Bachelor of Science in Tourism Management: BFTM-01

Case Study
The Diamondback Plaza Hotel
SQMGTTH

Submitted by:
Mike Safar

Submitted to
Mrs. Adah Aguasin
Introduction
The Diamondback Plaza Hotel owned by Dwight Robinson. A popular hotel in a
vacation area. Robinsons tries to maintain a casual elegance. Robinson is happy about
all aspects in his hotel operation except his average night occupancy rate of 68 percent
for his78 percent geographical area. Robinson hired a consultant to improve these
results. The consultant tell Mr. Robinson that his hotel is not yielding the income
because he establishes one price for rooms and hopes people to stay with him. The
consultant also suggest the following: He needs to use all available means to lure
travelers into his hotel, cutting the prices when not be able to sell room every night,
putting a big flashing sign outside the hotel and don't go to sleep until heee get people
to sleep in all his room.The average daily room rate will surely drop. By managing the
yield on each unit, he will maximize his profit.

Viewpoint
The Diamondback Hotel is now under Mr. Robinson's ownership. He is the one
who will put new rules into effect and make management adjustments to increase
revenues.

Central Problem
I think Dwight Robinson should take the consultant's advice because it would be a
greater loss for his hotel if he continues his own habit for hotel operations that gives a
lower average for his night occupancy. He needs to go beyond what he is already doing
because he knows that something is lacking and off.

Objectives
Must
- To deal appropriately with the hotel’s low night occupancy rate.

Want
- To make every room occupied
- To gain more profits
Swot Analysis
STRENGTH
A. A large hotel in a popular vacation area. It is one good thing that his hotel is
located in a popular vacation area. There is a higher chance to have more clients
to check into their hotel. One of the things that a traveler seeks first is to where
they could stay during their visit to a destination.
B. Maintaining the reputation. Not all management can maintain a good reputation
most especially if a client experienced a bad experience. It will be hard for a
manager to cover up the bad experience and impression. But as per his
management, trying to maintain a reputation is his hotel's strength because it can
give a good impression to their clients.

WEAKNESSES
A. Pricing rate. Pricing can either make or break your business. It is not just about
earning money but also engagement with your clients. You have to at least go for
what your target market is capable of paying than having a high-standard price
without a client.
B. Lack of finance management. This is still about the price and lacking a finance
management can affect your whole business. It is one of the most important
things to be managed because it is what makes your business grow. In
Robinson's case, this still has to be improved to be able to lift his hotel's
engagement.

OPPORTUNITIES
A. .Hiring a consultant. This is one of the factors that can help his business improve.
The consultant had given them the chance to do something out of the comfort
zone of their hotel. They also knew what more is lacking and needs to be
changed, and for that matter, it will give them more than what they expected.
B. .Improvement. Since Robinson hired a consultant, they can be more conscious
and have better marketing management. It is not enough to stick to your plans
because you will not see what you are already losing for not improving. Their
 hotel, from the financial aspects to the marketing strategies will be enhanced for
being advised by a consultant.

THREATS
A. If Robinson will not take the consultant's advice. It can be a big threat for their
hotel because the consultant had already stated what is wrong and had given
them tips to boost their hotel. Their hotel lacks many aspects that cause them a
low average occupancy rate. They need to be open for advice to improve.
B. Sticking to rack rate. This can also be considered as a threat because they can
lose clients. There are a lot of competitors nearby and if those competitors have
cheaper prices; sure, your clients will not hesitate to go there instead of your
hotel. As I have mentioned, business is not just about money but also an
engagement to your clients to gain their trust and loyalty.

Alternative course of action

1. Mr. Robinson's decision is not to change the way of his operation to business.
Justification
- Mr. Robinson will stay happy and he will maintain the type of profit he gains every
night.
Disadvantage
- Mr. Robinson's problem about the nightly average rate will stay low or the same.

2. Mr. Robinson's decision is to do what the consultant wants and recommends.

Justification
- The problem about the low average rate of occupation at night will resolve.
Disadvantage
- Mr. Robinson's skill and confidence to manage his business will greatly decrease.
Because he replies to what the consultant will say to his business problem.

3. Mr. Robinson will maintain the other operation while trying to implement the
operations of the first consultant.
Justification
- The problem about maintaining operation while making the nightly average
higher will resolve.
Disadvantage
- Mr. Robinson will take some hardship and problem for the first time of
implementation of his solution for the hotel.

Recommendation
For me, the best alternative solution that I can recommend is observing the strategies of
your competitors. The reason why there is occupancy room in your hotels is because
there are other hotels that offers lower prices or giving a discount to the customers/
guest.Observing and understanding what are the strategies of your competitors will give
you advantages to create a plan on how you will counter their strategies, that will gives
advantages to your hotels. When You finish analyzing and understanding their
strategies, it is the time for you to create your own strategy that will surpass all their
strategies