Regal Carnation Hotel Essay

2416 Words Oct 9th, 2013 10 Pages
Problem and Key Issues

This case introduces the Regal Carnation Hotel in Guam. The perspective is from Steve McKenzie and how he details his experience with the Regal Carnation Hotel. In his depiction of the events that ensued, the fundamental issue consisted of the fact that the hotel followed a fundamentally unsound approach which is termed, “me too”. This decision by the management of the hotel proceeded to be a strong reason why he, as a customer, received poor service, and also why he was a victim of the hotel’s false representation. The “me too” approach coupled with poor timing on a global tourism scale in the territory of Guam, resulted in a pricing plan that did not match the value of the hotel. The hotel industry in Guam has
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Since Regal Carnation got on the scene late, with the excess room inventory in the hotel industry, paired with the decline in the general tourism of Guam, the result ended up being a disaster. A “Me-too” approach to hotel operations in such conditions can have limited success. It’s implied that the hotel tried very hard to reap the benefits of the excess demand for hotels in Guam but couldn’t meet some of the basic needs required for fulfilling the service.
Root Cause Questions and Effects
Steve McKenzie clearly observed and often commented on the issues he saw, like the unkempt meeting room and aged furniture. Because the hotel was late to market and followed suit of other hotels and piggybacked off of others’ successes, it placed a much smaller priority on reinvestment. Could the Regal Carnation gain an advantage by altering its focus? Maybe Regal Carnation could try to market to more Japanese customers, or attempt to provide an extremely family friendly environment. Utilizing intuition when making decisions can have a positive effect. In stark disparity, the McKenzie’s failed to follow their intuition when they decided on the Regal Carnation Hotel.
When analyzing the start up research that the McKenzie’s did, there are certain indications that there might be a problem with the hotel. These issues can be named “red flags”. One

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