Regal Carnation Hotel Case Analysis

Regal Carnation Hotel: Case Analysis

MBA-622

February 28, 2016

Regal Carnation Hotel: Case

Problem Statement:

        Steve McKenzie’s decision to stay at the Regal Carnation Hotel resulted in a bad experience that did not meet his expectations. If McKenzie continues to approach the process of making decisions as he did for his Guam vacation, he will continue to receive inconsistent outcomes.

Analysis:

Why did Mackenzie and his wife have a bad experience at the Regal Carnation Hotel?

          It could be that their experience was bad because of hotel branding.  Hotel branding is critical because in Guam, there was competition and the Regal Carnation Hotel didn’t hold a competitive advantage over the competition.  The Regal Carnation Hotel didn’t boost loyalty to ensure consumers would return.   If consumers were to revisit the Regal Carnation Hotel, accommodations would need to meet customer expectations continuously.  Large hotel brands have established procedures that result in consistency and a higher degree of customer service.    McKenzie and his wife should have put on the white hat of the Six Thinking Hats Model when deciding on their lodging arrangement. They should have analyzed competition branding and conducted a comparative analysis of the Regal Carnation Hotel. Furthermore, The McKenzie’s failed to recognize that Guam tourism was decreasing and branded hotels held a competitive advantage over smaller 3-star companies.  Had the McKenzie’s decided to stay at a branded hotel business processes would be consistent and their stay would have met expectations.

        It could be that their experience was bad because of the online booking process.  An online booking process is crucial when making reservations because it allows consumers to read reviews of the hotel and make decisions based on gut instincts.  The Regal Carnation hotel misrepresented the quality of the hotel because their website was outdated. If McKenzie and his wife went the extra mile to analyze the reviews, their outcome would have been different.   They would have recognized that previous guests did not favor the hotel, and it would have raised concerns and influenced their decision. Booking vacations online could benefit the consumer by allowing them to search specific benefits they want and cater to their particular lifestyle, but the research should not be limited to a small sample.  It seems as though McKenzie and his wife decided on the hotel while wearing the red hat of the Six Thinking Hats Model. Their decision to stay at the hotel was based on the feelings they received when looking at the pictures on the website and how they felt about the price with relation to value.