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0:04
I've changed the names here
to protect the innocent.
But the Majestic Hotel Paris is
an independent 4-star
hotel located in
the center of Paris in
one of the touristy
areas of Paris.
It's family owned,
family managed.
Like a lot of family businesses,
everybody does a little
bit of everything and
nobody's really in charge
of anything in particular.
One of the feelings they've
had for some time is
that they're not doing
a great job in terms
of distribution.
What we can do is we can
look to see how
they are performing
compared to other hotels
that are like them in
the city of Paris.
0:50
On the left-hand side,
we have the hotel's performance,
showing their occupancy and
their average daily rate.
On the right-hand side, we
have their competitive set.
This would be hotels that
are similar to them in terms
of the star rating and
the location and in
this particular case,
whether they're
branded or unbranded.
I know there's a lot of
information on the slide,
but as you look down through
the columns of figures and
compare one to the other,
you can see that
the hotel is doing
a comparatively good job
compared to its competitive set.
Some months its occupancy
is higher than the
competitive set,
sometimes it's lower,
but we're talking about a
percentage point or two.
In terms of rate, in general,
it's over-performing
its competitive set
in terms of rate.
Looking at it from
a macro level,
we could say that the
hotel is performing
relatively well compared to
its competitive set in
terms of distribution.
But of course, we could also
say that somewhere between 20
and in some cases 40% of
their rooms are
empty every night.
There's still scope for
them to improve
their distribution.
