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Accra Beach Hotel
Transcript of Accra Beach Hotel
Case Study Questions
1. What factors lead to variations in demand for rooms at a hotel such as the Accra Beach?
2. Identify the various market segments currently served by the hotel. What are the pros and cons of seeking to serve customers from several segments?
3. What are the key considerations facing the hotel as it reviews the booking request from the West Indies Cricket Board?
4. What action should Cherita Howard take and why?
Accra Beach Hotel and Spa
- Increase nightly rate to adjust demand
- Redesign check-in and check-out
- Give preference to loyal customers
- Avoid overbooking
- Separate business travelers from noisy cricketers and vacationers
Identify the various market segments currently served by the hotel. What are the pros and cons of seeking to serve customers from several segments?
What are the key considerations facing the hotel as it reviews the booking request from the West Indies Cricket Board?
What action should Cherita Howard take and why?
The Company Philosophy
Hotel's ability to operate at capacity
Impact on guests
What factors lead to variations in demand for rooms at a hotel such as the Accra Beach?
Accra Beach Hotel Occupancy Rate (%)
RevPAR Caribbean Hotels
- The weather is nicer at certain seasons of the year than others (July-October is hurricane season in the Caribbean). Foreigners likely to vacation in winter months.
- When business is down, there is less business travel, fewer people attend conferences, and tourism may also be affected.
Days of the week
- Business travelers are more likely to stay Sunday through Thursday nights; some individual vacationers will just look for weekends.
- Traditionally, ABH’s clientele had been dominated by tourists from the UK and Canada, but during the last few years, the percentage of corporate customers had increased drastically. Sometimes guests on vacation feel uncomfortable surrounded by business people and will not choose ABH as a vacation destination.
The Accra Beach Hotel- Block Booking of Capacity During a Peak Period
Market segments served by ABH
Needs based segmentation
Business travelers - individual & conference participants
Vacationers - individuals & tour groups
Extra-regional - European & North American
Pros & Cons
Regularization of demand throughout the year
Competitive advantage & larger market
Different needs, different expectations
Accept the block booking request from the WICB
Incremental revenue obtained if request is accepted = $ 43,616