Essay on Regal Carnation Hotel Case

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Regal Carnation Hotel (Guam)
Case Analysis

Case Introduction The island of Guam is an unincorporated territory of the United States located in the Philippine Sea. Ruled by the Spanish until 1898, Guam was ceded to the United States and briefly occupied by Japan between 1941 and 1944. Of strategic significance during the Second World War, more than 18,000 Japanese and 1,800 U.S. marines died in the U.S. retaking of the island. Following the war, the Guam Organic Act of 1950 provided for U.S. citizenship among residents and legitimized a continuous U.S. military presence on the island. Currently Guam is home to 140,000 civilians and 7,000 military personnel that live on and around several U.S. Naval, Coast Guard, and Air Force
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territory for the required minimum of time.

Part I – Situation Analysis The Regal Carnation Hotel is a relatively new semi-beachfront three-star property with 150 standard rooms. Situated across a two-lane road from the seafront, most Regal Carnation guests make use of the beach facilities of other hotels for a certain fee or use the small stretches of unkempt public beach between the adjacent hotels. The Regal Carnation was built after the first wave of hotel-building in Guam in the 1980s when it became apparent that the tourism industry was a growing success. Faced by the current plateau in Guam Tourism life cycle, however, Regal Carnation must now confront its position in the marketplace. The Regal Carnation is rated between two and three stars, though it maintains its website as if it were a four star hotel. Internet reviews of the Regal Carnation are mostly negative, with many disillusioned guests vocally admitting to canceling their reservations upon arrival or considering alternative hotels, preferably those on the beachfront, for any returned vacation on Guam. Indeed, the only bright spot to their initial Internet impression is the price, ranging from 25-30% below comparably described hotels. However, even this plus comes with a catch, as hotel management takes upwards of three weeks to confirm price and availability and even then insists on 100% prepayment of stay, with no refunds for early checkout. Upon

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