Case study

On
Acra Beach
Hotel

Submitted to
Professor Aditi Naidu

Submitted by
Saransh Khandekar
Abhishek Tiwari
Kajal Sahu
Ravi Depura
Madyantika Mehra

Case study on Acra Beach

Problem on hand - What to do about a request from West Cricket Board. The board
wanted to book a large block of rooms more than six months ahead during several of
the hotels busiest time ,
They also want discount.
What acra Beach will get ?
West board will advertise acra beach in all advertising materials and television
broadcasts as hotel for west indies cricket series, an important International event
Ans1. Factors that led to variation in demand forroooms at hotel such as the acra
beach are:
Business Period- The case reflects upon acra beach being occupied by business
travellers.Business travelling is highly depended upon the codition of economy of the
parent country .If they economy is good more business travelers will be there.Demand
increase during december
Wether conditions: The individual tour and tourist occupancy wil be highly
dependent upon the traverls country wether . Tourist from Uk will travel when the
wether in their home country is cold along with wether in Barbados is plesent.

Ans 2 . The three customer segment are

a. Business Clients.
b. Tour Operators
c. Individual travelers

Pros of serving several segments:

It is not possible to fill up the all available or maximum capacity with a single
segment, so having different segments is important to tackle this problem,
which helps in utilizing the maximum capacity
The tour operators and individual vacationers help to fill up the rooms in the

weekends when there are no business travelers.

Cons of serving different segments:

The quality may decline when giving services to different segment and when
the capacity of the hotel exceeds the optimum capacity
Customers of different segments act or behave in different ways and their

needs and expectations may clash. For example, normal vacationers dress
casually and are out to have a relaxing carefree time, whereas business people
tend to dress soberly, bring their laptops to the restaurants and are not out there
to have a carefree time. The difference of needs may lead to conflicts.

Ans3. The key considerations are

The Customer/Guest relations impact: If the deal with the West Indies
Cricket Board (WICB) will upset the loyal customers of the hotel, for instance
the corporate customers may not like the noisy environment that will be
created by the cricket players. The presence in the hotel of a large group of
sportsmen may detract from the experience of the customers which will

weaken their bond with the hotel.

Marketing Impact: This issue concerns how valuable the publicity will be for

the hotel. Will it be positive for the hotels image, neutral, or negative?
Financial Impact: Will the hotel make or lose money on the WICB deal? These
concerns about the monetary issues; profit or loss that will result form this
deal.

Ans4. Acra beach should not accept the contract because

a) It will disturb its client base .
b) Noisy environment will not be liked by Business clients
c) The advertising made affect it adversely as the brand image of acra beach is
set up like a resort for business travellers

Room sold
141
138
135
134
123
128
141
141
141

Avg room rate

129
120
128
135
133
124
119
124
121

Gross revenue
18189
16560
17280
18090
16359
15872
16779
17484
17061

139
112
78
95
113

122
118
126
130
138

16958
13216
9828
12350
15594

Exclude VAT

221620

Include Vat

16621.80
204998.80

Went Indies want room with discount , provided they dont pay VAT TOO
Assume if the west indies board is paying them amount of 16600.00
Then also the regular revenue of Acra beach hotel is 20499.80
They will suffer a loss of 3899 which is indeed a loss .
The deal must be rejected.