SHARE OF WALLET

How to increase the per room spent from all our facilities &
services from all our in-house guest and analysis of impact
on doing so

The
Version
Park Hotels
14.04
The Park Hotels
INTRODUCTION

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WHAT IS ‘SHARE OF WALLET’ (SOW)

A share of wallet (SOW), also known as wallet share, is a

marketing tool used to calculate how much of a customer's cost
for a product or service goes to a specific company. Increasing
wallet share is a more natural, less expensive, and more
efficient way to boost revenue than expanding the market share
would be.

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BACKGROUND

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Present Scenario( 17-18)
Various market Channels
•NSO
•AIRLINES
•E-CHANNELS
•UNIT SALES:
1. PSU
2. Corporate
3. Travel Agency,
4. Medical tourism
5. professional conference organiser

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 ROOM DIVISION F&B AND MOD CONTRIBUTION - APR - MAR 2018 (Rs in Crores)
E Channel Unit Sales
Room Misc.
Night Revenu F&B Revenu Room F&B Misc.
Month s ARR e Revenue e Month Nights ARR Revenue Revenue Revenue

April 4220 4260 1.8 0.11 0.02 April 1157 4611 0.53 0.31 0.01
May 3667 4150 1.52 0.11 0.02 May 1319 4617 0.61 0.33 0.02
June 4167 3769 1.57 0.12 0.02 June 1210 4638 0.56 0.32 0.01
July 4487 3904 1.75 0.14 0.02 July 1269 4395 0.56 0.34 0.01
August 4086 4649 1.9 0.14 0.03 August 1476 4693 0.69 0.46 0.01
Septem Septem
ber 3873 4705 1.82 0.14 0.02 ber 1520 4968 0.76 0.33 0.01
Octobe Octobe
r 3920 4973 1.95 0.11 0.03 r 1110 4622 0.51 0.33 0.01
Novemb Novemb
er 3322 5271 1.75 0.17 0.04 er 2130 4806 1.02 0.36 0.01
Decemb Decemb
er 3645 5116 1.86 0.24 0.04 er 2181 4846 1.06 0.35 0.02
Januar Januar
y 4005 4815 1.93 0.25 0.04 y 1106 4948 0.55 0.34 0.01
Februa Februa
ry 3833 4822 1.85 0.27 0.04 ry 1229 5005 0.62 0.34 0.01
March 3585 4699 1.68 0.24 0.05 March 1421 4773 0.68 0.38 0.02
YTD 46810 4569 21.39 2.03 0.38 YTD 17128 4754 8.14 4.20 0.15
F&B is inclusive of
Banquet contribution
RPD 128 RPD 47 The Park Hotels
7 The Park Hyderabad
 ROOM DIVISION F&B AND MOD CONTRIBUTION - APR - MAR 2018 (Rs in Crores)

National Sales Office Airlines

Misc.
Room F&B Misc. Room F&B
Month ARR Revenue Month ARR Revenue Revenu
Nights Revenue Revenue Nights Revenue
e

April 781 4473 0.35 0.03 0.01 April 681 3156 0.21 0.01 0.00
May 929 4316 0.40 0.07 0.01 May 333 3171 0.11 0.00 0.00
June 730 4252 0.31 0.08 0.01 June 412 3184 0.13 0.00 0.00
July 731 4358 0.32 0.06 0.01 July 619 3114 0.19 0.00 0.00
August 823 4629 0.38 0.04 0.01 August 743 3102 0.23 0.01 0.00
Septemb Septemb
531 4495 0.24 0.03 0.00 660 3065 0.20 0.00 0.00
er er
October 734 4597 0.34 0.03 0.02 October 649 3068 0.20 0.00 0.00
Novembe Novembe
763 5087 0.39 0.04 0.01 622 3061 0.19 0.01 0.00
r r
Decembe Decembe
640 4888 0.31 0.04 0.01 745 3091 0.23 0.01 0.00
r r
January 871 4780 0.42 0.09 0.00 January 783 3085 0.24 0.00 0.00
Februar Februar
881 4576 0.40 0.05 0.01 608 3070 0.19 0.01 0.00
y y
March 1196 4904 0.59 0.10 0.01 March 724 3066 0.22 0.01 0.00
YTD 9610 4624 4.44 0.68 0.09 YTD 7579 3097 2.35 0.07 0.01

8 RPD 26 RPD 21 The Park Hotels

The Park Hyderabad
BUDGET

A budget is a financial plan for a defined period of time,

usually a year. It may also include planned sales volumes and
revenues, resource quantities, costs and expenses, assets,
liabilities and cash flows.

HOTEL’s TOTAL : 80 Cr
F&B gross : 35.54
Rooms gross: 44.04

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HOTEL’S MARKET SHARE

Market share is determined by dividing company sales by sales

in the entire market or industry.

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FAIR SHARE

An equitable or reasonable portion or share of something; (more

generally) a good number, a large amount, sometimes implying
the amount is excessive or inordinate, especially in "to have
(or do,etc.) one's fair share

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City
Compariso - YTD
n- March
Hyderabad 2018

Revenue
Revenu
March Room Room
Rate e (Rs. GOLY
Rate CY Name Rooms OCC% ARR RevPAR FMS AMS PI 2017 Nights nights
LY in %
(in Available sold
crores)
crores)

CBD Area

95,995 81,116
1 The Park 2 263 85% 36.52 4502 3805 33.00 39.89 1.21 32.37 13%

95,265 56,061
2 Taj Krishna 1 261 59% 36.58 6524 3839 32.75 27.57 0.84 37.53 -3%

44,530 30,218
3 Taj Banjara 4 122 68% 13.01 4306 2922 15.31 14.86 0.97 12.10 7%

55,115 35,959
3 Taj Deccan 3 151 65% 16.94 4710 3073 18.95 17.68 0.93 16.09 5%

Total CBD Area

2,90,905 2,03,354
797 70% 103.04 5067 3542 100.00 100.00 98.09 5%

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ANALYSIS - SYNOPSIS
As we can see we have higher actual market share than the
fairshare, mean that we have people staying in our hotel and we
have a greater captive market than our comp-set . But the
question lies here that will they people spend money in other
services apart from those already included in their package, so
we need to improve ARR so to get better guests in the hotel so
that they have greater potential to spend money.

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ROOM SPENT

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ABOUT

The amount of money guest spends per room apart from his Room
Charges and part of package

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HOW TO INCREASE
THE
PER ROOM SPENT

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SERVICES WE HAVE TO OFFER
• SPA
• F&B
• ROOMS / ROOM UPGRADES
• TRANSFERS

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TYPES OF REVENUE INCREMENT STAGES
Pre-Sell
Physical selling (present)
Post Selling

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PRESELLING

Guest anticipation is high. Take the information from an

upcoming stay - stay dates and type of guests, for example -
and send relevant amenity offers and room upgrades via pre-
arrival up sell emails.

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PHYSICAL SELLING

Selling to already captive market that is staying in the hotels

coming through various marketing channels

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POST SELLING

This majorly through various Loyalty programs and reward points

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 FEASIBILITY
OF
ALTERNATIVES

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PRE-SELLING
Pre-Sell : Selling add on packages before guest physically
reaches the hotels

Pros:
1. Giving guest a feel of value for money.
2. More Options To Choose From
3. Customisation of guest preferences
Cons:
1. 1.Too many choices, Too much choice causes friction
and friction damages booking rates.
2. Avoid overwhelming potential guests with choices. Limit your
packages and navigational options to the essentials.
3. 2.Might reduce revenue
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PHYSICAL SELLING (PRESENT)
Pros :
– Physical interaction
– Human Touch
– Better Understanding Of guest preferences
– Better chance of connect
– Visual factor of display of amenities
– Already captured market
– Minimal cost

Cons :
– Might Go overboard
– Might feel like a push to the guest
– Might sell package to a guest that has already interested in taking at the base price but giving him at a
discounted price resulting in loss of revenue

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POST SELLING
Pros :

1. Winning guest loyalty

2. Ensuring Him coming in again
3. Future prospect building

Cons :

1. Need of a good loyalty program

2. Guest history should be well maintained
3. Uncertainty of guest returning

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PROPOSED
SOLUTION

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UPSELLING

Definition

A sales strategy where the seller will provide opportunities to

purchase related products or services, often for the sole
purpose of making a larger sale.

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EVIDENCE – PHYSICAL UP-SELLING DONE FOR THE
PROJECT
Done for the days in 2018

Sr. No. Category Amount / Revenue

1 Aura 39,559

2 F&B 5,86,246
3 Rooms 5,79,840
4 Travel 11,544
Total 12,17,189

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CONCEPTS

•Up-selling
•Cross-Selling
•Suggestive Selling
•Identifying Guest needs

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ANECDOTES
HOTSPOTS

To do up-selling

• Reception; at the time of check-in and checkout when the guest really wants
to know more about the hotel

• Concierge when he’s talking about any query he has about the city ,opportunity to up-
sell car hire ,transfers and other amenities

• F&B outlets : when he’s having a leisure time with , good opportunity to connect with
him

HOT-TIME :

• 12-3 PM : when the guest check-in Is in bulk, and planning for lunch
• 8-11 PM : there late check-ins happen, Room Extensions, and people are planning for
Dinners, or going out, or scheduling transfers pr spa in the morning

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RECOMMENDATIONS

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STRATEGIES

•Target long staying guests.

•Target high paying guests.
•Targeting Couples
•Targeting Families
•Introduce More packages
Maintain guest histories of guest
•Spending in the hotel services
•to keep a track
• Maintaining ARR

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Maintaining ARR And Revpar , RevPOR , TrevPAR, demographics : We need to
check rev-par on a daily basis .
Its a reflection of

ARR : Total Revenue of rooms / total sold Rooms

Revpar = ADR x Occupancy rate , Room Revenue / total no. Of available rooms

RevPOR = Total room Revenue / Occupied Rooms

TRevPAR = Total HotelRevenue / Occupied Rooms

otal revenue per available room takes a more meaningful look at the
profitability of the hotel by taking into account the total revenue of the
property including the bar, room service, breakfast etc. It is calculated by
dividing total revenue by the number of available rooms.

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LOSS Prevention

Demographics are characteristics of a population.

Characteristics such as race, ethnicity, gender, age,
education, profession, occupation, income level, and marital
status, are all typical examples of demographics that are used
in surveys.

Last year trends , monthly trends .

OTA CONVERSIONS :
Will lead to increase of ARR

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ISPR RIGHT NOW :

In one month :

INCREASE OF Rs. 100 x 263 ; 26,300

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FACtORS AFFECTING RIGHT NOW

Occupancy

Promotions done through online , leaves loyality of guest

through MMT ,
Same thing to be also made available for the guest making
direct bookings ,
Through direct channels .

Groups with meal plans . Like MAP , AP

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WHO CAN UP- SELL ?

EVERYONE!!

Starting From the Doorman to Managers

everybody can up-sell and recommend
guests.

For this to happen employees from various

departments should be made aware of the
services we have to offer.

The Park Hotels

THANK YOU

The Park Hotels