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RevMax FAQs:
Revenue Management
Frequently Asked Questions
How Does the The Village At Squaw Valley Reservation and Rotation System Work?
Lodging at The Village At Squaw Valley is available in two distinct building complexes, each offering unique qualities. Within each complex, unit types range from studio units to 1-2 and 3 bedroom condominiums. The purpose of a rental rotation system is to maintain parity among units in the same rental category, for example 1 bedroom units.
There are many variables that can cause two units of like type to have different revenue-earning histories. Some examples include group occupancy, owner occupancy, and midweek vs. weekend occupancy, special unit requests, and special requests for specific buildings, discounts, and cancellations.
If you have any questions regarding the resort's reservation system or rotation system please contact the Owner Relations Department at kkollen@intrawest.com or 530.584.6223.
What is 'Promo Use' and how is it accounted for?
Certain Marketing, Group Sales or Public Relations initiatives require the respective departments to provide complimentary lodging to different sponsors, media personnel, trip leaders, etc. This complimentary lodging is used in many cases in exchange for promotion of The Village At Squaw Valley's lodging program. It is this complimentary lodging that is recorded as 'comp expense' or 'comp income.' The total lodging cost of the promotional use is divided among all rental units in the rental program on an equal basis with the promotional unit being paid the full published rate minus the unit's equal share of the cost of the promotional nights used.
Do I need to return my Owner Use Calendar even if I am not scheduling any personal use of the unit?
Yes. Please fill out and check the box indicating 100% available and return the calendar as it provides us with information we need to keep our records and reservation system current.
What is ADR?
Average Daily Rate measures the average price we are selling units for. The formula for ADR for a given period is Total Revenue divided by Total Room Nights. This is a good measure to helping understand the pricing structure, but it is not the most important measure for maximizing overall revenue. In theory, we could achieve a fantastic ADR by doubling prices, but that does not take overall occupancy into consideration. If we cut our occupancy in half by doubling prices, we have not really accomplished much.
What is REVPAR?
Revenue Per Available Room is the revenue generated based on the total number of room nights available. The formula for REVPAR is Total Revenue divided by Total Available Rooms. REVPAR is a much better measure to gauge the overall success of a management plan. Since REVPAR takes overall occupancy into consideration, we must find a balance between price and occupancy.
Consider the following example:
I have an establishment with 100 rooms. If I sell 30 rooms at an ADR of $189, my REVPAR for that night is $56.70. If however, I can sell 75 rooms by dropping my ADR to $159, my REVPAR is $119.25. The same concept applies to individual units. In February we have 28 opportunities to sell your unit. If we maintain an ADR of $189 and sell your unit 15 nights, your REVPAR is $101.57. If we drop your ADR to $159 to sell your unit 20 nights, your REVPAR increases to $113.57, for monthly revenue increase of 12%.
How does Revenue Management set pricing for different units?
It is important to begin by saying that effective pricing is market based, not cost based. The consumer has a threshold for how high they will go, based on the value of a given complex, and the demand for a particular period. It's our job to make sure we are not selling your product for less than the consumer is willing to pay. This is referred to as 'Revenue Dilution'. When setting rates, we take a number of factors into consideration, including historical performance, weather patterns, competition and the economy.
We look at each day of the year and set rates as high as the value of the complex and demand for the period will allow. If demand for a particular period is low, it may be necessary to discount in order to stimulate bookings. Discounting is especially important during the summer months, non-holiday winter season, and many midweek periods. Please take into consideration that this is all variable depending on complex and unit type. Some unit types have high demand all week long, while others are high demand only on the weekend or during peak periods.
How does Revenue Management forecast occupancy patterns?
Occupancy patterns are forecasted using a number of tools; the first being what the occupancy was the year prior during a specific period of time. Next we look at the market trends in the area; are there generally more people coming to the resort this year than the prior year, are more people traveling this year? This is analyzed through different research reports, and by looking at the different demand patterns measuring call volume and website activity. Finally we look at special events, and large conventions and conferences that would potentially attract people to the resort in a different pattern. For example if a large convention or conference occurred then we would expect a higher occupancy during a similar event the following year.
How do demand patterns affect the pricing for my condominium?
As demand patterns fluctuate, so do the rental rates of the condominiums. However, it is not a direct correlation where high demand equals high price. In times of low demand, it is important to keep price consistent with competition. This means that we do not decrease the rate so much that we are 'leaving money on the table' as guests would have rented the unit anyway. Similarly, during high demand times such as a popular convention we do not want to set the prices so high that we drive our guests to stay with the competition. Therefore when pricing your condominium we look at the demand pattern, our competition's prices, and special events.
How can I best maximize the rental income from my vacation home?
Stay abreast of peak demand time periods displayed
/village-homeowners/Forecast+Calendar.htm (updated monthly), avoid booking yourself or your friends during peak times where forecasted occupancy is greater than 90%, communicate any room night reductions or cancellations to reservations immediately.
Where can I access peak demand dates for my condominium?
There are several locations:
• Your Homeowner Booking Calendar
• The 'Village Homeowner' <insert URL here> area of the web-site is updated monthly with the most recent forecast
• Contact your Owner Relations Department at kkollen@intrawest.com or call 530.584.6223.
Can I still book my condominium during the highlighted peak demand dates?
Yes, the peak demand dates are highlighted to bring your attention to the fact that there is a higher probability for us to rent your unit, and quite possibly at an optimum rate, during those times. As far as IHM is concerned, the Owner can use the unit as much as he/she wants. There is an explanation of Owner use in our Rental Management Agreement. Twice per year, you will receive an Owner Calendar with highlighted dates also. If you know the dates you will be here, simply print and fill out the calendar and send it back to us. If you would like to make a reservation with less notice, you can personally phone in a reservation to the Owner Relations Manager. We will always try our best to fulfill an owner request.
NOTE: You must understand that owner occupancy reduces the overall opportunity for revenue and this is even more dramatic during peak occupancy periods. Back to the supply and demand theory, when demand is the highest (many holiday weekends), the potential revenue we can achieve is also by far, the highest. This should be considered in determining dates for your personal use.
When is the best time for me to come for a vacation at my condominium, or book friends into my condominium?
The best time for you or your friends to utilize your condominium are during time periods when The Village At Squaw Valley is forecasting less than 90% occupancy. These times are generally in the months of May, June, September and October. Additionally weekdays, Sunday through Thursday, normally run a lower occupancy than weekend dates. Please take special note that some great times to utilize your condominium are during our non – holiday periods, this is a wonderful opportunity to create special memories at The Village At Squaw Valley during special times.
What is the best way to obtain availability information for my condominium?
For information specifically about the availability of your condominium please contact the Owner Relations Department at kkollen@intrawest.com or 530.584.6223.
How do I make a reservation to stay in my condominium or book on behalf of my friends?
There are 3 ways you can make a reservation for your condominium:
• Semi-Annual Homeowner Booking Calendar
• Contact the Homeowner Relation department by calling 530.584.6223 or via email to kkollen@intrawest.com
Can I change my reservation to a period with less revenue-earning potential?
Absolutely, we encourage you to do so. Simply contact the Owner Relations department by email kkollen@intrawest.com or calling 530.584.6223.
When should I notify you my travel plans have changed?
As Soon As Possible --- we cannot stress this enough. If any aspect of your reservation changes; days of stay increase, decrease, or shift, we ask that you notify the Owner Relations Department at kkollen@intrawest.com or 530.584.6223 immediately to inform us of your change in plans. This is even more important during the highlighted peak demand dates as our availability and reservation flexibility becomes limited and we strive to accommodate our homeowners as well as our paying guests' requests.
How much time do you need to rent my unit if I cancel any or all of my reservation?
If your travel plans are canceled or changed, it would be best to advise us as soon as possible. Looking at the booking patterns; paying guests usually book their unit between 10 – 21 days in advance of the arrival date. Therefore it would be in your best interest to let us know 21 days in advance that you will no longer be using your condominium so we have the opportunity to rent it to a paying guest.
