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Hotel d1 by Vivien Bogati

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by

Vivien Bogati

on 30 October 2013

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Transcript of Hotel d1 by Vivien Bogati

Net Income
2013 2014 2015
$604,335 $1,475,480 $2,667,866
F&B Total Revenue
2013 2014 2015
$4,085,756 $4,746,914 $5,707,268
Payroll Expenses
2013 2014 2015
$3,500,588 $3,610,446 $3,969,402
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2014
2015
2016
hoteld1@inbox.com
1852 North Point St., San Francisco, California, United States - 94109
2013

January 2014 - February 2014
September 2015 -
October 2015
July 2013
Goal
Acquisition of Theme Restaurant
December 2014
Welcome!
Purpose
Mission
“Affordable luxury in the heart of San Francisco”
Business Goals
Profitability
Restorations
Nr. 1 value for $
Marketing
F&B
Financial Goals
Net income ($ 2'667'866)
F&B total revenue ($ 5'707'268)
Payroll expenses ($ 3'969'402)
MGMT Objectives
Develop staff skills
Reduce staff turnover
Returning clients
Exceed customer expectation
Managers' functional ideas implemented (or not), including outcome and lessons learned
Business Strategy
“the Luxury Everyone deserves”
Focusing primarily on the leisure sector
To become number one in the competitive set
Repeat customers
Facilities

In relation to Business Goals and MGMT Objectives:
Business Plan vs. Stimulation:
Evaluation
Overall hotel d1 was very successful
Finished in 2nd place after being 1st for two years in a row
Management objectives were met
Cash was constantly re-invested into the hotel
Allowed for top quality services and facilities
Managed to be the only hotel with a themed restaurant at the end of the game
Decrease Staff Turnover
Increased Advertising
Exceed customers expectations
Increase staff’s professional skills
Renovations
Staff Turnover - wages vs. training
Advertising - focused on key segments and increased monthly spending
Offering the best services and facilities at a competitive rate
Renovations were done during times of low occupancy
Minimum disruption to guests
Soft Good re-do’s (Premium rooms, Parking, Restaurant)
Contract cleaning for Premium and Standard rooms, Lobby and Front desk.
Construction of Fitness Center
Financial Objectives
F&B
Profitability
Salaries
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KPIs
Human Resource Strategy
Initial Vision
Net income KPI Vs. Actual numbers
High Turnover
Tend to leisure, adapt staff to seasonality
Hezberg's model, money is hygiene factor, a demotivating factor
$61’469 hiring cost at the end of year 1
$585 training costs at the end of year 1
Management position have 45.83% turnover compared to operational 24.00% at the end of year 1

F&B Total revenue Vs. Actual numbers
Payroll expenses Vs. Actual numbers
Not enough contribution to cash reserve;
Occupancy drop;
Drop in F&B total revenue;
Pricing;
Price wars;
Refurbishments;
Salaries Vs. the turnover rate;
Facilities.
Risks involved in financial objectives
Actual Scenario
No new loans at the end of 2015;
Excellent net profit, increase in retained earnings;
Control of the expenses;
Financially flexible hotel.
Overall success!
Cost control: low wage, staff benefit, small unit of staff
High trained staff offering high quality service (360-degree feedback)

(Mejorando, 2004)

Take Action!
Increase staff wages for during first quarter of second year
(Riley, 2012)
To build a strong brand image in order to compete in the current “buyer’s market”
to enhance customer loyalty
To invest its funds on advertising activities
to increase profit sales by 10%
To build relationships

Actual Scenario
Core Values
by June 2013:
PR
Website
E-commerce
Performance benchmarking
Guest response
M
Down point
customer loyalty
Marketing Goals
To minimize the income variance due to seasonality - emphasizing the importance of non-residential F&B covers.
Emergent strategy
Target Market
Urban
Midtown Mix
• Income: Lower Mid
• Age Ranges: <35

Suburban
The Affluentials
• Income: Upper Mid
• Age Ranges: <55
strong
word of mouth
local (non-resident F&B)
low cost airline magazines
culinary magazines (d1vinity)
PR
brand video release on our website
e-newsletter
social media such to communicate brand image & values
communicate with sponsorship for sport events or other charity events
Social Media
Market Penetration
lower pricing for the same service or product than at the competition in order to enter the market
limited profits at the early stages of the company
Second City
White Picket Fences
• Income: Upper Mid
• Age Ranges: 25-44

Town and Country
Landed Gentry
• Income: Upscale
• Age Ranges: 35-54
Ads in newspapers
www.hotel1.com
reach to younger generations
development of social media calendar
chance to win hotel gift cards
give incentive for feedback and return visit
hmtl5 app
information:
up-dates of our latest news, events, shows
transactional:
room and restaurant booking tool
mobile marketing:
push notification
navigation:
location-based services
entertainment:
photos and videos
social media:
integrated
Ms. V
Mr. G
Ms. B
Mr. B
Ms. D
Mr. R
Leisure Premium and Standard
Business Premium and Standard
increase in Direct bookings
distribution channels
42% Direct
18% Travel Agent
23% OTA
3% Opaque in 2013
12% Tour
Increase cost, influence investment power negatively;
Money is the only hygiene factor that was identified that explained the high turn over rate;
External factors affecting branding strategy.
Risks of the strategy
P
P
P
Investment in facilities (spa - leisure sector)
Opportunities of expansion in the future
Improving economic conditions, developing infrastructures
The development of the urban middle class
Growing foreign tourism
Unstable economic environment: present an opportunity to offer accessible luxury to travelers

Competition (facilities and refurbishments), emergence of new hotels in the area
Local government projects (renovation of international airport)
Refurbishment of Premium rooms but not Standard
Change in pricing strategy of competitors
Potential downturns in travel (rising fuel prices, environmental concerns, political instability, terrorist threats)
Economic downturns

(Ramaswamy, 2008)
Advertising
Yield forecasting needs to be very precise.
Salaries are important, but profits are more important;
Try to spread the refurbishments out during the year.
Competition will always be competition.
Lessons learned
Full transcript