MTM IXth - Business Plan: Milan 2008-2015: Expo & hospitality
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MTM IXth - Business Plan: Milan 2008-2015: Expo & hospitality

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The work will focus on evolution of hospitality industry developed in Milan from 2008 when the city won the run to Expo 2015, to currenty year. The analysis will have to define the state of art ...

The work will focus on evolution of hospitality industry developed in Milan from 2008 when the city won the run to Expo 2015, to currenty year. The analysis will have to define the state of art accommodation capacity in Milan, about quantitative and qualitative aspects, and estimate the accommodation needs which must meet by the year that will take place the Universal Exposition.
OBJECTIVES
Produce a complete mapping about accommodation hotel and other accommodation supply divided in local area in order to define the trend observed from 2008 to 2013. Underline which hospitality solutions have found greater development and under what conditions. Analyze the growing presence of second homes for accommodation use by identifying the overall impact of the phenomenon on the total supply and in the choices of tourism demand. The evidence of research, will find a quantitative application in the developing of a forecast income statement applied to a concrete case.

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  • Porta Romana/ SpaNavigli area: happy hours, pubs, restaurants, vintage stores, antiquate markets, fashion shops, Sinigallia fair, boat tripsColonne di San Lorenzo/ San Lorenzo ChurchSant’Eustorgio ChurchDiocesano MuseumPol di PezzoliMuseumDue basiliche parkBocconi UniversityCarcanoTheaterTortona/Savona area: design, contemporary art, culture, “Fuori Salone” trade show, temporaryexhibition in lofts

MTM IXth - Business Plan: Milan 2008-2015: Expo & hospitality MTM IXth - Business Plan: Milan 2008-2015: Expo & hospitality Presentation Transcript

  • MTM TEAM: Iulia Davydova Carolina Mardegan Marco Lancellotti Sara Lucarini Stefania Rampini TUTOR: GIORGIO BIANCHI ASSISTANTS: Fabrizio Piolanti Silvia Pinna
  • • Produce a complete mapping about accommodation in Milan, in order to define the trend observed from 2008 to 2013 • Underline which hospitality solutions are more developed and why • Analyse the growing presence of extra-hotel accommodation and identify its impact on the total supply and on the tourism demand • Develop a forecast income statement applied to a concrete case Quantitative analysis On-field and web tourist survey and interviews to hoteliers Definition of our area of interest and of our competitive set
  •  Evolution of accommodation offer in Milan  Influence of extra-hotel offer in Milan  Analysis of demand in Milan  Relation between offer and demand in Milan  Trend of foreigner tourists flows View slide
  • 2008 2009 2010 2011 2012 2013 604 627 646 685 727 760 Property Growth 2008 2009 2010 2011 2012 2013 28735 28465 28982 29004 29796 29913 Rooms Offer Growth Data source: Osservatorio del Turismo, Provincia di Milano 2008/2013 2008 604 2009 627 2010 646 2011 685 2012 727 2013 760 PROPERTIES 2008 28735 2009 28465 2010 28982 2011 29004 2012 29796 2013 29913 ROOMS 0 10000 20000 30000 40000 2008 2009 2010 2011 2012 2013 MILAN –ROOMS OFFER 2008-2013 N° OF EXTRA HOTEL ROOMS N° OF HOTEL ROOMS TOTAL ROOMS OFFER -0,9% +1,8% +2,7%+0,1% +0,4% 0 200 400 600 800 2008 2009 2010 2011 2012 2013 MILAN - HOSPITALITY OFFER 2008-2013 N° OF EXTRA HOTEL BUSINESSES N° OF HOTELS TOTAL OFFER +3,8% +3% +6,1% +6% +4,5% View slide
  • As for the typologies of accommodation, we noticed the following trends: 0 20 40 60 80 100 120 140 160 180 2008 2009 2010 2011 2012 2013 EXTRA HOTEL PROPERTIES GROWTH SINCE 2013 CAMPING SECOND HOUSES (RENT) HOSTELS HOUSES FOR HOLIDAY B&B Data source: Osservatorio del Turismo, Provincia di Milano 2008/2013 80% 85% 90% 95% 100% 105% 110% 115% 120% 125% 2008 2009 2010 2011 2012 2013 5 STAR HOTELS 4 STAR HOTELS 2 STAR HOTELS RESIDENCE 3 STAR HOTELS 1 STAR HOTELS HOTEL PROPERTIES GROWTH SINCE 2008
  • Data source: Osservatorio del Turismo, Provincia di Milano 2008/2011 Total Offer Growth Total Demand Growth +4% +26% - 1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 6,000,000 7,000,000 8,000,000 9,000,000 10,000,000 2008 2009 2010 2011 2012 Italian Presences Foreigners Presences +6% +9% +7% +15% 23,000 24,000 25,000 26,000 27,000 28,000 29,000 30,000 2008 2009 2010 2011 2012 Hotel Accommodation Extra-Hotel Accommodations -0,1% -0,9% +1,8% +2,7%
  • 6% 58% 25% 3% 3% 2% 3% Demand Concentration 5 stars 4 stars 3stars 2 stars 1 star Residence Extra Hotels We wanted to analyse where the demand is concentrated, in order to choose which type of accomodation would be more suitable within Milan area. Data source: Osservatorio del Turismo, Provincia di Milano (2013)
  • 163.387 +211% Since 2008 CHINA 192.981 +119% Since 2008 RUSSIA 179.866 +40,7% Since 2008 FRANCE 177.839 +24,2% Since 2008 USA 173.960 23,8% Since 2008 GERMANY These charts consider the foreigners arrivals in Milan in 2012 and show how the percentages increased since 2008. Data source: Osservatorio del Turismo, Provincia di Milano (2012)
  • What about the future? In order to be ready to welcome about 20 millions of visitors for EXPO 2015, we tried to collect some forecasts, searching on the following official web sites and contacting directly some offices such as: • Union camere • Confcommercio • Provincia Milano • Web sites: expo2015.org; expo_asselombarda; HotelMilanoExpo2015 BUT… we haven’t been lucky enough to get any kind of information! WHY??? Probably because nobody has such data yet!!!
  •  AIM: in-depth understanding of tourists’ behaviour and the reasons that drive their choices  Investigate the why and how of decision making usually through focused samples  Make sure the research is trustworthiness  A survey with simple and precise questions to define important patterns related to purpose of visit, location preferred, choice influencers, average spending per day  Web survey and face to face interviews in the most touristic places  Face to face interviews to hospitality professionals both for hotel and extra-hotel accommodations
  • Data source: Personal elaboration *Accommodation included 100 - 300 € 60% Altro 17% 300 - 500 € 16% 500 - 700 € 3% 700 + € 4% Central Station 25% Duomo 21% Altro 20% Navigli 10% Fieramilanocity Sempione 10% Rho-Pero Trade fair 6% Porta Romana 4% Malpensa Linate Airport 4% Location 36% Price 35% Altro 11% Comforts 11% Design 3% Free Wi-fi 3% Meeting rooms 1% Brand 1% Restaurant 0% Parking 0% Vacation 25% Work reasons 22% Studies 19% VFR 12% Shopping 11% Altro 11% Cultural events 4% Health reasons 4% MICE 3% Furniture fair 2% Trade fairs 1% Average spending per day Purpose of visit Choice influencers Location preferred
  • LOCATION PRICE INDIPENDENT HOTEL INTERNATIONAL TARGET Limited offer in Porta Romana/Navigli 14% of tourist presence - U.S.A., France, Germany - 30-45 years old stylish persons 58% of tourists choose 4 stars Hotel Only 1% of tourists are influenced by the brand * All the percentages are taken from the quantitative & qualitative analysis
  •  Concerning the availability of accommodation in Milan, OFFER and DEMAND don’t follow the same path  only 4% offer growth against 24% demand growth from 2008 to 2012  Focusing on tourists’ needs, there are two emerging trends: 1) Budget/low cost hospitality with standardized and limited service, at usually affordable prices (mainly B&B, second houses and hostels) 2) Hotellerie upscale (in particular, 4 stars hotels represent 58% of demand concentration in 2013)  In Porta Romana and Navigli there is a lack of hospitality offer  Price and location are the most important influencers in the accommodation choice  A new 4 stars Hotel in Porta Romana area  High quality  Lower rates than the other upscale hotels in the same area  New offer in terms of style and concept
  • The survey we spreaded among tourists, shows that Porta Romana and Navigli areas were chosen only by 4% and 10% of the interviewed. This means that it has a great potential to be developed, in order to meet the high demand (26 %) compared to the poor offer (4%). N° strutture per zona Our area of interest ACCOMMODATION OFFER STRUCTURES AV ROOMS AV RATE 5 STARS 1 28 € 375 4 STARS 8 104 € 163 3 STARS 5 63 € 105 2 STARS 2 17 € 67 1 STAR 1 31 € 64 RESIDENCE 4 13 € 147 TOTAL HOSPITALITY 21 256 EXTRA HOSPITALITY 6 25 € 91 TOTAL OFFER 27
  • New Openings within Milan area 2014 > 5 STARS  EXCELSIOR GALLIA: Brand TBA, 235 keys (Centrale)  LE GARE HOTEL: Milano Centrale  MANDARIN ORIENTAL: 104 keys (via Monte di Pietà)  W MILAN: Starwood Hotels, 76 keys (via Brera)  NH HOTEL: Rogoredo Santa Giulia, 200 keys  MOXY: Marriott- Aeroporto Malpensa 2015 > 4 STARS  NH HOTEL: Sesto San Giovanni, 193 keysMilan Municipality has chosen this part of the city to refurbish one of its building in order to create a low cost accommodation, confirming the previous data emerged from our market analysis.
  • Corso Italia, 49 angolo Viale Beatrice D’Este 1 From Malpensa Airport: A8 highway From Linate Airport: A51 From Orio al Serio Airport: A4 • NAVIGLI AREA: happy hours, pubs, restaurants, vintage stores, antiquate markets, fashion shops, Sinigallia fair, boat trips • TORTONA/SAVONA AREA: design, contemporary art, culture, “Fuori Salone” trade show, temporary exhibition in lofts • Colonne di San Lorenzo nightlife
  • Focus on four 4 stars hotels in the area of interest Via Tortona, 35 •Unique originality and design •Everchanging experiences from classical to modern, fashion to underground style •Eclectic and artistic spaces, result of unusual inspirations Via dei Fontanili, 26 •Make guests feel like home •Comfort with style, not luxury •Fun and friendly atmosphere Alzaia Naviglio Grande, 8 Viale Isonzo, 14 •Classic, sober and elegant city resort •Old style with modern conveniences •Exclusive location: building from the 1920s, former curtyard transformed into a large garden •Stylish and elegant •Modern and designed interiors •Real Milan taste: balustrade home with internal curtyard, typical of the city •Fairy-tale residence preserving all the pleasures of the Italian way of life MiHOTELNHOW MILAN MAISON BORELLA GRAND VISCONTI PALACE
  • STYLE  Blend of design, modern, minimal and bright interiors with the traditional and typical taste of the real Milan CONCEPT  Friendly and stylish atmosphere with artistic lounge space opened to guests and external visitors  Rooms: 143 double rooms used also as singles (30mq)  Facilities & Services: restaurant & bar, wi-fi, transportation from and to the main stations and airports, event room, cultural and enogastronomic tours, weekly sports, partnership with typical restaurants, cultural associations, clubs
  • WE GUARANTEE WHAT TOURISTS LOOK FOR
  • We can easily observe the curve: the peak is represented by the EXPO, and even after 2016 the GOP keeps growing. We developed an income statement to forecast the performance of our hotel during and after the Expo. The Key Performance Indicators show a good trend, with a good total growth from 2008 to 2022 Data source: Personal elaboration € 0 € 1,000,000 € 2,000,000 € 3,000,000 € 4,000,000 € 5,000,000 € 6,000,000 € 7,000,000 € 8,000,000 € 9,000,000 2014 2015 2016 2017 2018 2019 2020 2021 2022 TOTAL REVENUE GOP (general operating profit) YEAR OCC% ADR RevPAR 2014 50% 120€ 60,00€ 2015 70% 155€ 108,50€ 2016 68% 130€ 88,40€ 2017 69% 133€ 91,77€ 2018 70% 133€ 93,10€ 2019 71% 134€ 95,14€ 2020 72% 135€ 97,20€ 2021 72% 137€ 98,64€ 2022 73% 138€ 100,74€ TOTAL GROWTH% 23% 15% 68%++ +
  • Final observations  The lack of data and trends about Expo2015 makes Milan unable to forecast, plan and consequently match tourists’ needs with a proper hospitality offer  The lack of balance between the demand and the offer has raised a urgency of creating a qualified hospitality offer, able to satisfy specific tourists’ needs  The new offer will succeed only if able to meet preferences and priorities of specific targets  La Corte aims at: 1) Reduce the lack of hospitality offer in Porta Romana area 2) Create a strong image matching the 4 stars high quality with competitive prices 3) Leverage on Expo2015 to position ourselves within the market, but also be able to keep the same standards over the years, due to the strong identity built
  • TUTOR: GIORGIO BIANCHI ASSISTANTS: Fabrizio Piolanti Silvia Pinna MTM TEAM: Iulia Davydova Carolina Mardegan Marco Lancellotti Sara Lucarini Stefania Rampini Aries Crisione