Strategies to Improve Jackalope Hotel Occupancy Rates

This report presents a comprehensive analysis of the factors impacting the occupancy rates of the Jackalope Hotel, a luxury property located in the Mornington Peninsula. The study investigates the influence of hotel characteristics (location, number of rooms), internal factors (service quality, room facilities, prices, employee attitudes, cleanliness), and external factors (market competitors, economic changes, political stability, seasonality) on occupancy. The research employs a mixed-method approach, combining both qualitative and quantitative data collection and analysis, including regression analysis using Ms Excel, to identify key drivers of occupancy. The findings highlight the positive impact of all three factor categories on the occupancy rate, particularly during midweek periods. The report also includes recommendations for strategies to improve occupancy rates and includes a detailed literature review, research methodology, findings, and conclusions, supported by relevant tables, graphs, and qualitative data from the hotel's Director of Marketing and Leisure Sales.

Running head: HOTEL AND HOSPITALITY MANAGEMENT
Hotel and hospitality management
Name of the student
Name of the university
Author note

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Acknowledgement
By this research, I have experienced best possible learning of my life. By conducting this
research, I have learnt various concepts, models and theories. I first thank to the almighty God.
After that, I want to thank to my supervisor ______________ who is my friend, philosopher and
guide. I also thank my parents for being supportive and accommodative for completing this
research. I want to thank my friends for giving me the moral support while conducting this
research.

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Executive Summary
This study had conducted a research on the factors affecting the occupancy rate of the Jackalope
hotel. The study had been able to identify the various marketing strategies required for
improving trade during the mid week of the organization. It has also identified the impact of
hotel characteristics, hotel internal factors and hotel external factors on the occupancy rate of the
hotel. The findings of the study show positive impact of all the three factors on the occupancy
rate. The study consist of three different hypotheses which have been proved using regression
analysis in Ms excel. The study had conducted mixed method for data collection analysis, which
consisted of both qualitative and quantitative data. The multiple designs was the ideal method
and it has been able to provide relevant findings. The study consists of relevant conclusion,
which has been drawn by linking with the objectives mentioned in the chapter 1 of the research.

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Table of content
Chapter 1..........................................................................................................................................7
Introduction......................................................................................................................................7
1.0 Introduction................................................................................................................................7
1.2. Aim of the Research.................................................................................................................8
1.3 Research objectives...................................................................................................................8
1.4 Research Question.....................................................................................................................8
1.5 Research hypothesis...................................................................................................................9
Chapter 2........................................................................................................................................10
Literature review............................................................................................................................10
2.0 Literature review......................................................................................................................10
2.1 Hotel characteristics.................................................................................................................10
2.2 Hotel internal factors...............................................................................................................12
2.3 Hotel external factors...............................................................................................................17
2.4 Hotel Occupancy rate..............................................................................................................20
2.5 Conceptual framework.............................................................................................................21
2.6 Literature gap...........................................................................................................................22
Chapter 3........................................................................................................................................23
Research methodology...................................................................................................................23
3.0 Research methodology.............................................................................................................23
3.1 Research Philosophy................................................................................................................24
3.2 Research Approach..................................................................................................................27
3.3 Research Design......................................................................................................................28

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3.4 Data collection.........................................................................................................................28
3.5 Data Analysis...........................................................................................................................29
3.6 Sampling..................................................................................................................................29
3.7 Reliability and Validity............................................................................................................31
3.8 Ethical consideration...............................................................................................................31
Chapter 4........................................................................................................................................33
Findings and Analysis....................................................................................................................33
4.0 Finding and Analysis...............................................................................................................33
4.1 Quantitative questions.............................................................................................................33
4.1.1 Demographics questions.......................................................................................................33
4.1.2 Quantitative Questions on occupancy rate...........................................................................39
4.1.3 Quantitative Questions on hotel characteristics....................................................................42
4.2 Qualitative Questions to Josh Ogilvie (Director of Marketing and Leisure Sales of the
Jackalope Hotels.)..........................................................................................................................67
Chapter 5........................................................................................................................................71
Conclusion.....................................................................................................................................71
5.0 Conclusion...............................................................................................................................71
5.1 Recommendation.....................................................................................................................72
References and Bibliography.........................................................................................................74
Appendix........................................................................................................................................79

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List of figures and Graphs
Figure 1: SERVQUAL MODEL AND GAPS..............................................................................14
Figure 2: Research onion Model....................................................................................................24
Figure 3: Research Philosophy......................................................................................................26
Figure 4: Research Approach........................................................................................................28
Figure 5: Research Sampling.........................................................................................................30
Graph 1: Frequency of visit...........................................................................................................34
Graph 2: Profession.......................................................................................................................36
Graph 3: Monthly Income.............................................................................................................37
Graph 4: Hotel Accommodation and Services..............................................................................38
Graph 5: Purpose of visit...............................................................................................................39
Graph 6: Availability of rooms......................................................................................................40
Graph 7: Convenience in booking.................................................................................................42
Graph 8: Hotel Location................................................................................................................43
Graph 9: Accommodation size......................................................................................................45
Graph 10: Extra Amenities............................................................................................................46
Graph 11: Service quality and Cleanliness....................................................................................47
Graph 12: Employee Behaviour....................................................................................................49
(Source: As created by author)......................................................................................................49
Graph 13: Prices............................................................................................................................50
Graph 14: Seasonality....................................................................................................................52
Graph 14: Market Competitors.....................................................................................................54
Graph 16: Political stability and Economy...................................................................................55

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List of tables
Table 1: Frequency of visit............................................................................................................34
Table 2: Profession........................................................................................................................36
Table 3: Monthly Income..............................................................................................................37
Table 4: Hotel Accommodation and Services...............................................................................38
Table 5: Purpose of visit................................................................................................................39
Table 6: Availability of rooms.......................................................................................................41
Table 7: Convenience in booking..................................................................................................42
Table 8: Hotel Location.................................................................................................................44
Table 9: Accommodation size.......................................................................................................45
Table 10: Extra Amenities.............................................................................................................46
Table 11: Service quality and Cleanliness.....................................................................................48
Table 12: Employee Behaviour.....................................................................................................49
Table 13: Prices.............................................................................................................................51
Table 14: Seasonality.....................................................................................................................52
Table 14: Market Competitors......................................................................................................54
Table 16: Political stability and Economy....................................................................................55

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Topic: Increasing occupancy rates in rural luxury properties during mid-week rate- “A case
study of Jackalope hotel Mornington Peninsula”
Chapter 1
Introduction
1.0 Introduction
This study will identify issues and develop strategies for increasing occupancy rates in
rural luxury hotels. This study will consider Jackalope hotel Mornington Peninsula to identify the
effective strategies that can be implemented for improving the trade volumes during midweek.
1.1. Background of the study
Jackalope hotel Mornington Peninsula is a luxury hotel having 46 rooms and is located
on a working winery. The hotel provides full service to its customers with room service and
front desk service for 24 hours. The facilities in the hotel includes the free WiFi, pools and spa
that are solar heated, welcome drinks, complimentary mini bar, two on site restaurants and room
service twice a day. Recently, the hotel is facing issued due to the less occupancy rates during
the mid weeks. Occupancy rate of the hotel during the weekend is 90% where as during the mid
week it falls under 50% (Gourmet Traveller 2018). Therefore, the daily takings are affected due
to the decrease in the number of consumers but the operating costs are remaining same
regardless of the decrease in customers. The location of the hotel is an issue as it attracts only the
premium consumers in the market. The hotel may have to curtail costs within their cost structure,

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which may lead to increase in turnover rate of the organization. In this study, these problems will
be addressed to identify suitable strategies for mitigating these issues.
1.2. Aim of the Research
This research is aimed at identifying the different factors that are responsible for affecting
the occupancy rate of Jackalope hotel Mornington Peninsula. The identified factors will be
evaluated to investigate the nature of impact of each of the factors on the occupancy rate during
midweek trade. This research will conclude by providing valid recommendations regarding
different strategies that should be implemented for improving the occupancy rate during
midweek.
1.3 Research objectives
 To identify the factors affecting the occupancy rate of Jackalope hotel Mornington
Peninsula
 To investigate the impact of these factors on the occupancy rate of Jackalope hotel
Mornington Peninsula
 To recommend suitable strategies for improving the occupancy rate of Jackalope hotel
Mornington Peninsula during mid week trade
1.4 Research Question
 What are the factors affecting the occupancy rate of Jackalope hotel Mornington
Peninsula?
 What is the impact of these factors on the occupancy rate of Jackalope hotel Mornington
Peninsula?

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1.5 Research hypothesis
H01- Hotel characteristics do not have an impact on the occupancy rate of Jackalope hotel
Mornington Peninsula
H11- Hotel characteristics have an impact on the occupancy rate of Jackalope hotel Mornington
Peninsula
H02- Hotel internal factors do not have an impact on the occupancy rate of Jackalope hotel
Mornington Peninsula
H12- Hotel internal factors have an impact on the occupancy rate of Jackalope hotel Mornington
Peninsula
H03- Hotel external factors do not have an impact on the occupancy rate of Jackalope hotel
Mornington Peninsula
H13- Hotel external factors have an impact on the occupancy rate of Jackalope hotel Mornington
Peninsula

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Chapter 2
Literature review
2.0 Literature review
As stated by Viglia, Minazzi, and Buhalis (2016), occupancy rate is the most crucial
aspect of a hotel as decrease in occupancy rates increases the depletion rate of hotel resources.
The external and internal factors are very important for growth, performance and success. The
external factors will include the market competitors, economic changes, political situation and
seasonality. The internal environment will consist of factors such as service quality, employee
attitudes, room facilities, prices and cleanliness. The characteristics of the hotel are also an
important factor, as it will consist of factor such as location of the hotel and the number of beds
in the hotel.
2.1 Hotel characteristics
According to Radojevic, Stanisic and Stanic (2015), the characteristics of the hotel will
determine the attractiveness of hotel. The consumers will be initially be attracted due to the
location of the hotel, number of rooms and extra amenities they are providing to the consumers.
Location
There are certain consumers that give importance to the location of the hotel and they are
willing to pay more for a suitable location. The surrounding environment of the hotel will
determine what type of consumers they will attract. Business consumers will occupy a hotel that
is located near a corporate centre and the hotel can collaborate with the centre to attract those

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consumers in the market Zervas, Proserpio and Byers, (2017). Thus, the hotels can adapt to the
events by formulating suitable strategy. Thus, identifying the possible customer could provide
competitive advantage, as they can understand what the location of the hotel can offer to the
consumers. According to Phillips et al. (2017), the location of the hotel will determine the
potential expansion they can obtain in the near future. The target groups of the hotels are
determined by the location and a good location may provide support to the sustainability. There
are generally two types of hotel settings, one is the centre hotels and other is the rural setting
hotels. However, both have their own set of positives and negatives. As stated by (), the hotels in
the city centre cater to a saturated market so the analysis of the market competitors are essential
in gaining competitive advantage in the market. Moreover, they should have sound knowledge
about the surround hospitality industry so that suitable strategies can be formulated. The
location issue is less significant for the hotels located in rural setting, as there is less competition.
Number of rooms and occupancy
The hotel occupancy capability is another important factor for understanding the growth
and performance of the hotels in the industry. The total number of rooms and the number of
rooms occupied in the hotel will determine the occupancy rate. The occupancy rate of a hotel
signifies the profit margin, revenue streams and cost structure of the hotel. The occupancy rate of
hotels fluctuates depending upon the seasonality. The occupancy rate identifies the behaviour of
the population during the weekdays and week offs (Ling et al. 2015). Generally, hotels
experience less occupancy rates during the weekdays and there are certain seasons when the
business prospects are quite low for the hotel. Therefore, it is essential to compare the different
hotels in the same region to understand the competitiveness of the environment. Thus, by
understanding the trends in the market, any firm can implement strategies for improving their