CHASE CORNELL HOTEL SIMULATION EXERCISE

• During this simulation game six hotels will compete for market share and profit

• The hotels are coloured Black, Blue, Red, Green, Gold and White

• Each hotel has 185 rooms– 123 kings– 62 double doubles – 185 total rooms

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CHASE CORNELL HOTEL SIMULATION EXERCISE

• Each hotel has been operating for one financial quarter and has:

• Average Daily Rate – 88$

• Average Occupancy -- 82%

OCC%

ADR$

$100

$200

100%

.

CHASE CORNELL HOTEL SIMULATION EXERCISE

• Next quarter, you can position yourself almost anywhere you want.Max Rack $250Min rack $50

OCC%

ADR$

$100

$200

.100%

...

..

Question

• Which would you prefer:Average occupancy of 98% or 78%?

Weekday4 days

Weekend3 days

100%

CHASE

• In this “city” there are two markets– Business (sgl) and Leisure (dbl)

• Guess which room types they prefer- Double Doubles or Kings?

CHASE

• You will decide on eight “rack” room rates for:– Time of the week– Market type– Room type

Rates Business Leisure

WeekdayMonday to Thursday

King Dbl/Dbl King Dbl/Dbl

WeekendFriday to Sunday

King Dbl/Dbl King Dbl/Dbl

CHASE

• Your will compete four quarters:– Spring, Summer, Fall and Winter– You take over the operation of your hotels in quarter 2

QTR 1 2 3 4 5

Winter Spring Summer Fall Winter

Quarters 2,3,4 and 5 make one “Year”

The seasons

• During each season there will be fluctuations, just like in a real market………take a look

QTR 2 3 4 5

Spring Summer Fall Winter

Business +++ -- ++++ --Leisure

--- +++ -- ++

The week

• During the week there will also be fluctuations, just like in a real market………take another look

0

10

20

30

40

50

60

Weekday Weekend

Business

Leisure

CHASE

• In each quarter (week) you will make a set of decisions and receive an income statement, balance sheet and sales summary in return, the following week.

CHASE

• To do today– Team 1 will be Black, 2 will be Red etc.– Decide where you want position yourself by price– Complete your first “Marketing Plan” with rates, incentives,

commissions, advertising, staffing and product decisions.– Sign the plan and hand it in.

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