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Mountain Resorts, RV

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Mountain Resorts, RV & Water-based Resorts October 6th, 2006 TRMT 430: RESORT MANAGEMENT News & Updates Update to class schedule - discussion questions - sign up for ... – PowerPoint PPT presentation

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Title: Mountain Resorts, RV


1
Mountain Resorts, RV Water-based Resorts
  • October 6th, 2006
  • TRMT 430 RESORT MANAGEMENT

2
News Updates
  • Update to class schedule
  • - discussion questions
  • - sign up for choice of resorts
  • - change of field trip date and change of
    Current Presentations Overview date?

3
Objectives for the class
  • Todays Agenda
  • To become familiar with the development process
    and design considerations for mountain and water
    based RV resorts
  • To explore the concept of yield management

4
Mountain Based Resorts
  • Types of amenities at mountain based resorts
  • Development process for mountain resorts
  • What constitutes a desirable site?
  • What are mountain based resorts doing to initiate
    a summer season?
  • What are some common design guidelines for
  • Ski hills
  • Ski runs
  • Ski lifts
  • Base area
  • Food/accommodations
  • Cross country ski areas

5
  • Amenities at mountain based resorts
  • What are the amenities and activities often used
    to attract and entertain guests at mountain based
    resorts?
  • http//www.mountwashington.ca/

6
  • Why is it important to balance the physical
    capacity of a mountain with its economic
    capacity?
  • What are some examples of the four types of
    resorts listed in this chapter?
  • http//www.mountcain.com/

7
What constitutes a desirable site for a mountain
based resort?
  • Attractiveness
  • Climate
  • Snow conditions
  • Exposure
  • Snow retention
  • Forest cover
  • Water supply
  • Access to markets
  • Limited environmental barriers (p-131 for items
    that need to be considered when choosing sites)
  • http//www.turtleisland.org/news/news-secwepemc2.h
    tm
  • Base area
  • What are some of the considerations given for the
    following?
  • Parking
  • Access roads
  • Food services
  • Accommodations
  • Other services

8
Ski hills design considerations
  • The capacity of the ski lifts needs to match
    what?
  • How do ski lifts impact the economics of a ski
    hill?

9
Water-based resorts
  • Types of amenities at water based resorts
  • What constitutes a desirable site for a water
    based resort besides water

10
Amenities at water-based resorts
  • What types of water based resorts are there?
  • What types of amenities are provided at water
    based resorts?

11
Water amenities and facilities at resorts may
include
  • Natural beaches for activities such as
  • Sunbathing
  • Swimming
  • Beachcombing
  • non motorized boating
  • snorkeling
  • scuba diving
  • Lakes and rivers for activities such as
  • Fishing
  • Hiking trails
  • Golf courses
  • Bicycle paths
  • Interpretation facilities
  • Canoeing
  • Swimming
  • Family outings

12
What constitutes a good site?
  • 1. For a marina?
  • 2. For a beach resort?
  • 3. For a fishing resort?
  • Work to brainstorm site considerations with your
    partner. Well develop a list of site
    considerations for each type of resort

13
Development considerations for Marinas
  • Access
  • Water depth
  • Protection from winds
  • Stable shoreline
  • Exposure
  • Water quality
  • Aesthetics
  • Fluctuations in water level
  • Freedom from ice threats
  • Environmental integrity

14
  • In small groups, discuss the following
  • Sooke Marine Resort Proposal benefits of the
    proposal
  • 2. Sooke Marine Resort Proposal negative
    potential of the proposal

15
Issues in Water-based resorts
  • Delicate balance between use and protection of
    water resources.
  • Wetlands near resort settings
  • Overuse of beaches
  • Run-off from resorts
  • Use of limited water supplies
  • Public vs. private land access
  • Vague boundaries in water areas
  • Marine protected areas in Canada
  • Global warming rising water levels
  • Commercial vs. recreational fishing
  • Migration of species to beaches (I.e. turtles,
    birds)

16
RV Resorts
  1. Amenities for RV Resorts
  2. Site considerations for RV Resorts
  3. Design Considerations
  4. Potential issues that could effect development

17
YIELD Management
  • The concept of revenue monument originated in
    the airline industry
  • (I.E. travelers on the same flight all pay a
    different price!)
  • Brought on the concept
  • of revenue management!

18
Revenue Management
  • Based on supply demand
  • Prices tend to rise when demand exceed supply,
    and prices tend to fall when supply exceeds
    demand
  • Resorts focus on shifting from high-volume
    bookings to high profit bookings depending on the
    demand of the day!

19
How do resort managers know?
  • They forecast the supply and demand and adjust
    prices accordingly.
  • A common statement is The goal of revenue
    management is that it involves selling the right
    rooms to the right guests at the right rate at
    the right time AHLA, 2003

20
The Nanaimo Resort
  • Example Has 300 guestrooms, an average daily
    rate (ADR) of 80 per room and is currently
    operating at a 70 occupancy. The hotel offers
    100 one-bed and 200 two-bed guestrooms. The
    one-bed guestroom is priced at 90 as a single
    and 110 as a double. The two-bed room sold as a
    single is priced at 100 and as a double it sells
    for 120.

21
Potential Average Single Rate
  • Room Type Number of Rooms Single Rack
    Rate Revenue at 100 Occupancy
  • 1 bed 100 90 9,000
  • 2 beds 200 100 20,000
  • 300 29,000
  • Potential Average Single Rate Single Room
    Revenues at Rack Rate
  • Number of Rooms Sold as Single
  • 29,000
  • 300
  • 96.67

22
Potential Average Double Rate
  • Room Type Number of Rooms Single Rack
    Rate Revenue at 100 Occupancy
  • 1 bed 100 110 11,000
  • 2 beds 200 120 24,000
  • 300 35,000
  • Potential Average Double Rate Double Room
    Revenues at Rack Rate
  • Number of Rooms Sold as Double
  • 35,000
  • 300
  • 116.67

23
RevPAR
  • Revenue Per Available Room
  • RevPAR Actual Room Revenue
  • Number of Available Rooms
  • RevPAR 11,520
  • 300
  • 38.40

24
Revenue Management Considerations
  • It is not a short-term process, should look month
    or years into the future, track business trends
    and guest demand
  • A propertys staff is essential to the success of
    revenue management (sales catering managers,
    reservation managers)
  • May have a team that meets weekly
  • Then know how many guest are in house and can
    help food beverage dept. prepare
  • Rate changes and adaptation in selling strategy
    affect the sales department
  • Occupancy percentages will affect housekeeping
    and bell services

25
Revenue Management strategies
  • Hurdle rate lowest rate accepted
  • Minimum length of stay common in resorts
  • Close to arrival too many arriving on one day

26
Case Study
27
October 13th Discussion Questions
  • Read the article Golf in the Millennium Boom or
    Bust? regarding yield management (handed out in
    class and posted under NOTES)
  • List some of the strategies the article suggests
    to golf course managers to increase yields. Do
    some internet (or other) research and find an
    example of a golf course that is utilizing a
    revenue maximizing strategy and explain it.
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