The Harbour Hotel (HH)
HH is a family business, owned as a partnership.
In 2012 revenue from HH was $60 000 and in 2013 it is forecast to be $80 000. Saima,
the Finance Director, estimates that revenue in the hotel market in the town will grow from
$500 000 per year in 2012 to $600 000 per year for 2013
. At the moment the main market for HH is tourists. HH is marketed mainly through the 5
Internet.It is advertised on the town’s tourist office website and there are links with websites
of companies that organise holidays. Prices are set low to meet the demands of the holiday
companies. The hotel focuses mainly on facilities people use on holiday – swimming pools,
lounges, the restaurant – as well as comfortable rooms.
The tourist market is very seasonal. Therefore, Saima would like to target the market for 10
business customers. An international conference on trade will be held in the town next year.
Saima thinks that this conference will provide good opportunities to enter the business
market. This will require HH to provide additional conference facilities such as meeting
rooms and information technology (IT) equipment.
HH employs 10 full-time and 5 part-time employees. There have been few workforce 15
problems in recent years but Mike, the hotel manager, has noticed the following worrying
developments.
• Two new employees often do not arrive at work on time and they have been absent several times recently.
• One very experienced employee left to work at another hotel for higher pay. 20
• Some employees complain that the amount of work they do has already increased.
• Several employees are expressing concerns that business customers will be more demanding than people on holiday.
• Some employees are complaining that they have not had a pay rise for two years.
• There have been complaints about the laissez faire attitude of the new manager 25
of the restaurant – ‘there are no standards any more, anything goes!’ said the Chef.