Case Study of Diamond Hotel

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University of Perpetual Help System Dalta- Calamba Campus

Brgy. Paciano Rizal, Calamba City, Laguna, Philippines

A Case Study Report at
“Diamondback Plaza Hotel”

In partial fulfillment of the requirement for the degree of
Bachelor of Science in Hotel and Restaurant Management

December 2012

I- Title
II- Executive Summary
III- Time Context
IV- View Point
V- Statement of the Problem
VI- Objectives
VII- Areas of Consideration
VIII- Alternative Course of Action
IX- Decision Matrix
X- Recommendation

EXECUTIVE SUMMARY

Diamondback Hotel is a large hotel in a popular vacation area. The hotel is known on their reputation of casual elegance and is known among local for their dignified advertising and for sticking to the “rack rate”. The hotel average nightly occupancy rate is just 68%. The average for their geographic area is 78 percent. These percentages are actually low when you compare it with their target average. New strategies as well as alternatives must be made by the hotel in order to increase their occupancy rate especially on their nightly rate. Increase on their occupancy rate means increase on their sales. Their consultant have some recommendations and they have to coincide with it, but in line with these recommendations means there will be an increase on their room rate so they have to think another strategy so they can cover up this increase. The company can offer group packages or family packages especially on summer and special holidays as well as special occasions. They could also offer services that come with this promo packages like a discounts, free meals and the likes. They could also give some freebies so the guests can have a memory of the hotel. Thorough marketing must be accomplished on this strategy. They could also have their own website where the people can have an easy access on inquiring regarding their promos and packages. Through these strategies, they can reach more of their markets and their markets will be more informed regarding the hotel. At first, sales will not sky rocketed by in the end once they are fully established increase in sales is expected and their average nightly occupancy will also improve.

TIME CONTEXT
Diamondback Plaza Hotel is a large hotel in a popular vacation area, in order to have a more profit for the hotel Mr. Robinson must make changes when it comes to his strategies in a year.

VIEW POINT
Mr. Robinson holds the power to manage the Diamondback Hotel. He is the one who will implement new policies as well as the new changes in managing the hotel to generate more profit.

STATEMENT OF THE PROBLEM
What approach should Mr. Robinson do to achieve higher occupancy rate than the average especially at nightly occupancy which can result more profit for the hotel?

OBJECTIVES
To have higher rate than the average especially at night, in order for the hotel to gain more profit and they will achieve the assumed yield of every room in the hotel.

AREAS OF CONSIDERATION
INTERNAL FORCES| STRENGTH | WEAKNESS|
Human Resource Management * The hotel has reliable staffs that can handle their work really well.| * | | Organizational Structure * Mr. Robinson manage the whole hotel but with the help of his associates| * | | Labor Forces * They have enough employees that can really make the work done.| * | | Orientation, Training and Seminars * Employees are oriented time to time regarding their policies.| * | | Operation Management * The hotel is known on its reputation of casual elegance. * The hotel is known among local hoteliers for dignified advertising and for sticking to the rack rate. * He thinks that it is not fair for the guest to pay full price. * The debt relative to property value is low; they don’t have high interest charges to cover. * The rooms are not yielding the income they should generate because of same price per room| * * * | * * | An Ideal and...
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