Mountain Resorts, RV

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Mountain Resorts, RV Water-based Resorts

• October 6th, 2006
• TRMT 430 RESORT MANAGEMENT

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News Updates

• Update to class schedule
• - discussion questions
• - sign up for choice of resorts
• - change of field trip date and change of
  Current Presentations Overview date?

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Objectives for the class

• Todays Agenda
• To become familiar with the development process
  and design considerations for mountain and water
  based RV resorts
• To explore the concept of yield management

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Mountain Based Resorts

• Types of amenities at mountain based resorts
• Development process for mountain resorts
• What constitutes a desirable site?
• What are mountain based resorts doing to initiate
  a summer season?
• What are some common design guidelines for
• Ski hills
• Ski runs
• Ski lifts
• Base area
• Food/accommodations
• Cross country ski areas

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• Amenities at mountain based resorts
• What are the amenities and activities often used
  to attract and entertain guests at mountain based
  resorts?
• http//www.mountwashington.ca/

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• Why is it important to balance the physical
  capacity of a mountain with its economic
  capacity?
• What are some examples of the four types of
  resorts listed in this chapter?
• http//www.mountcain.com/

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What constitutes a desirable site for a mountain
based resort?

• Attractiveness
• Climate
• Snow conditions
• Exposure
• Snow retention
• Forest cover
• Water supply
• Access to markets
• Limited environmental barriers (p-131 for items
  that need to be considered when choosing sites)
• http//www.turtleisland.org/news/news-secwepemc2.h
  tm
• Base area
• What are some of the considerations given for the
  following?
• Parking
• Access roads
• Food services
• Accommodations
• Other services

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Ski hills design considerations

• The capacity of the ski lifts needs to match
  what?
• How do ski lifts impact the economics of a ski
  hill?

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Water-based resorts

• Types of amenities at water based resorts
• What constitutes a desirable site for a water
  based resort besides water

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Amenities at water-based resorts

• What types of water based resorts are there?
• What types of amenities are provided at water
  based resorts?

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Water amenities and facilities at resorts may
include

• Natural beaches for activities such as
• Sunbathing
• Swimming
• Beachcombing
• non motorized boating
• snorkeling
• scuba diving

• Lakes and rivers for activities such as
• Fishing
• Hiking trails
• Golf courses
• Bicycle paths
• Interpretation facilities
• Canoeing
• Swimming
• Family outings

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What constitutes a good site?

• 1. For a marina?
• 2. For a beach resort?
• 3. For a fishing resort?
• Work to brainstorm site considerations with your
  partner. Well develop a list of site
  considerations for each type of resort

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Development considerations for Marinas

• Access
• Water depth
• Protection from winds
• Stable shoreline
• Exposure
• Water quality
• Aesthetics
• Fluctuations in water level
• Freedom from ice threats
• Environmental integrity

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• In small groups, discuss the following
• Sooke Marine Resort Proposal benefits of the
  proposal
• 2. Sooke Marine Resort Proposal negative
  potential of the proposal

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Issues in Water-based resorts

• Delicate balance between use and protection of
  water resources.
• Wetlands near resort settings
• Overuse of beaches
• Run-off from resorts
• Use of limited water supplies
• Public vs. private land access
• Vague boundaries in water areas
• Marine protected areas in Canada
• Global warming rising water levels
• Commercial vs. recreational fishing
• Migration of species to beaches (I.e. turtles,
  birds)

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RV Resorts

1. Amenities for RV Resorts
2. Site considerations for RV Resorts
3. Design Considerations
4. Potential issues that could effect development

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YIELD Management

• The concept of revenue monument originated in
  the airline industry
• (I.E. travelers on the same flight all pay a
  different price!)
• Brought on the concept
• of revenue management!

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Revenue Management

• Based on supply demand
• Prices tend to rise when demand exceed supply,
  and prices tend to fall when supply exceeds
  demand
• Resorts focus on shifting from high-volume
  bookings to high profit bookings depending on the
  demand of the day!

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How do resort managers know?

• They forecast the supply and demand and adjust
  prices accordingly.
• A common statement is The goal of revenue
  management is that it involves selling the right
  rooms to the right guests at the right rate at
  the right time AHLA, 2003

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The Nanaimo Resort

• Example Has 300 guestrooms, an average daily
  rate (ADR) of 80 per room and is currently
  operating at a 70 occupancy. The hotel offers
  100 one-bed and 200 two-bed guestrooms. The
  one-bed guestroom is priced at 90 as a single
  and 110 as a double. The two-bed room sold as a
  single is priced at 100 and as a double it sells
  for 120.

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Potential Average Single Rate

• Room Type Number of Rooms Single Rack
  Rate Revenue at 100 Occupancy
• 1 bed 100 90 9,000
• 2 beds 200 100 20,000
• 300 29,000
• Potential Average Single Rate Single Room
  Revenues at Rack Rate
• Number of Rooms Sold as Single
• 29,000
• 300
• 96.67

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Potential Average Double Rate

• Room Type Number of Rooms Single Rack
  Rate Revenue at 100 Occupancy
• 1 bed 100 110 11,000
• 2 beds 200 120 24,000
• 300 35,000
• Potential Average Double Rate Double Room
  Revenues at Rack Rate
• Number of Rooms Sold as Double
• 35,000
• 300
• 116.67

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RevPAR

• Revenue Per Available Room
• RevPAR Actual Room Revenue
• Number of Available Rooms
• RevPAR 11,520
• 300
• 38.40

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Revenue Management Considerations

• It is not a short-term process, should look month
  or years into the future, track business trends
  and guest demand
• A propertys staff is essential to the success of
  revenue management (sales catering managers,
  reservation managers)
• May have a team that meets weekly
• Then know how many guest are in house and can
  help food beverage dept. prepare
• Rate changes and adaptation in selling strategy
  affect the sales department
• Occupancy percentages will affect housekeeping
  and bell services

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Revenue Management strategies

• Hurdle rate lowest rate accepted
• Minimum length of stay common in resorts
• Close to arrival too many arriving on one day

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Case Study
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October 13th Discussion Questions

• Read the article Golf in the Millennium Boom or
  Bust? regarding yield management (handed out in
  class and posted under NOTES)
• List some of the strategies the article suggests
  to golf course managers to increase yields. Do
  some internet (or other) research and find an
  example of a golf course that is utilizing a
  revenue maximizing strategy and explain it.