1. What factors lead to variations in demand at a hotel such as Accra Beach?
Hotels like the Accra Beach Hotel, which are in popular vacation spots like the Caribbean islands, will
naturally see demand fluctuate throughout the year. The following qualities of the Accra Beach hotel
add to its popularity.
Seasonal rotations: In comparison to the hurricane season in the West Indies, which lasts from July to
October, the weather is ideal. In comparison to Barbados, other countries have cooler and hotter
weather, making them more appealing for a vacation visit.
Economic center: When business is slow, fewer people travel for business, fewer people attend
conferences, and tourism may suffer as a result. Poor customer retention may contribute to this
rotation, as there are fewer business trips. The hotel's inventory becoming reduced.
Days of the week: Business travelers are more likely to stay Sunday through Thursday evenings, while
some holidaymakers are just looking for weekends.
Exhibit 3 of the case shows that occupancy at the Accra Beach Hotel (ABH) is highest January-March
(nice weather in the Caribbean, horrid weather in N. America and N. Europe) and lowest in September
(peak of hurricane season).
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?
Different Segments at Hotel. Most clients may be classified based on whether they are traveling in a
group and whether they are traveling for business or pleasure. As a result, we have four segments:
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Individual business travelers: They desire to relax and release tension from their daily lives by
spending their vacations in a resort place. This group's numbers are constantly decreasing.
Tour group participants: Vacationers who travel with tour operators can plan their vacations
without having to worry about the details. This group's numbers are constantly decreasing.
Business conference participants
Individual vacationers
Another type of segmentation used by ABH is the guest's native country – Barbados, the rest of the
Caribbean, North America, and Europe. The most important marketing consequences are the routes for
reaching people vs. group organizers, as well as the distribution of promotional funding among areas.
Pros of Serving Several Segments.
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Having a diverse customer is a big benefit for hotels looking to maintain a high occupancy rate
throughout the year. Because there are different seasons for tourists to travel on holidays,
particularly to a Caribbean Island, hotels must service other visitors to ensure that there aren't
too many empty rooms.
Business travelers provide a significant chance for hotels to fill rooms outside of peak season,
and the Accra Beach Hotel can take advantage of this fact because it is close to both the airport
and Barbados' capital city.
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Because it is impossible to fill the entire available or maximum capacity with a single segment,
having many segments is necessary to address this issue and maximize capacity utilization. On
weekends, when there are no business travelers, tour operators and private vacationers help to
fill the rooms.
Cons of Serving Several Segments.
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The most significant disadvantage of feeding numerous unequal segments is that certain groups
of guests may become irritated by other groups of guests. As stated in the text, some tourists
are uncomfortable traveling to the beach and being surrounded by businesspeople while on
vacation.
Different market segments may have different demands and it may be difficult to efficiently
serve each segment. The fact of serving different market segments may require some extra
training of the staffs of certain segments the failure of which may result in poor service.
Different market segments expect different things from their hotel experience. Some individuals
desire comfort, while others seek adventure and pleasure, and still others are more concerned
with business. Different surroundings are required to meet these various expectations.
Attempting to service all segments in the same environment may result in expectations
disputes.
Conclusion: The patronage of ABH appears to be trending away from vacationers and toward business.
ABH should certainly sell itself in ways that will eventually reposition the hotel as a business hotel with
appealing conference options because business guests pay more, and the business is more reliable.