Accra Beach Hotel Case
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Accra Beach Hotel Case
What factors lead to variations in demand for rooms at a hotel such as the Accra Beach Hotel
We observe 3 mains reasons that can explain the variation in demand for rooms. First, there is the seasonal factor. In this part of the world, the weather is better to appreciate during the winter. That explains why the occupancy is higher in winter months (around 90 % of occupancy), than in summer months (around 70 % of occupancy). Second, there is the economic factor. It is easy to understand. No business, no conference, mean no business reservation. That explains also the fact that in summer there is no more demand. Third and last factor, the change of the clientele. Normally, the clients of this hotel were tourists coming from UK and Canada. But during this last years, more and more business customers book in. The consequence was that these new clients disturbed the
Identify the various market segments currently served by the hotel. What are the pros and cons of seeking to serve customers from several segments?
There are 2 different needs based segmentation served by the hotel. The business travelers, as individual business purpose, sports team, conferences participants, and the vacationers as family with children, honeymoon couple and also individual travelers. We can also choose a geographic segmentation, and we will have three segments as local, regional or European and American guests.
Having such numerous targets allowed the hotel to have a competitive advantage by touching a larger market, that give the possibility of increasing the revenue, have an efficient capacity of utilization and allowed the regularization of the demand year by year.
But it also gave some inconvenient as the difficulty to be able to answer the different needs and expectations of the customers, to do not have a focused approach and the necessity to spend