Why is there difficulty in getting hotel accommodations for Mr. Oscar Mendoza’s tour groups during peak seasons? Objectives
1. Determine what might cause the previous leasing of the Hotel Continental to be unsuccessful. 2. To avoid incurring the same losses as to what the previous records of Hotel Continental have experienced and undergone. 3. To fill up the 60% remaining capacity utilization of the Hotel Continental. 4. To provide Triumph Tours and Hotel Continental clients satisfaction. 5. To be successful in both Triumph Tours and Hotel Continental complement businesses.
Alternative Courses of Action
1. Utilize the facilities being used in both businesses. The management should use their initiatives and be efficient. 2. Use media as a way of advertising and spread the good services around the world being brought by Triumph Tours and the very beautiful Hotel Continental where customers are to be accommodated. 3. Expand Triumph Tours to malls, terminals and other significant places to attract more customers. 4. Set for competitive hotel rates.
5. The management should have high standards in hiring or staffing.
Evaluation of Alternative Courses of Action
1. Utilize the facilities being used in both businesses. The management should use their initiatives and be efficient. As what the data showed about the Hotel Continental’s Income Statement, the main reason why it incurred losses was because of the minimal amount of Gross operating income with a larger amount of Operating Expenses. This means that the previous management was not able to monitor their expenses and have not had an aid for the 2
problem which is why it incurred such loss. Mr Oscar Mendoza could use this case as his basis of main focus for leasing and putting up again the hotel business. Using initiative and being efficient in a way that the utilities which are to be used in the business should not necessarily be expensive. The management...