and well-heeled youngsters. Past data also indicates a 30% year-on-year increase of family travellers who prefer larger-sized rooms over the standard rooms. In 2016, the Gross Operating Revenue (GOR) and the Gross Operating Profit (GOP) for Eastern Paradise were S$192Mn and S$68Mn respectively. A quick look at the historical financials (Appendix 1) reveals that while GOR has been improving since 2011, the Gross Operating Profit has been relatively stable. Expenses have been gradually increasing, as has the labor cost as a percentage of GOR. In 2016, the Luxury Hotel attained an ADR of S$385. Additionally, family ADR is comparable/only marginally lower than overall ADR. Also, while mid-week occupancy remains healthy, occupancy over the week-ends may soon become a cause of concern.
The Changing Environmental Landscape
At the 2017 Hotel Data Conference, co-hosted by STR andHotel News, the keynote speaker wisely said1: "Disruption is when you wake up and you realize you're in trouble and you either didn't see the change coming or you
In an increasingly dynamic and competitive environment, the way hotels react to guests' expectations has a dramatic impact on their profitability. Guests are continually voting with their wallets through their purchases. Immediate accessibility, mobile obsession, personalized experiences and contradictory preferences—these are just some of the challenges that you need to tackle with daily. Guests also realize the power they have via social media and online reviews - and will not hesitate to use it when not satisfied with a service. While generation-based profiles have their place, it is important to keep in mind that a millennial guest on family vacation has different expectations to that of the same millennial on a business trip. As new technologies emerge, hotels of all sizes, irrespective of the genre, can't afford to sit on the side-lines. Mobile devices are increasingly becoming an essential part of the guest journey - before, during and after their stay. In fact, sixty percent of all travel-related searches begin from a mobile device. In addition, the hotel inventory distribution landscape has changed dramatically over the past 10 years. With the advent of new technologies and platforms, there is a proliferation of 3rd-party distribution channels, such as Booking.com and Expedia. As a result, there are a number of questions around true profitability of each distribution channel that you
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