Accra Beach Hotel: Case #7
CASE #7 ACCRA BEACH HOTEL: BLOCK BUILDING OF CAPACITY & REVENUE MANAGEMENT
PRODUCT SERVICE
DR. KERK BURBANK
DONE BY KEZIE THOMAS
September 30, 2011
1. What are the key considerations facing the hotel as it reviews the booking request from the WICB?
Three concerns that Cherita and the GM should question when reviewing the booking request from the West Indies Cricket Board (WICB) are:
i. Whether revenue- Income/Expenses, would be good or not ii. The impact on their regular guests, i.e. the individual travelers, the corporate travelers, & the tour operators. iii. Whether they would receive the publicity they are expecting to receive
The hotel recalled from past experiences, the desired dates that the WICB requested were usually very busy days. Therefore, their key considerations were whether to accept the business from the WICB.
In terms of revenue: it was forecasted that the WICB would more than likely pay the average lower rates ($140-$150) that the hotel offered for the rooms. In addition to that, they presumed that the team members and officials would eat elsewhere because of the per diem budget they were placed on rather than eating at the hotel. On the other hand, their regular customers who frequent there for a number of meals such as breakfast accounting for 80% of all guests and 30% of them who dines in were a much promising crowd. On average, both vacationers and corporate customers spend about $8 per person for breakfast and about $25 VAT inclusive, per person for dinner. They also wanted 50 rooms, each at $130 per night, including two additional suites at no extra cost. The WICB requested that the hotel do the team’s laundry services at no additional cost. Cherita estimated that it would cost the hotel $20 per day to do it in-house as oppose to sending it to an outside source which would cost them about $200.
Other guest: The impact on these guests can be positive or negative depending upon their purpose for travelling. Their concerns about
PRODUCT SERVICE
DR. KERK BURBANK
DONE BY KEZIE THOMAS
September 30, 2011
1. What are the key considerations facing the hotel as it reviews the booking request from the WICB?
Three concerns that Cherita and the GM should question when reviewing the booking request from the West Indies Cricket Board (WICB) are:
i. Whether revenue- Income/Expenses, would be good or not ii. The impact on their regular guests, i.e. the individual travelers, the corporate travelers, & the tour operators. iii. Whether they would receive the publicity they are expecting to receive
The hotel recalled from past experiences, the desired dates that the WICB requested were usually very busy days. Therefore, their key considerations were whether to accept the business from the WICB.
In terms of revenue: it was forecasted that the WICB would more than likely pay the average lower rates ($140-$150) that the hotel offered for the rooms. In addition to that, they presumed that the team members and officials would eat elsewhere because of the per diem budget they were placed on rather than eating at the hotel. On the other hand, their regular customers who frequent there for a number of meals such as breakfast accounting for 80% of all guests and 30% of them who dines in were a much promising crowd. On average, both vacationers and corporate customers spend about $8 per person for breakfast and about $25 VAT inclusive, per person for dinner. They also wanted 50 rooms, each at $130 per night, including two additional suites at no extra cost. The WICB requested that the hotel do the team’s laundry services at no additional cost. Cherita estimated that it would cost the hotel $20 per day to do it in-house as oppose to sending it to an outside source which would cost them about $200.
Other guest: The impact on these guests can be positive or negative depending upon their purpose for travelling. Their concerns about