Chapter 1 - Summary of Part A

Chapter 1 - Summary of Part A

1.1 Development of Strategies & Tactics

The first 5 days we've tried out the program. We have looked at the rates, the demand, the segments and the no shows. We didn't have a good and clearly strategy and tactics.

After these 5 days we've discussed what we want to do. We didn't want a cheap hotel, but a well-organized and a bit of luxury hotel. We decided to focus on the business people, this because of the location and building of the hotel. We also thought that the business people would spend more for a higher service level especially during the week.

During the weekends we focus more on the leisure guest, because in our opinion the demand of business guests would be lower and the demand of the leisure guests would be higher because they are free then and want a little vacation during the weekend.

We want to invest more in the company and because of that we want to sell the rooms for a higher price. We decided to focus on the C and D rate and we are trying to reach an average daily rate of $90,- / $95,-. To get to the C and D rate we had the tactic to close all the A rates. For the B rate we put a maximum of 35 rooms on it.

In the first 5 days we have accepted groups for the A rate. After these 5 days we had a more clearly strategy, focus on higher rates, so we had choose a tactic for the groups. We only accept groups during the week if there are more rooms available than 75. We thought that if there only 75 rooms or less are left, the demand is fine and we can sell this for a higher rate. In the weekends we won't accept groups for the A rate. This because we have increased the cost for entertainment during the weekend and we wouldn't have to little revenue.

Because we aren't focusing on groups, we lower the cost for the advertising and commission for groups. We have invested more in staffing, training and compensation of the