selling prices Your selling price compared to each competitor & comp set average

The ∆²Revenue Plan ™ Value Positioning Matrix~ ‘ because customers will pay for quality’ VPM visually displays price:quality relationship of entire comp set by season & segment and focuses attention on rate & share premium drivers

The ∆² Revenue Plan ™ PESTLE Analysis PESTLE analysis allows uncontrollable macro factors to be built into the plan

The ∆² Revenue Plan ™ Demand Analysis Demand analysis builds on PESTLE, focuses on business mix changes and growth opportunities

The ∆² Revenue Plan ™ Price Planning Rate structure anchored at volume levels and flowed up and down to optimise price:volume opportunities

The ∆² Revenue Plan ™ Rate Cascade Cascade display highlights any rate misalignments

The ∆² Revenue Plan ™ Monthly Spreadsheet Final output is monthly revenue budget that can be fitted to the P&L

Key Results becomes P&L input Simple kpi’s focus the team on key result areas and rest on deep management understanding of the business

Wrap Up ►G►G►G►Growth. A business plan that is both stretched and achievable ►O►O►O►Ownership. Every cent/penny of revenue trackable to a market segment and allocated to a ‘business owner’ ►U►U►U►Understanding & Alignment: One team. One Plan. One Goal with everyone lined up behind the same commitment.