Annual Planning Cycle Center Parcs Essay

Center Parcs de Eemhof Annual Plan 2013 Course: Annual Planning Cycle Phase: 2 Abbreviations Executive Summary 2. External environment 2. 1 Macro environmental level 2. 1. 1 Economic Environment Identification A Economic growth the Netherlands Economic growth Germany Source: Rijksoverheid the Netherlands Source: Bundesbank Germany Germany annual growing % of GDP 2011-2013| Year| 2011| 2012| 2013| GDP growing %| 1,5%| -0,3%| 1,1%| The Netherlands annual growing % of GDP 2011-2013| Year| 2011| 2012| 2013|

GDP growing %| 1,0| -0,3| 0,7| Implication Both sources indicate the GDP and the annual growing in Germany and the Netherlands. In those sources we can either see if the GDP per country is increasing or decreasing. As we see in both the Netherlands and Germany the GDP is growing comparing it to last years performances Conclusion Increase in spending power in both German and Dutch market Identification B: Commodity income Implication: The graphs indicate the commodity prices (outlook) for 2013 Conclusion: Commodity prices will increase in 2013 Identification C: ‘’ General inflation in the Netherlands will be 0%’’ Brundell, 2012) Implication: Where normally inflation is higher than 0%, which will lead to a decrease of spending power, now the inflation is 0%, so that the spending power of the Dutch is not affected. Conclusion: Since spending power is not effected, the Dutch will not have a decrease in money they can spend. Since most of the Eemhof’s customers are Dutch, this is an opportunity Identification D: Implication: After some tough years the economic outlook for the UK is back on track again Conclusion: Growing market in the United Kingdom 2. 1. 2 Demographic environment Identification Implication

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The graph shows that there are more and more elderly in our society Conclusion Due to the rising amount of elderly, we can expect an increasing market for seniors. 2. 1. 3 Political-legal Environment Identification A According to the report of Bakas, unemployment rates for European adolescents are still increasing daily. Implication: Higher unemployment rates for European adolescents will affect their spending pattern, and might also affect their holiday destination. Conclusion Unemployment rate for Dutch young adults is increasing Identification B Taxes are becoming a more popular way of raising money for governments.

In the Netherlands, the VAT has increased up to 21%. Fortunately, renting out holiday homes still counts for the lower VAT 6%. VAT on all other services in F&B outlets for example have already been increased. Implication The higher the VAT, the more likely prices will have to increase as well. Conclusion There is a higher VAT for 2013 2. 1. 4 Technological Environment Identification A ‘’Use of social media has increased tremendously in the past few years. ’’ Implication: Social media became very popular during the last few years. At the moment, more than one billion people around the world use some kind of social media.

During holidays, 21% of all used applications concern social media. Conclusion Tremendous increase of social media 2. 1. 5 Socio-cultural Environment Identification A Demographic and lifestyle shifts are creating one of the hottest trends in travel and hospitality – multigenerational travel. The growth projections are significant. Europe is one of the top destinations. (Preferred Hotel Group, 2011) Implication De Eemhof is well suited for parents, grandparents and children in all combinations and all ages. The cottages are comfortable and the amenities are endless at the park. Conclusion

Big growing market for family travel Identification B Teambuilding events are becoming more popular. Teambuilding events are designed and organized for developing a team and improving the team performances. Most big companies organize a multi-day teambuilding event once a year. (Williams, 2012) Implication De Eemhof can use the hundred new cottages during the week to hold teambuilding events. The Marina harbour will be the perfect place to build a bond among the team members by sailing, surfing and kayaking on the Eemmeer. Conclusion Team building events will increase 2. 2 Micro environmental level 2. 2. Competitiors Indentification Implication According to CBS Nederland, more hospitality organisations have opened in 2012 and there are no factors indicating this growth will not continue in 2013 Conclussion Competition will grow 2. 2. 2 Marketing Intermediaries Identification: The use of Online Travel Agencies (OTA’s) has exploded in the last couple of years. The use of other marketing intermediaries is limited. Implication OTA’s can help you to generate more revenue, because of the enormous market they are serving. OTA’s are especially helpfull when targeting new markets, where brand awareness is low.

Conclusion Online Travel Agencies gain high power. 2. 2. 3 Customers Identification A ‘’Both business and leisure travelers become increasingly price sensitive as economic difficulties continue on financial markets. Expectations in terms of quality and service will remain high’’ (Brundell, 2012) Implication Price changes will immediately affect the occupancy, so they should be watched carefully. Conclusion Price sensitivity increases. Identification C ‘’Short breaks weekends or short stays in general will be a moderate growing market for holiday villages in the upper segment of the market’’ (Brundell, 2012)

Implication The Eemhof mainly serves the market for short stays, and might therefore expect an increase in occupancy. Conclusion Moderate growing market for short stays 2. 3 Conclusion External environment From the external scan we have identified the following, most important, opportunities and threats: Increase in spending power Dutch & German market Big growing market for family travel Moderate growing market for short stays Increasing market for seniors Growing market for the United Kingdom Team building events will increase Online Travel Agencies gain more power Tremendous increase of social media users

Increase of commodity prices Higher VAT in 2013 Competition will grow Unemployment rate Dutch young adults increase Price sensitivity increases 3. Internal analysis This chapter is about the performance of Centerparcs de Eemhof. Data that tell us something about the performance, such as revenue, COS, etc are analyzed. These numbers are benchmarked to the companies’ previous years, to other parcs and to industry averages to get a good comparison. The outcomes were used to identify the strengths () and weaknesses () of the company. 3. 1 Rooms Division 3. 1. 1 Revenue 3. 1. 1. 1 GOP GOP *1. 00| Forecast 2012| Budgeted 2012| Actual 2011| Actual 2010| Difference full year budgeted 2012 to actual 2011| Difference full year budgeted 2012 to actual 2010| Difference 2011 to 2010| GOP| € 33,412. 00 | € 34,297. 00 | € 33,619. 00 | € 33,778. 00 | 2. 0%| 1. 5%| -0. 5%| Forecasted GOP is decreasing 3. 1. 1. 2 Occupancy Occupancy %| Full year budgeted 2012| YTD 2012| Full year actual 2011| Full year actual 2010| Difference full year budgeted 2012 to actual 2011| Difference full year budgeted 2012 to actual 2010| Difference YTD 2012 to full year budgeted 2012| Dutch|  |  |  |  |  |  |  | Families + children| 39. 4%| 37. %| 39. 6%| 44. 9%| -0. 53%| -12. 2%| -3. 8%| Young adults| 9. 3%| 8. 5%| 9. 4%| 9. 0%| -0. 53%| 3. 9%| -8. 9%| Seniors| 5. 7%| 5. 1%| 5. 7%| 6. 0%| -0. 53%| -5. 3%| -10. 0%| Total Dutch| 54. 4%| 51. 4%| 54. 7%| 59. 9%| -0. 53%| -9. 1%| -5. 5%| Germans|  |  |  |  |  |  |  | Families + children| 17. 1%| 18. 1%| 17. 2%| 15. 7%| -0. 53%| 9. 0%| 5. 9%| Belgians|  |  |  |  |  |  |  | Families + children| 4. 4%| 4. 2%| 4. 4%| 4. 6%| -0. 53%| -5. 3%| -3. 5%| Other nationalities|  |  |  |  |  |  |  | Families + children| 1. 9%| 1. 8%| 1. 9%| 2. 0%| -0. 53%| -5. 3%| -3. 5%| Total| 77. 7%| 75. 5%| 78. 1%| 82. 1%| -0. 53%| -5. 3%| -2. %| Occupancy is decreasing 3. 1. 1. 4 ADR ADR| YTD 2012| Actual 2011| Actual 2010| YTD 2012 to 2011| 2011 to 2010| January| € 81. 78 | € 81. 98 | € 78. 84 | -0. 2%| 4. 0%| February| € 92. 64 | € 93. 88 | € 88. 33 | -1. 3%| 6. 3%| March| € 75. 46 | € 75. 57 | € 71. 12 | -0. 1%| 6. 3%| April| € 96. 54 | € 97. 80 | € 92. 07 | -1. 3%| 6. 2%| May| € 96. 36 | € 97. 65 | € 91. 87 | -1. 3%| 6. 3%| June| € 94. 11 | € 95. 08 | € 89. 01 | -1. 0%| 6. 8%| July| € 177. 28 | € 167. 7 | € 165. 88 | 5. 7%| 1. 1%| August | € 194. 74 | € 184. 21 | € 187. 01 | 5. 7%| -1. 5%| September| € 102. 47 | € 100. 36 | € 97. 14 | 2. 1%| 3. 3%| October FC| € 133. 87 | € 129. 73 | € 125. 57 | 3. 2%| 3. 3%| November FC| € 75. 33 | € 75. 44 | € 78. 52 | -0. 1%| -3. 9%| December FC| € 117. 35 | € 114. 11 | € 104. 52 | 2. 8%| 9. 2%| ADR |  | € 113. 24 | € 109. 18 | 2. 7%| 3. 7%| ADR YTD| € 116. 30 |  |  |  |  | Average YTD + FC| € 114. 77 |  |  |  |  | ADR is increasing 3. 1. 1. 5 RevPar

RevPar| YTD 2012| Actual 2011| Actual 2010| YTD 2012 to 2011| 2011 to 2010| January| € 49. 51 | € 50. 02 | € 50. 20 | -1. 0%| -0. 36%| February| € 49. 64 | € 51. 92 | € 52. 12 | -4. 4%| -0. 38%| March| € 53. 67 | € 54. 16 | € 54. 39 | -0. 9%| -0. 42%| April| € 85. 31 | € 86. 12 | € 86. 50 | -0. 9%| -0. 44%| May| € 69. 15 | € 69. 81 | € 70. 08 | -0. 9%| -0. 39%| June| € 85. 31 | € 86. 12 | € 86. 50 | -0. 9%| -0. 44%| July| € 147. 57 | € 148. 96 | € 149. 60 | -0. 9%| -0. 3%| August | € 176. 47 | € 178. 13 | € 178. 87 | -0. 9%| -0. 41%| September| € 71. 45 | € 72. 14 | € 72. 42 | -1. 0%| -0. 39%| October FC| € 120. 74 | € 121. 90 | € 122. 41 | -1. 0%| -0. 42%| November FC| € 57. 58 | € 58. 13 | € 58. 39 | -0. 9%| -0. 45%| December FC| € 78. 43 | € 79. 18 | € 79. 52 | -0. 9%| -0. 43%| Average Revpar|  | € 88. 05 | € 88. 42 | -0. 4%| -0. 42%| Average RevPar YTD| € 87. 56 |  |  |  |  | Average YTD + FC| € 87. 07 |  |  |  |  | RevPar is decreasing 3. 1. Expenses Personell costs| Forecast 2012| 4. 557. 000€| Budget 2012| 4. 533. 000€| Personnel costs are very high 3. 2 Food and Beverage 3. 2. 1 Revenue Where does the revenue come from: Revenue rent| 58%| Revenue catering| 24%| Revenue retail food| 10%| Revenue non retail food| 4%| Revenue leisure| 10%| Departmental split of revenue and costs: X 1000| Forecast 2012| Budget 2012| Actual 2011| Actual 2010| Total f&b revenue catering| 9. 367| 9. 796| 9. 609| 9. 775| Total f&b revenue retail food| 3. 833| 3. 900| 3. 813| 3. 985| COS f&b retail and catering % of total| 33%| 33%| 33%| 34%| 3. 2. 1. 1 Revenue catering

Catering is the term Centerparcs uses to describe the different restaurants and cafes in the parc. Please refer to graph 1. 1 for an overview of the departmental revenue of catering. Catering revenue is decreasing 3. 2. 1. 2 Revenue retail food Retail food is the Centerparcs term to describe the shops offering food such as the supermarket in the market dome. This department brings in 10% of the total revenue. Retail food revenue is lower than in previous years 3. 2. 1. 3 Overall F&B Decreasing F&B Revenue 3. 2. 2 Expenses 3. 2. 2. 1 COS For the departmental split in COS see appendix…. COS F&B increased over the previous years 3. . 2. 2 Labor Cost Please refer to appendix 1 for the relationship between personnel cost and revenue made High personnel costs F&B 3. 3 Other departments 3. 3. 1 Leisure 3. 3. 1. 1 Revenue 3. 3. 1. 1. 1Dayvisitors: | Visitors| Spend per visitor| 2010| 137,091| 14. 40| 2011| 146,863| 14,85| 2012 Budget| 140,000| 15,-| 2012 Forecast| 148,808| 14. 55| There is an increasing amount of dayvisitors 3. 3. 1. 1. 2 Spends per sleeper 2010| 4,71| 2011| 5,32| 2012 Budget| 5,53| 2012 Forecast| 5,54| SPS in leisure increases 3. 3. 1. 1. 3 Total leisure revenue the Eemhof | Rev leisure sleepers| Rev leisure dayvisitors| Total| 2010| 2164| 1974| 4138| 011| 2308| 2181| 4489| 2012 Budget| 2547| 2100| 4647| 2012 Forecast| 2347| 2165| 4512| The revenue of leisure sleepers forecasted is lower than the budgeted, and although the slight increase of leisure revenue by day visitors, the total leisure revenue forecasted is a lot lower than the budgeted revenue. 3. 3. 1. 1. 4 Benchmark to other Centerparcs: Parc:| Perceived value for money(YTD A)| SPS leisure YTD Actual| De Eemhof| 90%| 6. 55| Kempervennen| 85%| 4. 98| Heijderbos| 84%| 6. 55| Both financially and customer oriented, the Eemhof is doing well this year compared to other Centerparcs.

The SPS YTD actual is higher than the targeted SPS, and a lot higher than the SPS in the other parcs. Also, the perceived value for money is higher than in the other parcs and also higher than the targeted 85%. 3. 3. 1. 2 Expenses: There is no fluctuation in personnel costs during the different seasons, while there definitely is a fluctuation in revenue COS is fluctuating in the past years and unfortunately, the forecasted COS % is again higher than the budgeted. The forecasted personnel expenses are a lot higher than the budgeted. The forecasted % of personnel costs is a lot higher than in the other Parcs. . 3. 1. 3 Overall performance The Leisure department is not doing very well; the revenue has decreased mainly due to the decrease of sleepers. On the other hand, the costs are increasing. Very high personnel costs for leisure. 3. 3. 2 Retail non-food 3. 3. 2. 1 General in €| Revenue| Difference| Expenses| Difference| Total difference forecast to budget| Forecast| 1. 752. 000| -154. 000| 1. 117. 000| -25. 000| -179. 000€ or -21%| Budget| 1. 906. 000| | 1. 092. 000| | | In general, the retail non-food sector performed badly and stayed under the bugetted profit (see Table).

Revenue stayed under budget, because the customers’ spending power is very low and expenses exceeeded the budget. 3. 3. 2. 2Revenue Spending power of guests lower than on other villages and below target, although venues are comparable in size.. Spending power in general increases, but people spend less money on retail because of missing attraction for the guests by staff. 3. 3. 2. 3 Expenses Although the revenue of retail non-food sector declines, the employee costs stay the same Very high personnel costs for Retail non food 3. 3. 3 Other costs The water costs are decreasing.

Center Parcs created a program so called ‘Nature deserves a break’ in which Center Parcs focuses on reducing the energy use with 10% and water use by 15%. The total cleaning costs are increasing by 15% compared to actual costs of 2011, but the forecast 2012 is still 7% under the budget of 2012. De Eemhof decided to stop outsourcing the cleaning and operate in-house. Compared to De Kempervennen and Het Heijderbos the overall cleaning costs of De Eemhof are the same. 3. 4 Conclusion internal analysis From the internal scan we have identified the following weaknesses & strengths: Increasing ADR SPS leisure increases Decreasing RevPar

Decraasing Occupancy Forecasted GOP decreasing Decreasing F&B revenue Increasing COS F&B From the case assignment & the benchmarks to other centerparcs we have taken the following weaknesses & strengths: Very central location Refurnished cottages Close to the Marina Harbour High brand awareness Dutch market Many facilities to offer Guest satisfaction dropped in 2012 Low employee satisfaction Low brand awareness UK and Germany Limited innovation 4. Confrontation Matrix 4. 1 Matrix 4. 2 Conclusion From the confrontation matrix, we can see the following relationships: Variable 1| Variable 2| Relationships| Strategy|

Strengths| Opportunities| 35| Attack| Strengths| Threats| 18| Defend| Weaknesses| Opportunities| 45| Turn around| Weaknesses| Threats| 17| Closing| One can conclude we mostly see opportunities in our weaknesses and, a little less, opportunities in our strengths. This asks for the strategy: Turn around. After we have decided what we want to achieve in 2013 (the key objective), we should think of strategies on how to achieve this key objective. These strategies should either be to implement the opportunities into our weaknesses, so that they become strengths or they should support our strengths, so that they become even stronger.

Finally, we will have to come up with action plans on how to achieve these strategies. We have decided on the key objective: Increasing profit with …%, because we have seen from the matrix that the opportunities are certainly there to increase profit. However, we should not be too optimistic since there are some serious threats coming up in the market. After carefully looking at our confrontation matrix and taking in mind the Turn Around strategy, we have chosen to use the following variables as a basis for our strategies to achieve the key objective: * Increasing amount of day visitors * Decreasing occupancy High personnel cost Please see our detailed action plans in the following chapter 5. Strategies and Action plans Increase profit with 3% Increase peripheral revenue by day visitors Less, but better skilled, staff Increase occupancy at same ADR 5. 1 Increase occupancy by 10% by maintaining same ADR 5. 1. 1 Action plans F&B 5. 1. 2 Action plans RD 5. 1. 3 Action plans Other 5. 2 Less, but better skilled, staff 5. 2. 1 Action plans F&B 5. 2. 2 Action plans RD 5. 2. 3 Action plans Other 5. 3 Increase peripheral revenue with 8% by day visitors 5. 3. 1 Action plans F&B 5. 3. 2 Action plans RD 5. 3. 3 Action plans Other

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