6th Sem l Front Office l Solved Papers l 2018-19

Q.1. (a) Explain in your own words the concept of yield management.

Yield management is a pricing strategy used by businesses to optimize their revenue and profitability by selling their products or services at the right price, to the right customer, at the right time. This concept is particularly relevant in the hospitality industry, where hotels, resorts, and other accommodation providers must manage their inventory of rooms and other amenities to maximize revenue.

Here are some key points to help explain the concept of yield management:

1. Dynamic pricing: Yield management involves adjusting prices in response to changes in demand and supply. By analyzing historical data, market trends, and customer behavior, hotels can set prices that vary according to the season, day of the week, time of day, and other factors.
2. Segmentation: Yield management also involves segmenting the market into different groups of customers, based on their willingness to pay, preferences, and other characteristics. By targeting each segment with a customized pricing strategy, hotels can maximize their revenue from each customer.
3. Forecasting: Yield management requires accurate forecasting of demand and supply, to ensure that the hotel has enough inventory to meet the needs of its customers. By using advanced analytics tools and techniques, hotels can predict future demand and adjust their pricing strategy accordingly.
4. Capacity management: Yield management also involves managing the hotel’s capacity to ensure that it is fully utilized. This may involve opening or closing certain sections of the hotel, changing the number of staff on duty, or adjusting the length of stay requirements for guests.
5. Technology: Yield management requires the use of sophisticated software and analytics tools to analyze data, predict demand, and adjust prices in real-time. Hotels may use revenue management systems (RMS) to automate the process and ensure that prices are optimized for maximum revenue.

In summary, yield management is a complex and dynamic pricing strategy that involves analyzing data, segmenting the market, forecasting demand, managing capacity, and using technology to optimize revenue and profitability. By implementing yield management principles, hotels can increase their revenue, improve customer satisfaction, and gain a competitive advantage in the marketplace.

(b) How does discount allocation play an essential role in room sales?

Discount allocation is a critical aspect of room sales, as it helps hotels to maximize their revenue by offering discounts to the right customers at the right time. Here are some ways in which discount allocation plays an essential role in room sales:

1. Attracting price-sensitive customers: By offering discounts, hotels can attract price-sensitive customers who might not have otherwise considered staying at the hotel. These customers may be willing to sacrifice some amenities or services in exchange for a lower price, which can help to fill rooms that might otherwise be empty.
2. Stimulating demand during slow periods: During off-seasons or slow periods, hotels may use discounts to stimulate demand and encourage guests to book rooms. By offering lower prices, hotels can create a sense of urgency and encourage guests to book sooner rather than later.
3. Encouraging longer stays: Hotels may offer discounts to guests who book longer stays, as this can help to increase the hotel’s occupancy and revenue. For example, a hotel may offer a discount for guests who book a minimum of five nights, which can encourage guests to extend their stay and spend more money at the hotel.
4. Retaining loyal customers: Hotels may offer discounts to their loyal customers as a way of rewarding them for their loyalty and encouraging them to continue staying at the hotel. This can help to build a strong relationship between the hotel and its customers, which can lead to repeat business and positive word-of-mouth referrals.
5. Adjusting prices in response to market conditions: Discount allocation allows hotels to adjust their prices in response to changes in market conditions, such as increased competition or changes in demand. By offering discounts, hotels can stay competitive and attract customers who might be considering other options.

In conclusion, discount allocation plays an essential role in room sales, as it helps hotels to attract price-sensitive customers, stimulate demand during slow periods, encourage longer stays, retain loyal customers, and adjust prices in response to market conditions. By using discounts strategically, hotels can maximize their revenue and profitability, while also providing value to their customers.

Q.2. Discuss strategies to use, when demand for the hotel room is low.

When demand for hotel rooms is low, it can be challenging to maintain revenue and profitability. However, by implementing the following strategies, hotels can increase their occupancy and revenue during periods of low demand:

1. Offer discounted rates: Offering lower rates during periods of low demand can attract price-sensitive customers who might not have otherwise considered staying at the hotel. By adjusting prices to reflect market conditions, hotels can increase their occupancy and revenue, while also providing value to customers.

2. Develop promotional packages: Creating promotional packages that bundle rooms with other services, such as meals or activities, can help to increase the hotel’s occupancy and revenue during slow periods. These packages can be targeted towards specific market segments or customer groups, and can provide an incentive for guests to book their stay.

3. Increase marketing efforts: During periods of low demand, it is essential to increase marketing efforts to reach potential customers. Hotels can use various marketing channels, such as social media, email marketing, and targeted advertising, to promote their hotel and attract customers.

4. Partner with local businesses: Partnering with local businesses, such as restaurants, tour operators, or museums, can help to increase the hotel’s visibility and attract customers during periods of low demand. These partnerships can also provide guests with additional value and create a more memorable experience.

5. Focus on repeat business: During periods of low demand, it is essential to focus on retaining existing customers and encouraging repeat business. Hotels can use loyalty programs, special offers, or personalized promotions to incentivize guests to return to the hotel for future stays.

6. Offer flexible booking policies: During periods of uncertainty, such as the current COVID-19 pandemic, it is essential to offer flexible booking policies that allow guests to change or cancel their reservations without penalty. This can help to reduce the risk of cancellations and provide guests with peace of mind when booking their stay.

In conclusion, when demand for hotel rooms is low, hotels can use various strategies to increase their occupancy and revenue. By offering discounted rates, developing promotional packages, increasing marketing efforts, partnering with local businesses, focusing on repeat business, and offering flexible booking policies, hotels can adapt to changing market conditions and maintain profitability.

  Q.3. (a) What role does a transient guest play in the success of achieving yield?

Transient guests play a critical role in the success of achieving yield for hotels. Transient guests are those who book their stay for a short period, typically one night or a few nights, and they are often the main source of revenue for hotels. The following are some ways in which transient guests impact yield management:

1. They provide a significant portion of the hotel’s revenue: Transient guests typically book their rooms at higher rates than group or long-term guests, and they account for a significant portion of the hotel’s revenue. Therefore, it is crucial for hotels to manage their transient inventory effectively to optimize revenue.

2. They can help to fill gaps in occupancy: Transient guests can help to fill gaps in occupancy during periods of low demand, helping hotels to maintain high occupancy rates and revenue. Yield management strategies, such as dynamic pricing, can be used to adjust rates to reflect changes in demand and optimize occupancy.

3. They offer opportunities for upselling: Transient guests offer opportunities for hotels to generate additional revenue through upselling. For example, hotels can offer upgrades to higher room categories, or sell additional services such as spa treatments or dining options.

4. They can impact overall customer satisfaction: Transient guests often have high expectations for their short stay, and their satisfaction can impact their decision to return in the future or recommend the hotel to others. Therefore, it is essential for hotels to provide excellent customer service and amenities to ensure that transient guests have a positive experience.

In conclusion, transient guests play a crucial role in the success of achieving yield for hotels. They provide a significant portion of the hotel’s revenue, can help to fill gaps in occupancy, offer opportunities for upselling, and impact overall customer satisfaction. By effectively managing their transient inventory and implementing yield management strategies, hotels can optimize their revenue and profitability.

(b) Times hotel has 300 rooms available for sale and has sold 200 rooms at $85 with a rack rate of $110. Calculate yield using
the given data.

Yield management is the process of optimizing revenue by adjusting prices based on demand. To calculate the yield for the hotel in this scenario, we can use the following formula:

Yield = (Revenue / Potential Revenue) x 100%

Potential Revenue is the maximum revenue that could be generated if all rooms were sold at the rack rate of $110.

Potential Revenue = 300 rooms x $110 per room = $33,000

Revenue is the actual revenue generated from selling 200 rooms at $85.

Revenue = 200 rooms x $85 per room = $17,000

Using these values, we can calculate the yield for the hotel:

Yield = ($17,000 / $33,000) x 100% = 51.52%

Therefore, the yield for the hotel in this scenario is 51.52%. This means that the hotel has sold 200 rooms at a lower price than the rack rate, but has still generated over half of the potential revenue. By adjusting prices based on demand, the hotel can optimize its revenue and profitability.

Q.4 Discuss the potential role of Food and Beverage sales in yield management.

Food and beverage sales can play a significant role in yield management for hotels and other hospitality businesses. Here are some potential ways in which food and beverage sales can be used to optimize revenue:

1. Dynamic pricing: Just as hotels can adjust room rates based on demand, food and beverage prices can also be adjusted based on factors such as time of day, seasonality, and demand. This allows hotels to optimize revenue by charging higher prices during peak periods and offering discounts during slower periods.

2. Menu engineering: By strategically designing menus to feature high-margin items, hotels can increase revenue from food and beverage sales. This can involve promoting signature dishes, offering packages that include multiple courses, and highlighting premium ingredients.

3. Upselling: Just as hotels can upsell room upgrades and additional services, they can also upsell food and beverage items. For example, servers can suggest premium menu items or offer wine pairings with meals.

4. Cross-selling: Hotels can also cross-sell food and beverage items with other hotel amenities. For example, a spa package could include a complimentary glass of champagne or a dinner reservation could include a discount on a room upgrade.

5. In-room dining: In-room dining can be a significant revenue generator for hotels, particularly for business travelers who may not have time to dine in restaurants. By offering an attractive in-room dining menu and efficient service, hotels can encourage guests to order meals to their rooms, boosting revenue.

6. Banquets and events: Banquets and events are another significant opportunity for food and beverage sales. By offering flexible menus and package options, hotels can attract a variety of groups and maximize revenue.

7. Seasonal menus and promotions: Hotels can also take advantage of seasonal opportunities to drive food and beverage sales. For example, offering a special Valentine’s Day menu or a summer barbecue promotion can attract guests and drive revenue during specific periods.

Overall, food and beverage sales offer significant potential for hotels to optimize revenue through yield management strategies. By using dynamic pricing, menu engineering, upselling, cross-selling, in-room dining, banquets and events, and seasonal promotions, hotels can increase revenue and profitability from food and beverage sales.

OR Explain the application of yield management software.

The most effective way of handling data and generating yield statics is through a computer. Sophisticated revenue management software is available that can integrate room demand and room price statics and can stimulate high room revenue-producing scenarios.

The software provides information and supports managerial decisions. Computers store, retrieve, and manipulate large data and can help management create models that produce the probable result of the decision. Decision models are based on historical data forecast and booked business.

Benefits of revenue management software:

1. Continues monitoring- track and analyze business 24 X 7
2. Consistency- software responds to the specific change in the market place with specific corporate and local management rules.
3. Information availability: it stores, retrieve,s, and analyzes.
4. Performance tracking: analyze sales and revenue transactions to determine how well revenue management goals are achieved.
5. Offers discounts during a certain period and at other times; the hotel increases the price of the rooms.
6. Eliminate Errors with the Revenue Management System
7. Revenue Management System is Scientific: Besides human errors, systematic revenue management software will collect accurate data, build a historic data inventory that will clearly segregate the prices and demands for lodging. So, you can create your pricing strategies with a competitive edge.
8. A revenue management system is user-friendly, easy to set up a tool that allows hotels to increase their RevPAR, regardless of the size of the hotel. Follow the price recommendations and maximize your hotel’s RevPAR.
9. Save time by implementing an optimal price strategy- Powerful yet simple to use platform saves on adapting time
10. The algorithms deliver the highest quality price recommendations- Decide the right price for each room

Softwares used in hotels:

Some leading RMSs include:

• Beonprice – It is the cloud revenue strategy solution based on Artificial Intelligence that helps in increaseing the profitability of hotel.
• EasyRMS–  Founded in 1999. EasyRMS is a global leader and provider of SaaS revenue and yield management solutions. EasyRMS is dedicated to the introduction of new generation technology and procedures within the hospitality industry and aims to deliver these services to its clients. Backed by the confidence of more than 1,000 clients.
• Duetto– founded in San Francisco in 2012, has signed hundreds of properties in 19 countries. It has also received $33.2 million in funding.
• iRates–was founded in 2011 in San Diego. It says it has about 100 hotel clients.
• Pricematch–a Paris start-up, says it serves 800 hotels. Its goal is to serve 3,500 by year-end. It has raised more than $10 million in funding. It recently acquired its European rival PowerYourRoom.
• Since 2012-Rainmaker, which has long sold RMS to gaming companies like Caesars, rolled out GuestRev, a solution aimed at hotels generally. Rainmaker has signed 100 hotels. Omni is a major client. In March Rainmaker acquired Revcaster, a rate shopping tool.
• Hotelogixis one of the popular RMS in the world. Hotelogix has partnered with PriceMatch Revenue Management System.

Some other RMS are-

• HotelPartner Yield Management-
• Hotelsdot
• IDeaS
• LodgIQ
• MaxEngine
• RateWise
• RevPar Guru

Revenue management software is also able to generate an assortment of special reports.

Q.5 List and explain the points that would probably be discussed/ reviewed by the yield management team.

Objective Of Revenue Management

Revenue management is the application of disciplined analytics that predict consumer behavior at the micro-market levels and optimize product availability and price to maximize revenue growth.

The primary aim of revenue management is to sell the right product to the right customer at the right time for the right price and with the right pack. The essence of this discipline is in understanding customers’ perception of product value and accurately aligning product prices, placement, and availability with each customer segment.

Revenue Management is a concept that not only maximizes in high period demand, it helps stimulating demand in low periods while avoiding pricing cannibalism. Revenue Management is long-term strategic, takes all revenue with its profitability into consideration, can sell low rates even in a high demand period.

• Adopt a healthy market segmentation for the hotel
• Assist with budgeting and develop a forecasting model adapted to the market segments
• Increase revenue by stimulating demand and use existing demand for the destination
• Push forward the hotel on potential distribution channels to enlarge the demand
• Optimize direct sales and distribution via website and phone
• Structure the pricing management
• Set strategic pricing in terms of public and negotiated rates
• Handle all Revenue management tasks on a daily, weekly, and monthly basis

Demand Calendar: A hotel needs an extensive revenue management demand calendar to show multiple demand indicators to appropriately analyze market situations.

Market Segmentation:  It allows you to target and market to a variety of consumer groups with different behavior with an offer that matches their needs and budget level.

Forecasting: It is the path to market and customer knowledge. It reinforces the hotel’s pro-activeness in terms of inventory and rate management.

Booking Curves: A booking curve graph will help you visualize the booking pace of your hotel.

Stay Control: The hotel refers to the Guest In House list for the same period the previous year including the denials/regrets. Check the patterns on the future on the books.

Displacement Calculations:  A displacement calculation or analysis should be regularly performed on the main accounts to evaluate the revenue gain.

Benchmarking: Benchmarking the competitors means benchmarking on the following criteria:

• prices
• product
• level of service
• location
• distribution channels

Unconstrained Demand: The unconstrained demand of a hotel is the total demand for a particular date irrespective of the capacity. Hotels should identify when unconstrained demand is above the capacity of the hotel.

Incentives For Direct Bookings: If the same rules are followed for every booking, it will be a great mess, because of the discount allocation to a different section of the customers. So, the need to very care full about the room rates based on the category of the reservation.

OR Discuss strategies to use when demand for the hotel room is high.

Revenue Management strategies during High Demand period-

1. Try to define the Right Mix of Market Segments in order to sell out the Highest Possible Room Rates
2. Monitor New Business Bookings and use these changed Conditions to reassign Room Inventory (As Occupancy increases, consider closing out Low Room Rates and open them Only when Demand decreases)
3. Consider establishing a Minimum Number of Nights per Stay
4. Select the Group that offers the Highest Total Revenue
5. Try to displace Price-sensitive Groups to Low Demand Days

High Demand Tactics includes:-

• Close or restrict discounts – Analyze discounts and restrict them as necessary to maximize the average rate. You may offer discounts to those who book longer stays, or restrict bookings to shorter stays.
• Apply a minimum length of stay restrictions carefully– A minimum length of stay restriction can help a property increase room nights. For groups, study the groups’ patterns and decide how many days they are likely to add to their stay.
• Reduce group room allocations is another great tactic– Communicate with group leaders on a regular basis. Make sure the group actually needs the number of rooms identified in its contract. If not, make adjustments.
• Reduce or eliminate 6 P.M holds– Reduce or eliminate the number of unpaid rooms that are being held until 6 p.m. When demand is high, you need rooms available to fill.
• Tighten guarantee and cancellation policies tactics–Tightening guarantee and cancellation policies help to ensure payment for room nights. Charge credit cards for the first night’s stay on the day the reservation is made.
• Tactics on raise rates to be consistent with the competitors – Charge rates consistent with the competition, but limit rate increases to those rates published in the central reservations systems and listed in brochures for the period.
• Consider a rate raise for packages– If you are already offering a package discount, consider raising the rate for that package.
• Apply full prices to suites and executive rooms– In a high-demand situation charge full price for suites and executive rooms.
• Reserve close to arrival dates– By allowing the reservations to be taken for a certain date as long as the guest arrives before that date, a property is able to control the volume of check-ins.
• Evaluate the benefits of sell-throughs – With a sell-through, the required stay can begin before the date the strategy is applied. This is often used when one day has a peak in occupancy and management does not want the peak to adversely affect reservations on either side of the peak day.
• Apply deposits and guarantees to the last night of stay– For longer lengths of stay, make sure the deposits and guarantees apply to the last night of the stay, minimizing early departures.

Q.6 Explain the various types of timeshare options available for the tourists.

 The timeshare or vacation ownership strategy or concept has recently become very popular and timeshare properties are another preference of vacationers. It is an expanding part of the hospitality industry.

The world tourism organization defines timeshare as: “the advance purchase of time in holiday accommodation. The purchaser pays a capital sum to acquire the timeshare and then pays an annual contribution towards the maintenance of the property. The period of time sold is usually based on modules of a week.”

A timeshare is a form of vacation property ownership. With timeshares, the use and costs of running the resort are shared among the owners. While the majority of timeshares are condominiums or cooperatives at vacation destinations, developers have applied the timeshare model to houseboats, yachts, campgrounds, motor homes, cruises, and private jets.

Forms/types/classification of timeshare ownerships:

Resorts offer timeshare in a variety of formats. Over 90% sell interval interests in increments of one week of use each year or as point offerings. Various forms that timeshares are available in or methods that can be used when using timeshares are:

• Fixed week method/fixed week ownership: The most basic timeshare unit is a fixed week; the resort will have a calendar enumerating the weeks roughly starting with the first calendar week of the year. An owner may own a deed to use a unit for a single specified week. If an owner owned week 26 at a resort, he or she could use that week every year.
• Floating week method/ ownership: Sometimes a timeshare is sold as floating weeks. The ownership will be specific on how many weeks the owner owns and from which weeks the owner may select for the owner’s stay. An example of this, a timeshare may be a floating summer week where the owner may request any week during the summer season generally weeks 22 through 36.
• The split week method/ split in timeshare: Is also now available where the owner can split his/ her week/period into smaller units, provided the cancellation of timeshare use has been made well in advance. A week’s holiday can be split in two parts for two different properties and locations for a period of 3-4 days each. In fact, a two weeks holiday can also be clubbed if the owner has not availed of his vacations during the last year and he had intimated about his desire to club two weeks vacation during the year.
• Rotating week method/timeshare: Some timeshares are sold as rotating weeks. In an attempt to give all owners a chance for the best weeks, the weeks are rotated forward or backward through the calendar, so one year the owner may have use of week 25, then week 26 the next year, and then week 27 the year after that. This method does give each owner a fair opportunity for prime weeks but it is not flexible.
• Points- based programs: Under a point-based system, consumers at chain timeshare properties purchase a number of points that are redeemed each year for a number of accommodation nights that vary depending on the season, day of the week, size of unit, and location. These points can be redeemed in any of the hotels and timeshare product base.

The number of points required to stay at the resort will vary based on a points chart. The points chart will allow for factors such as:

• the popularity of the resort;
• the size of the accommodations;
• the number of nights;
• the popularity of the season; and
• the specific nights requested.

Resort- based points programs are also sold as deeded and as the right to use. Points programs annually give the owner a number of points equal to the level of ownership. The timeshare owner in a points program can then use these points to make travel arrangements within the resort group. Many points programs are affiliated with large resort groups offering a large selection of options for destination. Many resort point programs provide flexibility from the traditional week’s stay. Resort point program members, such as world mark, may request from the entire available inventory of the resort group.

So, with most point systems, owners may elect to:

• assign their usage time to the point system to be exchanged for airline tickets, hotels, travel packages, cruises, and amusement park tickets;
• instead of renting all their actual usage time, rent part of their points without actually getting any usage time and use the rest of the points;
• rent more points from either the internal exchange entity or another owner to get a larger unit or more vacation time or at a better location;
• save or move points from one year to another.

Some developers, however, may limit which of these options are available at their properties.

 Vacation clubs: Vacation clubs are another time sharing variation. A vacation club is an organization that owns multiple timeshare properties in different locations. If you are a club member, you can reserve space at the various resorts that are part of the club in accordance with club rules. You pay annual fees, and there is an initial cost to join the vacation club. As with a right-to-use property, the vacation club contract will either contain the timeshare program documents or will incorporate them by reference.

Q.7  Write in your own words the difficulties normally faced in marketing timeshare business in India.

Timeshare is enjoying unprecedented growth in demand in India. ·

 There is need to link all timeshare resorts and their members into one chain through exchange agencies. Timeshare unit should charge according to peak and lean seasons of the hotel. 

 The owner should make arrangements for resale of timeshare weeks · Charge lump sum amount consisting of the membership fee and maintenance fee at the initial time of enrolment. ·

Increase number of destination resorts for members to have more choice on their holiday destination. ·These timeshare concepts and resorts need more advertisement.

Challenges are as follows: ·

• Even though the customers are quite happy with the quality of timeshare resorts that they are offered still they feel that the number of destinations (resorts) is quite less and they do not get much on their platter. However, this problem can be overcome by having affiliation with an exchange company such as RCI, II, Dial an exchange, etc. ·
• Having an affiliation from an exchange company is also crucial because practically it is not feasible for any of the timeshare companies to offer a bunch of resorts to the customers. 
• Moreover having an affiliation also opens the international gateway for the customers.
• The second issue is of annual maintenance charges which customers feel are quite high. This issue can be tackled if companies start charging a lump sum amount which consists of the membership fee as well as the annual maintenance charges right away at the time when a member gets enrolled. ·
•  If one looks at the internet one will find complaints of almost every company, whether it is banking, insurance, telecom, or any other sector. A similar story is with timeshare also but reports from organizations of repute such as AIRDA, ARDA, etc. have proved that most of the customers are satisfied with their timeshare scheme.
• It may be of interest to note that in the case of a private company the annual maintenance charges are of concern but customers are happy with other things whereas in the case of a public company customers are more concerned with the overall condition of the resort, room furnishing, and tenure of ownership.

OR What are the ways in which timeshare or vacation ownership can be developed in India? Is there any role of government that can play in this regard?

 Although the government should not be in the business of running a business it’s their job to facilitate an environment that is conducive to business. This creates an atmosphere in which the confidence of the investor is high and they can focus only on running their business instead of focusing on other issues.

Some of the areas where government plays a pivotal role in the Timeshare industry are listed below:

1.Security: Safety and security is an important concern for any industry and specifically so for the tourism industry. No tourist wants to visit a destination where he perceives a threat to his life or belongings. It is the government’s duty to ascertain that law enforcement agencies such as Police and Para-military work properly to maintain security at the destination. At some places, the government has also started a concept of tourist police who are specifically responsible for policing in tourist areas.

2. Infrastructure: The timeshare industry is dependent upon infrastructure provided by the government to run its operation and to facilitate the convenience of its customers. The infrastructure to be provided by the government includes proper roads, a continuous supply of electricity, clean drinking water, sewage pipelines, garbage disposal facility, street lighting, etc.

3.Loans and Subsidies: The timeshare industry is capital-sensitive. It requires a huge initial investment to start a time-share business. The government can play an important role in this regard by providing financial assistance on a loan basis through nationalized banks and through other financial institutions. The government also provides subsidy on the interest of these loans and other things like import duty, excise duty, etc. to promote an industry which is in a nascent stage.

4.Regulatory Body: The timeshare industry has received a setback due to unscrupulous activities of the fly-by-night operators which resulted in the loss of credibility for the industry. The government in this case helps the industry by playing the role of a regulatory body that curbs the dishonest players and controls the financial transactions between the properties and their members.

5.Taxation: The government’s role also includes collecting taxes and dues from the Timeshare operators and the money collected from the taxation is then used for infrastructure and developmental activities in the region.

Q.8 Read the following case study and answer the questions :

Jean is trying to choose a marketing plan for his timeshare resort. Rooms at the rented are rented out for $109 per night in the offseason. He has to choose between the ones that James and Jessica are proposing:

James proposes purchasing a phone list and cold-calling the guest, with an offer of three days two nights at the resort, and two dinner show tickets for $149 with the stipulation that the client attends the required sales presentation.

Jessica proposes offering the same three days and two nights’stay for &150 with no dinner show tickets included, but offering instead an ‘instant rebate’ of  $100 if the client chooses to purchase a timeshare during the required sales presentation.

Questions:

1.  Do you think jean should choose Jame’s or Jessica’s plan and why?

 Jean should choose Jessica’s proposal because it is a more attractive plan for the guest as it includes $100 in the timeshare purchase.

2. Would you change anything in either of the offer?

I would like to change Jessica’s plan the price of the plan can be changed to $149.

3. Discuss how resorts have the ability to target their prospect and ultimately customized their own base.

The resorts come under the leisure tourism property, where people for holidays and enjoyment. In this sense, the packages can be customized easily and hence more revenue can be generated easily. 

4. Is this a good idea? Yes, or no and why?

Yes, it is a good idea, In a weak season, Any Sale is better than No Sale.

Q.9 Explain the various amenities and entertainment options available in a timeshare or condominium resorts in India.

Various amenities and entertainment options available in a timeshare / condominium resort in India In India, timeshare first made its presence in the mid-eighties. Timeshare in India is clearly a front runner in the travel and hospitality industry. Looking at a share in the pie, the timeshare resort base has grown by over 50% over the last six years. We have 5,00,000 families subscribing to timeshare in India and the estimated market exceeds 3.5 million. 

The one-time payout you make saves you money year after year on annual vacations at the holiday locations of your choice. Timeshare gives you easy checkouts without paying any bills on room-stay. ·

 Our member resorts offer you a choice of facility formats based on “family configurations” – right from studio apartments for couples, to two-bedroom units that can comfortably house six. ·

The timeshare blueprint typically gives you a resort unit with end-to-end facilities. Depending on the plan you’ve chosen, you could have multiple bedrooms, kitchens or kitchenettes; Indian or Western bathrooms and convenient laundry facilities. You also have entertainment – cable TV, DVD players, music systems. ·

As a timeshare owner, you can also play “holiday chef” at the kitchen attached to your resort unit. The kitchens are fully equipped with pots, pans, ladles, flippers, food processors, gas hobs, microwave ovens, coolers and a refrigerator as well. All you do is shop at the resort store, or a shopping location nearby. Another way to make big savings.

In addition to feature-loaded interiors, a timeshare resort will also give you other pluses – swimming pool, indoor and outdoor game courts. ·

If you want to take a total break from the kitchen, you can always explore the resort’s food courts and theme restaurants. ·

There’s another way of looking at timeshare – a gift that gives people many happy returns for years. You can either gift a complete timeshare membership, or gift maybe one-holiday segment in your plan to family or friends. ·And just in case you can’t for some reason, go on that annual holiday, you can always rent out your plan to someone else at tariffs that could be extremely rewarding. So, you don’t really lose out in any way. ·

You could also pick up a bonus week from your home resort, or from an exchange company, at knocked down prices. This usually happens on promotions schemes planned by resort owners, to sustain occupancy levels. In effect, you could pay for a week and stay maybe, for 10 days.

OR List the advantages and disadvantages of timeshare business.

Advantages and disadvantages of the Timeshare business

Timeshare business is fast developing in the developed as well as developing world. In our country’, it has started late but the concept is catching up with the world.

Advantages of timeshares:

1. Vacation ownership – a fast-growing tourism brand
2. Promotes all types of tourism -inbound, outbound and domestic tourism
3. Domestic tourism- the catalyst for India’s tourism growth
4. The full potential of domestic tourism—to be exploited by industry and government partnerships

Advantages of a timeshare can be broken down to benefits too:

1. To community –

• Employment opportunities for locals
• Repeat visits, if not of the same guest, then of exchange guests
• Improved economy- increased spending by visitors

2.To developer-

• Increased level of occupancy
• Overall profitability – through renting out
• Annual maintenance fee from each owner – each property being able to be sold 52 times (in 52 weeks)

3.To owners-

• Options of new destinations every year
• Payment of maintenance fees guarantees that all community areas will be well maintained
• Enjoy spacious accommodation
• Can get friends & relatives without extra costs or ‘per head basis as is valid in hotels
• Can sell their interests when they want
• Limits costs and expenses associated with ownership such as taxes, insurance, etc.
• Costs of maintaining the property are distributed over a larger number of owners

Reducing the worries and costs associated with it can have a worldwide “bonus time” Available – these are extra weekends through exchange companies. These weeks require no payment of maintenance fees and can be used often and can be absolute bargains.

Disadvantages of timeshares:

The biggest disadvantage of the timeshare business is that it is still not well organised and the major portion of its cost is being spent on marketing.

There is a rough estimate that of the actual cost/price of the timeshare unit, 18-20 % is the actual cost of the unit and the remaining is divided among sales and marketing (33%), maintenance, upkeep and other costs (27-30%) and the remaining 20 % is the profit. That means that a customer who buys the unit gets only 20% of the price value and is required to pay an yearly maintenance fee as well as daily service charges for actually staying in his own unit and using services like telephone, cable, swimming pool, common areas, etc.

1. Marketing: Since it is not an essential requirement of the buyer and it is an unconventional package holiday product not easily available for viewing, the marketing and sales techniques of the resort developer may be and have been aggressive, causing a lot of opposition in the market.
2. Damage to local societies and environment especially in overcrowded and undeveloped destinations.
3. Maintenance fees have to be paid annually and can keep increasing every year, the customer ends up paying more than he wants or had assumed.
4. Resale of timeshare units is not very easy because the value of the unit depreciates quickly because of the volatility of the real estate market. So, the owner may cover his costs with no profits when he decides to sell his interests in the unit.
5. There may exist fierce competition for the most desirable locations and certain periods of the year so the client may be disappointed very often.
6. The client’s/owner’s money gets tied up in something he can’t use for the moment.

Q.10 Translate into French:

• Room
• Key
• Tourist
• Cashier
• Receptionist
• Arrival
• Restaurant
• Hotel
• Bed
• Goodbye

 

Room	Chambre
Key	Clé / Clef
Tourist	Touristique
Cashier	Caissier
Receptionist	Réceptionniste
Arrival	arrivée
Restaurant	Restaurant
Hotel	HÔtel
Bed	Lit
Goodbye	Au revoir