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Delta Grand Pacific Hotel, a four star hotel located in a convenient location in Bangkok, deals business mostly with Business and corporate classes. As most of their sales structure is focusing the corporate class, any competition in this class will emerge as a possible…
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Case Study 2
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Download file to see previous pages To stop this effect, Delta Grand Pacific has taken some measurable and actionable strategies. They are –
Awareness Generation: New and existing clients seek value and service quality. In the case where most of the customers are from Japan, a country with strong collective culture, they need to be communicated and interacted in a proper way. Sales reps are trained and instructed accordingly in order to build awareness about the hotel’s services and value by building personal relationship between the company and the customer.
Changing Room Rates: As Average Room Rate and Occupancy Rates are indirectly proportional to each other, a trade off must be achieved between the two. Offering an attractive yet flexible room rates can attract prospective customers.
Exploring New Market Potential: Sukhumvit Micro market, the place where the hotel is located, is surrounded by different competitors. Existing corporate customers visit the hotels in a usual basis. The market is saturated, and an increase in competition definitely curb down the business. Therefore choosing new developing industrial sectors can lead to success.
Targeting intermediaries: Ground operators acts as a liaison between the hotel and the overseas holiday companies. Creating a good relation with these intermediaries’ results in promotion of hotel’s services and values by the ground operators operating at the bottom level.
Alternative Approach: As existing Airline Company is not going to extend it’s contract, the most practical alternative way of doing business is by managing relation with others and set up negotiation with them. By negotiating with a prospective customer, existing business profile can be changed. For example- Previously it was at an average 850 baht per year from airlines industry, but after negotiating with another prospective client, the average is estimated to increase to a whopping 1200 bahts per night per year.
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