CHASE CORNELL HOTEL SIMULATION EXERCISE During this simulation game six hotels will compete for market share and profit The hotels are coloured Black, Blue, Red, Green, Gold and White Each hotel has 185 rooms –123 kings – 62 double doubles –185 total rooms

CHASE CORNELL HOTEL SIMULATION EXERCISE Each hotel has been operating for one financial quarter and has: Average Daily Rate – 88$ Average Occupancy -- 82% OCC% ADR$ADR$ $100 $ %.

CHASE CORNELL HOTEL SIMULATION EXERCISE Next quarter, you can position yourself almost anywhere you want. Max Rack $250 Min rack $50 OCC% ADR$ADR$ $100 $ %.....

Question Which would you prefer: Average occupancy of 98% or 78%? Weekday 4 days Weekend 3 days 100%

CHASE In this “city” there are two markets –Business (sgl) and Leisure (dbl) Guess which room types they prefer- Double Doubles or Kings?

CHASE You will decide on eight “rack” room rates for: –Time of the week –Market type –Room type RatesBusinessLeisure Weekday Monday to Thursday KingDbl/DblKingDbl/Dbl Weekend Friday to Sunday KingDbl/DblKingDbl/Dbl

CHASE Your will compete four quarters: –Spring, Summer, Fall and Winter –You take over the operation of your hotels in quarter 2 QTR12345 WinterSpringSummerFallWinter Quarters 2,3,4 and 5 make one “Year”

The seasons During each season there will be fluctuations, just like in a real market………take a look QTR2345 SpringSummerFallWinter Business Leisure

The week During the week there will also be fluctuations, just like in a real market………take another look

CHASE In each quarter (week) you will make a set of decisions and receive an income statement, balance sheet and sales summary in return, the following week.

CHASE To do today –Team 1 will be Black, 2 will be Red etc. –Decide where you want position yourself by price –Complete your first “Marketing Plan” with rates, incentives, commissions, advertising, staffing and product decisions. –Sign the plan and hand it in