Steve Smith Staying At The Regal Carnation Hotel - 1446 Words

Problem Statement The case describes the protagonist Steve McKenzie staying at the Regal Carnation Hotel. Steve experienced multiple problems with the hotel many of which were overpromised and underdelivered. Steve now feels he must write a letter telling about his horrible experiences, yet he still does not know who to write and what to address. The Regal Hotels business model is becoming questionable with the fluttering tourism market in Guam. Their overall strategy is one of piggybacking and riding the wave of an emerging market, in the late 1960s the tourism market started to take off. Hypothesis 1 Steve sees that the profit maximization strategy is questionable of the hotel offerings and services. This is apparent in many of the aspects of the hotel operations. Analysis The Regal Carnation Hotel owners run the company on the â€Å"me too† approach, in an attempt to piggyback off the success of other hotels in Guam. With this as their business strategy ownership is less likely to invest in the hotel. Also, having the policy of all cash upfront with a non-refundable policy leads to believe they are less likely interested in a high value for customer experience and hold low stock on repeat business. They have a weaker product within a lower star hotel, that has no beach front access, being late to the market. In the late 1960’s the tourism industry in Guam started to take off. This was lead by a strong Japanese economy and a strong tourism market. In 1995 the occupancy