Presentation

The Accra beach hotel

 Members
M.Farhan maqsood
Saima farooq
Hamza anwar
Ateeq khan
Attiqa habib
M.Ahsan
What are the key considerations facing the hotel as it reviews the booking requests
from the West Indies Cricket Board?

1#AS THE WEST INDIES CRICKET BOARD HAS PUT UP A BOOKING REQUEST, BEFORE
MAKING A DECISION TO APPROVE IT OR NOT THERE IS A NUMBER OF ISSUES TO BE
CONSIDERED.
REVENUE AND FINANCES: ACCRA BEACH HOTEL HAD BEEN ENJOYING A RELATIVELY HIGH
OCCUPANCY RATE, CONSISTENT IN GENERATING REVENUE DUE TO SOME LOYAL CUSTOMER RESPONSES. IN
CASE THEY ACCEPTED WICB’S REQUEST THEY WOULD HAVE HAD TO GIVE AWAY THE OPPORTUNITY TO
MAINTAIN THE CONSISTENCY OF REVENUE GENERATION SINCE WICB WAS WILLING TO PAY LESSER THAN
THEIR GENERAL CUSTOMERS. ALSO THE REVENUE FROM FOOD SERVINGS WOULD BE EXPECTED TO LOWER
DOWN SINCE MOST ATHLETES WERE SUPPOSED TO DINE OUT. HENCE A FINANCIAL SETBACK FOR THE TWO
MONTHS WAS MOST EXPECTED RESULTANT OF ACCEPTING THE REQUEST.

2#PROMOTIONAL PROSPECT: IN RETURN OF LOW HOTEL CHARGES WICB PROMISED TO PROMOTE

ABH IN THEIR LIVE MATCH BROADCASTS AS HOTEL PARTNER WHICH WAS INDEED A MAMMOTH OPPORTUNITY
FOR THEM TO PROMOTE THEIR HOTEL IN THE INTERNATIONAL ARENA.
3#Experience of other Guests: IN CASE THE PROPOSAL WAS ACCEPTED, ACCRA BEACH HOTEL
WOULD HAVE HAD TO TURN DOWN A BIG PORTION OF THEIR GENERAL CUSTOMERS DUE TO
ACCOMMODATION CONSTRAINT. THIS COULD HAMPER RELATION WITH REGULAR CUSTOMERS.
ALSO THE PRESENCE OF A LARGE GROUP OF SPORTSMEN WOULD ATTRACT A HUGE NUMBER OF
FANATICS AND MEDIA ATTENTIONS WHICH MIGHT SPOIL VACATIONERS SEEKING PEACEFUL
ENVIRONMENT, AND BUSINESS PEOPLE HAVING TO WORRY ABOUT PRIVACY BEING EXPOSED.
ALSO THESE SPORTSMEN BEING HIGHLY REGARDED CELEBRITIES MORE FOCUS OF THE HOTEL
STAFF WOULD HAVE HAD TO BE PUT ON THEM THAN THE GENERAL CUSTOMERS WHICH COULD
CREATE NEGATIVE BRAND EQUITY.
What action should Cherita Howard take and why?
 
1#THE FOLLOWING CALCULATION SHOWS THE REVENUE GENERATED BY 50 ROOMS IN
CASE OF GENERAL CUSTOMERS FOR 28 DAYS OF THE CERTAIN MONTHS OF APRIL
THROUGH JUNE CONSIDERING THE PREVIOUS YEAR REVPAR AS STANDARD.

2#TOTAL NUMBER OF NIGHTS (50 ROOMS TIMES 28 DAYS) = 1400 NIGHTS

THE AVERAGE REVENUE PER ROOM CALCULATED FROM REVPAR OF PREVIOUS YEAR IS $107.74.
CONSIDERING IT AS STANDARD OF COMPARISON, REVENUE FORM 50 ROOMS (1400 TIMES
$107.74)= $150836
NOW, REVENUE FROM FOOD

3#CONSIDERING 80% OF 50 CUSTOMERS HAVING BREAKFAST, REVENUE (40 CUSTOMERS TIMES $8

PER SERVING)= $320
CONSIDERING 30% OF CUSTOMERS DINING IN HOTEL, REVENUE ( 15 CUSTOMERS TIMES $25 PER
Identify the various market segments currently served by the hotel. What are the pros and cons of
seeking to serve customers from several segments?

THE VARIOUS MARKET SEGMENTS CURRENTLY SERVED BY ACCRA BEACH HOTEL ARE:

1#HOLIDAYMAKERS
2#BUSINESS CUSTOMERS
3#INDIVIDUAL GUESTS
4#VACATIONERS VIA TOUR OPERATORS

THE PROS OF SERVING CUSTOMERS FROM SEVERAL SEGMENTS

LET’S CONSIDER ACCRA BEACH HOTEL IN THIS CASE. THERE IS A COUNTER CYCLICAL
TREND IN VISITING OF DIFFERENT SEGMENTS. DIFFERENT SEGMENTS VISIT THE HOTEL
IN DIFFERENT PARTS OF THE YEAR. MOSTLY VACATIONERS SEEK TIMES OF THE YEAR
INCLUDING HOLIDAYS AND ALSO SUITABLE WEATHER CONDITIONS. ON THE OTHER
HAND BUSINESS CUSTOMERS ARE FOUND DURING OFFICIAL WORKING DAYS WHEN
THERE MAY NOT BE MANY HOLIDAYMAKERS. SERVING BOTH THE SEGMENTS MEAN
THE HOTEL IS NEVER IDLE THROUGHOUT THE YEAR AND RESOURCES ARE UTILIZED.
CONS OF SERVING CUSTOMERS FROM SEVERAL SEGMENTS
THE CONS OF SERVING CUSTOMERS FROM SEVERAL SEGMENTS CAN BE
SUMMARIZED ALONG THE FOLLOWING POINTS

1#DIFFERENT MARKET SEGMENTS MAY HAVE DIFFERENT DEMANDS AND IT MAY BE

DIFFICULT TO EFFICIENTLY SERVE EACH SEGMENT. THE FACT OF SERVING DIFFERENT
MARKET SEGMENT MAY REQUIRE SOME EXTRA TRAINING OF THE STAFFS OF CERTAIN
SEGMENTS THE FAILURE OF WHICH MAY RESULT TO POOR SERVICE.

2#DIFFERENT MARKET SEGMENTS HAVE DIFFERENT EXPECTATIONS FROM THEIR STAY

AT THE HOTEL. SOME SEEK SOLACE, SOME SEEK ADVENTURE AND THRILL WHILE SOME
ARE MORE CONCERNED ABOUT BUSINESS. THESE VARYING EXPECTATION REQUIRE
DIFFERENT ENVIRONMENTS. TRYING TO SERVE ALL THE SEGMENTS UNDER THE SAME
ENVIRONMENT MAY SEE CLASHES BETWEEN CUSTOMERS EXPECTATION.