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CASE STUDY

OF GRETCHEN HOTEL

Submitted by:
Omani, Shella Mae N.
Student

Submitted to:
Mr. Roberto P. Daba
Instructor
Case Study: Gretchen Hotel

Gretchen Hotel is a five-star upscale hotel situated in Manila. Being one


of the most popular hotels in the city, tourists and professionals frequent the
place. The hotel boasts of its historicity as shown in the delicate architecture
of the past while complemented by pieces of furniture that harmonize the
entire mood. Strategically well placed, there is an intense but gentle ambiance
of artistry and national pride. This hotel was named after the lady owner,
Gretchen, who passionately worked hard to bring the best in the domicile
service.
Today, Gretchen Hotel houses 375 cleanly maintained rooms of different
sizes and three restaurants: one for fine dining, another one serves
exclusively Japanese food, and the other for casual dining. Two swimming
pools invite guests (children and adults) to relax and feel the cool water, It is
supplemented by a gym for physical and health aficionados.
On the ground floor are boutiques that sell antique items, shirts, bags,
imported cookies. medicine, and other items for casual needs. At night, one
can hear a string of soft music that soothes the otherwise tired travelers and
professionals. The bar is suitable for quiet conversations while one sips the
relaxing mellow taste of the wines served. There are rooms for meetings and
other business discussions, equipped with technology gadgets and other
communication requirements. In every respect, Gretchen Hotel is proud of its
complete and state-of-the-art facilities.
Gretchen Hotel has a total of 188 employees who are stationed in
various service offices, starting with administration, front desk to concierge,
bellboys, restaurants, housekeeping, maintenance, and other service offices.
They render quality services to their customers and evidently, they are
delighted with how the staff, supervisors, and managers perform their jobs.
Similarly, the daily room rates of Gretchen Hotel are affordable, including food
and other facility prices. Note that the Hotel does not impose extra or hidden
charges. They are transparent and this makes their customers happy. While
the old and current customers of Gretchen Hotel generally come back and
patronize the Hotel, it is confronted with a great challenge. Its average
monthly occupancy rate is only 48,9%.
As the Manager of Gretchen Hotel, devise strategies to help increase
the Hotel's occupancy rate. Prepare an action plan.
Title of the Case:
Gretchen Hotel

Time Context
January 2024

Perspective
Manager of Gretchen Hotel

Central Issue:
Even if Gretchen Hotel is proud of its complete and state-of-the-art
facilities, however the average monthly occupancy rate is only 48.9 percent.

Statement of Objectives:
• To strategies an action plan to help increase the hotel’s occupancy rate.
• To provide help and conceptualize an action plan that will not only stabilize
the hotel occupancy rate but consistently on a high rate.
Areas of Consideration:
a. Internal Environment
Strengths:

• Gretchen Hotel is proud of its complete and state-of-the-art facilities.


• The daily room rates of Gretchen Hotel are affordable, including food
and other facility.
• The Hotel also does not impose extra or hidden charges. They are
transparent and this makes their customers happy.
Weaknesses:
• Lack of manpower.
• Lack of advertisements or promotions.
b. External Environment
Opportunities:

• Gretchen Hotel can be venue like other events like parties, anal
gathering, and more.
• It can be a good place for staycations.
• Online advertisements.
Threats:
• Lots of competitors
• Natural and man-made calamities

Alternative Course of Action:


• Massive advertisement in social media.
• Offer discounts.
• Improve the marketing strategies.

Decision Matrix:
ALTERNATIVES
Variables Increase Promotional
occupancy rate by efforts to reach the
offering packages right market.
and promotions.
Risks Involved 4 3

Costs Incurred 5 4

Benefits Derived 5 4

Ease of implementation 5 4

Total 19(Highest) 15

In assessing each alternatives course of action, a rating scale from 1


to 5 is used. Five being the highest and one the lowest.

a. For ricks, 5 is the least risky and 1 is the most risky.


b. For costs, 5 ls the least costly and 1 the most costly.
c. For benefits, 5 is the most beneficial and 1 is the least beneficial.
d. For ease of implementation, 5 is the easiest to implement and 1 is the
most difficult De implementation.

Conclusion

Gretchen Hotel is an excellent establishment, it does have some


issues need to be addressed. The biggest issue with the Gretchen Hotel is its
low monthly occupancy rate, which is followed by unreached right market. To
increase occupancy rates, it is important to implement a well- planned
strategy. It requires innovation, and training for existing staff to improve their
performance. Additionally, they must research marketing trends such as online
advertisements or even television advertisements in order to reach a larger
audience.

Recommendations

Gretchen Hotel should prioritize its actions in Increasing occupancy


rate. An action plan and Gantt chart can be prepared, as it would help in the
implementation of the strategy. To maximize occupancy rates, there is a need
to look into the aspects of marketing and promotional efforts to reach right
market. The Hotel should make certain that they are reaching the right people.
Gretchen Hotel should change the old strategy, and think what is more
necessary, the executives should consider new product or services that can
offer to customers. The hotel should start changing their environment in order
the customers feel new. Employees functional abilities are being instilled in
order to meet the needs of the hotel business and to improve management.
The hotel can hold charity events to gain investors and loyal suppliers.
Action Plan
Media advertisement
Activities Objectives Division Person Costs Time
Responsible
Packages To stand Marketing Marketing Estimated 5
and out from department manager XXXXXXX Months
promotion. competitio advertising
n and for and
occupancy promotion
rate to rise. managers
Holding Learn the Human Customer Estimated 3
events at target department, service XXXXX Months
the hotel. market and advertising personnel
make the and and
customers marketing promotion
feel like department managers
they have
a
connection
with the
hotel.
Tracking of To Project Project Estimated 6
progress. measure team managers XXXXXX Months
progress in
Increasing
occupancy
rate.
Continues To Project Project Estimated 10
evaluation determine team managers XXXXXXX Months
of whether to
marketing continue or
initiatives abandon
undertaken. marketing
initiatives.
Gantt Chart

Activities Ja Fe Ma Ap Ma Ju Ju Au Se Oc No De
n b r r y n l g p t v c
Packages X X X X X
and
promotion.
Holding X X X
events at
the hotel.
Tracking of X X X X X
progress.
Continues X X X X X X X X X X
evaluation
of
marketing
initiatives
undertake
n.

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