Playa Dorada Tennis Club: Expansion Strategy

Playa Dorada Beach and Resort in Boca Raton, Florida, faces a growing seasonal demand for tennis services. It seems that this demand might double in next few years but Playa Dorada, which is known for well promoted amenities for tennis, has limited court space to cater to these needs. We have done analysis of the case and below are some of our recommendations which could address problems such as efficient usage, capacity and about revenue generation. Recommendations1. To address the problem of capacity we should built two courts in 2007 and two in 2008. In long run we can big complex in which we can arrange for indoor tennis court which can facilitate to cater to need of growing tennis enthusiasts. 2. Use flexible pricing strategies and other strategies in order to increase revenue and also at the same providing accessibility to other guests. 3. Try to increase the number of playing hours by adapting various measures. 4. We can increase our capacity during off seasons by organizing tournaments related to sports like golf etc. 5. In long run we can open new entertainment facilities, build courts at new locations. Explanations1. The main source of revenue for Playa Dorada Beach is selling of Villas. As we can see fifth stage is in progress and sixth stage will be starting in 2008, there will be golden opportunity to generate huge amount of cash by selling them. People are attracted to Playa Dorada due to its good tennis facilities. If Playa Dorada is unable to meet the demands of people related to tennis facilities, people will be unwilling to buy villas at that location. Also from the exhibit we have derived some conclusion which can lead to conclusion that current capacity is unable to meet the future demand in 2007 and 2008.

In future we can built a big complex and inside it we can develop indoor tennis courts which can help to meet the growing demand of tennis enthusiasts. So, it will lead to good utilization of space and generation of revenues. It will also help to overcome missed hours due to bad weather 2. We can use various strategies to increase our revenue and also provide accessibility to guests. A. Flexible PricingWe can apply flexible pricing on basis of peak and off season, also we can take into consideration the type of courts while pricing on per hour basis. For example we can see from data that only 15% utilization of hard court and 38% utilization of clay courts. Also many European people preferred Clay courts over hard court. So we can have lower price to hard courts compared to clay courts.

Clay Flooring (Peak Season)

Clay Flooring (Off-Peak)

Hard Flooring (Peak Season)

Hard Flooring (Off-Peak)

Students

20 $ for per hour

15 $ for per hour

15 $ for per hour

15 $ for per hour Subsequent hour=$10

Guests

20 $ for per hour

20 $ for per 20 $ for per hour hour Subsequent Subsequent hour=$15 hour=$15

15 $ for per hour

Also we should not give any discounts during peak periods and should give B. Doubles TennisEncourage guests to play double rather than single as it will help to use the courts more efficiently by helping to free up courts for others to play. C. Hard Courts and Clay CourtsWe can see many adults are more inclined to use clay courts against hard courts, so we can persuade the youngsters to use hard court surfaces. Youngsters generally are open to play on any surface and if needed we can persuade telling them the differential rate in both types of courts. D. DiscountsWe should keep in mind that we do not give priority to students over high paying guests. So we can offer the discounts to students in evening slots as many guests as will be

working will not be turning to play at that time. So in order to utilise that capacity discounts to students can surely help. E. Other Facilities and hire tennis player during off seasonTo attract students we can open Wi-Fi tennis lounge, pro shop and club house too. We can also hire tennis player in off season to increase the guest count. 3. We can increase the number of hours by various measures. A. We can see that the maintenance is done at 7 am so the play starts at 8 am. We can have maintenance done between 6am to 7 am and in doing so increase the playing hour for each of 23 courts. B. We can also use the night lights to make it feasible to use the tennis courts for long hours. We can use discounting pricing to attract new guests. C. In long run by building indoor tennis courts can help guests to play tennis in bad weather too, which will not be possible in open courts. 4. We can increase our revenue in off season and peak season by organizing sports events related to other sport like Golf ( as from case we understand that 29.2% guests keep Golf on top priority list. It will lead to usage of Tennis facilities too. 5. In long run we can build a complex which will constitute facilities related to entertainment, indoor tennis courts etc. which can cater to large tennis enthusiast. Also wecna transform hard courts into clay courts as more adults are inclined towards playing on clay courts.