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Gretchen Hotel: Strategies for Growth

The Gretchen Hotel has many strengths like its facilities and affordable prices, but its average monthly occupancy rate is only 48.9%. To address this, the document recommends hiring more employees and training them, researching marketing trends, hiring marketing experts, and using the hotel for travel quarantines. An action plan should acknowledge the occupancy issue, accept new ideas, research trends, and focus on excellent customer service. Overall, the Gretchen Hotel needs innovation and marketing to boost its occupancy rate.

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Angelica Lozada
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312 views11 pages

Gretchen Hotel: Strategies for Growth

The Gretchen Hotel has many strengths like its facilities and affordable prices, but its average monthly occupancy rate is only 48.9%. To address this, the document recommends hiring more employees and training them, researching marketing trends, hiring marketing experts, and using the hotel for travel quarantines. An action plan should acknowledge the occupancy issue, accept new ideas, research trends, and focus on excellent customer service. Overall, the Gretchen Hotel needs innovation and marketing to boost its occupancy rate.

Uploaded by

Angelica Lozada
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
  • Introduction
  • Statement of Objectives
  • Central Issue
  • Areas of Consideration
  • Courses of Action
  • Decision Matrix
  • Action Plan
  • Conclusion
  • Recommendations

GRETCHEN HOTEL

Case Study

Strategic Management

By:

Lozada, Sofia M.

BSTM 3
I. Introduction

Gretchen Hotel is a five-star upscale hotel situated in Manila. Being one of the

most popular hotels in the city, tourists and professionals frequent the place. The

hotel boasts of its historicity as shown in the delicate architecture of the past while

complemented by pieces of furniture that harmonize the entire mood. Strategically

well placed, there is an intense but gentle ambiance of artistry and national pride.

This hotel was named after the lady owner, Gretchen, who passionately worked hard

to bring the best in the domicile service.

Today, Gretchen Hotel houses 375 cleanly maintained rooms of different

sizes and three restaurants: one for fine dining, another one serves that exclusively

Japanese food, and the other for casual dining. Two swimming pools invite guests

(children and adults) to relax and feel the cool water. It is supplemented by a gym for

physical and health aficionados.

On the ground floor are boutiques that sell antique items, shirts, bags,

imported cookies, medicine, and other items for casual needs. At night, one can hear

a string of soft music that so the otherwise tired travelers and professionals. The bar

is suitable for a quiet conversation while one sips the relaxing mellow taste of the

wines served. There are rooms for meetings and other business discussions,

equipped with technology gadgets and other communication requirements. In every

respect, Gretchen Hotel is proud of its complete and state-of-the-art facilities.

Gretchen Hotel has a total of 188 employees who are stationed in various

service offices, starting with administration, and front desk to concierge, bellboys,

restaurants, housekeeping, maintenance, and other service offices. They render


quality services to their customers and evidently, they are delighted with how the

staff, supervisors, and managers perform their jobs.

Similarly, the daily room rates of Gretchen Hotel are affordable, including food

and other facility prices. Note that the Hotel does not impose extra or hidden

charges. They are transparent and this makes their customers happy. While the old

and current customers of Gretchen Hotel generally come back and patronize the

Hotel, it is confronted with a great challenge. Its average monthly occupancy rate is

only 48.9%.
II. Central Issue:

Even if the Gretchen Hotel has a lot of strengths as a hotel, it only has an average

monthly occupancy rate of 48.9%. Creating an opportunity for Gretchen Hotel to

maximize its strengths by providing different strategies on how they will rack up the

occupancy rate and different action plans to help them on how they will be

consistent.

III. Statement of objectives:

• to strategies an action plan to help increase the hotel's occupancy rate

• to provide help and conceptualize an action plan that will not only stabilize the

hotels’ occupancy rate but consistently on a high rate


IV. Areas of Consideration:

a. Internal Environment:

 Strengths:

• Gretchen Hotel houses 375 cleanly maintained rooms of different sizes and three

restaurants: one for fine dining, another one serving exclusively Japanese food, and

the other for casual dining.

• Two swimming pools invite guests (children and adults) to relax and feel the cool

water. It is supplemented by a gym for physical and health aficionados.

• On the ground floor are boutiques that sell antique items, shirts, bags, imported

cookies, medicine, and other items for casual needs. At night, one can hear a string

of soft music that soothes otherwise tired travelers and professionals. The bar is

suitable for a quiet conversation while one sips the relaxing mellow taste of the wines

served.

• There are rooms for meetings and other business discussions, equipped with

technology gadgets and other communication requirements.

• Gretchen Hotel is proud of its complete and state-of-the-art facilities.

• The daily room rates of Gretchen Hotel are affordable, including food and other

facilities. The Hotel also does not impose extra or hidden charges. They are

transparent and this makes their customers happy.


 Weaknesses:

• Gretchen Hotel has only a total of 188 employees who are stationed in various

service offices, starting with administration, front and desk to concierge, bellboys,

restaurants, housekeeping, maintenance, and other service offices. (Lack of

manpower)

• Since the hotel is huge, the employees are having a hard time maintaining the

facilities.

• Lack of advertisements or promotions

• The interior design of the hotel isn’t that good anymore because most of people

now are into Instagram and prefer modern and trendy interiors.

b. External Environment

 Opportunities:

• Gretchen hotel can be a venue for the people who needs to be in quarantine before

or after traveling

• It can be a venue for other events like parties, formal gatherings more.

• It can be a good place for staycations

• Online advertisements
 Threats:

• Pandemic

• Terror attacks

• Political

• Theft

• Unsatisfied Customer

• Employees and customers

• Natural and man-made calamities

V. Courses of Action:

 Acknowledge the problem,

 Be open to innovations, accept suggestions

 Hire new people for the hotel and train them well enough on how to always

innovate in order to fulfill high expectations and give excellent service. The

guests/customers should be at the center of everything, and services should

be tailored to their needs.

 Research current trends

 Hire marketing experts and strategist


 Use the hotel as a place for travel quarantines

 Decision Matrix

Average Weighted Mean for Alternative Courses of Actions

Scale 5 to 1: Best to Worst


 Action Plan
VI. Conclusion

We concluded that while the Gretchen Hotel is an excellent establishment, it does

have some issues that need to be addressed. It requires innovation, new employees,

and training for existing staff to improve their performance and stay current with how

hoteliers handle customers and guests today. Additionally, they must research

marketing trends such as online advertisements or even television advertisements in

order to reach a larger audience.


VII. Recommendations

Based on the findings and conclusions presented, the following recommendations

are suggested:

• Change the old strategy, and think about what is more necessary, the executives

should consider new products or services that can offer to customers

• The company should start changing its environment in order for the customers to

feel new

• Employees' functional abilities are being instilled in order to meet the needs of the

hotel business and to improve management.

• The hotel can hold charity events to gain investors and loyal suppliers

Common questions

Powered by AI

To improve service delivery, Gretchen Hotel could enhance personalized guest services by utilizing guest feedback effectively and refining its service protocols . Implementing technology solutions such as mobile check-in/out and digital concierge services can streamline guest interactions and improve satisfaction levels. Regular staff training focused on customer engagement and proactive problem solving could also be beneficial . Additionally, introducing loyalty programs or customer appreciation initiatives could encourage repeat business by enhancing guest retention and incentivizing positive word-of-mouth through memorable experiences .

Marketing innovations could play a critical role in improving occupancy rates at Gretchen Hotel by increasing visibility and appeal to potential guests . The hotel could employ digital marketing strategies, such as social media marketing and search engine optimization, to target travel enthusiasts and business professionals more effectively. Creating engaging content showcasing the hotel's unique features and experiences could create a stronger online presence. Additionally, partnerships with travel agencies could enhance reach and cater to a wider audience, potentially improving occupancy rates .

To improve service quality, Gretchen Hotel could implement tailored training programs focusing on hospitality management, customer relations, and cultural sensitivity to enhance employee skills . Cross-training employees to handle multiple roles efficiently can mitigate the problems associated with lack of manpower . Incorporating feedback from customer satisfaction surveys into training content will ensure that employees are responsive to guests' needs. Moreover, partnering with hospitality institutes for structured training sessions and continuous professional development workshops can enhance staff competencies while aiding in retention and motivation .

Gretchen Hotel can address its lack of advertising by developing a comprehensive marketing strategy that includes online and offline advertising to leverage its reputation . Implementing social media campaigns, creating engaging digital content, and collaborating with influencers can raise brand awareness. Hosting events and offering limited-time promotions can stimulate interest and engagement . Additionally, enhancing its website with virtual tours and customer testimonials, and venturing into new advertising platforms such as television or influential blogs can attract diverse customer demographics and help boost business visibility and occupancy rates .

Gretchen Hotel's internal strengths, such as its wide variety of facilities and affordable, transparent pricing, can be leveraged to overcome its weaknesses by focusing on maximizing customer satisfaction and enhancing the guest experience . By emphasizing cleanliness and expanding staff training, the hotel can maintain high service standards despite its limited employee base . The hotel should also capitalize on its strategic location and historic architecture to attract niche markets, such as heritage tourists, while investing in modernizing its interiors to appeal to a wider, contemporary audience .

To optimize facilities and improve customer satisfaction, Gretchen Hotel could better utilize its multiple dining options by offering themed nights or exclusive culinary events that leverage its diverse restaurant settings . The gym and swimming pools can host fitness classes and family-oriented activities to enhance guest engagement. Meeting and event spaces can be marketed for business and social gatherings, expanding clientele reach. Establishing partnerships with local businesses for boutique promotions could add more value to guests' stays, while refining room service and concierge offerings could enhance the overall guest experience and increase occupancy .

To address low occupancy despite extensive facilities, Gretchen Hotel could implement new marketing strategies such as leveraging online advertisements and media campaigns to reach a broader audience . Engaging in environment modernization to attract modern clientele interested in current design trends can also help . Additionally, expanding services to include event hosting for formal gatherings and utilizing the hotel for quarantine purposes could diversify their customer base . Enhanced employee training and hiring more staff will ensure service levels meet customer expectations, potentially improving repeat business and word-of-mouth promotion .

Using Gretchen Hotel as a quarantine venue is feasible given its extensive facilities and strategic location. The hotel offers ample room capacity and flexibility in service provision, which could cater to quarantine needs . Implementing strict health protocols and collaborations with healthcare providers can ensure safe operations. The potential benefits include stable occupancy, revenue from government or health agency partnerships, and maintaining staff employment levels during periods of low tourism. However, this strategy requires careful management to balance regular guest services and ensure long-term reputation maintenance .

Maintaining Gretchen Hotel's historic architectural style while appealing to modern trends presents challenges such as balancing preservation with innovation . To address this, the hotel could undertake selective renovations to incorporate contemporary interior design elements without compromising the building’s heritage. Collaborative efforts with architects and interior designers specializing in adaptive reuse could help in effectively merging old with new. Additionally, promoting the hotel's historical charm as a unique selling point through storytelling and heritage tourism marketing could attract guests who appreciate both modern and historical aesthetics .

Potential external threats to Gretchen Hotel include the ongoing impact of the pandemic, political instability, and the risk of natural and man-made disasters . To mitigate these threats, the hotel could establish robust risk management protocols and crisis response strategies. Developing partnerships with local authorities and health agencies for pandemic-related safety measures can ensure preparedness. Engaging in regular risk assessments and developing contingency plans can aid in maintaining operations under various scenarios. Additionally, insurance coverage for potential disaster scenarios and investment in building resilience against thefts and customer dissatisfaction could also be strategic measures .

GRETCHEN HOTEL Case Study Strategic Management By: Lozada, Sofia M. BSTM 3
I. Introduction Gretchen Hotel is a five-star upscale hotel situated in Manila. Being one of the most popular hotels in the c
quality services to their customers and evidently, they are delighted with how the staff, supervisors, and managers perform t
II. Central Issue: Even if the Gretchen Hotel has a lot of strengths as a hotel, it only has an average monthly occupancy ra
IV. Areas of Consideration: a. Internal Environment: Strengths: • Gretchen Hotel houses 375 cleanly maintained rooms of d
Weaknesses: • Gretchen Hotel has only a total of 188 employees who are stationed in various service offices, starting with
Threats: • Pandemic • Terror attacks • Political • Theft • Unsatisfied Customer • Employees and customers • Natural a
 Use the hotel as a place for travel quarantines Decision Matrix Average Weighted Mean for Alternative Courses of Actions
Action Plan
VI. Conclusion We concluded that while the Gretchen Hotel is an excellent establishment, it does have some issues that need

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