Case: 9

The Accra Beach Hotel

Introduction
The proposed case is based on a hotel which is built in Caribbean
islands of Barbados named as Accra Beach Hotel. WICB input
request to the hotel manager about hosting several cricket teams
while the West Indies cricket services, which is an important
international sporting event. Here, the head of WICB was asking
for discount for about 50 out of 141 rooms of hotel. The sales
manager has to decide whether to accept or not. Important
customers like business people has let them stay away because
of cricket so sales manager was in tussle between WICB and
business people. On the other hand would hosting the teams have
a publicity effect as the marketing through the board could be
very beneficial for the hotel.
Analysis
1)
a. Seasonal cycle: Weather is a most important factor causing
demand to vary. People from North America, Europe and other
countries will be more attracted to come to Barbados for a
vacation when the weather in their own countries is cold and
damp.
b. Economic scale: When the economy is down, there is less
business travel. So it is also important factor affecting hotel
business.
2)
There are mainly 3 customer segments. Listed as follows:
Business clients of both local and international
Tour operations
Individual travelers.
3)

The Key considerations are:

Customer relations: If the hotel gets booked for WICB, it may
upset the loyal customers of hotel because of noisy environment
created by cricket players.
Marketing Impact: How valuable the publicity will be for hotel.
Financial Impact: On the deal with WICB, whether hotel would
be able to good money of lose money.
4)
Financial analysis:
Revenues received from WICB booking
Direct costs associated with booking
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