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Question: Discuss About The Kinds Of Budget For Tourists Both Domestic? Answer: Introducation Sydney Australia is a tourist attraction zone. Based on the scenario and calculations, the city has a lot of hotels that offer all kinds of budget for the tourists both domestic and foreign.Sydney has a relatively high yield management in the tourism sector. The availability of good services and facilities in the city makes it a good place for choosing the city (Cross, 2011). Most of the hotels are running to full capacity therefore earning maximum profits especially when it is summer. The four hotels are all rated the same by international travel magazines and therefore are comparatively the same. Sydney on the other hand can be used as a good city for hospitality management in terms of hotels and their suitability to attract customers. It is easy to assimilate hotel revenue through market portfolios especially in a competing industry. The average revenue collections for all the hotels are almost in the same range given the proximity of the hotels. As a big city, the revenue aspect for collection in hotels can be easily sampled and managed.The city has potential as it is a top tourist destination with many people coming to see the great features offered by the city (Hellermann, 2006). Competitor set and what they have in common with my hotel As a top tourist destination, Sydney Australia has an array of hotels, they include the following: Rydges Sydeny and Central, Novotel Sydney Central, Hyatt Regency Sydney and Central Station Hotel. They have been chosen because of their facilities which includes the bed capacity and the services offered in these hotels. Their revenues are almost at par with each other and make suitable competitors to the chosen hotel. The revenue collection management system can be comparatively used to gauge and measure the competitiveness of the industry and its peers. The following are some of the dimensions that are measured for the choice of these hotels; capacity; where most of these hotels are four and five star hotels with a bed capacity ranging between 200- 250 beds.The same can be said of our hotel. The second determining factor is the physical occupancy; most of these hotels have a 60% occupancy levels while at peak levels record full capacity of occupancy. The third factor in the choice o f hotel is the revenue earned from each bed or the room revenues. They room revenue range from $320- $400 on a busy day. The average revenue collection is $ 379for all the four hotels. Deciding on the books figures and occupancy forecast On the book figures are found by multiplication of the capacity and the physical occupancy levels as a percentage of the day Monday- 65%*200= 130 Tuesday- 60%*200= 120 Wednesday- 65%*200= 130 This means that the book figures are a representation of how the days should be and a percentage of the full capacity given for the hotels. Occupancy forecast is calculated as follows; Monday- 90%*200= 180 Tuesday- 85%*200= 170 Wednesday- 85%*200= 170 This means that the book figures and occupancy levels are a representation of how the days should be and a percentage of the full capacity given for the hotels. Hotel performance in the market taking into account the volume of competitors in the market With good facilities and good customer service, the hotel is expected to perfume fairly well and maintain a high customer interaction and service compared to the other competitors. Although, it is the lowest revenue earner with comparison to the other competitors, it can be the most improved if proper marketing and management are affected (Shy, 2008). The occupancy levels should at all timeis 90% if forecast revenue is anything to go by. The rooms that are accessible that are taken in a predefined time is what the occupancy of the hotel should be focused on. High occupancy levels should be a product of good services given by the hotel and the marketing done by the management to be able to surpass the competitors. It is therefore expected that the hotel should improve drastically and compete with its competitors in the market. Suitability of the hotel and location should also be taken into account for better marketing and revenue improvement (Shy, 2008). Considering that all the competitors mentioned here are four star and five star hotels, it means that the rates charged are almost the same and therefore the hotel is expected to perform the same as the others. Target market Market segmentation groups consumers with common needs and buying behaviors into a segment to become a basis for marketing. For the hotel, the target market includes the travelers, business people, government guests , people on leisure and those attending conventions in the city. All these are categories of people who make good customers by booking rooms that may even last for weeks (Sfodera, 2006). When the demand is low the following measures should be put in place. Managers of hotels can maximize revenues by making use of forecast information in capacity management, duration control and discount allocation. Revenue management is a better performance measure of a hotels performance and provides a more precise measure of performance than the average daily rate and occupancy rate method. The manager uses standard against actual revenue to measure performance (Revenue management, 2014). By using this method the management can adjust room rates based on demand of a specific market segment. The management may as a measure of boosting revenue package some products to suit the desires of the target market. For example, in terms of guest rooms, ancillary services and banquets (Yield management, 2012). the second measure that should be put in place is to focus on some customers for example offer discounts to business people, people seeking leisure, government guests and conventions. By doing so, the revenues of the hotel will be boosted because the reduction of room rates / prices will attract more customers ensuring that the occupancy rates is still optimal (Revenue Management, 2012). The management should lower prices of rooms to attain a competitive advantage over its competitors who are eyeing the same customers (Pak, 2005). Revenue management strategies used by hotels seek to maximize efficiency and sales so by focusing on high profit bookings when the demand is high the hotel can maximize profits. The hotel also increases bookings on low demand days. Improved seasonal pricing coupled with inventory decisions leads to optimal occupancy rate that ensures maximum profits for the hotel. The hotels management should also establish a value based rate structure through a revenue man agement system to maximize on revenues during off peak seasons in the hospitality industry (Revenue management, 2014). Potential revenue is calculated by most hotels as the amount the hotel would earn if all rooms were sold at the double occupancy rate. However, revenue mix takes into account the percentage mix of rooms sold at double occupancy and single. The competitors of this hotel were chosen because they are all in Sydney and pull almost the same levels of revenue and can all be put in the same category. Reaction and revenue management measure put in place when demand is higher than expected The revenue management measures put in place when demand is high are as follows; first, restrict or close discounts- to maximize the average rate it it recommendable to offer discounts to only those who book to stay longer and also I is advisable to restrict bookings to shorter stays to maximize on revenue. We may also apply restrictions to minimum length of stay which helps the hotel to increase room nights. It is necessary to study patterns of guests to decide how many nights they are likely to add to their stay (Rouse, Maguire and Harrison, 2011). During high demand periods the company should reduce allocations of groups to one room. This is a great tactic as it ensures that all rooms are occupied and fetch the highest rates possible which maximize the revenues for the hotel. Another measure to use is to eliminate or reduce 6 pomp holds (Ingold, 2012). The number of rooms that are unpaid and are held until 6p.m should be reduced when the demand is high to ensure that there are rooms available to fill. We should also tighten guarantee and cancellation policies to make sure that all the payments are made. We should ensure that the first night stay is charged during reservations to minimize cancellations (Hellermann, 2006). We should also ensure that full and maximum prices are applied to executive rooms and suites during high demand situations to maximize on the revenues. Also, apply tactics that are consistent with the competitors tactics to avoid giving the competitors a competitive advantage during high demand periods. Another measure that is helpful during high demand situations is to consider raising rates for packages. Discounts for packages offered by the hotels should be reduced to boost the revenues. References Cross, R. (2011).Revenue Management. Crown Business. Hellermann, R. (2006).Capacity options for revenue management. Berlin: Springer. Ingold, A. (2012).Yield management. Hampshire: Cengage Learning EMEA. Pak, K. (2005).Revenue management. Rotterdam: Erasmus Research Institute of Management. Revenue management. (2014). [Place of publication not identified]: Palgrave Macmillan. Revenue Management. (2012). Pearson College Div. Rouse, P., Maguire, W. and Harrison, J. (2011).Revenue management in service organizations. [New York, N.Y.]: Business Expert Press. Sfodera, F. (2006).The spread of yield management practices. Heidelberg: Physica-Verlag. Shy, O. (2008).How to price. Cambridge: Cambridge University Press. Yield management. (2012). [Place of publication not identified]: Betascript Publishing.