La Hacienda Del Sol Harvard Case Solution & Analysis

Lucky Draws

Further, Juanita Garcia can offer a lucky draw for those who visit during the off-peak seasons, so that customers can be attracted during the off-peak season in order to fill the unoccupied hotel room during the off-peak seasons. However, the prize that will be awarded through lucky draw can be prepaid voucher for the use of any of the hotel services or even it could be a discount voucher for using the hotel room during their next visit. Meanwhile, the discount voucher for the next booking of hotel rooms will further develop the base for the future customer attraction and customers will be willing to revisit the hotel in order to avail the discount voucher. Hence, on revisit they will further spend on other services offered in the hotel, which will compensate the discount offered through lucky draw.

Business Partnership

Moreover, Juanita Garcia can arrange relationships with local night clubs, museums, etc. in order to launch a combine sales promotion campaign. Further, this partnership with the local business partners will involve offering of discount vouchers on using the services of one business partner that will entitle the consumer to avail the service of the other partners on discounted prices. However, this sales promotion technique through entering into business partnership with local dance clubs and museums will increase in attracting the customers of its business partners for the use of La Hacienda Del Sol services, which will lead to increase in the sales revenues of hotels.

Discounted Price in Off-Seasons

Additionally, in order to increase the sales during the off-seasons Juanita Garcia can offer discounts on its hotel room usage, which will attract the customers who are price sensitive. However, this sales promotional activity will reduce the revenues per guest, but will increase the overall revenues from the guest attracted through offering discounted prices of hotel booking during the off-seasons.

Increase the Awareness of Unknown Services

Further, the customers are not aware of the SPA services available in the hotel premises, and they get surprised to know about the availability of such services. Since customers like SPA services so they start usingit more often. However, since the customers are not aware of the availability of the SPA services in the hotel premises, therefore, Juanita Garcia should promote the SPA services, meanwhile, this service should be highlighted in the in all the promotional activities, in order to increase the customer awareness regarding the availability of SPA services.

Pricing Strategy

La Hacienda Del Sol has two alternative pricing strategies that it can use during the off-seasons either to select a pricing strategy for the two closer cities of the US or a pricing strategy for local city Mexicali. Meanwhile, La Hacienda Del Sol offers premium hotel services at higher price and wants to increase the sales revenues during the off-seasons. However, considering the population of the two targeted cities will help the selection of appropriate pricing strategy for the two cities.

However, the target cities of the United States comprise 3.7 million of the total population, which have an aggregate annual income of $101 billion. Meanwhile, the total annual income and total population provide an annual average income for per person of $27,000/- and a per person monthly income of $2,250. Meanwhile, on the other hand the population of Mexico’s city Mexicali comprises of only 358,000 who earns aggregate annual income of $3.5 billion. Further, the average annual income of Mexicali city is $9,963/- per person and an average monthly income of $830 per month per person.

Further, the consideration of the target population of Mexicali city and two cities of the United States, i.e., Loss Angels and San Diego, shows that the average monthly of $2,250 of two US city's population is higher than the average monthly income of $830 per person of Mexicali. Therefore, in order to attract more customers from US cities and Mexicali city, La Hacienda Del Sol will have to adopt price discrimination strategy which will involve different prices charged for the two different populations. Meanwhile, the average spending of La Hacienda Del Sol visitors is around $500 due to the luxurious nature of the hotel services provided by the La Hacienda del Sol, hence, La Hacienda Del Sol will have to include such cost structure that best suites the income level of the Mexicali population so that they can target through reduced prices of hotel bookings. Further, the population Los Angles and San Diego should be charged higher prices due to their higher income levels that enable them to spend more for the same services................................

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