Which is on the room revenue segmentation. So, how do we segment that? We understand in the beginning or the start of the class that revenue the income audit is normally is generating a management information report, which is for hotels is mostly the revenue segmentation report. I think I did not put the cover ratio but we have a daily revenue report we will discuss about it. So, first we want to understand what is the segmentation how what are the different type of segmentation that we have. So, this is the standard segmentation which is specified by by the uniform system of accounting industry in industry, which is usually so it's like account International Accounting center for hotels.

Okay, today's press Hi, these are the segments for individuals and for the groups. So, the first one is retail So what is retail? What Does everybody understand from the retail retail segment is retail rate right? retail means whatever if you whatever the hotel price is set as a retail price when you go to the market you will see the list price is on the regulate go to city Mart and then you will see a full price. But if you buy from a wholesaler you can buy for cheap also right? So the the retail price is where you buy individual pieces from any any markets so it's available to open everybody can go and buy at this price.

So if you are a guest of the hotel, if you want to stay in any hotel, you can come and stay at any at any pay. At the front desk. If you ask how I want to stay tonight what is the rate so the front office will tell you some rate that is their retail rate. They sell one each and every guest no matter where they come from. forerunner of Okay, you have I think the segmentation is there in your workbook. If you were to take note, you can take notes.

But it's not exactly the same. Isn't that that format is a bit old one. Okay, then what is the page number one I have a second. Baseball, baseball bat size. So you will see the segmentation there. But yeah, it's not exactly the same, but slightly different.

And then the second one is discount. So, discount means, if any time you are offering the hotel guests any discount, any kind of discount, you are giving them a 10% discount average rate or local rate local pollution at this moment. So you can you you can this one has go as a discount so English Your sheet you will not see this town as a separate, but that's because that's the old template or template, there's a new template is the new one. Okay, then it's negotiated. So, whoever negotiated negotiate means when you negotiate the price as a duty or as an individual, so, more normally negotiate are for corporate companies because they negotiate with the hotel, I will send my guests to your hotel and then you need to give me this particular rate which is at a discount of maybe 20% or 30% or 40% or whatever, whatever.

So okay, so means that but these are not selling to others, the corporate company will not sell the room to anybody else like agent agent never seen the right agent by the roommate and sell to somebody else. So that is agent but corporate companies, they don't buy the room nine to sell to somebody else. They they either they skate by themselves or they let their own guests Standard correct and they pay for it. So negotiated me, corporate companies, government companies who negotiate with a hotel a certain rate, and let their guest stay in the hotel, then you have qualified. Qualified means those guests who need to qualify to get this completely means staff, maybe it has to be your staff, maybe it has to be a military staff, maybe it has to be a government staff. So means they need to carry some kind of qualification to be able to get this discount, maybe they have to be senior citizen.

So the guest knows I have to follow certain criteria to be able to get this right. Okay, so maybe your hotel has a special promotion for older people's senior citizens. So that senior citizen discount because not everybody can get it. It has to be a senior citizen, right? They can get a system so it has to be qualified to be uniform. certain criteria to be eligible for this discount.

Then you have wholesale wholesale means the people who buy your hotel room for in wholesale and sell to somebody else as a retail. So the mean the person if the actual guests he come from wholesale or he come from retail, he might have saved him he might have pay the same price for guests he's paying the full price right but somebody has to buy from you and sell to them. So they are making a commission like agents like like a bola or the offline agent. There are so many xo tourism or Asia holidays there are so many agents who buy the hotel, they don't buy but they just come in, I will send you the rate center discount so they sell as a package to the other guests. Correct. And then they the guests who stayed in the hotel as a folding the guests will have to pay the full price.

Okay, so these are all individual traveling or individual needs. The person is traveling on the individual basis one group two room three room up to 10 minutes okay and then the next one is the group group program and you is normally more than 10 rooms. So, if the group is less than 10 rooms then is not considered as a group it is considered as fit okay. So, it has to be minimum to qualify as good, good, good negotiate. So, the proposal can be divided into four segments corporate if the corporate companies coming as a group, then you have Association association is normally is like a hotel association or the World Bank or other associations there are many Association right in the in the in the market like farmers association or Indian Chamber of Commerce Indian Much. So, those are Association conventions.

So, they hold a lot of events. So, if the guest is coming from many many different places to come and stay in the hotel, they will go in the segment and then you have government groups. If the if the guests are from government, then you have to earn wholesalers. So, if the tour and wholesaler also booking rooms in more than 10 rooms, they also come as a government as a group. So why are we why they are separate details between the individual and group? And it is and do you think any decent care?

No reason is there because normally when you're selling, you're selling quite cheaply. So, if you don't split the business and group is also not like everyday they are coming group comes only very often not very often. Maybe even some some year they will come some year they will not come. So there is no consistency. There is no trend, but in individual basis, there is always a trend to people's continue to travel. Some segments may not travel very often, but the groups are very special in the in the nature this year, they may come next year they may not come.

So it's important to separate them into the groups and non loops so that you can establish a track and see the future. How much is the if the future this loop will come on. And also because they are late is quite different. They get a lot of benefits. So that's why it's important to separate the revenue from fit, frequent individual travelers and travelers. And then you have SME RF, what is m SME RF SME RF is social, military, education, leisure and fraternity.

So if any group is coming out of sociology, maybe a wedding anniversaries or birthdays or whatever, and then military grow militarily gatherings and then the education groups that are not normally education groups are also their religious groups the Jews or Muslims or Hindus, Buddhists Christians and then fraternity, so, there are secret societies or other kinds of fraternities. So, if they combine them then also is combined as a as a vrF group, okay. So, these are other segmentation So, income audit the role of income audit is to check the route revenue should go to correct segment okay. So that when the management is making decisions when the management is reviewing the revenue report, they make correct decisions. If you include group rate into the fit what will happen, the average rate of fit will go down. Or if you include fit business into the group business, what will happen, the average rate of growth will increase higher.

So the management, we'll get to that No wrong information, I am selling the book at a very high rate. So they may want to increase the price in future or they want to reduce the price. If you're saying that I'm already selling high I should I should reduce the price. But that's the wrong decision correct? Because that already know that you are going to know again because you because of the reports say you are selling high and if you are selling if you put into the fit, the average rate of fit will drop. So means the management will think I am selling too cheap, maybe I should increase the price.

Maybe already high. Correct. So they are the scenario of wrong recording. Okay, then you have other other revenue like contracting revenue, contract room revenue means when you have a contract for one month more than one much as a part of the contract, signed contract, then it will go as a contract. So if let's say there is a guest who come and stay for 10 nights, but he continue to stay overstay, overstay overstay he paid individually not one by one one by one one by one and then he stayed as 32nd tonight. So will will you move that to contract?

No, because he did not make a contract for 30 days, he stay only one by one one by one. But if he made a contract, I will say for 30 days give me a special rate. So normally, this is a marketing we say okay, we give you a special rate because you stay for 30 days. Nice. So that is a contract if it's a signed contract, but if it's not signed as a contract to say 30 to 32 nice, then it will not be counted as contract, it will be counted as individual business. Okay, and then other other ways.

Either, like the No show charge cancellation date use what is they use? Not overnight. They just come during the morning checkout in the afternoon. So is it a use but they use we record only the revenue not the whole night. That is why is there other than revenue other than revenue you are not recording the night you are recording only the revenue okay? So don't record for others means no show.

So the people can say is a no show means the person did not come to join. So it's a no show no to stay but you cannot record the room night you can record only the record. They use early check in or late departure. Extra bad charges. Those are all other revenues. not concerned with the room night.

Okay, here, this lightning