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The ∆ ² Revenue Plan Turning the budget into the business plan

The ∆ ² Revenue Plan Turning the budget into the business plan. The ∆ ² Revenue Plan : Objectives. A deep understanding of the source of plan year revenues by each market segment A fact based definition of competitors by major business area

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The ∆ ² Revenue Plan Turning the budget into the business plan

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  1. The ∆² Revenue PlanTurning the budget into the business plan

  2. The ∆² Revenue Plan : Objectives • A deep understanding of the source of plan year revenues by each market segment • A fact based definition of competitors by major business area • A price structure embedded in competitive reality that optimises both revPAR & RGI • A fully resourced plan to achieve plan goals • A format that allows direct comparison with sales & marketing activity & allocates ownership to responsible team members

  3. Three year revenue evolution (prior, current, plan) by defined market segment Plan year revenue as the direct top line input to the P&L Set of validated kpi’s to be used as ongoing measurement tool Logical price:product positioning to comp set in key markets and plan to achieve best in class performance What do I get at the end of it? ∆² Revenue Plan Outputs

  4. The ∆² Revenue PlanForecast Model‘to know where you’re going, know where you start’ Forecast uses comparisons to same periods in prior year to stretch current year goals

  5. The ∆² Revenue Plan™Input Model Rooms forecast backfilled by market sector and compared to prior year

  6. The ∆² Revenue Plan™Relative Quality Analysis Detailed competitive shopping exercise replicates buyer behaviour to rank hotel and competitors against what guests say is important

  7. The ∆²Revenue PlanAnalysing competitor selling prices Your selling price compared to each competitor & comp set average

  8. The ∆²Revenue Plan™Value Positioning Matrix~ ‘because customers will pay for quality’ VPM visually displays price:quality relationship of entire comp set by season & segment and focuses attention on rate & share premium drivers

  9. The ∆² Revenue Plan™PESTLE Analysis PESTLE analysis allows uncontrollable macro factors to be built into the plan

  10. The ∆² Revenue Plan™Demand Analysis Demand analysis builds on PESTLE, focuses on business mix changes and growth opportunities

  11. The ∆² Revenue Plan™Price Planning Rate structure anchored at volume levels and flowed up and down to optimise price:volume opportunities

  12. The ∆² Revenue Plan™Rate Cascade Cascade display highlights any rate misalignments

  13. The ∆² Revenue Plan™Monthly Spreadsheet Final output is monthly revenue budget that can be fitted to the P&L

  14. Simple kpi’s focus the team on key result areas and rest on deep management understanding of the business Key Results becomes P&L input

  15. Wrap Up • Growth. A business plan that is both stretched and achievable • Ownership. Every cent/penny of revenue trackable to a market segment and allocated to a ‘business owner’ • Understanding & Alignment: One team. One Plan. One Goal with everyone lined up behind the same commitment.

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