More Related Content
Similar to Hadm 8606 -_jw_-_client_presentation_-_2
Similar to Hadm 8606 -_jw_-_client_presentation_-_2 (16)
Recently uploaded
Recently uploaded (20)
Hadm 8606 -_jw_-_client_presentation_-_2
- 2. Agenda Baseline Performance Recommendations Action Plan Employee Training Performance Management
- 4. Monthly Spa Revenue 3000000 2500000 2000000 Rupees 1500000 1000000 500000 0 Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Baseline Recs Action Plan Training Performance
- 5. Daily Treatment Demand 35.00 30.00 25.00 Number of Treatments 20.00 15.00 Peak 10.00 5.00 Off- Peak 0.00 Baseline Recs Action Plan Training Performance
- 6. Daily Spa Revenue 120000 100000 80000 Rupees 60000 Peak 40000 20000 Off- Peak 0 Baseline Recs Action Plan Training Performance
- 7. Occupancy of Treatment Rooms 100.00 90.00 80.00 70.00 % of Rooms Occupied 60.00 50.00 Off peak Peak 40.00 30.00 20.00 10.00 - Mon Tue Wed Thu Fri Sat Sun Baseline Recs Action Plan Training Performance
- 8. Average RevPATH 1,600.00 6.50 Revenue per Treatment Hours Available 1,400.00 6.00 1,200.00 Number of Therapists 5.50 1,000.00 5.00 800.00 4.50 600.00 4.00 400.00 200.00 3.50 - 3.00 Mon Tue Wed Thu Fri Sat Sun Therapists Available, Off-Peak Season Therapists Available, Peak Season Off-Peak Season Peak Season *January not taken into consideration without any revenue data Baseline Recs Action Plan Training Performance
- 9. SWOT Analysis Strengths Weaknesses • Lack of packaging with F & B • The Quan brand • Unable to optimize walk-ins • Club Marriott Membership • Few alternate venues for treatments • Non-resident guest component • Lack of flexibility in scheduling • Cross-trained employees therapists Quan Threats Opportunities • Flourishing individual spas • Increase retail of Quan Spa products • Other hotel spas • Promotion during weak demand • Price wars – Non-resident segment periods Baseline Recs Action Plan Training Performance
- 10. Customer Comments • Asia Spa "New Spa of the Year" Award in 2006 • Conde Nast Traveler Hot Spa for 2007 Positive • Spa Magazine “Favorite Hotel Spa in Asian Subcontinent” • Pevonia Asia “Best Hotel Spa” for 2007, 2008, 2009 • Praise for the couples’ treatment room • Indoceane treatment – sugar scrub Negative • Huge menu – needs simplification • Ambience – music not tranquil Baseline Recs Action Plan Training Performance
- 11. Recommendations
- 12. Establishing Blue – Red Periods HIGH SEASON Monday Tuesday Wednesday Thursday Friday Saturday Sunday 8am-10 am Quiet time 10am -12pm 12pm-2pm Busy time 2pm-4pm 4pm- 6pm 6pm -8pm Establish LOW SEASON Periods based on the Monday Tuesday Wednesday Thursday Friday Saturday Sunday Time of the 8am-10 am Day, the Day 10am -12pm of the 12pm-2pm Week, and 2pm-4pm Seasonality 4pm- 6pm 6pm -8pm Baseline Recs Action Plan Training Performance
- 13. Improving RevPATH Adopt different strategies for Blue Red • Attract more customers • Sell treatments that • Sell more treatments generate the most revenue • Explore all revenue possibilities Managing demand Baseline Recs Action Plan Training Performance
- 14. Blue Period Hotel Rooms Food and Beverage Walk-in Promotions Discounts Treatment Combinations Baseline Recs Action Plan Training Performance
- 15. Blue Period Hotel Rooms Include spa treatments Additional incentives for with the Romance reservations made on the Package day of the treatment State the discount to leverage a better impact Baseline Recs Action Plan Training Performance
- 16. Blue Period Food and Beverage Serve Drinks and Snacks Champagne at 20% off with a treatment Baseline Recs Action Plan Training Performance
- 17. Blue Period Treatment Combinations Aroma Fusion Bundle other treatments Massage = 50% of -> ANY TREATMENT 20% off hours sold Baseline Recs Action Plan Training Performance
- 18. Blue Period Treatment sold Second 39% 15% treatment with 20% discount 61% FUSION MASSAGE OTHERS INCREASE Rs. 571,028.37 2.35% Blue period assumed to represent 60% of sales. We assume 1 treatment = 1 guest. Baseline Recs Action Plan Training Performance
- 19. Price – Customer Education Ensure spa information is Independent fan page for covered in the Room the spa Orientation Script Dynamic pricing strategy Encourage regular customers to become fans. Empower and Incentivize Beneficial for the hotel front desk agent towards spa sales Special spa offers through and the spa social media Clear discount signage in Link between hotel and spa space spa social media pages Baseline Recs Action Plan Training Performance
- 20. Red Period Create packages 2 guests for buying Aroma R$ 7000 with contribution Fusion Massage higher than average (58.5 R$/min) 1 guest for buying Aroma fusion Massage & Aroma Fusion Brightening Rejuvenating R$ 7100 Massage can be Treatment With 20% discount on the used to enhance second Up-Selling Baseline Recs Action Plan Training Performance
- 21. Red Period Aroma Derma-Peel Brightening Back, Neck and Skin Perfecting Rejuvenating Establish the Shoulder Treatment Treatment Massage high revenue- generating treatments 133 116 R$/min 75 R$/min R$/min Up to a Up to a Up to a 56% 43% 29% discount discount discount Baseline Recs Action Plan Training Performance
- 22. Red Period 100 guests 100 guests 100 Aroma fusion massage 85 Aroma fusion massage 15 High contribution packages 58.50 R$/ min 74.81 R$/ min Over the Year increase of R$ 124,110.57 - - 0.51% of Total Revenue Red period assumed to represent 40% of treatment sold. We assume 1 treatment = 1 guest. Baseline Recs Action Plan Training Performance
- 23. Time – High Contribution Margins Compute the contribution margin per minute of each treatment: Contribution Price Cost Margin Baseline Recs Action Plan Training Performance
- 24. Red Period - Explore all Opportunities Simple treatments around the pool Foot massage Foot scrub Cross-train employees to meet exigencies Treatments in the hotel rooms Shorter menu with surcharges applied Spa therapists and Cross-trained employees Baseline Recs Action Plan Training Performance
- 25. Blue and Red Periods Empower sales team for MICE group packages Alter hours of operation Incentivize therapists for retail Adapt number of therapists available based on projected demand Baseline Recs Action Plan Training Performance
- 26. Data Tracking Treatments Demand • By therapist • Unconstrained • By day of week • Wait list • By time of day improvement • By demographic • Reason for declining treatment Baseline Recs Action Plan Training Performance
- 27. Action Plan
- 28. Implementation Phase I – Months 1-4 Phase II– Months 5-8 Phase III – Months 9-12 Baseline Recs Action Plan Training Performance
- 29. Phase I – Months 1-4 Begin selling high-value add-on treatments • Seize the opportunity Increase in a 15-minute add-on of selling aroma fusion massage with should revenue the 45-minute bath and body therapies. be evident at the end of this phase. Implement dynamic pricing • Begin charging rates based on hot and cold periods. Baseline Recs Action Plan Training Performance
- 30. Phase II – Months 5-8 Improve contribution margins • Incentivize therapists for retail and loyalty Focus on gaining • Incentivize reservationists for bookings at rack rate employee buy-in Train employees • Explain how Revenue Management positively affects employees Continued increase Share information within revenue guests • Steer price-sensitive guests toward cool periods • Keep price-insensitive guests coming during warm periods Baseline Recs Action Plan Training Performance
- 31. Phase III – Months 9-12 Evaluate effectiveness of dynamic pricing • Use RevPATH as the key performance indicator Revenue Determine improvement on Management: capture rate • Concentrate on offering incentives to team members and discounts to in- Continuous house guests to improve occupancy during cool periods Alter the hours of operationevaluation and changing practices. • Re-evaluate the effectiveness of operating for twelve hours on each day. • Consider opening only during hours of high demand on slow days (e.g. during after-work hours from Monday to Wednesday) Baseline Recs Action Plan Training Performance
- 33. Staff Training- RevPATH Explain the relevance of RevPATH Create an Excel tool to record RevPATH Train them on monitoring RevPATH Baseline Recs Action Plan Training Performance
- 34. Menu Simplification & Presentation Prepare a script for the staff – covering high contribution margin treatments when they brief guests Menu evaluation over a quarterly period to analyze “dogs” – Remove them Baseline Recs Action Plan Training Performance
- 35. Role-Play Training • Handling walk-in situations – when sold out • Effective offering of the spa menu – scripted delivery • Up-selling of treatments or packages Baseline Recs Action Plan Training Performance
- 36. Training for Retail Train staff in • Train staff through role plays selling retail • Track retail sales by day products • Incentivize staff Baseline Recs Action Plan Training Performance
- 37. Employee Cross-Training • Select 8-10 hotel employees to help the spa in exigencies. • Offer these employees incentives in their additional roles • Provide options to transfer to Quan Spa full-time after a period of time Baseline Recs Action Plan Training Performance
- 38. Cost of Training and Implementation On-the-clock training for staff • Costs incurred sum to hourly rate of employees and managers Technology investment • Development of Excel tool by tech- savvy in-house management Baseline Recs Action Plan Training Performance
- 40. Metrics for Revenue Revenue per Revenue available per day treatment part hour Revenue per day Baseline Recs Action Plan Training Performance
- 41. Periodic Checks and Balances Treatment analysis – Quarterly Basis Unconstrained demand – Detailed tracking on daily basis Staff productivity – Tracking on a quarterly basis Promotions through various channels – social media, magazines, brochures Monthly competitive review- especially for non resident segment Baseline Recs Action Plan Training Performance
Editor's Notes
- Slide Allocation
- ScopeSpa OverviewData AnalysisCompetitive SetSWOTRecommendations
- Both seasons are:-performing below-average during weekdays-showing same revenue incoming trends in both seasonsRevenue and Productivity graphs show that the spa is noticeably underperforming from Tuesday Sunday A. Off-Peak Season Demand is noticeably lower from Tuesday Saturday as well B. Suggestions: 1. offer incentives to therapists AND guests -perhaps based on treatment type (as mentioned in previous slide)
- 25% more revenue during peak seasonChange light blue to red color.
- Maintain color consistency!!!! (red for light blue)LOW utilization of both treatment rooms and therapists (working 8h/day, average being less than 4treatments per therapist per day!) !Without the data by time of day it is impossible to understand what constraint the demand.Is it rooms(one kind or all the rooms)? the number of therapist available?SO it s very hard to leverage the tools of revenue management as we can not see what is the REAL inventory/problem.Do they accept all the demand!? How often are they full? How ‘s the demand spread during the day?Are what we need to know to make better recommendations.
- Considering that there are more rooms than therapist, we consider evaluating the Revenue per treatment hours available based on the number of therapists and the 8h worked each dayFewer therapists during Peak season, and better performance.Scheduling should not only be function of the day but also function of the season to optimize revenue per treatment hours available.
- Positive: Also has been Awarded by the Spa Magazine Reader’s Choice Award for Favorite Resort/hotel Spa in Asian Subcontinent. Has won the Pevoniaasia Spa Award for“ Best hotel spa” for year 2007,2008 and 2009.Negative: Need a change. We don’t offer a green tea but Saffron ice tea as our welcome drink and is bit sweeter as we add honey to it. Spa music is basically with style of the spa designed. Quan spa is an upbeat urban spa. So the music is more or less lounge type. Not very classical instumental.
- Put legend and let cells blank
- Room orientation script.Front agent incentavize for direct slaes
- Combine Aroma Fusion Massage withrevenue generator treatmentsBased on the Revenue generated on each treatment- Not Profit- Discount calculated If the time was sold as another Aroma fusion massageNOTE: SPLIT TREATMENT INTO DIFFERENT SLIDE… and reduce number of words on the slide(s)!!!!
- Combine Aroma Fusion Massage withrevenue generator treatmentsBased on the Revenue generated on each treatment- Not Profit- Discount calculated If the time was sold as another Aroma fusion massageNOTE: SPLIT TREATMENT INTO DIFFERENT SLIDE… and reduce number of words on the slide(s)!!!!
- Average of treatment in package 40minConversion of guest who bought aroma fusion massage, 505 of guests who did not may be converted to
- Evaluate the cost of each treatmentLaborSupplies and linenEquipment (amortization)Overhead by treatment durationDetermine the most profitable treatmentsCompute the contribution margin per minute of each treatment:
- Ensure these are treatments that can be performed by the extra pool of cross trained employees.
- When did they want to come, next availability
- Train Employees section:Maybe we should discuss the specific incentives we can offer therapists. -if they have higher than average productivity rate, perhaps they get a bonus/extra day off? -maybe extend to employees of the hotel itself?-if they can convince guests to make the spa a destination for their weekend activities as well/convince them that shorter treatments are great relaxation treats for weekdays as well (not really sure if this is possible… just a random thought though)
- Improved contribution margins: do we need to come up with specific incentives we’re going
- Should we come up with particular cutoff points in determining “effectiveness/improvement”?
- Menu evaluation over a quarterly period to analyze ‘Dogs’ – Remove them
- Create a pool of 8-10 employees around the hotelOffer them incentives to provide their services to the spaGradually offer them to move to the spa