QUITOR, MARJORIE M.

BSHM 2C

MCO 1: Case Study

The Diamondback Plaza Hotel

OVERVIEW

The Diamondback Plaza Hotel is a large hotel in a popular vacation area. It is

owned by Mr. Dwight Robinsons. The hotel is maintaining the reputation of casual
elegance and it is known among local hoteliers for his dignified advertising and for
sticking to the rack rate. Now, a Rack Rate, is the standard price that the hotel assigns
to a room type for the year or season. All other rates that are offered are based on a
calculation from the Rack rate. For example, a group of 20 rooms might be offered at a
Group rate of 20% off the Rack rate.

PROBLEM/S

Robinson is happy about all aspects of his hotel operation. But there is one
thing he is not happy about, it is his average nightly occupancy rate, which has a rate of
68 percent, and the average for his geographic area is 78 percent.

ALTERNATIVE SOLUTIONS

In order to solve this situation, can follow the alternative solutions that are given
by his consultant. He must use all available means to lure travelers to the hotel and
remind himself not to go to sleep until all rooms are occupied. He can cut prices until the
rooms sell out, provide lower prices but make sure to still make a profit. Outside his
hotel, he can also put signs that contains the prices of rooms going lower if needed.
Aside from this, he can create and promote special packages, promos, conferences, art
shows, and other events that can be held.
EVALUATION OF ALTERNATIVES

Luring travelers to your hotel when defining marketing strategies for a hotel is
essential that the hotel in question has something that makes it unique, something that
allows it to differentiate itself from its competitors. There are many ways to achieve this.
He can have a unique building, extraordinary service, a different price strategy, striking
decorations, a specific theme, an interesting backstory or another unique factor. The
key is to tell potential customers about your unique experience in an engaging way that
connects with them emotionally.

On cutting the room's price until they sell out, with the increased availability of
real-time marketing data, it’s entirely possible to design a multi-tiered dynamic pricing
strategy that can change at a moment’s notice. With accurate prior knowledge you can
easily optimize your room rates, understand how competitive your room pricing is,
increase your chances of being booked online, use the market to your advantage, rather
than be dictated by it.

Technology can also play a major role in accurately and effectively establishing
pricing strategies at your hotel. Pricing and business intelligence tools make it much
easier for you to monitor the market, track competitors, collect data, forecast, and make
quick adjustments. With all that in mind, the priority of pricing should be forecasting.
This way you can predict demand so you can get travelers to book early. Then you can
raise rates later as availability drops and demand increases.

Staying awake until rooms are full There are times when travelers are passing
very late at night and you could take this advantage to offer 24 hours open because not
all hotels offers this. Lowering prices but still make a profit Find a use for under-utilized
spaces. If there is space in your hotel that is serving no purpose other than to create
breathing room, consider using it for revenue purposes. It doesn’t even have to be
anything permanent. For example, every now and then you might get a pop-up
masseuse in, or an exercise class, or a cooking class. This will encourage guests
already at your hotel to spend a little more than either they or you expected them to.

Special packages Itinerary package, often when people go away, they don’t want
to think about planning their days. Some would rather have the entire trip arranged for
them. By creating ready-made itinerary bundles, you can create an immersive guest
experience that’s made for specific guest types. For example, a family bundle package.
This could include tickets to local attractions with vouchers for a meal at your restaurant
and eateries near-by. On another day, you could include tickets to a children’s play
center while mum and dad enjoy spa treatments in the afternoon. Or, if there are
renowned biking routes near you, offer a package that includes bike and helmet hire, a
packed lunch or lunch at a local pub, a map, and points of interest along the way.
Conferences and other events local art extraordinary art collections aren’t limited to
luxury hotels only. Even smaller, affordable hotels can use art to leave a lasting
impression on their guests. Modern travelers are searching for an authentic traveling
experience and the opportunity to immerse themselves in new cultures.

RECOMMENDATION/S

With this, I recommend having the artworks from local artists, since this can
intrigue guests, help them learn more about the local culture, understand its history and
obtain a visual connection with the place they are visiting. That’s why, instead of buying
art from established artists of art manufacturing companies that create artworks in a
bulk, many hotels opt for sourcing interesting local artists and designers whose works
powerfully portray the atmosphere of the visiting area.

POSSIBLE RESULTS AND OBSTACLES TO IMPLEMENTATION

It's true that plenty of slight adjustments can smooth out the rough edges of a
larger approach and produce significant benefits. You don't constantly have to be
thinking of the next big strategy to boost revenue and profits at your hotel. When
evaluating how to make your business more successful, the first step you should take is
to make sure present processes are as streamlined as possible and that every space is
being utilized to its greatest potential. It's crucial to seize the moment and adapt
creatively to the evolving concept of hospitality, capitalize on new trends, and expand
market share during this critical yet exciting period. Traditional company models may be
threatened by market disrupters, but they also present a chance for innovation. Many
hotel chains have embraced the cutting-edge innovations that are sweeping the
industry. Those that accept change and adapt, like in all revolutions, have a better
chance of surviving and succeeding. Those that are less accommodating might not be
able to do so.
REFERENCES

https://www.hotelmanagement.net/operate/8-factors-have-changed-way-we-travel

https://www.siteminder.com/r/hotel-distribution/hotel-revenue-management/10-ways-
hotel-cut-costs-revenue/

https://inna-13021.medium.com/art-in-hotels-luxury-or-necessity-d1c367bf18c8

https://magazine.artland.com/hotels-exhibiting-art/ https://www.youvisit.com/learning-
center/blog/5-ways-to-attract-guests-to-your-hotel/

https://www.hospitalityupgrade.com/_magazine/magazine_Detail.asp/?ID=654

https://www.specialevents.com/hotels/only-hotel-hotels-remain-vibrant-venues-special-
events

https://blog.thebookingfactory.com/9-creative-hotel-promotion-ideas-2cd7f71f3b5

https://www.traveldailynews.com/post/five-ways-to-attract-foreign-guests-at-your-hotel

https://www.thefreelibrary.com/Chapter+2+Meeting+guest+expectations+through+plann
ing.-a0185211666

https://books.google.com.ph › books