Case: The Accra Beach Hotel

I. SITUATION ANALYSIS:

A. Case Summary

The case is about the Accra Beach Hotel on the Caribbean island of Barbados. The hotel manager got a request from the West Indien Cricket Board (WICB) about hosting several cricket teams while the West Indien Cricket Servies, which is an important international sporting event. The head of the WICB was asking for a discount for 50 of the 141 rooms of the hotel. Now the sales manager has to decide whether to accept the inquiry or not. One important thing for her to consider is that business people, who are the most important guest group, would be stay away because of the cricket teams. On the other hand would hosting the teams have a publicity effect as the marketing …show more content…

So the Accra Beach Hotel cannot be sure about the postive promotion because the West Indien Cricket Series may not be important enough to be perceived by the general customer group of the hotel.

The major point to consider for a corporation is the financial outcomes, which I will illuminate in the following.

B. Financial Implications

On the basis of the tables about the monthly occupancy rate and the average daily room rate of the past years an increasing/decrasing rate can be calculated like the following:

Average Room Rate %
January $159,05 $162,04 1,88
February $153,73 $167,50 8,96
March $157,00 $158,44 0,92
April $153,70 $150,15 -2,31
May $144,00 $141,79 -1,53
June $136,69 $136,46 -0,17
July $122,13 $128,49 5,21
August $121,03 $128,49 6,16
September $123,45 $127,11 2,96
October $129,03 $132,76 2,89
November $141,03 $141,86 0,59
December $152,87 $151,59 -0,84 2,06 Occupancy %
January 87,7 87,6 -0,11
February 94,1 88,8 -5,63
March 91,9 90,3 -1,74
April 78,7 82 4,19
May 76,7 74,7 -2,61
June 70,7 69,1 -2,26
July 82 76,7 -6,46
August 84,9 70,5 -16,96
September 64,7 64,7 0,00
October 82 71,3 -13,05
November 83,8 81,7 -2,51
December 66,1 72,1 9,08 -3,17

This chart shows that especially in the month of April, May and June, which is the duration of the West Indien Cricket Servies there was a decrease in price and in May and June there was also a decease in the occupancy.