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Accra Beach Hotel (case study)
Transcript of Accra Beach Hotel (case study)
1. Identify the various market segments currently served by the hotel. What are the pros and cons of seeking to serve customers from several segments?
2. What are the key considerations facing the hotel as it reviews the booking request from the West Indies Cricket Board?
3. What action should Cherita Howard take and why?
Identify the various market segments currently served by the hotel. What are the pros and cons of seeking to serve customers from several segments?
NEED BASED SEGMENTATION
Business travelers - individual & conference participants
Vacationers - individuals & tour groups
honey moon couples
Extra-regional - European & North American
Accra Beach Hotel & Spa is centrally located on the beautiful South Coast of Barbados, just a short distance from the Grantley Adams International Airport and the picturesque capital city of Bridgetown. Cherita Howard, Sales Manager for the Accra Beach Hotel, a 141-room hotel on the Caribbean. island of Barbados, was debating what to do about a request from the West Indies Cricket
Board. The Board wanted to book a large block of rooms more than six months ahead during
several of the hotel’s busiest times and was asking for a discount. In return, it promised to
promote the Accra Beach in all advertising materials and television broadcasts as the host hotel
for the upcoming West Indies Cricket Series, an important international sporting event.
Actions depends on the basis of revenue
how much Accra beach gained profit if they accept the WICB offer.
The second thing WICB offer free publicity.
June is the month is low rate of sale for Accra Beach Hotel then it is better opportunity to accept.
The WICB offers not a single event.
What are the key considerations facing the hotel as it reviews the booking request from the West Indies Cricket Board?
The Company Philosophy (nature of purpose of business)
Hotel's ability to operate at capacity
Impact on guests
Pros & Cons
Regularization of demand throughout the year
Competitive advantage & larger market
capacity utilization and financial impact
Different needs, different expectations
What action should Cherita Howard take and why?
Case Summary The case is about the Accra Beach Hotel on the Caribbean island of Barbados. The hotel manager got a request from the West Indies Cricket Board (WICB) about hosting several cricket teams while the West Indies Cricket Services, which is an important international sporting event. The head of the WICB was asking for a discount for 50 of the 141 rooms of the hotel. Now the sales manager has to decide whether to accept the inquiry or not. One important thing for her to consider is that business people, who are the most important guest group, would be stay away because of the cricket teams. On the other hand would hosting the teams have a publicity effect as the marketing exposure through the Board could be very beneficial for the hotel.