Coral Divers Analysis

Greywell, owner of Coral Divers Resort (Coral), is very dedicated to his resort and passionate about diving. Leaving management work in the hands of an employee, he takes joy in cruising and working first hand with his visitors on diving expeditions. Certified with both PADI (Professional Association of Diving Instructors) and NAUI (National Association of Underwater Instructors), the top two diving certification organizations, he can assure a safe and enjoyable diving experience.
Lately profits have been lacking, and Greywell must refurbish his business in order to cut losses and bring Coral back into a profit generating mode. To do so he will need to increase income sources. After the analysis will be a discussion of the alternatives, following with a final recommendation. An implementation plan will be created which will allow Coral to regain and maintain its strength.
Analysis
Organizational Analysis
In the last ten years operations remained at an average of 90% during the high season (December to May) and only 50% during low season (June to November). Recently booking rates have been going flat putting Coral in an uncomfortable position. The problem with seasonality is something that hurts many resorts, thus Greywell should not be extremely worried about it. On the other hand, Rascals in Paradise (Rascals) was able to promise Greywell a constant 90% yearlong, if he signed with them.
Diving has been a strong growing industry. It is widely accepted in mid to high-income households, and 60% of travelers spend on average $2,816 on dive trips annually. Since Warm-water trips are preferred two-to-one, Corals is lucky to be positioned on a three acres beach front in the north of them Bahamas. Considering that the resort is also located in the capital, Nassau, the most populated on the island, tourists are more tempted to make Coral Divers Resort as their destination. Also, the city has the most developed tourist infrastructure and Greywell should take these... [continues]

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