Revenue Management Frequently Asked Questions
Do I need to return my Notice of Use Calendar even if I am not scheduling any personal use of the unit?
Yes. As per the First Tracks Lodge Prospectus, 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. Also, for legal
reasons, Lodging Ovations is required to maintain documentation on all booking activity in a particular unit.
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 Sold. This is a good measure in 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
on a few units, but that does not take overall occupancy into consideration. If a rental manager cuts its occupancy in half by
doubling prices, it really has not accomplished very 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 yield management strategy. Since REVPAR takes overall occupancy into consideration, we must find a balance between
price and occupancy.
Consider the following example:
I have a hotel with 100 rooms. If I sell 30 rooms at an ADR of $189, my REVPAR for that night is $56.70. If,
however, I 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 resort, and the demand for a particular period. It is 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 non-¬holiday periods, 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?
Briefly, occupancy patterns are forecasted using a number of tools, the first being historical i.e. what was the occupancy last
year during the same period of time? Next we look at the market trends in the area i.e. are there generally more people
coming to the resort this year than the previous year, are more people traveling this year, etc. This is analyzed through
different research reports, and by looking at the different demand patterns such as 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 in the Property or the Resort, then we
would expect a higher occupancy during a similar event the following year.
How do demand patterns affect the pricing for my resort home?
As demand patterns fluctuate, so do the rental rates of the Resort Home. 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 (as displayed on the Occupancy Advisory Calendar) to avoid booking yourself or
your friends during peak holiday times. Similarly, refer to your past revenue statements for an idea of high occupancy and
revenue periods. Communicate any owner reservation cancellations as soon as possible to avoid the repercussions of being
placed at the bottom of the priority queue to receive rental revenue.
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 bookings are concerned, Owners can book
their usage dates as much they want, provided all dates are booked via the Notice of Use calendar (otherwise, all dates are
available for booking subject to availability at the time of request).
There is an explanation of Owner use in our Rental Pool Management Agreement. Twice per year, prior to the winter and
summer seasons, you will receive a Notice of Use Calendar. On your calendar fill out the dates that you want to use your
unit and send it back to us. If you would like to make a reservation with less notice, you can submit your request to Owner
Services by phone, e-mail, fax, or directly through the owner’s website. Late requests are subject to availability.
We will always try our best to fulfill an owner request; however, you are not booked until you receive a confirmation number
from Owner Services.
Please NOTE: 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 Resort Home, or book friends into my Resort
Home?
The best time for you or your friends to utilize your Resort Home is during time periods when occupancy is not at holiday or
prime levels. Additionally weekdays, Sunday through Thursday, normally run a lower occupancy than weekend dates.
Please note that a good time to utilize your Resort Home may be during family holidays such as Easter and Thanksgiving;
this is a wonderful opportunity to create special memories at First Tracks Lodge during special times.
What is the best way to obtain availability information for my Resort Home?
For information specifically about the availability of your Resort Home, please contact the Owner Services Department:
P: 604.938.9999
F: 604.938.9699
owners@lodgingovations.com
How do I make a reservation to stay in my Resort Home or book on behalf of my friends?
There are 3 ways you can make a reservation for your Resort Home:
1. Semi-annual Notice of Use Calendar
2. Email or fax your request to the Owner Services Team
3. Submit your reservation request using the online form, at www.lodgingovations.com (through the secure owner
area)
Can I change my reservation to a period with less revenue-earning potential?
Absolutely, simply contact the Owner Services Team by email, fax, or by calling 604.938.9999
When should I notify you that my travel plans have changed?
As soon as possible. If any aspect of your reservation changes i.e. days of stay increase, decrease, or shifts, we ask that you
notify the Owner Services Team by email, fax, or by phone immediately to inform us of your change of plans. This is even
more important during the holiday and peak seasons/dates as our availability and reservation flexibility becomes limited and
we strive to accommodate our homeowners as well as our rental 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. While there are no monetary
penalties to last-minute cancellations, you will be placed at the bottom of the priority queue to receive revenue out of
fairness to all owners in the rental program. 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 at least 21 days in
advance that you will no longer be using your Resort Home so we have the opportunity to rent it to a paying guest.
How will the new property tax module affect my revenues?
Please review the Property Tax Opinion Letter, posted on the Strata Information Page.