7/29/2019 Business Report - Seaview Apartments
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Contact: 0405658457
Business Computing 1
Workshop: Wednesday, 1630 1830
Seaview Apartments
Prepared By
Rafiyat Husnain
S3400025
Contact: 0405658457
Business Computing 1
ISYS2056
Wednesday; 1630-1830
Tutors: Illiya Ananiev &
Steven Wolff
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Rafiyat Husnain
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Table of Contents
Introduction ................................................................................ 3
Analysis of Data Using the Spreadsheet Model .......................... 4
Problems Surfaced From Analysis Report ................................... 5
Possible Factors Leading To Observed Problems........................ 6
Research from Secondary Sources ............................................. 8
Analysis of Research ................................................................. 13
Summary of Report .................................................................. 14
Recommendations & Solutions ................................................ 15
Appendix ................................................................................... 17
References ................................................................................ 17
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Introduction
What is this report about?
This report discusses the business data for the year of 2011 and secondary information essential
to the business operations. Analysing the profitability & popularity of each of the 4 types of
units at Seaview Apartments, certain conclusions have been drawn out about the business and its
overall scope and potential.
Also, comparisons have been made among and between the different apartment styles to evaluate
their utilized and un-utilized capacity and identify & suggest changes to the business strategies
and options to maximize the overall profitability and growth of the entity.
While considering the primary information provided about the business, external sources of
information will also be concentrated upon to illustrate and explore various ways and options
available to the business.
Aims For The Business
Customer Outreach: This report will introduce new and efficient methods to attractcustomers from as many backgrounds (e.g. professionals, families, couples, single
holiday makers) as possible.
Strategy Development: This report will suggest improvements and changes to thebusiness current policies and strategies such as price ranges and holiday package
structures to create a framework that increases its long-term sustainability and maximizes
its profits.
Leadership In The Industry: Recommendations to lead this business to the top of itsindustry and achieve greater heights in the long run will also be discussed in this report.
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Analysis of Data Using the Spreadsheet Model
Overall Profitability & Comparability
This section provides a transparent analysis of the reported facts and figures of the performance
of Seaview Apartments in the year of 2011. The reported data is also organized in an appropriate
pivot table in theAppendix. The profitability and comparability of the various kinds of
apartments have been identified and inferred from the spreadsheet model, as shown by the table
organized below.
Data Analysis Apartment Styles
Maximum number of nights booked Deluxe Studio
Least number of nights booked One Bedroom & Two Bedroom
Highest Profit One Bedroom Deluxe
Lowest Profit Two Bedroom
Highest proportion of regular customers One bedroom
Highest Nightly Rate Two Bedroom
Highest % Of Guests Staying >6 Nights
[Thus entitled to 15% discount]
One Bedroom Deluxe
Highest number of bookings Deluxe Studio
Lowest number of bookings Two Bedroom
Highest number of bookings in peak periods One Bedroom
Lowest number of bookings in peak periods One Bedroom & Two Bedroom
Figure 1
Key:
(Peak Periods assumed to be end-of-year [summer] or mid-year [winter] holiday periods)
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Problems Surfaced From Analysis Report
Identification & Discussion
Referring to the information gathered in figure 1 above, I have concluded that the mostprofitable apartment is One Bedroom Deluxe, which, in spite of not having the highest
nightly rate or the highest number of bookings, has managed to fetch the greatest
proportion of the income at Seaview Apartments. This could mainly be due to two
reasons:
The length of stay per customer is the longest as compared to the other types of apartments.
As shown in Figure 1 above, the highest percentage of guests staying longer than six nights is
under the One Bedroom Deluxe apartments.
The difference in facilities between a one bedroom deluxe and an ordinary one bedroom
apartment is assumed to be greater than that of each of their nightly rates ($15). Under this
circumstance, the cost paid is lesser than the benefits gained from the more lavish and greater
equipped deluxe apartment. Thus, customers interested in booking for longer periods (e.g. >6
days) choose the one bedroom deluxe over the one bedroom apartments as they weigh their
benefits associated with the stay.
However, considering the advantages of the one bedroom deluxe apartment, a higher profit level
could be attained. Currently, the number of bookings for this type of apartment during peak
periods is relatively low, leading to a lower income earned from this type of apartments during
holidays than it should earn.
Once again, referring back to Figure 1 above, it can be seen clearly that the two bedroomapartments are the least popular, and the lowest number of customers book this kind of
apartments. Thus, insufficient revenue is collected from the bookings, leading to an
overall loss.
The third piece of information that can be drawn from Figure 1 is that one bedroomapartments are not earning as much as they should even though the majority of customers
arriving during the peak holiday periods book this kind of apartment.
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Possible Factors Leading To Observed Problems
Digging Deeper Into the Stated Problems
The main outlying problems surfacing from the spread sheet model are the relatively low profit
levels from what could be earned given the wide potential of the apartment complex, especially
considering its ideal location for a holiday by the beach, the apartments not being used to their
maximum potential, and the flaws in the nightly rates which lead to an insufficient number of
total bookings at the complex throughout the year. The problems are further specified below:
Under Publicized/Inefficient marketing schemesThe marketing schemes utilized by the business currently (e.g. local newspapers) are not
efficient enough to attract sufficient travellers and holiday-makers to the complex. This results in
a relatively lower profit level than what could be achieved if various different kinds of
advertising methods were put in place to spread the word as far and wide as possible.
Also, apart from the limited variability of the advertising campaigns currently in place, the
business does not yet recognize peak periods of opportunity when it is necessary for the general
public to know of the existence and exciting possibility of staying at Seaview Apartments. Thisis mainly due to the fact that the business is not advertised at the appropriate times of the year
when potential customers are actively searching for ideal vacation spots and lodgings.
Rate charged for the apartment in high demand is too low, and that in low demand toohigh
Under the current list of customers, two bedroom apartments are in low or negligible demand
as they are too expensive ($60 more than the one bedroom deluxe) and redundant for couples or
singles, who seem to make up the majority of customers at Seaview Apartments [Deluxe Studio
took up the highest number of bookings]. Also, while the demand for this kind of apartment is as
low as it is at the moment, such a high nightly rate is unsustainable and will continue to hike
down the total revenue of the business.
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Similarly, as it has been observed throughout 2011 that the maximum number of nights
booked at Seaview Apartments is that of the Deluxe Studio, such a low nightly rate is
inappropriate for the business while the demand for this type of apartments is so high. Also, the
one-bedroom apartments are especially popular during holiday periods, but the constant rates
throughout the year are too low during these periods when the demand for this type of
apartments is observed to be much higher.
Change In Global Travel Patterns due to the appreciation of the Australian Dollar & thefall of the U.S. Dollar
Although not fatally essential, this is a possible external source of problem that may prevent
the number of bookings from being as high as it could be. The appreciation of the Australian
Dollar in the recent years has considerably increased the travel costs of air tickets and
accommodation in Australia for international tourists and holidaymakers, who are still earning in
lower currencies.
This is a reasonable hindrance for these travellers living overseas who may be easily
discouraged from coming to Australia for a holiday as compared to going to another country
such as the USA, where the currency has fallen drastically over the past few years, making their
holiday a lot cheaper than it would be in Australia.
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Research from Secondary Sources
Reaching Out To External Parties
Now that the reported data for Seaview Apartments has been analysed and the problems in the
business identified with relevant factors of contribution to these problems, it is essential that we
consider the trends, practices and patterns of other business in this industry.
I have performed a comprehensive amount of research on businesses in the same industry and
their strategies to attract customers to their motels/hotels.
Industry Competitors & Their Marketing Strategies
We need to compare the approaches and pricing strategies of accommodation business in Rye
itself in order to assess the comparability and competitiveness of the businesses effectively.
1. Aquabelle Apartments
Along with an effective and efficient website to increase the convenience of potential
customers and reach out to a greater number of holidaymakers seeking a seaside holiday around
Figure 1.2- Webpage Of Aquabelle Apartments
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the world, Aquabelle Apartments also includes an informative table of apartment rates
throughout the year in their online booking system on the webpage. The rates are enclosed in the
snapshot of the table below:
Figure 2 - Nightly Rates Of Aquabelle Apartments
As seen in the snapshot above, the nightly rates of the apartments are not constant throughout
the year. Different rates are provided according to different times of the year, suited according to
weekend and weekday rates. It is common for a greater number of bookings to take place during
weekends (Friday/Saturday), which explains the higher nightly rates during those two days of the
week.
Also, it can be observed that the nightly rates at Aquabelle Apartments are generally higher
than those at Seaview Apartments.
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2. Moonlight Bay Resort
Figure 3- Webpage of Moonlight Bay Resorts
Similar to Aquabelle Apartments, Moonlight Bay Resorts also provides a comprehensive and
efficient website with an online booking system for its potential customers convenience.
Moonlight Bay Resorts also includes a table of apartment rates throughout the year in theironline booking system on the webpage. The rates are enclosed in the snapshot of the table below:
Figure 4-Moonlight Bay Resorts nightly rates
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Similar to Aquabelle apartments, Moonlight Bay Resorts also provides different nightly rates
according to a weekday and weekend pattern with the rates being higher during the weekends.
Their nightly rates are higher than those of Seaview Apartments as well.
3. Rye Family Apartments
Figure 5- Rye Family Apartments Webpage
As is made obvious from the name of the accommodation, this particular kind of apartment
complex mainly targets holidaymakers who are families, especially those with children. Their
website, although not as well designed as the other two apartments mentioned, provides a clear
insight to the family-friendly environment at the complex as well.
Figure 6- Rye Family Apartments nightly rates
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Differing from the other two apartments mentioned, Rye Family Apartments provides nightly
rates differing according to seasons and holiday periods instead of weekdays and weekends.
Assuming that holidaymakers prefer seaside holidays more during the summer as compared to
the winter, their rates are higher during the summer.
Also, the nightly rates during winter when the demand is low are lower than that of Seaview
Apartments.
Figure 7- Packages offered at Rye Family Apartments
Apart from setting apart nightly rates according to seasons, Rye Family Apartments also
provides specific customized packages for different types of customers, suiting to their
individual needs accordingly.
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Analysis of Research
Discussing the differences: Price Differentiation
Firstly, Seaview Apartments lacks the function of the variability of nightly rates throughout the
year, which is common in the industry as the businesses adjust their rates according to the
popularity of days such weekdays and weekends or holiday periods and off-peak periods. This is
a great shortcoming for this business due to two reasons:
It deters customers during off-peak periods when the rates are still as high as they areduring holiday periods, while the other businesses attract these customers by providing a
relatively lower rate than their holiday periods, presenting a more sound and reasonable
differentiation of prices to their potential customers.
It brings in lower profits than should be earned during peak periods when there arenaturally a higher number of bookings. This is because the rates are not hiked up to
maximize profits by taking advantage of the high demand.
Discussing the differences: Lack of Packages
Secondly, unlike the other businesses, Seaview Apartments does not provide customized
packages for different groups of customers. This decreases the overall attraction and
marketability of the apartment complex due to the absence of specific incentives for potential
customers. Thus, the business fails to encourage holidaymakers to choose this complex for their
accommodation during their vacation, naturally bringing in a lower number of customers than it
would otherwise bring in.
Discussing the differences: Lack of a Proper Website
Thirdly, unlike the other businesses, Seaview Apartments does not have a proper, functioning
website, which makes its outreach to customers extremely limited and thus greatly reduces the
influx of customers at the complex as potential holidaymakers all over the world are unable to
know of the existence of the complex unless they have relevant contacts in Australia who are
aware of it.
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Summary of Report
Consolidating Ideas & Findings
By analysing the reported data including the facts and figures of apartment bookings, costs and
total revenue collected in the year of 2011 at Seaview Apartments, this report demonstrates and
discusses issues related to the overall profitability, comparability, and profit potential of the
business. It also analyses the approach of other businesses in the industry and evaluates the major
shortcomings that this business possesses, which are also identified as its biggest sources of
problems related to low profit levels and unutilized capacities of apartments.
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Recommendations & Solutions
Referring back to the analysis of profitability and comparability of the apartment styles at
Seaview Apartments, I will now introduce recommendations and solutions for the business
which will overcome the problems that it is currently facing to a great extent and heighten thelevel of profits and maximize its marketability and reputation in the industry.
Suggestive Changes To Advertising & Publicity Procedures
As is evident from the analysis report, Seaview Apartment lacks proper and efficient advertising
methods. It is essential that the business reaches out and establishes a mark of recognition to as
many potential customers around the world as possible, and the only way it can achieve this is
via extensive and effective advertising methods. While certain businesses may prefer
conventional advertising methods such as advertising on television and handing out flyers in
public places, the majority of todays businesses are constantly on the outlook for
technologically advanced marketing schemes. A few suggestions of such schemes are listed
below:
Designing an official website is one of the first and most essential advertising methodsin a business. The internet is such a platform that has the ability to reach out to an infinite
number of people from all over the world. By building a properly designed, graphic and
detailed website for the company and ensuring that it is listed on search engines such as
Google and Yahoo, potential holidaymakers will be able to access information about
Seaview Apartments conveniently. Even if they do not know the name of the apartment
complex, a simple search on accommodation in Rye will ensure that Seaview Apartments
turns up in the results. Also, by setting up a website that looks attractive and is able to be
browsed easily from link to link will present a high level of persuasion to customers who
are hesitant to make a decision. The website should include:
Different categories of information necessary for holiday makers to make a decision about
their accommodation [location, facilities, apartment styles, etc.]
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The choice of online bookings with the availability of units and the comparison of
prices per night listed conveniently for customers. This saves a lot of time, especially for
working adults who are occupied with their jobs and duties all year round.
Having an official website enables the business to reach out to potential customers from all over
the world instead of only those in Australia. This method of global outreach guarantees an influx
of customers from different countries throughout the year as holiday periods vary in individual
countries.
Blog advertising is another form of advertising that enhances the level of informationprovided to potential customers browsing through the internet for a suitable
accommodation option in Rye. Blogging websites are extremely popular in todays world
where a vast number of users are regularly active. By creating and updating a blog with
current and past events in Rye, guest reviews which provide an insight to the kind of
experience customers will gain at Seaview Apartments, touring guides providing
information about what to see and where to go for holidaymakers, and last but definitely
not least, latest promotion packages individually suited for different groups of customers
such as families, couples and singles.
Updating Nightly Rates
Deducing from the research of secondary sources, it can be seen that the other businesses in this
industry do not keep their nightly rates constant throughout the year. They adjust their rates
either according to weekdays and weekends, or seasons and holiday periods. This is mainly
driven by the fact that the demand for these apartments fluctuate throughout the year, thus it is
inappropriate and disadvantageous for the business to maintain the exact same nightly rates all
year long. In order to maximize profits, Seaview Apartments should increase its nightly rates
specifically during peak periods in the summer and winter as well as during weekends.
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Introduction of New Facilities
Since it has been found that a high percentage of the guests stay for a relatively longer period of
time, they should be encouraged to return to the complex for their long stays in the future as
well. Also, new customers should be attracted to the complex knowing that they will have a
complete experience at the complex instead of just being confined to the fully contained
apartments. The best way to do this is to update the facilities at the complex to ensure a more
homely and welcoming environment. Adding facilities such as barbecue pits, a heated swimming
pool and tennis court will give customers the impression that they will enjoy a wholesome
vacation at the complex. Moreover, these facilities will attract more families on the lookout for
vacation spots as the family members will be able to spend time relaxing and participating in
these activities together after coming back from a tiresome day of touring the region.
Appendix
Pivot Table Analysing Data from spread sheet model
References
(Aquabelle Apartments, 2012)
(Moonlight Bay Resorts, 2012)
(Rye Family Apartments, 2012)
Row Labels
Sum of Number of
nights apartment
was rented
Sum of Total
number of
bookings
Sum of Average
number of nights
per booking
Sum of Total Profit
per Apartment
Sum of Percentage of
Total Profit
Sum of Total Revenue
per Apartment
Sum of Av
revenue pe
during 2011 (e Studio 129 16 8.06 7662.5 53% 14162.5
Bedroom 63 14 4.5 1596.5 11% 8096.5
Bedroom Deluxe 125 12 10.42 10452 72% 16952
Bedroom 63 7 9 -5241 -36% 1259
d Total 380 49 31.98 14470 1 40470
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