Leisure targetgroup

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Size of the Market

There is a kind of overcapacity in the market which makes it hard to reach occupancy rates above 60% during the weekends. It is not clear whether this is due to the demand side of the supply side. But, for any individual hotel there is enough demand in the market to get the hotel profitably occupied during both weekdays and weekends.
We distinguish two different target groups, customers and markets

We know look at the first one.

Sales prices

Revenues comprises the average (sales) prices times the number of bookings.
A maximum occupancy rate would mean that all 100 rooms are occupied during all of the weekend days, so 52 weeks x 100 rooms x 3 days (Friday - Saturday and Sunday). Also, check the page for information on the business targetgroup which will mainly be the guests for the weekdays. Weekend days account for 3 of the seven weekdays and this means (rounded up) 43% of the total of all available hotel nights (see occupancy rate).

Prices during weekend days (especially interesting for leisure guests) in the past were ranging from € 80 to € 100 maximum per room per night, including breakfast.

  • the € 80 price has been the last-minute price during the weekend days.
  • the € 100 price has been the rack rate price during the weekend days. The (highest) published price with no discounts, no special deals or commissions.

On the page occupancy rate the revenues have been calculated. You can find the numbers in the operating review.

Type of customers

There is no specific information on the type of leisure customers: we do know they mainly book on the weekends. The hotel has always primarily aimed for the business guests and secondly for the leisure guest. The type of customers attracted so far is an average of the leisure guest. Not a lot of families with children (probably due to the location in the city) and, an average room occupancy of 1.7 per room, still a large group of people who travel alone.

The records do show information on revenues and guest nights.

Guest nights

The last numbers of the hotel show 50% occupancy rate in the weekends: so out of the possible 15,600 room nights 7,826 room night are sold. So an occupancy rate of the rooms of 50%. This will bring the number of guest nights at this moment at 7,826 x 1,7 (average persons per room) = 13,304. So on an average in the last recorded year 13,304 guest nights have been recorded.

Total guest night

  • weekends days 13,304 guest nights: 56% of all guest nights
  • weekdays 10,374 guest nights: 44% of all guest nights
  • Total 23,678 guest nights: 100%

Most guest nights are leisure guests.

Total revenues from guests

  • weekends days € 704,340 revenues: 36% of total revenues from rooms
  • weekdays € 1,244,880 revenues: 64% of total revenues from rooms
  • Total € 1,949,220 revenues: 100% of total revenues from rooms

Highest revenues from the business guests.

→ Go! Following the Introduction to the Hotel? Step 8/10 is the page Business targetgroup

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