SnowHotel - Hospitality

Five four-star hotels compete in the market. The hotels are independent economic entities, which, however, are connected to a large international hotel chain through ownership and numerous other contractual relationships. Their business activity is twofold: providing accommodation on the one hand, and other complementary services on the other. In detail, they deal with the following: 1. accommodation, 2. catering, 3. bar, 4. conference rooms, 5. sports and fitness facilities, 6. leasing of retail facilities, 7. agency and commission activities for travel agencies and program organizers. In the game, prices can be assigned to each product group, and the technical and human conditions must also be provided. A part of the market is given by belonging to the network, but the hotels must also compete directly with each other in the local market.

How the SnowHotel simulation software works in brief:

  • Students form teams to take over the management of the virtual hotel modeled by the software.
  • They manage the virtual hotel by making strategic decisions for quarterly periods. The software provides a written report on the results of the decisions, and in addition, the program illustrates the main indicators (profit, cash flow, turnover…) on a graph.
  • The software settings are widely adjustable for demand, purchase prices, wage flexibility, credit conditions, and many other factors.
  • The software can model up to 12 periods.

Benefits and learning points of the game:

  • The program provides an opportunity for the participants of the simulation to apply basic hotel management knowledge in a practical way and gain insight into the strategic issues of hotel management and direction.
  • The structure of the program helps to synthesize the knowledge of students engaged in hospitality, hotel, and tourism studies and put it into practice.
  • SnowHotel requires the joint operation of numerous factors, as is generally characteristic of the business world. Careful, thorough planning is also indispensable during this game.
  • Because participants need to extract the relevant data from various financial and market research reports (balance sheet, income statement, cash flow, market research report), the game significantly tests and develops analytical skills.
  • As a result of the above, the effective implementation of teamwork, which is so important in real life, is essential for successful participation in the game.

Our References:

  • Károly Róbert College
  • Szent István University, Faculty of Economics and Social Sciences, Marketing Institute
  • Budapest University of Technology and Economics
  • Atalanta Business Vocational High School