TOUR 374: Hotel Operations Case Study - Service Recovery and Strategy

This case study analyzes the declining occupancy rates of an international hotel, exploring the causes through a cause-and-effect analysis. It identifies issues related to facilities, pricing, services, location, staff, competition, and brand image. The solution proposes an immediate service recovery strategy focused on upgrading social media presence, employee training, and price modifications. The objectives include improving brand image, increasing occupancy, understanding customer needs, and boosting revenues. The study suggests actions such as personnel performance reviews, promoting the property through social media influencers, and implementing the RATER model to improve reliability, assurance, tangibles, empathy, and responsiveness. Additional recommendations include technology upgrades, hotel infrastructure renovation, and enhanced social media marketing. The conclusion highlights the multifaceted reasons for occupancy decline and the proposed solutions for improvement.

HOTEL OPERATIONS
CASE STUDY Name of the Student

INTRODUCTION
The needs of the travellers have been changing considerably.
This makes it very critical for the hotels to come up with new
offerings.
These new offerings can come in the form of interesting pricing
techniques or accommodation advantages
The concept of shared accommodation also brings about a new
revolution in the hotel industry (Boella, 2017).
Hence, the primary of the presentation is to outline the manner in
which the overall operations of the Hotel can be reviewed and the
problem relating to the lowered occupancy can be solved
accordingly.

THE PROBLEM IN HAND
The ABC international Hotel has been faced by a problem of
lowered occupancy rate
Although the number of international tourists and domestic
travellers in the country have increased, the number of occupants
as present in the hotel has been declining.

CAUSE AND EFFECT
ANALYSIS
Facilities
Pricing
Services
Location
Staff
Competition
Brand name
Reduced
Occupancy

The different causes due to which the overall occupancy has
reduced at the ABC International Hotel can be taken to be as
follows:
Pricing
• The pricing of the hotel may
not be affordable by the
guests and hence, the
occupancy can be low
Location • The location of the hotel may
not be suitable.
Services
• The services provided by the
hotel may not be adequate
and as per the standard of
the travellers
Competit
ion
• The competition faced by
ABC can be understood to
very fierce.

Staff • The staff of the hotel may
be incompetent in nature.
Brand
name
• The brand name of the
Hotel may not be up to
the mark
• The effect is the
lowered occupancy
rates
Effects

IMMEDIATE SERVICE
RECOVERY STRATEGY
The immediate service recovery strategy which may be provided to
the ABC International Hotel can be taken to be as follows:
The hotel will be required to upgrade its social media performance
and attract the influencers
The employees need to be provided with training
(Hotelnewsresource.com ,2019).
In addition to this, the pricing of the hotel has to be modified.

OBJECTIVES OF THE
STRATEGY
The objectives of the strategy are as follows:
To improve the brand image of the organization
To ensure that the occupancy rate of the hotel can be improved to
a great extent
To engage in communication with the customers and understand
their needs
To increase the revenues of the firm.

ACTIONS TO BE INCLUDED
Providing customer service training to the
employees
Revising the pricing policy of the hotel
Revolutionising the services of the hotel

PERSONNEL PROFILE
There shall be no change in the personnel
A performance review shall be conducted which will help in
determining the overall performance of the different employees
The employees who have been performing well will be retained
The rest of the employees will be undergone a training facility

PROMOTING PROPERTY
It can be understood to be the age of the social media influencers
It is for this purpose that the property shall undergo a change
which shall make it more picturesque in nature
Additionally, the overall complementary goods and services will be
highlighted
Moreover, the influencers on platforms of the social media will be
invited for a free visit
Their posts shall assist in making the hotel more popular and
thereby improve the occupancy rates Hotelnewsresource.com ,
2019).

INITIATIVES TO BE
UNDERTAKEN
RATER MODEL
Service
Quality
Mgt.
Customer
Satisfaction
& Service
Recovery
Customer
loyalty
Reliability
Assurance
Tangibility
Empathy
Responsiveness