HAT301A Revenue Management: Bli Bli House Riverside Retreat Report

This revenue management report focuses on Bli Bli House Riverside Retreat, evaluating its rates and occupancy based on demand over three weeks (June 4th to June 24th). It details rate fluctuations, presenting a revenue grid account that includes rates, inventory amounts, discounts, credit amounts, and total rates. The report compares Bli Bli House's rates with those of competitors like Rumba Beach Resort. It also assesses the hotel's book value versus market price, considering demand and goodwill. The occupancy forecast indicates an average of 70% during weekdays and 85% on weekends for the 200-room hotel, projecting total revenue based on these figures. The conclusion suggests a positive overall revenue position for the company.

Running Head: Revenue management
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Project Report: Revenue Management

Revenue management
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Case brief:
The revenue management report has been prepared on Bli Bli house riverside retreat.
The rates and the occupancy of the company have been evaluated on the basis of the rates of
the hotel and the demand of the hotel in last 3 weeks from 4th June to 24th June.
Rates fluctuation list:
Rates fluctuation is most common thing in the hotel industry. The rates of the hotel
have been evaluated from 4th June to 24th June. The rates fluctuation list of the company is as
follows:
Rate list
Date Rate
4-Jun-18 237.78
5-Jun-18 235.45
6-Jun-18 234.75
7-Jun-18 234.75
8-Jun-18 240.85
9-Jun-18 242.85
10-Jun-18 245
11-Jun-18 237.78
12-Jun-18 235.45
13-Jun-18 234.75
14-Jun-18 234.75
15-Jun-18 240.85
16-Jun-18 242.85
17-Jun-18 245
18-Jun-18 237.78
19-Jun-18 235.45
20-Jun-18 234.75
21-Jun-18 234.75
22-Jun-18 240.85
23-Jun-18 242.85
24-Jun-18 245

Revenue management
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Revenue grid account:
Revenue grid account of the company is as follows:
Rate list
Date Rate Inv Amount Discount Credit amount Total rate
4-Jun-18 237.78 0 11.89 0 225.89
5-Jun-18 235.45 0 11.77 0 223.68
6-Jun-18 234.75 0 11.74 0 223.01
7-Jun-18 234.75 0 11.74 0 223.01
8-Jun-18 240.85 0 12.04 0 228.81
9-Jun-18 242.85 0 12.14 0 230.71
10-Jun-18 245 0 12.25 0 232.75
11-Jun-18 237.78 0 11.89 0 225.89
12-Jun-18 235.45 0 11.77 0 223.68
13-Jun-18 234.75 0 11.74 0 223.01
14-Jun-18 234.75 0 11.74 0 223.01
15-Jun-18 240.85 0 12.04 0 228.81
16-Jun-18 242.85 0 12.14 0 230.71
17-Jun-18 245 0 12.25 0 232.75
18-Jun-18 237.78 0 11.89 0 225.89
19-Jun-18 235.45 0 11.77 0 223.68
20-Jun-18 234.75 0 11.74 0 223.01
21-Jun-18 234.75 0 11.74 0 223.01
22-Jun-18 240.85 0 12.04 0 228.81
23-Jun-18 242.85 0 12.14 0 230.71
24-Jun-18 245 0 12.25 0 232.75
(Last minute, 2018)
Competitor’s rate:
Competitor rate
Bli Bli House
Riverside Retreat
Rumba
Beach resort
Date Rate Rate
(Amt in AUD)
(Amt in
AUD)
4-Jun-18 237.78 261.56
5-Jun-18 235.45 259.00
6-Jun-18 234.75 258.23
7-Jun-18 234.75 258.23

Revenue management
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8-Jun-18 240.85 264.94
9-Jun-18 242.85 267.14
10-Jun-18 245 269.50
11-Jun-18 237.78 261.56
12-Jun-18 235.45 259.00
13-Jun-18 234.75 258.23
14-Jun-18 234.75 258.23
15-Jun-18 240.85 264.94
16-Jun-18 242.85 267.14
17-Jun-18 245 269.50
18-Jun-18 237.78 261.56
19-Jun-18 235.45 259.00
20-Jun-18 234.75 258.23
21-Jun-18 234.75 258.23
22-Jun-18 240.85 264.94
23-Jun-18 242.85 267.14
24-Jun-18 245 269.50
(Home, 2018)
Book figures:
The books figure of the business has been evaluated and it has been found that the
book value of the hotel charges are $ 225 however the market price of the hotel is higher due
to the demand the goodwill of the hotel in the market (home, 2018).
Occupancy forecast:
Occupancy forecast explains about the total rooms which have been occupied in the
hotel at a particular time. On the basis of the study, it has been measured that there are 200
rooms in the hotel and the average occupancy of the hotel is 70% in week days and 85% in
weekends.
Forecasted average rate:
Occupancy rates
Date Rate Occpancy % Occupied room Total revenue
4-Jun-18
$
237.78 70% 140 $ 33,289.20
5-Jun-18 $ 70% 140 $ 32,963.00

Revenue management
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235.45
6-Jun-18
$
234.75 70% 140 $ 32,865.00
7-Jun-18
$
234.75 70% 140 $ 32,865.00
8-Jun-18
$
240.85 70% 140 $ 33,719.00
9-Jun-18
$
242.85 85% 170 $ 41,284.50
10-Jun-18
$
245.00 85% 170 $ 41,650.00
11-Jun-18
$
237.78 70% 140 $ 33,289.20
12-Jun-18
$
235.45 70% 140 $ 32,963.00
13-Jun-18
$
234.75 70% 140 $ 32,865.00
14-Jun-18
$
234.75 70% 140 $ 32,865.00
15-Jun-18
$
240.85 70% 140 $ 33,719.00
16-Jun-18
$
242.85 85% 170 $ 41,284.50
17-Jun-18
$
245.00 85% 170 $ 41,650.00
18-Jun-18
$
237.78 70% 140 $ 33,289.20
19-Jun-18
$
235.45 70% 140 $ 32,963.00
20-Jun-18
$
234.75 70% 140 $ 32,865.00
21-Jun-18
$
234.75 70% 140 $ 32,865.00
22-Jun-18
$
240.85 70% 140 $ 33,719.00
23-Jun-18
$
242.85 85% 170 $ 41,284.50
24-Jun-18
$
245.00 85% 170 $ 41,650.00
Conclusion:
On the basis of the study, it has been measured that the overall revenue position of the
company is quite better.

Revenue management
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References:
Last minute. (2018). Bli Bli House. [online]. Retrieved from:
https://www.lastminute.com.au/Sunshine-Coast-Hotels-Bli-Bli-House-Riverside-
Retreat.h9629770.Hotel-Information.
Home. (2018). Bli Bli House. [online]. Retrieved from: https://bliblihouse.com.au/.
Home. (2018). Rumba resort. [online]. Retrieved from: https://www.rumbaresort.com.au/.