Case studyOnAcra Beach Hotel

Submitted bySaransh KhandekarAbhishek TiwariKajal Sahu Ravi DepuraMadyantika MehraSubmitted to Professor Aditi Naidu

Case study on Acra Beach

Problem on hand - What to do about a request from West Cricket Board. The board wanted to book a large block of rooms more than six months ahead during several of the hotels busiest time , They also want discount.

What acra Beach will get ?West board will advertise acra beach in all advertising materials and television broadcasts as hotel for west indies cricket series, an important International event

Ans1. Factors that led to variation in demand forroooms at hotel such as the acra beach are:

Business Period- The case reflects upon acra beach being occupied by business travellers.Business travelling is highly depended upon the codition of economy of the parent country .If they economy is good more business travelers will be there.Demand increase during december

Wether conditions: The individual tour and tourist occupancy wil be highly dependent upon the traverls country wether . Tourist from Uk will travel when the wether in their home country is cold along with wether in Barbados is plesent.

Ans 2 . The three customer segment are

a. Business Clients.b. Tour Operatorsc. Individual travelers

Pros of serving several segments: It is not possible to fill up the all available or maximum capacity with a single segment, so having different segments is important to tackle this problem, which helps in utilizing the maximum capacity The tour operators and individual vacationers help to fill up the rooms in the weekends when there are no business travelers.

Cons of serving different segments: The quality may decline when giving services to different segment and when the capacity of the hotel exceeds the optimum capacity Customers of different segments act or behave in different ways and their needs and expectations may clash. For example, normal vacationers dress casually and are out to have a relaxing carefree time, whereas business people tend to dress soberly, bring their laptops to the restaurants and are not out there to have a carefree time. The difference of needs may lead to conflicts.

Ans3. The key considerations are The Customer/Guest relations impact: If the deal with the West Indies Cricket Board (WICB) will upset the loyal customers of the hotel, for instance the corporate customers may not like the noisy environment that will be created by the cricket players. The presence in the hotel of a large group of sportsmen may detract from the experience of the customers which will weaken their bond with the hotel. Marketing Impact: This issue concerns how valuable the publicity will be for the hotel. Will it be positive for the hotels image, neutral, or negative? Financial Impact: Will the hotel make or lose money on the WICB deal? These concerns about the monetary issues; profit or loss that will result form this deal.

Ans4. Acra beach should not accept the contract because

a) It will disturb its client base .b) Noisy environment will not be liked by Business clientsc) The advertising made affect it adversely as the brand image of acra beach is set up like a resort for business travellers

Room soldAvg room rateGross revenue

14112918189

13812016560

13512817280

13413518090

12313316359

12812415872

14111916779

14112417484

14112117061

13912216958

11211813216

781269828

9513012350

11313815594

Exclude VAT221620

Include Vat16621.80

204998.80

Went Indies want room with discount , provided they dont pay VAT TOO

Assume if the west indies board is paying them amount of 16600.00 Then also the regular revenue of Acra beach hotel is 20499.80

They will suffer a loss of 3899 which is indeed a loss .

The deal must be rejected.