Market Segmentation

The Attached report shows the performance of Hotel XYZ for 2014 and 2015. Hotel XYZ is a luxury resort with a mix of 85% Transient and 15% Group.

After looking at this report, please answer the following questions:

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  • What was the Total YOY( year over year) growth? Was the growth driven by Room nights? ADR? both?
  • Which segment drove this growth or decline? Transient or group?
  • Which sub-segment within Transient and Group drove the growth or decline? Please explain both.
  • Hotel XYZ overall strategy for next year is to grow rate without significantly increasing room nights. Based on the performance of 2015 and 2014, how will you shift your segmentation in order to achieve this?

Please submit the  answers to these questions  on a separate word document. Submit calculations on the excel document.

Hotel XYZ

15

Rms Rate Rev

94.80

0

0 8

2

 0 2014
Rms Rate Rev
Retail 14,413 8 12,896,723 14,090 888.12 12,513,626
TMC/ Consortia 7,530 831.31 6,259,727 5,638 807.66 4,553,604
Corporate 10,194 454.67 4,634,866 10,140 544.29 5,519,151
Pkg 3,150 826.13 2,602,319 3,420 684.80 2,342,001
Fit/ Wholesale 7,734 452.15 3,496,891 6,292 441.93 2,780,649
Disc 7,525 553.57 4,165,599 7,636 565.06 4,314,790
OTA 5,766 453.11 2,612,633 5,603 411.46 2,305,408
Ttl Trans 56,312 651.17 36,668,759 52,819 649.94 34,329,229
Gr Corp 9,093 446.61 4,061,033 8,341 441.02 3,678,584
Gr Assn 161 373.18 60,081 394 518.67 204,356
Gr Gov 0.00 309.00 2,472
SMERF 228 530.82 121,028 226 770.90 174,223
Ttl Group 9,482 447.39 4,242,141 8,969 452.63 4,059,635
Total Rooms 65,794 $ 621.80 $ 40,910,900.50 61,788 $ 621.30 $ 38,388,864.00

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