Preview

Case 8 the Accra Beach Hotel: Block Booking of Capacity During a Peak Period

Better Essays
Open Document
Open Document
1027 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Case 8 the Accra Beach Hotel: Block Booking of Capacity During a Peak Period
Case 8
The Accra Beach Hotel:
Block Booking of Capacity during a Peak Period

Question 1
What factors lead to variations in demand for rooms at a hotel such as the Accra Beach?

Answer:
There are 3 factors that will lead to variations in demand for rooms at a hotel, which are seasonal cycle, economic cycle and days of the week.

Seasonal cycle - Hotel such as Accra Beach will depends highly on seasonal cycle, hotel will be in low demand on September (64.7%) as it is in peak hurricane season. High demand on January through March (87% to 92%), when Caribbean is in nice weather and people need to get away from the horrid season in North America and Northern Europe.

Economic cycle - Business travelers, which are one of the main customers in Accra Beach Hotel (ABH), will be affected by the economic cycles. When there is an economic downturn, business will be down and there will be less business travel, in fact there will also be a decrease in the number of conferences. Thus this will lead to variations in demand for rooms.

Days of the week – There will be differences between the days chosen by the vacationers and business travelers. Usually business travelers will stay on weekdays, might be from Monday to Thursday. While vacationers will usually look for weekend getaway, might be from Friday to Sunday.

Question 2
Identify the various market segments currently served by the hotel. What are the pros and cons of seeking to serve customers from several segments?

Answer:
There are various market segments that are currently served by the hotel. Based on behavioral segmentation that segments market according to their purposes, it could be categorized into four segments:
–Corporate customers
–Tour group participant
–Individual vacationers
–Individual business travelers

While based on geographical segmentation, it could be categorized into two segments:
–United Kingdom
–Canada

There are several pros and cons that should be taken into

You May Also Find These Documents Helpful

  • Powerful Essays

    I have observed from my previous experience within the hotel market in Dubai that in similar conditions a 33% reduction in room rates results in a doubling of demand suggesting a relatively high price elasticity of demand (-3). This suggests that in the demand luxury hotel market in Dubai is sensitive to room rates. The income elasticity of demand for such a service in Dubai is likely to be relatively high given its status as a luxury item, given the global nature of the market it is complexed to access how the individual income effects for each feeder market. There are cross elasticities that will have an impact on demand, key factors to consider is the cost of air travel to the U.A.E. Since such a high proportion of hotel room occupants arrive by air there is likely to be a high cross priced elasticity between demand for hotel rooms and the price of air travel. Looking ahead to the first half of 2012, effects on aviation travel may include oil price variations and…

    • 1496 Words
    • 6 Pages
    Powerful Essays
  • Good Essays

    Canyon Ranch Case Study

    • 1083 Words
    • 5 Pages

    Every customer has a schedule of activities that they do throughout each day for a minimum of a 3 day stay as well as opportunity to add other activities after arrival. This was because most customers had only called for scheduling their getaway within 3 weeks of arrival. The money used for this is discretionary money and not everyone can afford a cost of 2-4 thousand dollars for just a couple of days. That means that the economy plays a part in the business as well as what types of clients they care for.…

    • 1083 Words
    • 5 Pages
    Good Essays
  • Powerful Essays

    Good Hotel (Case 25)

    • 1658 Words
    • 7 Pages

    There are 12 leading hotel chains which have various branches within those chains. Each accommodate different numbers of guests and different types of guests. Before 2008 there had been massive expansion in preparation for a large upturn in the industry however when the expansions were finished the market was in withdrawal leading to the largest downturn in the lodging industry. The major economic characteristics influencing the lodging industry have to do with business meetings and conference related travel taking 40% of the business in the whole industry of 2010. The hotel industry is dominated by large branded hotel chains that react to industry factors similarly, this is one of the reasons there was a large downturn. It can be argued the industry predicts its growth in correlation with real GDP.…

    • 1658 Words
    • 7 Pages
    Powerful Essays
  • Powerful Essays

    Skyview Manor

    • 809 Words
    • 4 Pages

    1. On average, how many rooms must be rented each night in season for the hotel to…

    • 809 Words
    • 4 Pages
    Powerful Essays
  • Good Essays

    The availability of the products and services a country offers are a factor that normally changes during peak periods such as the school holidays in the summer, Easter breaks and Christmas breaks. This makes things like hotel rooms, activities and restaurants harder to book because they are all full. Tourists need to book early to…

    • 1054 Words
    • 4 Pages
    Good Essays
  • Powerful Essays

    In researching the customers that use the facilities most often, we recommend the following market segments to focus on:…

    • 2965 Words
    • 12 Pages
    Powerful Essays
  • Satisfactory Essays

    The Subway Story

    • 5528 Words
    • 23 Pages

    Oh,H. and Pizam, A. 2008. Handbook of Hospitality Marketing Management. illustrated ed. s. l.: Butterworth-Heinemann. ISBN 0080450806, 9780080450803…

    • 5528 Words
    • 23 Pages
    Satisfactory Essays
  • Good Essays

    The consumer market for my chosen business, Hyatt Hotels, is large and very diverse. Just about every person finds themselves in the position of seeking overnight, or longer, accommodations at some point in their life. The challenge will be to target the most profitable customers and know them and their needs in enough detail to justify the expenses. With its plethora of properties, each catering to a different segment, Hyatt is perfectly positioned to do just that.…

    • 637 Words
    • 3 Pages
    Good Essays
  • Satisfactory Essays

    1: Why do hospitality firms need to advertise? What factors should be considered when planning an advertising strategy?…

    • 359 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    1 Evaluate the needs of market segments and individual organization and match those needs with an appropriate hospitality products or service.…

    • 7671 Words
    • 39 Pages
    Good Essays
  • Powerful Essays

    Market Segmentation

    • 3517 Words
    • 15 Pages

    This is a report on market segmentation and this is identifying groups of customers who will respond to marketing activity in the same way. There are five segments in market segmentation which are similar wants, purchasing power so this is when an older person can buy more products then a younger person and this is because, geographical area this is selling products depending on where your business is located, for example in New quay sell surf ware items because there is beaches near and Scotland sell more ski products, buying attitudes this is when some people will buy products when the prices go down or some people have the top products such as Apple and finally buying habits this is things such as how often do you buy and when do you buy it.…

    • 3517 Words
    • 15 Pages
    Powerful Essays
  • Satisfactory Essays

    micro

    • 371 Words
    • 2 Pages

    The recession is an economic factor effecting the hotel industry. The recession has a large impact on the hotel industry as this means fewer people have disposable income; therefore staying in hotels for leisure purposes are becoming less popular.…

    • 371 Words
    • 2 Pages
    Satisfactory Essays
  • Best Essays

    Dennis J. Cahill (1997). How consumers pick a hotel: strategic segmentation and target marketing . 2nd ed. London: Routledge. 13-21…

    • 3295 Words
    • 14 Pages
    Best Essays
  • Powerful Essays

    References: Cahill, D., (1997), How Consumers Pick a Hotel: Strategic Segmentation and Target Marketing, The Haworth Press, Inc., New York…

    • 1882 Words
    • 6 Pages
    Powerful Essays