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CHIA
| Question | Answer |
|---|---|
| Who are the key players in the hotel industry | Affiliations, Operations, Independents and soft brands |
| Categorizations used in the hotel industry | Geographic and Non- geographic |
| Chain or brand | Clearly Displayed to the public on the building and in all interactions with customers. |
| Parent Company | Group consisting of multiple chains |
| Management company | operates a hotel for another company where it receives a portion of the profits. |
| Asset management company | Represents the owner in the operation of the hotel. |
| Franchise | chain hotel run by a third party where the chain receives some sort of franchise fee. |
| Independent | Not affiliated with a chain or parent company |
| Soft brands | Allow a parent company to bring unique independent hotels under a company flag. |
| Top Geographic categories | World Continent- 4: Americas, Europe, Africa and Asia Pacific Sub continent- 3 or 4 per continent Country- over 200 with 1 or more hotels |
| Market | commonly thought of as a city (metro), but also rural (non-metro) areas. No market will ever cross country boundaries. A sample is provided. |
| Sub market | a geographic subset of a Market. In a metro Market, could be a CBD (Central Business District), Airport, a suburb name, North/South/East/West or a highway #. In a non-metro Market, a small city could be a Submarket. (Submarket used to be called Tract. |
| Scale | seven categories, six for chain hotels ranging from Luxury to Economy, and one for all Independent hotels. Chains are assigned into Scale groups based upon ADR of all hotels in world. Consistent – all hotels in a Chain are in the same Scale group |
| Class | similar, same names as Scale, but no “Independent” group, so only 6. Independent hotels are combined into groups with chain hotels at similar ADR levels. Chain hotels are always in the same Class as Scale. |
| Benchmarking | relied upon heavily in the hotel industry, taking place at different levels (property, chain, city) |
| Competitive set | a group of hotels used primarily for comparison against a subject property, sharing similar qualitative and quantitative features, aiding sales and marketing and often used in management contracts. |
| Key Considerations When Creating Comp Sets | Participation Proximity Pricing Product |
| Participation | refers to the hotels that submit their confidential performance data to STR |
| Which is NOT a valid non-geographic category? | Guest Satisfaction Rating |
| Who creates a competitive set for a chain hotel? | It is a joint effort involving many stakeholders |
| How many Scale categories are there compared to Class categories? | 7 Scale categories and 6 Class categories |
| What isn't a good reason to for a hotel to have an additional competitive set? | Have one set that you can easily beat and another which is a realistic target |
| Changes to how Markets and Submarkets are geographically defined are made how often? | Annually |
| Which one of the following is an accurate statement regarding Class groups? | Independent hotels are slotted into Class groups based upon the ADR of the independent hotel compared to the chain hotels in the same market |
| Comp sets are used for many purposes in hotel operations, which of the following is one of these purposes? | -Aid sales and marketing departments in determining the effectiveness of various pricing decisions. -Used in management contracts for performance requirements -Can have an effect on GM compensation |
| Benchmarking in the hotel industry takes place at what level? | Property level for an individual hotel versus their Competitive Set Corporate level for a hotel company, for example one brand versus others Geographic level for tourism organizations, for example city versus comparable cities |
| Math fundamentals are organized related to four different types of data | Property Data Comp Set Data Industry Data International Issues |
| STR receives three fields of raw data (monthly and daily) | Supply (Rooms Available)- rooms in a hotel multiplied by the days Demand (Rooms Sold) – number of rooms sold, not including complimentary rooms Room Revenue – revenue generated from the sale of rooms, not including taxes or F&B |
| Occupancy | Demand/Supply (Rooms Sold/Rooms Available)* 100, displayed as a percentage |
| Average Daily Rate (or ADR) | Revenue/Demand, displayed as a currency value |
| Revenue per Available Room (or RevPAR) | = Revenue/Supply, displayed as a currency value - important metric, measurement of success, sort of a combination of Occupancy and ADR. |
| Percent Changes | Compares the number this year to the same number last year. measures the amount of growth or decline from the same period last year. industry uses % change step 1 - find difference, then step 2 - divide by last year) |
| The Percent Change formula is | = (This Year – Last Year) / Last Year * 100 Percent Changes are just as important as the Actual Values because they show improvement over time (catching up) |
| Multiple time periods | Year-to-Date (YTD) – January through the current month Running 3-Month – current month plus the prior 2, short-term Running 12-Month – current month plus the prior 11, longer |
| Daily multiple time periods | Current Week – seven days, starting Sunday, ending Saturday Month-to-Date (MTD) – 1st through current day of the month Running 28-Day – the current day plus the prior 27 |
| Segmentation Terms | Group = rooms and corresponding revenue sold in block of ten or more Contract = consistent block of rooms for an extended period over 30 days. Transient = rooms sold at rack, corporate, package, or government rates, everything else |
| Index numbers | = Subject Value / Comp Set Value * 100 |
| Index Percent Change Numbers | Index percent changes are the final piece of the puzzle. The formula for Index Percent Changes is the same: Index Percent Change = (Index TY – Index LY)/Index LY * 100 |
| Sufficiency | There must be 4 or more hotels in the comp set that participate (submit data) for a month to display numbers for that month on the STAR Report. |
| Non-reporting hotels in the comp set | If a hotel in the comp set does not report, the comp set average is solely based upon the reporting hotels. STR does not estimate for non-reporters. |
| Full Availability | Supply number is always the number of rooms in the property times the days in the month |
| International issues | Exchange rates Conversions Multiple time periods Constant Currency |
| XLStar | the Excel version of the STAR reports was launched in 1997. In the training we will refer to these as STAR Reports |
| dStar | the digital version of the STAR reports was launched in 2018 |
| How to use STAR Data | Check REVPAR actual values % changes indexes rankings |
| 4-step iterative process for STAR reports | Analyze – long term trends & positioning versus comp set Identify – areas of improvement Develop – strategies Monitor - progress |
Created by:
betsy_chandler