Name:- SIBIN BIJU
Reg No:- 2527851
DECISION SHEET
Priority Management: Strategies For Survival
During Covid-19
Protagonist:- Barbara Jones - VP of Sales and Marketing, Priority Management
Decision Problem:- How should Barbara Jones help New England and Midwest Hotels
adopt practical strategies to survive the COVID-19 impact-balancing revenue needs, brand
reputation, staff well-being, and operational feasibility?
Criteria:
1. Revenue Generation - Immediate cash flow is essential to avoid shutdowns.
2. Brand Protection - The hotel must not erode its brand value by attracting the wrong
market
3. Employee Stability - Maintaining morale and job security within available means is
critical.
4. Operational Sustainability- The strategy must be manageable with reduced teams and
budgets.
5. Market Responsiveness - The approach should reflect current demand and guest
behavior shifts.
Alternatives:A. Continue Focusing Only on High-End Clientele
B. Fully Switch to Opaque OTAs
C. Adopt a Controlled Hybrid Approach
D. Temporarily Shut Down Operations
E. Operate Lean with Direct Bookings Focus
Analysis:A. Maintain Premium Positioning (No OTAs)
Avoid opaque OTA listings and wait for the return of corporate clientele.
•
Revenue Generation: Severely limited. With corporate travel frozen, this approach
brings little to no income.
•
Brand Protection: Strong. Maintains rate integrity and avoids dilution from deep
discounts.
Name:- SIBIN BIJU
Reg No:- 2527851
•
Employee Stability: Weak. Inability to pay staff risks further layoffs and poor morale.
•
Operational Sustainability: Unsustainable. Without revenue, even basic operations
are hard to maintain.
•
Market Responsiveness: Poor. Ignores current leisure demand and price-driven
consumer behavior.
While brand preservation is achieved, the lack of revenue makes this option unsustainable
during the crisis. It risks closure due to financial drain and underutilization of current demand.
B. Fully Leverage Opaque OTAs
Use platforms like Priceline to maximize exposure and fill rooms at discounted rates.
•
Revenue Generation: Strong. Likely to increase occupancy quickly and improve cash
flow in the short term.
•
Brand Protection: Weak. Public price discrepancies can harm corporate relationships
and long-term positioning.
•
Employee Stability: Mixed. Higher occupancy provides work but creates stress for the
reduced staff.
•
Operational Sustainability: Risky. Handling budget travelers with fewer employees
can strain service quality.
•
Market Responsiveness: High. Directly taps into the current segment of priceconscious leisure travelers.
This strategy addresses urgent revenue needs and matches current market demand but
significantly compromises brand value and service standards. Best used temporarily and
carefully managed.
C. Controlled Hybrid Strategy (Selective OTA Use)
Use opaque OTAs only for low-demand periods or limited inventory while maintaining core
premium offerings.
•
Revenue Generation: Balanced. Generates essential cash flow while limiting deep
discounting.
•
Brand Protection: Moderate to Strong. Controlled exposure on discount channels
protects premium positioning.
•
Employee Stability: Moderate. Stable and predictable occupancy helps plan staff
workload and avoids panic cuts.
•
Operational Sustainability: High. Allows for better scheduling, resource allocation,
and cost control.
•
Market Responsiveness: Strong. Captures a portion of price-sensitive travelers
without alienating core segments.
Name:- SIBIN BIJU
Reg No:- 2527851
This option offers the most strategic balance. It enables the hotels to stay operational, brings in
revenue, keeps key staff engaged, and maintains brand control. With tight execution, it meets
all key criteria.
D. Temporary Shutdown
Suspend operations to eliminate variable costs until the market recovers.
•
Revenue Generation: None. All income stops during closure.
•
Brand Protection: Weak. Market presence is lost, and reopening may take time.
•
Employee Stability: Very poor. Large-scale layoffs likely; morale damage irreversible.
•
Operational Sustainability: Limited. Cost control improves but leads to service and
positioning setbacks.
•
Market Responsiveness: Very low. Misses recovery signals and cannot serve available
demand.
A financially defensive move, but destructive in all other respects. Should be considered only
as a last resort if operational losses become unmanageable despite hybrid efforts.
E. Lean Operations with Direct Booking Focus
Minimize team size, cut costs, and push direct channels to retain margin control.
•
Revenue Generation: Moderate. May take time to scale, especially without marketing
spend.
•
Brand Protection: Strong. Full control over pricing, positioning, and guest experience.
•
Employee Stability: Strong. Cross-training and communication improve team
cohesion.
•
Operational Sustainability: High. Tight structure allows for flexible and efficient
execution.
•
Market Responsiveness: Moderate. Captures returning guests and builds loyalty but
lacks short-term volume.
A solid long-term strategy, especially post-recovery. However, its slow revenue generation
makes it less viable as a primary short-term solution unless supported by interim measures.
Recommendation:Alternative C - Controlled Hybrid Strategy is the most balanced and pragmatic choice under
current constraints. It addresses revenue needs without undermining brand positioning, allows
for flexible operations with minimal staff, and aligns with real-time market behavior. Jones
should implement it through limited OTA listings, using internal controls to manage exposure
and protect the brand. Staff scheduling and communication should be adjusted to match
projected occupancy.
Name:- SIBIN BIJU
Reg No:- 2527851
Contingency Plan:If financial indicators do not show improvement within 6–8 weeks, Jones should pivot toward
Alternative E, emphasizing direct bookings and deepening cost controls. If losses continue and
recovery appears delayed, Alternative D (temporary shutdown) may be used strategically, but
only with a plan for phased reopening, rehiring, and marketing support.