Comparative Analysis of Hotel Room Tariffs in Sydney, Australia

This report provides a comprehensive analysis of room division management, specifically focusing on the revenue strategies of two luxury hotels in Sydney, Australia: Amora Hotel Jamison Sydney and The Grace Hotel Sydney. The report examines room tariffs, comparing rates from the hotels' official websites with those from online travel agencies (OTAs) such as Agoda and Wotif, across different dates and room types (Deluxe King). It explores the fluctuations in room rates between September and November, highlighting the strategies employed by hotel management to optimize revenue based on demand, seasonality, and external factors. The analysis includes data presented in tables and bar graphs, illustrating the dynamic pricing adjustments implemented by the hotels. The report concludes that hotel room tariffs are sensitive to external influences and emphasizes the importance of revenue optimization through strategic pricing to maximize profitability.

Running head: ROOM DIVISION MANAGEMENT
Room Division Management
Name of the Student:
Name of the University:
Authors Note:

1
ROOM DIVISION MANAGEMENT
Executive Summary:
The efficient management of hotels to a significant extent depends on the correct pricing, i.e.
determination of room rent of the hotels. With an objective of conducting a detailed discussion
on the room tariffs of two similarly placed hotels in Sydney, Australia the document below has
been prepared.

2
ROOM DIVISION MANAGEMENT
Contents
Executive Summary:........................................................................................................................1
Introduction:....................................................................................................................................3
Findings:..........................................................................................................................................3
Conclusion:......................................................................................................................................7
References:......................................................................................................................................8
Appendix 1:.....................................................................................................................................9
Appendix 2:...................................................................................................................................10
Appendix 3:...................................................................................................................................11

3
ROOM DIVISION MANAGEMENT
Introduction:
Amora Hotel Jamison Sydney and The Grace Hotel Sydney have been selected for the purpose
of evaluation of revenue model from room rent in the two hotels. Both located in Sydney, New
South Wales are luxury hotels that provides luxury hospitality services to the guests. A detailed
investigation on the room tariffs of the two hotels have been made here to come to a particular
assertion in this document (Lee, 2016).
Findings:
The per night stay in Amora Hotel Jamison Sydney during the period between 11th and 13th
October costs a guest around $270 in Deluxe King room as per the official website of the hotel
whereas Agoda (OTA 1) and Wotif (OTA 2) quoted $290 in their websites as on October 4. As
on the same date, i.e. October 4 the official website of The Grace Hotel in the same city quoted a
rate of $262 per night for the period between 11th and 13th October. The OTA 1 and OTA 2
quoted $262 and $265 respectively the room rates of the hotel. (Urraca, Sanz-García, Fernández-
Ceniceros, Sodupe-Ortega & Martinez-de-Pison, 2015). During the period between 1st and 3rd
November the deluxe king would have costs a guest around $418 per night as per the official
website rate quoted on October 11. OTA 1 and OTA 2 quoted $428 and $427.5 per night for the
same rooms. On the same day, i.e. 11th October the similar room in The Grace Hotel priced in the
official website of the hotel at $370. OTA 1 quoted $364 and OTA 2 quoted $367.5 for the same
room (Kimes, 2016).
In order to discuss about the revenue management of two concerned hotels between the period of
20th September and 1st November the room rates on different Thursdays of these two hotels as per

4
ROOM DIVISION MANAGEMENT
official websites of the two hotels and online booking agencies are provided in the table below.
The data collected from online sources regarding the tariff rates in the two hotels are provide
below in a table.
The room rates of Amora Hotel are mentioned in the table below as per the official website of
the hotel and OTA 1 and OTA 2.
Thur 20 Sept Thur 27 Sept Thur 4 Oct
11/10-13/10 1/11-
3/11
11/10-13/10 1/11-
3/11
11/10-13/10 1/11-
3/11Hotel
website
$285 $418 $250 $418 270 418
OTA 1 $275 $418 $255 $418 290 428
OTA 2 $290 $417.50 $255 $417.5
0
290 427.5
Thur 11 Oct Thur 18 Oct Thur 25 Oct Thur 1 Nov
11/10-13/10 1/11-
3/11
1/11-
3/11
1/11-
3/11
1/11-
3/11
Hotel
website
N/A 418 430 440 N/A
OTA 1 N/A 428 448 452 N/A
OTA 2 N/A 427.5 442.5 451.5 N/A
The room rates of The Grace Hotel are mentioned in the table below as per the official website of
the hotel and OTA 1 and OTA 2.

5
ROOM DIVISION MANAGEMENT
Thur 20 Sept Thur 27 Sept Thur 4 Oct
11/10-13/10 1/11-
3/11
11/10-13/10 1/11-
3/11
11/10-13/10 1/11-
3/11Hotel
website
$274 $402 $248 $360 262 384
OTA 1 $284 $412 $244 $355 262 346/384
OTA 2 $286.50 $416.50 $247 $358.50 265 349.5
Thur 11 Oct Thur 18 Oct Thur 25 Oct Thur 1 Nov
11/10-13/10 1/11-
3/11
1/11-
3/11
1/11-
3/11
1/11-
3/11
Hotel
website
N/A 370 349 314 N/A
OTA 1 N/A 364 352 312 N/A
OTA 2 N/A 367.5 356 313.5 N/A
The above room rates and fluctuation in room rates can be depicted in a bar with the use of tools
in spreadsheet. The bar graph below shows the fluctuations in the tariff rates in different
Thursdays of the year.
It is clear from the
above bar graphs that
Thur
20
Sept
Thur
27
Sept
Thur
4 Oct Thur
11
Oct
Thur
18
Oct
Thur
25
Oct
Thur
1 Nov
$0
$50
$100
$150
$200
$250
$300
$350
$400
$450
$500
Amora Hotel
Hotel website OTA 1 OTA 2

6
ROOM DIVISION MANAGEMENT
the hotel rates in the two hotel have fluctuated significantly on different Thursdays between 20th
September and 1st November. This is the strategy of the management to adjust the demand
supplies of hotel room in different seasons in the country. The end and start of the year has seen
huge increase in demand in hotel rooms in entire country especially in Sydney however, even
between 20th September and 1st November in all Thursdays the room tariffs have fluctuated in
both The Grace and Amora Hotel. The management on the basis of demands adjust room tariffs
(Ivanov, 2014).
The strategy of the management is to determine the room rates in such way to increase its
revenue and profitability. Keeping in the mind occupancy rates of the hotel the decision of room
rates are made. The short term strategy is in effect here as the management keeps on adjusting
room rates to increase the revenue of concerned hotels thus, even during a small window
between 20th September and 1st November the room rates of both The Grace Hotel and Amora
Hotel have adjusted to manage the revenue of these two hotels (Noone, 2016). It would be
incorrect to say that the demand and supply rule is in play here as the demand increases for the
hotel in the country in the end and start of the year from Christmas and New Year celebrations
and the period taken is neither the end of the year nor the New Year. However, it is clear that
compared to The Grace Hotel the fluctuations in room rates in Amora Hotel is significantly more
(Rodríguez-Algeciras & Talón-Ballestero, 2017).
Conclusion:
Taking into consideration the discussion above it can be concluded that the hotel room tariffs is
extremely vulnerable to the external factors including the availability of hotel rooms and the
quality of hospitality services in the country. It is up to the hotel management to ensure that the
revenue and profitability of a hotel is maximum under different circumstances and hence, room

7
ROOM DIVISION MANAGEMENT
rates are adjusted to achieve the revenue optimization and increase profitability of respective
hotels (Park, Jeong Kim & McCleary, 2014).

8
ROOM DIVISION MANAGEMENT
References:
Ivanov, S. (2014). Hotel revenue management: From theory to practice. Zangador.
Kimes, S. E. (2016). The evolution of hotel revenue management. Journal of Revenue and
Pricing Management, 15(3-4), 247-251.
Lee, S. H. (2016). How hotel managers decide to discount room rates: A conjoint
analysis. International Journal of Hospitality Management, 52, 68-77.
Noone, B. M. (2016). Pricing for hotel revenue management: Evolution in an era of price
transparency. Journal of Revenue and Pricing Management, 15(3-4), 264-269.
Park, J., Jeong Kim, H., & McCleary, K. W. (2014). The impact of top management’s
environmental attitudes on hotel companies’ environmental management. Journal of
Hospitality & Tourism Research, 38(1), 95-115.
Rodríguez-Algeciras, A., & Talón-Ballestero, P. (2017). An empirical analysis of the
effectiveness of hotel Revenue Management in five-star hotels in Barcelona,
Spain. Journal of Hospitality and Tourism Management, 32, 24-34.
Urraca, R., Sanz-García, A., Fernández-Ceniceros, J., Sodupe-Ortega, E., & Martinez-de-Pison,
F. J. (2015, June). Improving hotel room demand forecasting with a hybrid GA-SVR
methodology based on skewed data transformation, feature selection and parsimony
tuning. In International Conference on Hybrid Artificial Intelligence Systems (pp. 632-
643). Springer, Cham.

9
ROOM DIVISION MANAGEMENT
Appendix 1:
Amora Hotel Jamison Sydney direction:
The Grace Hotel direction:

10
ROOM DIVISION MANAGEMENT
Appendix 2:
Rate sheet: