Business case

Enter the figures you already have

The ledger prints on one page.

A hotel operator works through figures in a ledger beside a laptop.

Evidence included

Staff replacement cost.

Scenario

Currency

conservative scenario · retention

Year one

Estimated benefit€7,862

After the 70% first-year realization you set.

Program cost€12,140

Licence fees plus the one-time setup entered below.

Net-€4,278

-35% return on the program cost.

Simple payback18.5 months

How long these figures take to cover the cost.

Assumptions

Program scope

The rollout and price being considered.

PropertiesAssumptionRoomsAssumptionGuest-facing staffAssumptionStaff includedAssumption%Annual price per learnerAssumptionOne-time setupAssumptionYear-one realizationAssumption%

Retention case

The conservative hard-cost anchor.

Annual attritionAssumption%Average salaryAssumptionReplacement costAssumption% salaryAttrition reductionAssumption%

Service operations

Recovery and manager-time assumptions, counted in the full scenario.

Escalated incidents per monthAssumptionAverage recovery costAssumptionIncident reductionAssumption%Manager hours per monthAssumptionManager hourly costAssumptionManager-time reductionAssumption%

Commercial scenario

Room and distribution assumptions behind the reputation scenario.

OccupancyAssumption%Average daily rateAssumptionVariable cost per occupied roomAssumptionOTA shareAssumption%Direct shareAssumption%Other shareAssumption%OTA commissionAssumption%Direct booking costAssumptionOther booking costAssumptionOccupancy upliftAssumptionptsADR upliftAssumption%OTA-share reductionAssumptionpts

Assumption ledger

Input	Value	Provenance	Source
Properties	1	scenario assumption	Starting assumption
Rooms	100	scenario assumption	Starting assumption
Guest-facing staff	60	scenario assumption	Starting assumption
Staff included	80 %	scenario assumption	Starting assumption
Annual price per learner	180	scenario assumption	Starting assumption
One-time setup	3,500	scenario assumption	Starting assumption
Year-one realization	70 %	scenario assumption	Starting assumption
Annual attrition	40 %	scenario assumption	Starting assumption
Average salary	25,000	scenario assumption	Starting assumption
Replacement cost	45 % salary	scenario assumption	Starting assumption
Attrition reduction	8 %	scenario assumption	Starting assumption
Escalated incidents per month	12	scenario assumption	Starting assumption
Average recovery cost	90	scenario assumption	Starting assumption
Incident reduction	10 %	scenario assumption	Starting assumption
Manager hours per month	16	scenario assumption	Starting assumption
Manager hourly cost	40	scenario assumption	Starting assumption
Manager-time reduction	10 %	scenario assumption	Starting assumption
Occupancy	72 %	scenario assumption	Starting assumption
Average daily rate	200	scenario assumption	Starting assumption
Variable cost per occupied room	45	scenario assumption	Starting assumption
OTA share	35 %	scenario assumption	Starting assumption
Direct share	50 %	scenario assumption	Starting assumption
Other share	15 %	scenario assumption	Starting assumption
OTA commission	18 %	scenario assumption	Starting assumption
Direct booking cost	10	scenario assumption	Starting assumption
Other booking cost	6	scenario assumption	Starting assumption
Occupancy uplift	1 pts	scenario assumption	Starting assumption
ADR uplift	1 %	scenario assumption	Starting assumption
OTA-share reduction	1 pts	scenario assumption	Starting assumption