Aryes Hotel Analysis
Aryes is a group of hotels located in Southern California. The hotels deal with numerous clients with their customer base extending from single dwellers, residents, tourists, and business men among others. The Aryes hotels have huge demands with are met by the large pool of professionals who work with Aryes. Like any other services based organization, the Aryes hotels must have the capacity to meet the demand to successfully accrue the cost and acquire revenue or profit. As such, this paper will describe the characteristic of Aryes hotels demand and the capacity.
The diversity of Aryes Hotel makes its demand highly unpredictable. Unlike some other hotels which cater for a specific breed of people, for instance businessmen, the Aryes hotel diversifies into tourists and other sectors(Ayres Hotels 1). Normally, companies that depend on revenues from non-specific tend to be vulnerable to market trends. According to their website, Aryes Hotel Company caters for people looking for leisure, weddings, events, business, and conferences/banquets. The company’s diversity makes its client base highly unpredictable but also readily available. The company’s ability to cater for a client base that is differentiated gives them capability to concentrate on the most profitable client base. Also it allows them to revert back to the original client base when the demand increases. In addition, some of the hotel’s demand is stable in some extent like tourists. The hotel is located in a place suitable for vacations and holidays. As such, the hotel always relies on the clientele base looking for holiday or vacation locations especially in the summers. It is vital to note that the Aryes Hotels are located in different places in the United States. However, some of those hotels have a particular client base and provides services that cater for only this specific client base. Nevertheless some like the Aryes Hotel in California offers services for all clients that book the hotel. The hotel’s demand also depends on the number of early bookings. The hotel’s affinity with vacationers and tourist ensures the company deals with hugely early bookings. As such, the company’s demand characteristics are highly unpredictable(Ravi Mehrotra & James Ruttley 13).
Capacity is also an integral aspect in hotel management. A company must have the capacity to cater for the demand even when the demand is at a peak high. In many cases the demand rarely exceeds the capacity. However, sometimes, especially in peak seasons, the demand may exceed the capacity. In such situation how a hotel deals with the excess demand influences how much revenue the hotel can expect to generate. The Aryes hotel company has a capacity of 600-1000 rooms depending on the demand(Ayres Hotels 1). The hotel’s capacity is favorable and sufficient for the number of clients that stay in the hotel annually. A vital aspect to note is that the hotel’s rooms are divided into King Suite, King studio, one bedroom room, queen suite, and the standard rooms. The segmentation of the rooms in the hotel ensures the hotel has the capacity to cater for people with different financial capabilities. Also, most of the hotel’s rooms are allowed a maximum of four people per room indicating that the capacity can be larger than the number of rooms booked. The hotel’s capacity is flexible. With its unpredictable demand, the Aryes Hotel’s capacity can be changed depending on the number of clients it receives. Hotels that run in a similar manner to the Aryes are able to change the capacity through adjusting the rooms and booking some of the clients in other hotels. Another strategy the hotel uses in dealing with the demand is by adjusting prices. In some cases, the hotel may receive more demand in the standard rooms but not the suites; in this case the hotel can rent the suites with the same price as the standard rooms to cater for the demand. In any particular, a hotel that deals with unpredictable demand must have flexible capacity to allow for the changing market trends.
Ayres Hotels. 28 April 2016. Web. 28 April 2016.
Ravi Mehrotra & James Ruttley. Revenue Management. New York: American Hotel and Lodging Association, 2006.