The Accra Beach Hotel: block booking of capacity during a peak period

Abstract

Subject area

Segmentation, business impacts of decision making, hotel management.

Study level/applicability

Undergraduate Business or Finance.

Case overview

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?

Expected learning outcomes

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.

Supplementary materials

Teaching notes.

Citation

Kimes, S.E. and Wirtz, J. (2011), "The Accra Beach Hotel: block booking of capacity during a peak period", , Vol. 1 No. 1. https://doi.org/10.1108/20450621111110465