Case studies

In this case, a senior business analyst at the online travel agency Trek-ation struggles with the decision of whether to pursue a potentially lucrative idea. Her innovation team had proposed revising the online pricing algorithm in order to use the cookies and other information from customers’ web browser to customize pricing for flights and hotels. Although she wanted to increase revenue for the company and meet her targets, she was also concerned not only about the backlash if this tactic was revealed to the public but also, more importantly, about both the fairness of this practice and the violation of customer privacy norms.

Hospitality and tourism management; strategic management; marketing, transportation system management and human resource management.

Undergraduate in business and management and hospitality and tourism management.

This teaching case outlines the historical background, successes and challenges of the national airline of Jamaica. It shows how a national airline, which is a heritage asset and one that has provided nostalgic and sentimental value to the Jamaican people and its passengers, had to be divested. The airline has been faced with several challenges; the major one being high-operating costs, especially in light of the global economic recession. The case also highlights the various procedures carried out by the Government of Jamaica before and after the divestment arrangement and also by the acquirer, Caribbean Airlines.

The student should be able to: first, differentiate among the various strategic management terms and concepts used in the case; second, explain the importance of strategic decisions versus emotional decisions; third, assess the environmental factors that impacted Air Jamaica's operation; fourth, analyse the environmental factors that should have been considered by Caribbean Airlines before making the decision to acquire Air Jamaica; fifth, carry out a comparative analysis of the various corporate-level strategies to identify the best option for the Government of Jamaica; sixth, propose reasons why Caribbean Airlines acquired Air Jamaica.

Teaching note.

Segmentation, business impacts of decision making, hotel management.

Undergraduate Business or Finance.

The sales manager at a Caribbean hotel wonders whether to accept a large block booking at a discount rate from a group participating in an international sporting event. Do the promised publicity benefits justify the risk of turning away guests from higher paying segments?

The case should: highlight the potential for conflicts when customers from different segments with different needs and expectations find themselves in close contact with each other; identify the trade offs that may have to be made when acceptance of a large block booking might displace regular customers; and calculate the incremental financial impact of revenues from new business less revenues forgone when capacity limitations mean that some traditional business will have to be turned away to accommodate the block booking.

Teaching notes.