Pegasus Beach Resort Case

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The Pegasus Beach Resort Hotel 1. There are several factors that lead to variations in demand for rooms at Pegasus Beach. The clientele of the hotel has traditionally been vacationers and tourists from the UK and Canada during the “vacation” months of November through June. The major factor of this demand is seasonality. During the hottest months of the year, usually July through October, there is a much lower occupancy rate. This causes the average daily room rate to decrease, which causes the RevPAR to decrease. Another factor of seasonality is the weather. Hurricane season runs from August until October, and while this is during their slow season anyway, it increases the likelihood that the occupancy will decrease more should there be bad weather. Weather can also affect those not in the immediate country but that live in an area that may get a large amount of snow in the winter months, which makes travel difficult. Due of this, the hotel demand had been primarily based upon vacation schedules, like Christmas break for parents with children in school. Because of the pattern of vacationers, the Pegasus opened up their doors for corporate clients who come for meetings with local companies. These clients have proven to provide more stable, year-round volume. 2. The market segments include a. Corporate clients b. Corporate Travel Managers c. Families with children d. Couples e. Tour operators * A pro of serving this clientele is that it is a variable assortment and this allows for more stable volume throughout the year. The corporate clientele and corporate travel managers are there to meet with local businesses so they are likely to stay at the resort during even the hottest months. * A pro of serving the various market segments is that the stable volume will also keep revenue incoming throughout

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