Accra Beach Hotel Case Study
Carlo V. Austria
I. Overview * The case is about the Accra Beach Hotel on the Caribbean island of Barbados. West Indien Cricket Servies, an important international sporting event, sent a request to the hotel manager of the Accra Beach Hotel that concerns hosting WICS accomodation for a special rate. This rate involves a discount for 50 of the 141 rooms of the hotel. It is now then the call of the sales manager whether to accept the inquiry or not. But before the manager could decide on the matter, she should consider the welfare of the business people who will be neglected if they chose to accept the offer from WICS. On the other hand, it will bear a publicity effect as the marketing exposure through the Board if they chose to host the WICS. * II. View point
Carlo Austria (consultant)
III. Time frame
Present
IV. Statement of the problem
Minor:
* Lowering occupancy rate over the years * Accepting to host the WICS will cost the hotel their higher paying market segment * Though WICS promised to promote the hotel, cricket fanatics are quite small compared to other sports Major: * Can the promised publicity of WICS outweigh the risk of losing the hotel's higher paying segment
V. Alternative courses of action * Reject the offer from WICS * Accept the offer from WICS with its asking rate * Persuade WICS to increase its rate before accepting its offer * Make arrangements with another hotel to accomodate Accra Beach Hotel's guests and share profit * Decline WICS and just pay for the hotel's own advertising campaign * VI. Evaluation of alternative courses of action * Reject the offer from WICS | Marketing | Finance | Operation | Strengths | | | Less hassle with regards to the accomodation of its usual patrons | Weaknesses | The chance of having advertised by WICS will be losed | | | Threats | | The hotel might not be able to maximize its profitability | The hotel might not be
I. Overview * The case is about the Accra Beach Hotel on the Caribbean island of Barbados. West Indien Cricket Servies, an important international sporting event, sent a request to the hotel manager of the Accra Beach Hotel that concerns hosting WICS accomodation for a special rate. This rate involves a discount for 50 of the 141 rooms of the hotel. It is now then the call of the sales manager whether to accept the inquiry or not. But before the manager could decide on the matter, she should consider the welfare of the business people who will be neglected if they chose to accept the offer from WICS. On the other hand, it will bear a publicity effect as the marketing exposure through the Board if they chose to host the WICS. * II. View point
Carlo Austria (consultant)
III. Time frame
Present
IV. Statement of the problem
Minor:
* Lowering occupancy rate over the years * Accepting to host the WICS will cost the hotel their higher paying market segment * Though WICS promised to promote the hotel, cricket fanatics are quite small compared to other sports Major: * Can the promised publicity of WICS outweigh the risk of losing the hotel's higher paying segment
V. Alternative courses of action * Reject the offer from WICS * Accept the offer from WICS with its asking rate * Persuade WICS to increase its rate before accepting its offer * Make arrangements with another hotel to accomodate Accra Beach Hotel's guests and share profit * Decline WICS and just pay for the hotel's own advertising campaign * VI. Evaluation of alternative courses of action * Reject the offer from WICS | Marketing | Finance | Operation | Strengths | | | Less hassle with regards to the accomodation of its usual patrons | Weaknesses | The chance of having advertised by WICS will be losed | | | Threats | | The hotel might not be able to maximize its profitability | The hotel might not be