Case 8
The Accra Beach Hotel:
Block Booking of Capacity during a Peak Period
Question 1
What factors lead to variations in demand for rooms at a hotel such as the Accra Beach?
Answer:
There are 3 factors that will lead to variations in demand for rooms at a hotel, which are seasonal cycle, economic cycle and days of the week.
Seasonal cycle - Hotel such as Accra Beach will depends highly on seasonal cycle, hotel will be in low demand on September (64.7%) as it is in peak hurricane season. High demand on January through March (87% to 92%), when Caribbean is in nice weather and people need to get away from the horrid season in North America and Northern Europe.
Economic cycle - Business travelers, which are one of the main
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This will lead the hotel succeeding in filling up all available capacity, which is impossible for single segment. Moreover, serving several segments also bring profits to the hotel.
However, there will also be several considerations that will take place in serving several segments. As different segments are on different purposes, they will have different needs, behaviors and expectations. For example, vacationers will tend to dress casually and are having relaxed time. However, business people will tend to dress formally and will always use their mobile phones and laptops in vacation environment. Hostile glances from different segments can lead to a stressful atmosphere. In regards to expenses, serving several segments will have higher administrative expenses, as different approach and promotion may be required for each segments. Planning, implementing and controlling multiple marketing programs will increase the company administrative expenses.
Question 3
What are the key considerations facing the hotel as it reviews the booking requests from the West Indies Cricket Board?
Answer:
There are four key considerations in reviewing the booking request such as:
- Financial impact
We must know which visitors we can expect. For example, guests for a wedding (because a wedding will be held in one of the halls of the hotel), or businessmen who come for a business meeting, or a family on vacation.
The following report is a detailed analysis and diagnosis of the current situation at The Stonington Beach Hotel, Bermuda. Many aspects are considered that include the effect that maintaining the property has on human resources, marketing and the organizational structure of the business. Recommendations are made and then discussed further.
Economical - National macro-economic situation and events impacting the environment are major factors affecting the Savoy hotel. For example, during the Olympic games and Queens Jubilee most of the rooms were occupied and booked fully for the whole period. However, the situation was completely different once the Olympic Games were over. Additional economic factors that affect Savoy may include slow economic growth, national taxation policies and seasonality.
Highly important to leverage on internationally renowned ‘CBRE Hotels’ and launch a marketing campaigns (press-releases) focused around CBRE’s newly introduced hotel division (regardless of how the service line is structured internally)
The external environment of the hotel industry in is very competitive and already well established. Trends in the market include promotional campaigns to customers using the "more bang for your buck," method. There are several different segments of the hotel industry including: luxury, upscale, mid-market with food and beverage, mid-market without food and beverage, economy, and budget. Each different segment offers certain amenities to appeal to consumers depending on what they are looking for in an over night stay away from home. As McDonald 's looks at entering the hotel industry they have looked at several important
Ten have a non-ocean, side street view. These are the most affordable option at an average room rate of $127.75 per night in December. There are ten rooms that have a bay window with a partial ocean view. These partial ocean view rooms are the second most affordable at an average room rate of $155 per night in December. The most expensive option is the full ocean view room which averages $254.56 per night in December. A discount of 10% is offered for stays beyond seven days in length. In December a total of $679.05 was discounted as a result of the extended stay program, this equates to a loss of 3.27% of the total revenue of $20,751.45 earned in the month of December. In addition, the fifth and sixth guest per room pays an additional $20.00 per night, per person fee. A total of $460.00 additional revenue was garnered from this fee (2.22% of total revenue). The average length of stay per room is 3.67 days. The average number of visitors per room type is 2.3. The base income per room averages $714.35 for the month of December. The strongest customer base is those in the ocean view room as they are more fully booked than the other two room types. The ocean view rooms accounted for five of the top six most revenue producing
Accor has extensive brand portfolio where 240,000 hoteliers with same shared passion for welcoming, located in 95 countries, in 4,100 addresses and 570,000 rooms ("Accor Hotels: company profile", 2016). The luxury brands under Accor Hotels are Raffles, Fairmont, Sofitel, Onefinestay, Mgallery, Grand Mercure, The Sebel, Pullman, Swissotel, Novotel, Suite Novotel, Mercure, Mama Shelter, Adagio/ Adagio Access and economy and economy brands are IBIS, IBIS Styles, IBIS Budget, and Hotel F1("Accor", 2016).
Report projects population growth as well as retail sales growth, along with a demand for additional hotels. Such growth will increase demand for other services and products. Also, with emphasis on room types, outdoor or indoor rooms, overlooking the beach.
Hilton Hotels is one of the biggest players in the US lodging industry. It contributes to about 9% of the total rooms in US lodging market. It has presence in over 78 countries with more than 2500 hotels. Lodging industry is highly capital intensive industry, so to reduce capital expenditure Hilton Hotels opted for self-owned Hotels as well as franchising model with the real estate owners. One of the key features of lodging industry is low switching costs for customers. There is very little margin to differentiate from the major competitors in the industry which include Marriott international, IHG, Accor etc.
Luckily, I get the internship in a four start franchise hotel in Pasadena which is a nice area for business. Hotel locates at an excellent location of Pasadena downtown. It’s very convenience to the customers to use all different types of transportation. So it becomes one the most popular hotels of the area among customers. Also, another advantage of the hotel is next to the city Civic Center. It has large event space for many national association event space. So hotel receive many businesses because the Civic Center. It has total 311 hotel guest rooms. The hotel is a full service hotel with one bar and one restaurant. The hotel was built in 1977 then at 2000, it was upgraded to a famous brand until now. Recently, the hotel in undergoing a $20 million renovation which includes public area and guestrooms. The seasonal business effect is not very obvious to the hotel. Even during the slow season, hotel could reach 60% sold daily.
This is an analysis report on the hotel industry Holiday Inn. The following topics which will be discussed in this report will be based on the industries demographics, psychographic,
As seen in the table below, the occupancy percentages in 2003, 2004 and 2005 for luxury, upscale and upper scale hotels all sit approximately within the same region but the average daily rate (ADR) actually
However, when the researcher applied the quantitative technique to check the confidence interval for ADR of Ritz Carlton at 98% interval it resulted in an upper limit of US$207 which raises the bar US$40 when compared to Four Seasons figures for the last 3 years. Since the occupancy is same for both the hotels, market potential reveals that there is great scope to improve the revenues as it is done by Four Seasons. Higher occupancy is achieved due to demand in the market. Thus, reducing cost would only lead to reduction in prices which seems to be unviable option.
Generally there are two main groups of customers: leisure people, who would like to travel to see the new places and get some new experience, and there are business travelers, who are going to the hotels not for leisure, mostly for conventions and business meetings. If the purpose of travelling is different that means that the way of selecting the hotels is not the same.
Purpose: The purpose of this report is to investigate and research a hotel accommodation service provider.