Case 8 the Accra Beach Hotel: Block Booking of Capacity During a Peak Period

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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

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