Page 1

Case Study The History The Titania Hotel, a 4-star hotel located in the scenic countryside, is just 50 km away from a major city. For years the hotel had enjoyed incredible success, drawing in tourists and locals alike by the masses, and had achieved a commendable G.O.P of 40%. During these good times, the hotel had enjoyed a high occupancy that was consistently above 75% and had established a solid reputation for top-quality service. The hotel was the number-one spot for tourists and local holiday-makers, desiring an escape from city life, and has even attracted international hotel critics that have written impressive recommendations of the hotel in widely-read travel magazines. Everything was going well back then, but things have changed drastically for the worse: The Unfavorable Events Multiple terrorist attacks have occurred across the country that has virtually killed the tourist industry. Travel advisories and warnings have redirected tourists to other countries. Expectedly, the Titania Hotel’s occupancy began to fall, but matters worsened with the opening of a new hotel, by a rival hotel chain, situated half-way between the Titania and the major city. They offer family-sized holiday-huts at low-rates and this has taken a substantial slice of holiday-makers that would otherwise stay at the Titania. The Problem Relying predominantly on loyal guests, mostly if not all locals residing in the major city, the rooms are mostly empty during the week with business picking up only in the weekends. The Titania’s occupancy levels are just a shadow of their former glory and the most distressing truth is that the hotel can only maintain a sluggish G.O.P. that occasionally falls into negative territory. What measures should you take to improve the G.O.P. and help the hotel to survive during these difficult times? Facts about the Titania Hotel The Titania Hotel features 125 spacious rooms and suites, equipped with all the modernday furnishings and amenities that would ensure a comfortable stay, including mini bar, direct-dial telephone and satellite TV. For hotel-dining, the Titania offers a wide selection of local and international cuisine at the Oberon Restaurant. A well-decorated, themed bar with band, called the Executive Safari Bar, is also open to guests at night. Other features include swimming pool, tennis courts and fitness and spa facilities. A fully-equipped business center, with several function rooms, is also available for the guests. Your Task You have recently taken up the post of General Manager at this hotel and you will be holding your first department-head meeting in 2 weeks to discuss ways to improve the hotel’s G.O.P. Enclosed, you’ll find the hotel’s current 2004 Budget. Please prepare yourself for this meeting, preferably with the aid of presentation software (e.g. Microsoft Powerpoint)

Enclosed, you’ll find a copy of the hotel’s current budget.


case for new project