Accra Beach Hotel Case

Topics: Caribbean, West Indies Federation, Rooms Pages: 15 (2426 words) Published: October 25, 2010
Case 8

The Acua Beach Hotel Block Booking of Capacity During a Peak Period SHenvl Knrlns, JocuBN Wtntz,
eNp CuntsroPHER


The sales manager for a Caribbean hotel wonders whether to
accept a large blockbooking at a discount rate ftom a Sroup participating in an international sporting eaent. Do the promised

broadcasts as the host hotel for the upcoming West Indies Cricket Series, an important international sporting event.

publicity benefits justifu the risk of turning
-p ay

aTaay guests



se gments ?

Tue Horel
The Accra Beach Hotel and Resort had a prime beach-front

Cherita Howard, sales manager

for the Accra Beach L41-room hotel on the Caribbean island of Hotel, a Barbados, was debating what to do about a request from the West Indies Cricket Board. The Board wanted to book a large block of rooms more than six months ahead during several of the hotel's busiest times and was asking for a discount. In return, it promised to promote the

location on the south coast of Barbados, just a short distance from the airport and the capital city of Bridgetown. Located on31f, acres (1.4 ha) of tropical landscape and fronting one of the best beaches on Barbados, the hotel featured rooms offering panoramic views of the ocean, pool or island.

Accra Beach in all advertising materials and television

@ 2007 Sheryl Kimes, Jochen

Wirtz, and Christopher H. Lovelock Note: Certain data have been disguised.


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. Golf was also available only 15 minutes away at the Barbados Golf Club, with which the hotel was affiliated. 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. Three conference rooms, which could be configured in a number of ways, served as the setting for large corporate meetings, training seminars, product displays, dinners, and wedding receptions. A business center provided guests with Internet access, faxing capabilities, and photocopying services.

The hotel'sl22 standard rooms were categorized into three groups-Island View, Pool View, and Ocean Viewand there were also L3 Island View Junior Suites, and 6

categories, while the Pool Views had two double beds. The six Penthouse Suites, which all offered ocean views, contained all the features listed for the standard rooms plus added comforts. They were built on two levels, featuring a living room with a bar area on the third floor of the hotel and a bedroom accessed by * internal stairway on the fourth floor. These suites also had a bathroom containing alacuzzi, shower stall, double vanity basin and a skylight. The thirteen ]unior Suites were fitted with either a double bed or two twin beds, plus a living room area with a sofa that converted to another bed.



Penthouse Suites, each decorated in tropical pastel prints and handcrafted furniture. All rooms were equipped with

cable/satellite TV, air-conditioning, ceiling fans, hairdryer, coffee percolator, direct-dial telephone, bathtub/shower and a balcony. Standard rooms were configured with either a kingsize bed or two twin beds in the Island and Ocean View

The Accra Beach enjoyed a relatively high occupancy rate, with the highest occupancy achieved from ]anuary through March and the lowest generally during the summer (Exhibit L). The hotel's average room rates followed a similar pattern, with the highest rates (US$150-$170) being achieved from December through March but relatively low rates (US $120) during the summer months (Exhibit 2). The hotel's RevPAR (revenue per available room-a product of the occupancy rate times the average...
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