TOPSIM - Destinations Management

TOPSIM Destination Management

Appendix to Participants Manual
Reporting
Version 1.2

TATA Interactive Systems GmbH. All rights reserved.

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TOPSIM - Destination Management

About this Manual

You can use this manual to prepare the Destination Management simulation. The Table of
Contents and Chapter 1 give you a rough overview. To best prepare yourself for the seminar, we
recommend that you read all the chapters in detail.
During the course of the simulation, the manual will serve as a reference guide for you as well as
an aid for decision making. Aside from the main part of this manual, there is also an Appendix
which your Instructor will make available to you at a later point in time. In particular, the
explanations of the evaluation and decision-making forms, which you will find in the Appendix, will
help you later to tactically proceed through the simulation. Guidelines for the First Periods can
also be found in the Appendix. Step-by-step, it orients you so that you can confidently manage
the complexity of the first periods.

The images used in this manual originated from the photo galleries of Swiss Tourism and from
OutVenture.

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Table of Contents

Overview of Reporting ........................................................................................................................ 4

1.1
1.2

Participants Report 1: Executive Summary ........................................................................................ 5

Participants Report 2: Destination Overview ...................................................................................... 6

1.3
1.4

Participants Report 3: Benchmark ...................................................................................................... 9

Participants Report 4: Market Data....................................................................................................10

1.5
1.6

Participants Report 5: Profit and Loss Statement ..............................................................................17

Participants Report 6: Cash Flow Statement and Balance Sheet......................................................21

1.7
1.8

Participants Report 7: Project Report ................................................................................................23

Participants Report 8: Decision Form ................................................................................................24

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Overview of Reporting

The reporting structure is explained below.

Subsequently, the individual reports, together with the ratios and the economic variables
contained therein, will be explained in detail.

The Reporting Structure

Reports from the Service Providers
Participants Report No.
Individual

Total Destination

Executive Summary

Destination Overview

Benchmark

Market Data

Profit and Loss Statement

Cash Flow Statement

and Balance Sheet

Project Report

Reports
from the Industry

Decision Form

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1.1

Participants Report 1: Executive Summary

The Executive Summary provides a quick, compact and concise overview of the past fiscal year.
In addition, the most important indicators of your service provider are illustrated, together with
relevant data from the areas of Market, Internal Processes and Results.
All of the information in the Executive Summary is also available in the detailed Participants
Reports, numbers 2 to 8.

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1.2

Participants Report 2: Destination Overview

This Participants Report gives you an overview of the general indicators for the destination. Here
the ratios for the summer and winter seasons as well as the total value are depicted. These
include attractiveness, image and customer satisfaction of the destination.
Furthermore, information regarding service provider specific customer satisfaction, the service
provider specific season duration, the overview of the target groups and the individual service
provider earnings for the period is shown.

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Explicaii
Indicator general
Atractivitatea destinaiei turistice(Index) The attractiveness of the destination expressed as an
Attractiveness Index (from 0 unattractive to 5 very
attractive) provides information on the development of
the destination.
Imaginea destinaiei turistice (Index)

The image of the destination is expressed in an

Image Index (0 unfavourable image to 5 extremely
favourable image).
Influences the image of the destination, amongst others,
through the degree of PR, CI and advertising of the
Destination Management Organisation.

Satisfacia consumatorului cu privire la

destinaia turistic (Index)

This index (0 dissatisfied to 5 very satisfied)

expresses the satisfaction of your guests with the offer
of the total destination.
It is calculated as an (non-weighted) average of the five
index values (see below), which indicate how satisfied
your guests were with the individual service providers.

Satisfacia consumatorului, n funcie

de furnizorul de servicii specifice

Index values (0 dissatisfied to 5 very satisfied), which

indicate how satisfied your customers / guests were with
the offer and service, i.e. the average for the different
service providers. Amongst others, pricing, capacity,
service level, quality and investment decisions of the
service providers are decisive with regard to how
satisfied your customers / guests are.

Durata sezonului, n funcie de

furnizorul de servicii specifice

Input in days per season. The length of the season is an

important criterion for the hotel industry and the cable
car companies. A longer season is perceived to be
attractive for the guests of a destination, because then a
bigger time frame is open to them for holiday / seminar
planning however, a longer winter season also leads
e.g. to a lower degree of snow reliability and in general
to higher costs.

Numrul total de turiti (vizitatori)

Total Number of Tourists
in the Destination (Visitors)
Number of Overnight Stays
in the Destination
Share of Day Tourists
in the Destination
Share of Overnight Tourists
in the Destination

Entry in absolute values.

Input in absolute values. Number of overnight stays in
the destination.

Input in percent.

Share of Target Groups

Input in percent.

Net Profit,
Service Provider Specific

Service provider specific index from the Profit and Loss

Statement (Participants Report 5).

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Destination Overview
Tourism Intensity

Number of overnight stays divided by the resident

population of Alpenort (standard: 3,200 residents).

Added Value

Total of all operating results and personnel costs for all

of the service providers in the destination.

Sales Volume per Tourist

Input in CHF. Average sales turnover per tourist in the

destination.

Key Data Service Providers

Customer Satisfaction,
Seasonal

Index value (0 dissatisfied to 5 very satisfied)

which expresses the seasonal customer satisfaction of
the individual companies (service providers) in the
destination.

Net Profit or Loss for Period

Input in TCHF for each company. The net profit/loss for

the period is calculated in full and declared in the
Participants Report 5: Profit and Loss Statement.

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1.3

Participants Report 3: Benchmark

The Participants Report Benchmark enables you to classify your destination in comparison to
the total Alpine region market. In doing so, a certain value in your destination in the past fiscal
year or the targeted index will be compared to the total market of the rest of the entire Alpine
region and the deviation will be indicated in %.
The seasonal prices per overnight stay will be compared in both hotel categories, as well as the
seasonal prices of the cable cars. In addition, customer satisfaction, image and attractiveness of
the destination will also be compared.

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1.4

Participants Report 4: Market Data

In the Market Data, you will find general market data as well as sales revenues and costs,
expenses and earnings.
This report also contains information about the capacity and utilisation or occupancy of your
service providers.
The Target Group Structure section in the Market Data tab provides you with information
regarding which target groups take advantage of your service offer.
Market Data: Destination Management Organisation (DMO)

General Market Data

Sales Revenue,
Tourist Information

Input in TCHF. Sales revenue from in addition to

consultation sales incurred from e.g. maps, post
cards, etc. in the Tourist Information. Approx. 12% of all
summer guests use the Tourist Information office. In the
winter months only half as many guests use Tourist
Information. Average sales are nearly 4 CHF per user.

Sales Revenue,
Local Transport

Input in TCHF. Local transport, which is operated by the

Destination Management Organisation (DMO), is used
by approx. one fourth of all the guests. In the winter,
due to the snow-covered streets, it is a bit more.
Turnover from ticket sales covers about 55% of variable
costs incurred.

Sales Revenue, Packages

Input in TCHF. Revenues generated from the sale of

packages to bulk buyers.

Sales Revenue, Projects

Input in TCHF. Revenues generated from projects, if

these are directly attributable.

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Expenditures Royalties

Expenses in TCHF. At the destination level, a

contribution amount can be agreed upon among the
individual service providers via the DMOs Clearing
House.

Income Marketing Contribution

Income from the promotion contribution, which are

proportionately (in %) incurred from the sales revenue
from the respective service providers in the destination.

Income Community

External allocations which are guaranteed by the

community for the general services of the DMO.
Application through the community, represented by the
instructor.

Marketing Contribution to DMO Via the DMOs Clearing House, a contribution amount
for marketing financing at the destination level can be
agreed upon among the individual service providers.

Variable Costs,
Tourist Information

Costs in TCHF. Average variable costs are approx. 30%

of sales revenues from Tourist Information.

Fixed Costs, Tourist

Information

Fixed costs for the operation of the Tourist Information.

These costs amount to 25,000 CHF annually.

Total Costs, Tourist

Informatio

Costs in TCHF.

Variable Costs,
Local Transport

Approx. 0.40 CHF in costs are incurred (for fuel,

maintenance, personnel, etc.) per transported
passenger for local transportation.

Fixed Costs,
Local Transport

Fixed costs for the operation of local transportation by a

third party. Annual fixed costs amount to 450,000 CHF.

Total Costs,
Local Transport

Costs in TCHF.

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Market Data for Hotel, Market Data for Premium Hotel

General Market Data

Overnight Capacity
(calculated beds)

Theoretical value, calculated using the length of the

season and the number of beds.

Overnight Capacity
(actual beds)

Actual capacity, since a small number of rooms cannot

be occupied due to maintenance and repair work.

Average Occupancy
per Room

The double rooms are in part only occupied by a single

person; the result is the average occupancy factor.

Actual Capacity
as per Occupancy

Bed capacity after considering no-shows and the

occupancy factor.

Total Overnight Stays

Input absolute.

Overnight Stays,
Full-paying Guests

Input absolute; overnight stays without discounts.

Overnight Stays,
Bulk Buyer

Input absolute; overnight stays which have been

processed through bulk buyers with the respective
discounts.

Utilisation

Input in % of the actual capacity.

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Bulk Buyer Price

Price in CHF. The price for the bulk buyers is set by the
discounts granted.

Sales Revenue from Lodging,

Full-paying Guests

Revenue in TCHF.

Sales Revenue from Lodging,

Bulk Buyers

Revenue in TCHF.

Sales Revenue Restoration

Input in TCHF. The share of sales revenue from

restoration is about 29%. Premium hotels achieve
somewhat higher and 3-Star Hotels a somewhat lower
share of sales revenue.

Sales Revenue,
Other Services

Input in TCHF. Part of the annual sales revenue

(3-9%) is achieved through other services such as
exchange rate margins, surcharges for booking external
or internal services, etc. This sales revenue for
Premium Hotels is somewhat higher than for 3-Star
Hotels.

Sales Revenue, Projects

Revenue in TCHF, as long as it is directly attributable.

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Market Data for Cable Car

General Market Data

7-Day Passes Sold

In the summer months only a few guests purchase a

7-day ticket to use the cable car. In the winter, however,
this value is quadrupled.
A 7-day ticket entitles guests to use the cable car for the
entire week.

Corresponds to
Skier Days /
Guest Days
Day Passes Sold
Corresponds to
Skier Days /
Guest Days

Input in days.
Day tickets entitle guests to use the cable car for the
entire day.
Input in days.

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Skier Days / Guests Days

Total number in days. Total use days of 7-Day Tickets

and Day Tickets in the winter and in the summer
seasons.

1. from reduced
7-Day Pass

You generate skier days and guest days in your

destination from the 7-day passes and the day passes
sold for the use of the cable car.

2. from reduced
Day Passes
3. from Bulk Buyers
Quota

Aside from the reduced 7-day (1.) and day passes (2.)
sold and the sale of the 7-day and day passes at regular
price (4. and 5.), skier/guest days which result from the
sale to bulk buyers (3.) are also considered.

4. from regular
7-Day Passes
5. from regular
Day Passes

Price of Quota

Average price in CHF. Day pass and 7-day pass alloted

to the cable cars.

Price of Day Pass

Price in CHF of a Day Pass.

Price of Skier
7-Day Pass

Price in CHF of a Skier 7-Day Pass.

Price of reduced Day Pass

Price in CHF of a reduced Day Pass.

Price of Skier reduced

7-Day Pass

Price in CHF of a day with the reduced 7-Day Pass.

Sales Revenue from 1. 5.

Price in TCHF, specific to the user group.

Sales Revenue
from Restaurant

Price in TCHF. 1-2% of the sales revenue from the

cable cars is generated in the mountain restaurant.

Sales Revenue from Projects

Price in TCHF.

Artificial Snow Slope, old

Input in meters.

Artificial Snow Slope, new

A longer ski run will be covered with sufficient snow by

investing in artificial snow (approx. 840 CHF per meter).
The longer the season, the higher the costs will be for
artificial snow because also impassable sections, or
sections which are otherwise relatively easy to cover
with artificial snow, have to be laboriously treated.

Artificial Snow-making Costs

Price in TCHF for the artificial snow of the ski slope.

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Market Data for Sport / Event Service Providers

General Market Data

Sales Volume, Products

Sales volume in thousands of units.

Sales Volume, Rentals

Sales volume in thousands of units for the rental of

sports equipment.

Sales Volume, Service Hours

Sales volume in thousands of hours.

Sales Volume, Courses

Sales volume in thousands of units for winter sport and

bike courses.

Sales Revenue, Products

Revenue in TCHF. Sales proceeds from the sale of your

assortment of goods.

Sales Revenue, Rentals

Revenue in TCHF. Sales proceeds achieved through

the rental of sports equipment.

Sales Revenue, Service

Revenue in TCHF. Sales proceeds achieved for

performing services in the sports business.

Sales Revenue, Courses

Revenue in TCHF. Sales proceeds achieved from the

sale and management of your courses offered.

Sales Revenue, Event Projects Revenue in TCHF.

Costs and estimated sales proceeds from events are
the result of a detailed product description.

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1.5

Participants Report 5: Profit and Loss Statement

The Profit and Loss Statement is a calculation of the period related result of the activities
carried out by your service providers in a fiscal year.
The determination of net income carried out in the simulation in accordance with the cost of sales
type accounting and based on a single-column account, which discloses as preliminary figures
the operating results, the results of the normal business activities, the extraordinary results, the
results before taxes (= Overall Result) and the net annual income or loss for the period.

In addition to this, Participants Report 5 lists special variables for measuring results and ratios for
the respective service providers as well as for the entire destination.

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Basic Structure of Profit and Loss Statement

SALES REVENUE
The sales revenue includes one-time and current
revenue from the projects of the service provider.
- Bad Debt Losses

A small part of the service providers receivables

cannot be collected, for example, because a guest
incorrectly entered information regarding his person
and later is not able to pay the bill.

- Variable Costs

Variable costs for each use.

- Staff Costs

Depending on the intensity of personnel and the

quality of the service, the service provider will incur
staff costs.

- Depreciation

Fixed assets are depreciated on a straight-line basis

over a period of 10 years.

- Marketing Costs

All costs incurred from marketing activities.

Tourism Promotion Contribution

- Marketing Contribution to the Destination
Management Organisation (DMO)

The tourism promotion contribution is set by the

individual service provider in % of his annual sales
revenue. It serves to aid and finance the work of the
DMO in their task as a representative of the entire
destination.
Via the DMOs Clearing House, a contribution for
marketing financing at the destination level can be
agreed upon among the individual service providers.

- Other Expenses

Non-recurring and recurring costs of projects from

the service provider.

= OPERATING RESULTS
+ Income from Securities

If activated, additional profits from surplus revenue

can be realized through the purchase of securities.

- Interest and Similar Expenses

Interest paid in the past period for a loan taken out. In

addition, amortization expense for possible overdraft
loans incurred with maturity in this period.

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= RESULT OF ORDINARY BUSINESS ACTIVITIES

+ Extraordinary Income

- Extraordinary Expenses

Aside from the usual business activity, you may also

have income and or expenses, for instance, from
proceeds or expenditures from project activities at
the destination level.

= EXTRAORDINARY RESULT
= OVERALL RESULT
- Taxes from Income and Proceeds

A tax rate of 30% will be calculated on the result of

ordinary business activities of a service provider.

= NET PROFIT/ LOSS FOR PERIOD

APPROPRIATION ACCOUNT
Indicates how the results obtained in the documented period will be used.

MANAGEMENT RATIOS
The ratios listed here serve as a brief overview and are considered as variables for the
service providers as well as for planning the upcoming periods.
The relevant ratios for the period, as well as those from the previous period, are indicated
here for comparison.

In addition, the items specific to the service providers will appear in the Profit and Loss
Statement.
These are:

Profit and Loss Statement for the Destination Management Organisation

- Material Costs / Purchasing Costs

The Destination Management Organisation incurs

material costs and purchasing costs if it buys and
assembles packages for tourists. Moreover, costs will
also be incurred in the Tourist Information Center
sales division.
These products are subsequently sold again (with a
profit margin on top); the purchasing costs incurred
(in particular the package elements) can then be
considered as processing costs.

- Operating Costs,
Local Transportation

Corresponds to the total cost of local transportation

(also see Participants Report 4: Market).

- Operating Costs,
Tourist Information

Corresponds to the total cost of Tourist Information

(see also Participants Report 4: Market).

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- Tourism Promotion Contribution

The Destination Management Organisation does not

pay a tourism promotion contribution to itself, i.e. it is
excluded from this regulation within the destination.

Profit and Loss Statement for the Cable Car Company

- Artificial Snow-making Costs

Price in TCHF for artificial snow on the ski slopes

(see also Participants Report 4: Market).

Profit and Loss Statement for the Sport / Event Service Provider
- Other Variable Usage Costs /
Costs of Goods Sold
- Rent, Leasing Costs for Furniture,
Office & Equipment

Sum of the sale of sports equipment, the courses

offered, and the variable costs incurred for the
implementation of the services.
Seasonal rental and leasing costs are incurred for the
facilities and the office and business equipment.

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1.6

Participants Report 6: Cash Flow Statement and Balance Sheet

The Cash Flow Statement compares the inpayments and outpayments of the period and thus
gives you an orientation for liquidity planning.

Characteristics of the Cash Flow Statement

CASH INFLOW
Sales Revenue Inpayments

+ Overdraft Loan

CASH OUTFLOW
+ Material Expenses

+ Other Expenses

Depending on the customers paying habits, a small

percentage of the sales revenue will first be paid in
the next period.
An overdraft loan is automatically granted by the
system if the minimum cash balance (= 100,000
CHF, except for Sport/Event Service Providers =
10,000 CHF) is not obtained through the sum of
inpayments and outpayments plus the beginning
cash balance.
Cumulative value for all material expenses (input
materials, purchase of materials), etc.), which were
necessary in the past period for goods and services
rendered.
May arise from the project activities of the service
provider. This includes one-time costs and ongoing
project costs.
Note: Project revenues in contrast are directly
declared in the sales revenue and are thus a part of
Sales Revenue Inpayments.

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The property holdings of your company are compared with its capital in the Balance Sheet. On
the Assets side you will find both fixed and current assets. Directly opposite, on the Liabilities
side, are equity capital and liabilities.

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1.7

Participants Report 7: Project Report

The Project Report provides you information on all of the projects from individual service
providers which have arisen during the course of the simulation. The one-time project costs,
together with the ongoing costs of the project, are indicated here and serve as an overview for the
projects already selected.

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1.8

Participants Report 8: Decision Form

All of the individual service providers decisions for the reporting period are recorded in the
respective decision-making areas in Participants Report 8.

HAVE FUN WITH THE TOPSIM DESTINATION MANAGEMENT SIMULATION !!!

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