Revenue management of budget hotels

Revenue management has always been a very strange section for budget hotel owners, and many people don't really understand the significance of revenue managem

Revenue management has always been a very strange section for budget hotel owners, and many people don't really understand the significance of revenue management! In fact, revenue management is the killer of real chain hotels' profits, and the success or failure of revenue management is directly related to millions of profits. The following is what I arranged. Welcome to reading.

First of all, the first element of revenue management is cost control.

1, development cost;

As the vanguard, the development department plays a key role in the speed and quality of opening a store; First of all, development is a very systematic thing. In today's first-tier cities, basically every chain will have certain developers stationed all the year round; Many local brands give full play to the advantages of local snakes in the property development stage, with low rental cost and long signing time. The longer the signing time, the lower the depreciation cost, maintenance cost and outreach cost. In fact, the cost control of development is relatively easy, which is mainly divided into three parts: personnel salary, bonus and welfare, and expense subsidy. Generally, hotels adopt the following methods: basic salary+performance+meal supplement+words supplement+bonus, which belongs to high salary, high performance and high bonus. In fact, the development cost is not in this formula, but the professionalism and enthusiasm of developers are the key to the development cost. If the enthusiasm of developers decreases, the development cost of the company will definitely soar. Therefore, as long as the basic cost is well controlled, the more projects developed in a shorter time, the lower the development cost; However, if the developer adopts the counting bonus model, it will eventually have a great impact on the later management of the hotel; Because the developer only pays attention to the assessment mode of quantity rather than quality, the hotel will eventually pay the price for it;

2. Preparation costs;

Preparation cost belongs to the second part of hotel cost, and it also belongs to the department with frequent problems! At present, with the rising prices, almost all budget hotels exceed the budget by more than 20% compared with 2009! Take our one-room comprehensive preparation cost as an example. In 2007, the comprehensive preparation cost of a room in XX hotel chain was around 40,000. In 2008, the comprehensive preparation cost for a single house was about 42,000, in 2009, 45,000, and in 2065,438+00, 50,000. From this set of figures, we can analyze what level the construction cost of chain hotels is at present; We have been mobilizing Bajie to buy houses in second-and third-tier cities, saying that there will definitely be room for growth. I asked why? He said it was simple. When our store was renovated in 2007, carpentry cost 80 yuan a day. 20 10 woodworking has been promoted to 200 yuan for one day. It can be seen that the civil engineering cost of the house is around 2000. If the local house price is around 5000, it's really time to buy it! Among the current budget hotels, the comprehensive cost of a single room of Jinjiang Inn should be the highest, ranging from 65,000 to 72,000. In fact, Jinjiang Inn is a state-owned enterprise, and it doesn't hurt to spend other people's money. If it is really as economical as 7 days, it is no problem to control the comprehensive cost of a single room at 60 thousand.

3. Outreach expenses;

Outreach expenses, a big expenditure item that foreign budget hotels can't understand, is an unavoidable problem for any city in Greater China. I wonder if we can talk about this issue across provinces now? Bajie will be a little obscure in this respect, so that everyone can't see the follow-up posts. In fact, the outreach cost of all hotels is really high. The bigger the chain, the harder it is to do, and the better the second-line brand is! Why? Because large chains need to be listed and financial standards need to be standardized, there is no extended cost for the financial indicators of enterprises listed on Nasdaq or Hong Kong stocks. I don't want to pay 45,000 yuan for outreach expenses. The standard ................. XX hotel chain in 2009 covers 1000, 2000, 2000, but on the whole, only 40% of the single stores can be controlled within this range, and most of them will definitely exceed the standard. Bajie has seen a classic. The manager invited him to dinner, and the supervisor designated which hotel to go to and what to drink. The manager took out an envelope and sealed it with 3000 yuan. Handed it to Suochang, who took the envelope and squeezed it, saying that friends don't have to do this; The manager added 2000 yuan to the toilet. After the cable manager took it, he directly said that the brothers would talk later. The thin envelope is a friend, but the envelope on the back is a brother. There is also a classic case. Managers of XX hotel chains usually go out for dinner, but they can't make an appointment at ordinary times. Before New Year's Day, the vice president took the initiative to call the manager to drop in. The manager took the envelope and found there were many people in the office, so he didn't have the courage to take it out. I took the vice line to send the manager out at the first time, sent him to the gate of the compound and took the initiative to shake hands. Fortunately, the manager was sharp-eyed, and immediately took out the guy who was preparing, put it in his hand and handed it over at the moment of shaking hands. The subrope is in the left pocket. In fact, from these problems, we can roughly analyze the current outreach cost, which is indeed a very important one;

If you want to save promotion expenses, Bajie can remind you of a few things:

A: Start with the neck of the jurisdiction, but don't touch it too much too early, or he will turn into a leech and stare at you all the time;

B: If you know the length of the deputy director/deputy director, you can find the tone. If we can do it alone, we can give him 80% of the outreach expenses, so that he can get through all the links directly, which is economical, environmentally friendly and low-carbon, saving time. But the disadvantage is that I am worried that the fees paid in the future will not be refunded;

C: Fire fighting and private line are the two most difficult sections, especially private line, which belongs to the management of fire fighting forces, and the general relationship is difficult to enter. Please pay special attention to these two parts;

D: To sum up: find the right person, contact key people, choose the right time, find the right place, eat the right meal, give the right gift and do the right thing;

4. Operating costs;

Operating costs are the bulk of store expenses, so many hotels try their best to find a suitable node between customer satisfaction and compression costs. I remember an advertisement of GE Company: The greenest energy in the world is the saved energy. This sentence is very incisive. Let's look at many big companies changing bosses. What's the first thing the boss did when he got there? Answer: it is to reduce the cost, because it is impossible to greatly improve the income in a short time, so the best way to make the information beautiful is to reduce the cost, so that the profit can be greatly improved in a short time; So how much does our operating cost account for our cost? Sorry, Bajie has no standard information here either. The reason lies in the rental cost of rent, because the rental cost gap of houses is too large; Some 0.5 yuan/day/square; Yes 1.2 yuan/day/square; Some 2 yuan/day/square; About 2.5 yuan/day/square ............., so Bajie can't give a specific value;

Everyone's standards for operating costs will be different. The operating cost of budget hotels is roughly between 45 yuan and 65 yuan/room/day; The operating cost of Baiyuan Hotel is roughly between 30 yuan and 40 yuan every day; This operating cost includes: washing, labor cost, energy consumption, guest supplies, etc. , excluding depreciation and interest, share; Therefore, budget hotels are not the kind of profiteering industry that everyone imagined, so I advise you not to blindly jump in when you see the rapid expansion of Home Inn for seven days. There is a strong capital chain behind people, which is not comparable to this small monomer; Undeniably, there will be some projects in budget hotels that can be paid back within 1 year, but that is an example after all, and such projects should not exceed 3% in the whole industry; And high returns are concentrated in second-and third-tier brands. Why? Because second-and third-tier brands have very strong network advantages in the local market, they can often win properties with very good geographical location and very low rental cost. On the basis of similar operating costs and slightly different turnover, the key point of profit is the rental cost;

5. Lease cost; Rental costs are the bulk of hotel expenses! Like Ibis, buying land directly in Gai Lou is too slow and the capital chain is too long; Ibis, which has always been good at this, has also changed this store opening mode and turned it into a rental property store opening mode. In fact, if Ibis expects the real estate price in China to soar, it is estimated that selling hotels around the world will also implement the Gai Lou model of buying land in China; Compared with the initial stage in 2005, the rental cost in first-tier cities has been greatly improved. In 2005, the rent per square meter in the core areas of first-tier cities was about 1, 500-4,000 square meters. In 2008, it became 1.8 yuan, and 20 10 became 2.5 yuan. More and more brands directly lead to a sharp rise in the cost of suitable properties! At present, in first-tier cities, basically every brand has more than two developers. I remember our project in Hangzhou, and our developer quoted 1.3 square meters; Pudding quotation1.5; 7-day quotation 1.7, Home Inn quotation 2.2, Vienna quotation 2.5. Look at ...................., that's how the cost goes up! The development department faces the pressure of the number of stores opened, and the operation department faces the pressure of investment income; The company is under pressure from shareholders; Everyone says that pears are very big;

The most tragic thing is that the available resources in first-tier cities are almost exhausted, and there are no suitable places for projects in a big city! Like Shenzhen and Guangzhou, the streets are full of developers, but they can't find the project for a year and a half, worrying about the South China branch of N brands! Almost every big brand's South China branch will be criticized by the company at the end of the year!

6. Cost sharing; The cost of swimming pool belongs to the hidden cost of hotel investment, which is rarely considered by ordinary people! Especially for single hotels, non-professionals are not familiar with this piece. Allocated costs include: depreciation/interest/management company expense allocation/; At present, the depreciation of budget hotels is divided into hardware depreciation and software depreciation. It is more appropriate to subtract about 25% depreciation from operating income. After all, the average budget hotel will have a relatively large maintenance in about 5 years; Let's not talk about interest here. Different sources of funds have different standards. The cost sharing of the management company is relatively large. The cost of XX hotel chain headquarters is more than 4 million in a month, not to mention the leasing cost and energy consumption cost of the company. .........................

Second, the second element of income management is to increase income.

1, house price strategy; House price has always been the core of income management. Many income management regards the elastic change of house price as the core of income management. In fact, the control of house prices does account for 55% of income. How should the housing price strategy be formulated? Generally speaking, there are two schemes for setting house prices. The first is the cost inversion method. For example, the cost of each room reaches 100 yuan x expected occupancy rate+100%; The second is the price positioning method, which sets the price of its own store according to the price of the same competitor. Prices should have different price positioning in different years, seasons, times, customers, competitors and operating conditions.

2. Room strategy; Our house price determines our profitability! The house price has changed, so is the room type unchanged? The answer is no, many of our hotel chains are now facing a very scientific allocation of single and double rooms! For example, in places where commercial customers are relatively concentrated, the proportion of high-end single beds should be appropriately increased, and in places where low-end customers are concentrated, the configuration of double rooms also needs to account for a certain proportion. In general, the ratio of single bed to double bed is about 7:3, which is more suitable! All our rooms are priced according to beds. Generally divided into: economic room-darkroom without windows or small room; Big bed-a room with windows or a large room area; Business list-a room with large room area, good orientation and good room software configuration; Ordinary-a room with two beds, generally between the indicators; Business twin room-a room with larger room area and better software configuration. Another key point of our room type is that it can play a buffering role for customers when the price rises; With the rising cost or the rising occupancy rate, then our price increase must be imperative. However, the abrupt price increase will generally bring 10%-30% guests to the hotel, and it will cost a lot of extra money to stabilize the customers behind the hotel. If competitors do some targeted actions at this time, the hotel's revenue will be greatly affected. If our price increase is not a direct and blunt price increase, but through some room type adjustment, then the degree of customer acceptance will be much higher;

3. WOT management of price increase; ; To be continued, see if there is any reply. If there are many replies, Bajie will continue to write.

4.RevPar analysis;

5. Occupancy analysis;

6. Promote WOT management;

7. Manual output of 1,000 yuan;

7. Open source and throttling management;