Accra Beach Hotel 3

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(Case Study 7)

Group 2
Arceo, Alexsandra L.
Jacinto, Charito H.
Maniago, Kim Russel B.
Quiazon, Lady Lin T.

YFRESMAR/TTH – 4:30-6:00 PM
Ms. Cristina Naguit

• The Accra Beach Hotel and resort had a prime beach front location on the South Coast of Barbados, just a short distance from the airport and the capital city of Bridgetown. The centerpiece of its lush gardens was the large swimming pool, which had a shallow bank for lounging plus a swim-up bar. In addition, there was a squash court and a fully equipped gym. • The Accra Beach had two restaurants and two bars, as well as extensive banquet and conference facilities. It offered state-of-the-art conference facilities to local, regional and international corporate clientele and had hosted a number of summits in recent years. A business center provided guests with Internet access, faxing capabilities and photocopying services. • The Accra Beach enjoyed a relatively high occupancy rate, with the highest occupancy achieved from January through March and the lowest generally during the summer. The Accra Beach had traditionally promoted itself as a resort destination, but in the last few years, it had been promoting its convenient location and had attracted many business customers. • Cherita Howard, the hotel’s sales manager, had been approached by the West Indies Cricket Board (WICB) about the possibility of the Accra Beach Hotel serving as the host hotel for the following spring’s West Indies Cricket Home Series, an important international sporting event among cricket-loving nations. • Cherita called Ferne Armstrong, the reservations manager of the hotel and asked her what she thought. Like Cherita, Ferne was concerned about the possible displacement of higher-paying customers, but offered to do further investigation into the expected room sales and associated room rates for the desired dates soon after Cherita returned to her office.

Background of the Problem

• Sometimes, guests who were on vacation felt uncomfortable finding themselves surrounded by business people. As one vacationer put it, “there’s just something weird about being on vacation and going to the beach and then seeing suit-clad business people chatting on their cell phones.” • They were sure that the rate WICB was willing to pay would be lower than the average rate of US $140-$150 (including VAT) they normally achieved during these times. In contrast to regular guests, who could usually be counted upon to have a number of meals at the hotel, team members and officials would probably be less likely to dine at the hotel because they would be on a per diem budget. • Also, they worried about how the hotel’s other guests might react to the presence of the cricket teams. Still, the marketing potential for the hotel was substantial. The WICB had promised to list the Accra Beach as the host hotel in all promotional materials and during the televised matches. • In addition, the WICB insisted the laundry service for team uniforms (cricket teams typically wear all-white clothing) and practice gear be provided at no additional charge for all team members. Cherita estimated that it would cost the hotel about $20 per day if they could do the laundry in-house, but about $200 per day if they had to send it to an outside source.

Statement of the Problem

• How can Accra Beach Hotel serve customers from several market segments? a) What will Accra Beach Hotel do to face the consequences of serving several market segments? b) What are the key considerations facing the hotel as it reviews the booking requests from the WICB? • How should ABH decide on the booking request of WICB? a) What action of the management should be taken?

Analysis of the Problem

• The case is about the Accra Beach Hotel on the Caribbean island of Barbados. The hotel manager got a...
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