BREDA UNIVERSITY
OF APPLIED
SCIENCES
Rafael Houtepen
182515
Class: 2RH03
CITM2.RHP-01
2019/2020 Pricing
Revenue
Hotel De Draak,
Bergen op Zoom
END REPORT RH 15/05/2020
Gielen, Gerard
PRICING & CAPACITY
,Introduction:
My name is Rafael Houtepen and I am a second-year student at the Breda University of Applied Sciences. At
this university I follow the International Tourism Management program and for this course we had to
conduct a research about the pricing and capacity of a hospitality and recreation company with more than
20 units that could be sold that you needed to know well.
This research has been done for the course Recreation & Hospitality the pricing and capacity module. This
course is was under supervision of Gerard Gielen.
For my case I have chosen Grand Hotel De Draak in Bergen op Zoom, because I live in Bergen op Zoom and
therefore, I live close to the hotel and know it already for a long time. In addition, there are many things to
be found on their website what also helped me a lot with conducting this research about their pricing
strategies.
Hotel De Draak has 62 rooms and they are open all year round. This hotel is the oldest hotel in the
Netherlands, because its history goes back until the 14th century and it is not specifically known since when
exactly this hotel started operating, due to a city fire that burned the all the files of the city.
Nowadays, the hotel also has an operating restaurant on the bottom floor that provides guests with
breakfast and lunch in the right part and in the left part dinner with a Michelin star restaurant. In 2014 all
the rooms have been renovated into more modern rooms but with still their historical looks, so that the
guests can enjoy the modern facilities but still feel like they are living in the past.
Further in this report you will realize how much turnover they make in a year, which pricing strategies they
are using and how they could even improve more.
Curious?
Keep on reading to find out!
1
,Table of Contents
Introduction:..............................................................................................................................................1
Chapter 1: Excel steps.................................................................................................................................3
Capacity:.................................................................................................................................................................3
Average price:.........................................................................................................................................................3
Estimated turnover:................................................................................................................................................3
Estimated occupancy rate:......................................................................................................................................3
Occupancy rate:......................................................................................................................................................3
Pricing:....................................................................................................................................................................5
RevPAR:..................................................................................................................................................................7
NRevPAR:................................................................................................................................................................7
Chapter 2: Pricing optimization..................................................................................................................9
Dissatisfying week:.................................................................................................................................................9
New offer:...............................................................................................................................................................9
Extra sales:..............................................................................................................................................................9
Extra money............................................................................................................................................................9
Price elasticity.......................................................................................................................................................10
Target group size:..................................................................................................................................................10
Target group profile:.............................................................................................................................................10
Choice target group:..............................................................................................................................................10
Mediums:..............................................................................................................................................................10
Intermediaries.......................................................................................................................................................11
Timing:..................................................................................................................................................................11
Chapter 3: Advertising..............................................................................................................................12
Chapter 4: Pricing & Capacity and Hotel De Draak....................................................................................13
Reference list:..........................................................................................................................................18
2
, Chapter 1: Excel steps
Capacity:
Hotel De Draak has 62 units available to sell in and in their case those units are rooms (Hotel De Draak,
2020). Therefore, 62 units times 52 weeks will result in 3.224 sequential units or the total units that can be
sold per year.
Average price:
The average price per night for a room is around 95 euros, because their most common room costs 94
euros for 1 night (Hotel De Draak, 2020), therefore I rounded up by 1 euro to make the number complete of
95 euros. So, 95 euros times 7 nights is 665 euros for 1 week.
Estimated turnover:
The max turnover for a week is 665 euros times 62 units and that will result in 41.230 euros. The max
turnover for a year is 665 euros times 3.224 sequential units (total units on a year) and that will result in
2.143.960 euros.
Estimated occupancy rate:
The average occupancy rate from 2012 until 2018 in the Netherlands was around 62,9% in 2012 until 72,9%
in 2018 and continuously increasing (Eurostat, 2019). Therefore, I estimate the occupancy rate around 74%
in 2020 for Hotel De Draak. Therefore, 52 weeks times 74% will result in 46 units occupied this year and
3.224 sequential units’ times 74% will result in 2.386 sequential units occupied this year. Therefore, the
turnover for a week would be 665 euros times 45,9 (46) occupied weeks and that is 30.510 euros. Also, the
turnover for a year would be 665 euros times 2.385,8 (2.386) occupied sequential units and that is
1.586.530 euros.
Occupancy rate:
The hotel is located in the city center of Bergen op Zoom where there is a maritime climate. This is resulting
that the hotel is depended on the events planned in the city, because there are no other motives to visit the
hotel, like a beach area or forest area. Therefore, the hotel does not really have a high season and a low
season, because the city can be visited any time and each month or season has its own benefits to visiting
the city. In addition, the hotel is focusing on business and leisure, what is also resulting in a spread-out
occupancy rate and a high occupancy rate many weeks.
Due to the corona virus the occupancy rates in March (8 march horeca closed), April and even May will be
lower. According to a research done by NBTC Holland Marketing the normal average occupancy rate of 73%
has dropped to an occupancy rate of 40%, due to the corona virus in the Netherlands (NBTC Holland
Marketing, 2020).
In Bergen op Zoom there are many events planned throughout the year and luckily hotel de Draak is located
in the middle of the center of Bergen op Zoom (Gemeente Bergen op Zoom, 2020), so they can be part of
every event that would be held by the municipality of Bergen op Zoom. In the schedule bellow I indicated
the most important events that could have effect on the occupancy rate of hotel de Draak. In addition,
many business events are being held in Bergen op Zoom due to the location on the map of the city, because
it is between Antwerp and Rotterdam and between Zeeland and Brabant (Eventbrite, 2020). This will also
increase the occupancy rate of hotel de Draak.
Occupancy rate schedule:
Week 1: 1-5 January, Aftermath of Christmas, therefore quiet
Week 2: 6-12 January, Aftermath of Christmas, therefore quiet
Week 3: 13-19 January, Business events in Bergen op Zoom, therefore full
3
OF APPLIED
SCIENCES
Rafael Houtepen
182515
Class: 2RH03
CITM2.RHP-01
2019/2020 Pricing
Revenue
Hotel De Draak,
Bergen op Zoom
END REPORT RH 15/05/2020
Gielen, Gerard
PRICING & CAPACITY
,Introduction:
My name is Rafael Houtepen and I am a second-year student at the Breda University of Applied Sciences. At
this university I follow the International Tourism Management program and for this course we had to
conduct a research about the pricing and capacity of a hospitality and recreation company with more than
20 units that could be sold that you needed to know well.
This research has been done for the course Recreation & Hospitality the pricing and capacity module. This
course is was under supervision of Gerard Gielen.
For my case I have chosen Grand Hotel De Draak in Bergen op Zoom, because I live in Bergen op Zoom and
therefore, I live close to the hotel and know it already for a long time. In addition, there are many things to
be found on their website what also helped me a lot with conducting this research about their pricing
strategies.
Hotel De Draak has 62 rooms and they are open all year round. This hotel is the oldest hotel in the
Netherlands, because its history goes back until the 14th century and it is not specifically known since when
exactly this hotel started operating, due to a city fire that burned the all the files of the city.
Nowadays, the hotel also has an operating restaurant on the bottom floor that provides guests with
breakfast and lunch in the right part and in the left part dinner with a Michelin star restaurant. In 2014 all
the rooms have been renovated into more modern rooms but with still their historical looks, so that the
guests can enjoy the modern facilities but still feel like they are living in the past.
Further in this report you will realize how much turnover they make in a year, which pricing strategies they
are using and how they could even improve more.
Curious?
Keep on reading to find out!
1
,Table of Contents
Introduction:..............................................................................................................................................1
Chapter 1: Excel steps.................................................................................................................................3
Capacity:.................................................................................................................................................................3
Average price:.........................................................................................................................................................3
Estimated turnover:................................................................................................................................................3
Estimated occupancy rate:......................................................................................................................................3
Occupancy rate:......................................................................................................................................................3
Pricing:....................................................................................................................................................................5
RevPAR:..................................................................................................................................................................7
NRevPAR:................................................................................................................................................................7
Chapter 2: Pricing optimization..................................................................................................................9
Dissatisfying week:.................................................................................................................................................9
New offer:...............................................................................................................................................................9
Extra sales:..............................................................................................................................................................9
Extra money............................................................................................................................................................9
Price elasticity.......................................................................................................................................................10
Target group size:..................................................................................................................................................10
Target group profile:.............................................................................................................................................10
Choice target group:..............................................................................................................................................10
Mediums:..............................................................................................................................................................10
Intermediaries.......................................................................................................................................................11
Timing:..................................................................................................................................................................11
Chapter 3: Advertising..............................................................................................................................12
Chapter 4: Pricing & Capacity and Hotel De Draak....................................................................................13
Reference list:..........................................................................................................................................18
2
, Chapter 1: Excel steps
Capacity:
Hotel De Draak has 62 units available to sell in and in their case those units are rooms (Hotel De Draak,
2020). Therefore, 62 units times 52 weeks will result in 3.224 sequential units or the total units that can be
sold per year.
Average price:
The average price per night for a room is around 95 euros, because their most common room costs 94
euros for 1 night (Hotel De Draak, 2020), therefore I rounded up by 1 euro to make the number complete of
95 euros. So, 95 euros times 7 nights is 665 euros for 1 week.
Estimated turnover:
The max turnover for a week is 665 euros times 62 units and that will result in 41.230 euros. The max
turnover for a year is 665 euros times 3.224 sequential units (total units on a year) and that will result in
2.143.960 euros.
Estimated occupancy rate:
The average occupancy rate from 2012 until 2018 in the Netherlands was around 62,9% in 2012 until 72,9%
in 2018 and continuously increasing (Eurostat, 2019). Therefore, I estimate the occupancy rate around 74%
in 2020 for Hotel De Draak. Therefore, 52 weeks times 74% will result in 46 units occupied this year and
3.224 sequential units’ times 74% will result in 2.386 sequential units occupied this year. Therefore, the
turnover for a week would be 665 euros times 45,9 (46) occupied weeks and that is 30.510 euros. Also, the
turnover for a year would be 665 euros times 2.385,8 (2.386) occupied sequential units and that is
1.586.530 euros.
Occupancy rate:
The hotel is located in the city center of Bergen op Zoom where there is a maritime climate. This is resulting
that the hotel is depended on the events planned in the city, because there are no other motives to visit the
hotel, like a beach area or forest area. Therefore, the hotel does not really have a high season and a low
season, because the city can be visited any time and each month or season has its own benefits to visiting
the city. In addition, the hotel is focusing on business and leisure, what is also resulting in a spread-out
occupancy rate and a high occupancy rate many weeks.
Due to the corona virus the occupancy rates in March (8 march horeca closed), April and even May will be
lower. According to a research done by NBTC Holland Marketing the normal average occupancy rate of 73%
has dropped to an occupancy rate of 40%, due to the corona virus in the Netherlands (NBTC Holland
Marketing, 2020).
In Bergen op Zoom there are many events planned throughout the year and luckily hotel de Draak is located
in the middle of the center of Bergen op Zoom (Gemeente Bergen op Zoom, 2020), so they can be part of
every event that would be held by the municipality of Bergen op Zoom. In the schedule bellow I indicated
the most important events that could have effect on the occupancy rate of hotel de Draak. In addition,
many business events are being held in Bergen op Zoom due to the location on the map of the city, because
it is between Antwerp and Rotterdam and between Zeeland and Brabant (Eventbrite, 2020). This will also
increase the occupancy rate of hotel de Draak.
Occupancy rate schedule:
Week 1: 1-5 January, Aftermath of Christmas, therefore quiet
Week 2: 6-12 January, Aftermath of Christmas, therefore quiet
Week 3: 13-19 January, Business events in Bergen op Zoom, therefore full
3
