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The ∆ ² Revenue Plan Turning the budget into the business plan. The ∆ ² Revenue Plan : Objectives. A deep understanding of the source of plan year revenues by each market segment A fact based definition of competitors by major business area - PowerPoint PPT Presentation
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The ∆The ∆² ² Revenue PlanRevenue Plan
Turning the budget into the Turning the budget into the business planbusiness plan
The ∆The ∆² ² Revenue Plan : ObjectivesRevenue Plan : Objectives
► A deep understanding of the source of plan A deep understanding of the source of plan year revenues by each market segmentyear revenues by each market segment
► A fact based definition of competitors by A fact based definition of competitors by major business areamajor business area
► A price structure embedded in competitive A price structure embedded in competitive reality that optimises both revPAR & RGIreality that optimises both revPAR & RGI
► A fully resourced plan to achieve plan goalsA fully resourced plan to achieve plan goals► A format that allows direct comparison with A format that allows direct comparison with
sales & marketing activity & allocates sales & marketing activity & allocates ownership to responsible team membersownership to responsible team members
What do I get at the end of it? What do I get at the end of it? ∆∆² ² Revenue Plan OutputsRevenue Plan Outputs
► Three year revenue evolution (prior, Three year revenue evolution (prior, current, plan) by defined market segment current, plan) by defined market segment
► Plan year revenue as the direct top line Plan year revenue as the direct top line input to the P&Linput to the P&L
► Set of validated kpi’s to be used as Set of validated kpi’s to be used as ongoing measurement toolongoing measurement tool
► Logical price:product positioning to comp Logical price:product positioning to comp set in key markets set in key markets andand plan to achieve plan to achieve best in class performancebest in class performance
The ∆The ∆² ² Revenue PlanRevenue PlanForecast ModelForecast Model
‘‘to know where you’re going, know where you start’to know where you’re going, know where you start’
Forecast uses comparisons Forecast uses comparisons to same periods in prior to same periods in prior year to stretch current year year to stretch current year goalsgoals
The ∆The ∆² ² Revenue PlanRevenue Plan™™
Input ModelInput ModelRooms forecast Rooms forecast backfilled by market backfilled by market sector and compared sector and compared to prior yearto prior year
The ∆The ∆² ² Revenue PlanRevenue Plan™™
Relative Quality AnalysisRelative Quality Analysis
Detailed competitive Detailed competitive shopping exercise shopping exercise replicates buyer behaviour replicates buyer behaviour to rank hotel and to rank hotel and competitors against what competitors against what guests say is importantguests say is important
The ∆The ∆²²Revenue PlanRevenue PlanAnalysing competitor selling Analysing competitor selling
pricesprices
Your selling price Your selling price compared to each compared to each competitor & comp set competitor & comp set averageaverage
The ∆The ∆²²Revenue PlanRevenue Plan™™
Value Positioning Matrix~ Value Positioning Matrix~ ‘‘because customers will pay for quality’because customers will pay for quality’
VPM visually displays VPM visually displays price:quality relationship price:quality relationship of entire comp set by of entire comp set by season & segment and season & segment and focuses attention on rate focuses attention on rate & share premium drivers& share premium drivers
The ∆The ∆² ² Revenue PlanRevenue Plan™™
PESTLE AnalysisPESTLE AnalysisPESTLE analysis PESTLE analysis allows uncontrollable allows uncontrollable macro factors to be macro factors to be built into the planbuilt into the plan
The ∆The ∆² ² Revenue PlanRevenue Plan™™
Demand AnalysisDemand AnalysisDemand analysis Demand analysis builds on PESTLE, builds on PESTLE, focuses on business focuses on business mix changes and mix changes and growth growth opportunitiesopportunities
The ∆The ∆² ² Revenue PlanRevenue Plan™™
Price PlanningPrice PlanningRate structure Rate structure anchored at volume anchored at volume levels and flowed up levels and flowed up and down to optimise and down to optimise price:volume price:volume opportunitiesopportunities
The ∆The ∆² ² Revenue PlanRevenue Plan™™
Rate CascadeRate Cascade
PREMIUM
WHOLESALE
CORPORATE
MEETING GROUP
LEISURE GROUP
CREW
0 100 200 300 400 500 600 700
Rate
PREMIUM
WHOLESALE
CORPORATE
MEETING GROUP
LEISURE GROUP
CREW
Segm
ent
Rate Strategy Analysis - High Season
Cascade Cascade display display highlights highlights any rate any rate misalignmentmisalignmentss
The ∆The ∆² ² Revenue PlanRevenue Plan™™
Monthly SpreadsheetMonthly SpreadsheetFinal output is Final output is monthly revenue monthly revenue budget that can be budget that can be fitted to the P&Lfitted to the P&L
Key Results becomes P&L Key Results becomes P&L inputinput
Simple kpi’s focus the team Simple kpi’s focus the team on key result areas and rest on key result areas and rest on deep management on deep management understanding of the understanding of the businessbusiness
Wrap UpWrap Up
►Growth. A business plan that is both Growth. A business plan that is both stretched and achievablestretched and achievable
►Ownership. Every cent/penny of revenue Ownership. Every cent/penny of revenue trackable to a market segment and trackable to a market segment and allocated to a ‘business owner’allocated to a ‘business owner’
► Understanding & Alignment: One team. Understanding & Alignment: One team. One Plan. One Goal with everyone lined up One Plan. One Goal with everyone lined up behind the same commitment. behind the same commitment.
