Hotel Finance & Revenue: Performance Analysis and Competitor Positioning Strategy

This report analyses the performance of Hilton Surfers Paradise in terms of occupancy and fair charged. It also discusses the competitor's positioning strategy and the possible strategy adopted by the company last year. Recommendations are provided for the hotel to improve its business outcomes.

HOTEL FINANCE &
REVENUE

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Occupancy occupied and the relevant performance of organisation...........................................3
Competitors positioning strategy................................................................................................5
Possible strategy company selected last year..............................................................................5
Recommendations for hotel........................................................................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................7

INTRODUCTION
Data analysis is a practice that is defined as analysing and interpreting the data and
information related to the specific area or direction. This report is based on the case study of the
Hilton Surfers Paradise. The organisation is located on the surfers Paradise. The occupancy of
the hotel is of 178 rooms. In this project performance of the organisation will be analysed.
Henceforth, report will discuss the competitors positioning strategies adopted. The potential
practice that company has selected in order to mitigate the business objectives. Possible
recommendations will also provide that can allow the business entity to mitigate its business
objectives.
MAIN BODY
Occupancy occupied and the relevant performance of organisation
DOW Current OTB Same Time Last
Year
Last Year Actuals Pickup Unconstr
ained
DemandRooms ADR Rooms ADR Rooms ADR
Monday 59 $349.00 67 $339.00 127 $363.00 60 119
Tuesday 68 $349.00 75 $329.00 140 $357.00 65 110
Wednesd
ay
78 $349.00 82 $339.00 148 $365.00 66 100
Thursday 89 $309.00 51 $349.00 109 $342.00 58 89
Friday 82 $439.00 89 $409.00 162 $459.00 73 96
Saturday 94 $439.00 96 $429.00 171 $474.00 75 84
Sunday 79 $439.00 84 $419.00 155 $434.00 71 99
Average
for the
period
Occ = 78 ADR =
$381
Occ = 78 ADR =
$373
Occ =
145
ADR =
$399
67 100

The above figures clearly denote about the overall performance business entity has
achieved in order to address the all different business objectives. The pickup activity of the
Hilton Surfers Paradise is on the Monday 60, Tuesday 65, Wednesday 66, Thursday 58, Friday
73, Saturday 75 and on Sunday 71 in number. On an average basis the pickup is 67 in number of
the whole week. The current rooms are occupied on an average basis is 78 the fair is $381. The
same time duration last year the occupancy is recorded as 78 and the fair that is charged as $373
which indicate that only the fair is increased but the occupancy remain the same. The possible
reason behind must been the time value of money that also included when it comes to finalising
the fair of room. The difference is only occupied based on the last year expected values (Wood,
2017). Whereas, when it comes to comparing the actual figures of last year with the current time
this is identified that the occupancy is 78 where as the last year the number was much better of
145. This is almost double the value of the occupancy statistics as compare to the year current
time. Also the charge is $399 whereas, the current time the fair is little low that is $381. The
possible reason must be the demand of the room last year was almost double that could provide a
scope to the hotel management to increase the fairs (Castor and Henry, 2020). This is a basic law
of economics as if the demand will increase this will certainly increase the total cost or fair of the
product. The increased demand could allow the management to increase the fairs.
The statistics mentioned above also mention the term unconstrained demand. This is a
term used to denote about the demand that could have been filled with support of proper
technique and strategies. This is a demand that is about in respect to the possible demand factor
that certainly indicate or demonstrated the fact that this is a level of demand that could further
been mitigated by the hotel organisation. The total occupancy capacity is more than the actual
occupied rooms in hotel. This is like a remaining number of rooms that are not filled or occupied
at the present time. The figure denotes on the Monday is 119, Tuesday is 110, Wednesday is 100,
Thursday is 89, Friday is 96, Saturday is 84 and on Sunday the number is 99. These are the
rooms that remained empty due to less demand as compare to the room capacity of the hotel.
Currently company is capable enough to offer the total of 178 rooms.
Competitors positioning strategy
Competitors are the one or the business unit that is engaged in delivering similar business
operations and practices. Hilton Surfers Paradise is associated with the hospitality sector that is
among the most competitive market sector. Company is addressing competition with other

business houses such as JW Marriott, The Star Grand, Novotel Surfers Paradise and QT Gold
Coast are the top competitor group associated with the organisation. The price range of all these
competitors are different from each other. On the basis of the price structure and business
policies it can be stated that JW Marriott own the luxury pricing strategy in order to position the
brand in the market. Star Grnad hold the strategy for positioning where it delivers the strategies
on the basis of the competition in the market. Novotel Surface Paradise adopted the low pricing
strategy in order to position the brand and product in the respective target market (Ingram and
Reisenleitner, 2018). QT Gold Coast adopted the economical positing practice where company is
aiming to deliver the economical services so that all types of potential customer base could been
attracted by the business house. There is not any particular strategy companies follow in the
hospitality sector. In majority of times the strategies is highly based on the overall demand of the
brand in between the potential customers of company. The demand and service quality are the
two fundamental factor that certainly influence the strategies of the organisation to position the
brand in the respective target market.
Possible strategy company selected last year
Hilton Surfers Paradise is among the hospitality organisation that contain huge demand
of its customers. This is identified that on the basis of the business performed in the last year
company may adopted competitive pricing strategies. In this the organisation kept its prices low
so that more number of customers could have been attracted by the business house. This stragey
or practice could favour the business venture to precisely adopt the most economical; pricing
practice so that best form of growth and development could have been achieved by the company.
The strategy company has adopted last year was like price range of the organisation was
economical enough in comparison to other competitors in the respective target market (Ironside,
2019). This strategy could favour the Hilton Surfers Paradise to attract all types of potential
customer base irrespective of the particular economic background of the customer base in
respective target market. The price range follow by the company was more than other
competitors in the market but this is also way lesser than the JW Marriott brand that create a
huge difference between the potential customer decision-making process to choose the particular
hotel in between the Marriott hotel and the Hilton Surfers Paradise. The strategy adopted by the
company also involve solving the customer grievances fast forwardly (Vaughan, 2020). This is
very important and essential for the business houses to clear all issues of the potential customers

in the market. This enhances the overall growth capacity and potential of the business unit in the
respective target market.
Recommendations for hotel
Recommendation re denoted as the possible steps that hotel can undertake sop that better
business outcomes could have been addressed by the company. This is essential for the business
entity to precisely empower the best form of strategies that can direct the overall business
outcomes in the best way possible. Following are the recommendation that could have been
allocated to the organisation so that business objectives could have been meet by the company.
 Following the digital marketing practice. This will include channelising the marketing
campaign over different digital platforms like Facebook, Instagram and such like
platforms, This is essential from the business unit to adopt this practice sop that
competitive edge can also be taken by the business unit in order to attract the decision-
making process of the potential customer base (Rebmann, 2019). Currently company is
not focusing over the digital marketing technique to promote its services. This technique
would allow the organisation to attract the travellers that constantly been involved under
travelling and like practices.
 Company can also follow the practice of product development. This will allow the
organisation to expand its product line and service area. Hospitality sector is a service
sector organisation that allow the organisational to deliver the most satisfying services so
that best form of customer satisfaction could have been addressed by the organisation
(Testa, 202). This practice will be suitable for the company to attract more number of
customers in the future.
CONCLUSION
Hilton Surfers Paradise is a hospitality group engaged in delivering the customer
oriented services and hospitality practices achieving the best form of customer satisfaction.
Company can follow the digital promotion practice to achieve the all different business
objectives. The pricing strategy of company is economical pricing policy.

REFERENCES
Books and Journal
Castor, S. B. and Henry, C. D., 2020. Lithium-Rich Claystone in the McDermitt Caldera,
Nevada, USA: Geologic, mineralogical, and geochemical characteristics and possible
origin. Minerals. 10(1). p.68.
Ingram, S. and Reisenleitner, M., 2018. LA Chic: A Locational History of Los Angeles Fashion.
Intellect Books.
Ironside, M. P., 2019. The cultural and physical evolution of the American amusement park:
From Thompson & Dundy’s A Trip to the Moon to Walt Disney’s Space
Mountain (Doctoral dissertation, University of Kent,).
Rebmann, R., 2019. Prohibition in Cape May County: Wetter than the Atlantic. Arcadia
Publishing.
Testa, D. M., 2020. Defending the Dillinger Gang: Jessie Levy and Bess Robbins in the
Courtroom. McFarland.
Vaughan, L., 2020. Flash Crash: A Trading Savant, a Global Manhunt, and the Most Mysterious
Market Crash in History. Doubleday.
Wood, M. E., 2017. Sustainable tourism on a finite planet: Environmental, business and policy
solutions. Taylor & Francis.