In September's column, we discussed the simple technique of deseasonalization which allows us to translate "static" KPIs into more seasonal "dynamic" KPIs. This first article focused on the seasonality indices as they applied to a specific hotel property - Hotel Dreamage - at a Hawaiian location. This month we will investigate how the seasonality indices can be further leveraged by analyzing them within context - i.e., compared to relevant geographic and market segments. This type of seasonality analysis can then be used to develop a more comprehensive understanding of the competitive marketplace and quantify the impact of advertising spend and promotional programs on occupancy rates.
The methodology for developing seasonal indices for the hotel chain, city, region and market segments parallels the approach we developed last month. Once again, we collect three years of historical hotel occupancy data to calculate monthly indices (see Step 6) for the respective benchmarks. The only difference is that the seasonal indices are developed for higher level aggregations - the context - such as the hotel chain, city and regions. In this case, the region would be the Hawaiian Islands and the city of interest, Honolulu. Further segmentation also profiles the hotel's seasonality vis-à-vis the chain's collective local hotels as well as the hotel luxury market segment. Other market segments could include upper upscale, upscale and midscale hotel segments. Development of these marketplace benchmarks is discussed in Step 6 below. The Hotel Dreamage indices are then compared to these higher level aggregations in Step 7 to determine if the Hotel Dreamage has attracted its fair share of business and tourist trade.
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