Please find the attachment for the assignment details Word count: 3200 Task 2 Sales and Revenue Management Contents 1. Hotel Description and Background 2. Local Area Information 3. Background on New...

Running Header: NASHVILLE AIRPORT HOTEL – SALES & REVENUE MANAGEMENT –
TASK 2 1
Nashville Airport Hotel – Sales & Revenue Management – Task 2
Nashville Airport Hotel – Sales & Revenue Management – Task 2 2
Nashville Airport Hotel – Sales & Revenue Management – Task 2
Introduction
Background
This report is focused on Nashville Airport Hotel, an independent hotel, which is of
premium nature, located close to Nashville Airport. This hotel caters to the visitors who seek for
travel that is stress free as well as convenient. The strategic location of the hotel being near to the
Airport as well as being close to tourist places like Nissan Stadium, Country Music Hall of
Fame, Grand Ole Opry addresses the needs for both leisure as well as business guests. The hotel
property encompasses 380 rooms with modern décor as well as twelve suites having
contemporary furnishings. In addition, the hotel offers various services by way of newly
enovated health club which is fitted with equipment that are state-of-the-art, both an indoor as
well as outdoor pool, whirlpool, etc.. With a casual ambience, the hotel also offers its guest
added value by way of a restaurant as well as a sport bar. With respect to business visitors the
hotel offer well equipped business conference rooms as well as offers people with large event
ooms for any social cele
ations. Overall, this 25,000 square foot state of the art facility is well
equipped, well-staffed and well located to offer the best services for both leisure as well as
usiness customers.
In terms of Nashville as a city, the same is home to major industries which comprise
production of automobiles, Healthcare Management, Finance services, Insurance, higher
education, printing / publishing, music production, tourism, and, technology manufacturing. This
epresents a significant market for business as well as leisure travelers which is indicated by the
2015 metric of visitors totaling 13.5 million to Nashville with an over spending that is over US
Nashville Airport Hotel – Sales & Revenue Management – Task 2 3
Dollar 5.4 billion by these visitors. This indicates a market that has significant business potential,
market growth and scope for many players to co-exist.
Aims & Objectives
In the context of the case background presented, the objective of this study is to evaluate
and present a revenue and sales management framework for Nashville Airport Hotel in the
specific circumstance and market situation it is exposed to. In specific, the objectives of this
eport comprises the following,
 Present a critical and comprehensive evaluation of prevailing situation in terms of sales
and revenue for Nashville Airport Hotel
 Identify and discuss the key challenges as well as opportunities that face Nashville
Airport Hotel.
 Identify and present suitable sales techniques for Nashville Airport Hotel.
 Finally based on the evaluations, review and assessment, provide a five point
ecommendation for suitable sales and revenue strategies for Nashville Airport Hotel.
Cu
ent Situation Analysis – Sales & Revenue
The Nashville Airport Hotel operates in a market that as par the latest available data (for
the year 2015) had 13.5 million visitor to Nashville who at an aggregate level spent over US
Dollar 5.4 billion during their stay in Nashville. For a hotel, these figure illustrate a market
situation that is highly attractive and poses critical business potential.
Nashville Airport Hotel – Sales & Revenue Management – Task 2 4
However, even when an ideal market situation is available the successful capitalization of
these factors to revenue generation depend upon various set of factors which includes, but not
limited to, institutional effects, the employment of suitable revenue / sales management
techniques, tools & strategies, technology accessibility & application, human resources,
customer relationship management, the nature and extent of local competition, etc. In an
empirical study undertaken by Willie et al (2015), it was determined that despite relatively
greater market potential at United States in comparison to Canada, Canadian hotel industry were
much more effective in managing the aforementioned factors resulting increasing profitability
and overall competitiveness as compared to their American counterparts. Further two of the
major elements which contribute towards revenues that are gained from both the rooms as well
as the food / beverage services are the quantity as well as price (Hayes & Miller, 2011; Hawkins
& Chen, 2014). Quantity illustrates the volume of the business (occupancy, visitors, etc.), which
in contexts of rooms refer to occupancy levels and with respect to food / beverage it refers to
covers served (Hayes & Miller, 2011; Hawkins & Chen, 2014). Further the price aspect refers to
the specific rates, Average Daily Rates / Revenue Performance pertaining to rooms as well as
average check with respect to food / beverage (Hayes & Miller, 2011; Hawkins & Chen, 2014).
In this context, a detailed assessment of the revenue and sales performance of Nashville
Airport Hotel in absolute terms and in comparison with its competitors shall illustrate key
insights in this regard,
Refer Annexure 1 of this report for the Occupancy Rates, Average Daily Rate (“ADR”),
that is, revenues per room sold, and RevPar, that is, revenues per room available compared
Nashville Airport Hotel – Sales & Revenue Management – Task 2 5
etween Nashville Airport Hotel and its competitors for the periods of 2014 (year level), 2015 (6
months & year level) and 2016 (monthly & year wise). On the basis of the review of this data the
following information are evident,
 While the occupancy rates of Nashville Airport Hotel had been above industry average
for the year 2014 and 2015, they plunged to below average levels with lower rankings in
terms of occupancy rates during the year 2016.
 The hotel has consistently experienced below average ADR over the past three years with
a slight improvement during the year 2016
 The RevPAR mi
ors the ADR trend for the hotel below average levels over the past
three years with a slight improvement during the year 2016
In assessing the data and information pertaining to Nashville Airport Hotel and overall
market / industry level data, it is clear that the hotel has failed to fully capitalize both its
capabilities as well as the market potential. Despite the well-equipped, well-furnished, and well-
managed property that is state-of-the-art and also strategically located, the company has
consistently performed well below its competitors. The occupancy rates never reaching 75 per
cent at an annual average levels illustrates key concern for the hotel. While the seasonal nature of
hotel occupancy is normal industry trend and as illustrated in the figures available, the same still
does not wa
ant the relatively lower levels of occupancy at the hotel. In terms of ADR as well as
RevPAR, the hotel has consistently illustrated below par revenue generation as compared to the
overall market.
Nashville Airport Hotel – Sales & Revenue Management – Task 2 6
On the basis of the critical and detailed assessment of the cu
ent situation concerning
Nashville Airport Hotel with respect to Sales and Revenue, it is well-evident that the hotel has
failed to fully capitalize the market potential, as well as its full internal capabilities / resources to
employ effective revenue / sales management for gaining better profitability.
Key Challenges & Opportunities
Strengths
 The overall property size, quality and well-furnished rooms / suites / other service
offerings of the hotel.
 The strategic location of the hotel offering convenience to both leisure as well as business
visitors of the hotel
 The well-experienced management and the capable human resource function.
Weakness
 A below average competitiveness in both price as well as quantity aspect of revenue
generation as compared to competitors / industry
 Failure to effectively capitalize the business potential of the market
 A indicates of lower quality / ineffective customer service as interpreted from the
evenue / occupancy performances (as the same happens despite various strengths
highlighted)
 A lack of consistent, effective, and robust revenue / sales management strategy or
approach
Nashville Airport Hotel – Sales & Revenue Management – Task 2 7
Opportunities
 A large market space aided by growth potential still offers scope to refocus and transform
for better performance and growth.
...