Case Study: Hotel Occupancy Rates
The U.S. hospitality industry has recently experienced the highest rate of business failures since the ‘Great Depression’. Hundreds of businesses have declared bankruptcy. Even more have gotten into financial distress such as earnings slumps, cash flow deficiencies and mismanagement of resources that could lead to bankruptcy. These problems will not go away. They must be managed away.
This case study examines the major contributing factors to the declining performance of lodging firms in the recent past, explores the current economic environment in the industry and addresses the challenges that it will most likely continue to face in the future. The focus of the case study will be on the importance of operational analysis as a management tool to identify problem areas that need corrective action thereby leading to a business turnaround.
| |Total |By Year |By Quarter |
|Minimum |57.2000 |69.7167 |70.7315 |
|Maximum |84.7667 |81.0595 |78.8701 |
|Mean (average) |75.2613 |75.2613 |75.2613 |
|Median |75.4483 | | |
|Standard |5.8007 | | |
|Deviation | | | |
|Increase in Occupancy Rate by Year |
| | |
As with most things in the economy lately, tourism has been hurting the last year or two. Hawaii is a major tourist destination and