Case Study: Boutique Hotels

840 Words4 Pages
There are involvement of the consideration to purchase the service of Boutique Hotels among the potential customer due to the risk that they might need to be face in future after the period of purchase or before of consumption. There will be Valuation and Acquisition risk fall under this part; where brings more consideration during the purchasing period.
Valuation risk is defined as to the uncertainty associated with the consumption of a service is risk faces by the buyer at the time of purchase. There are total of two type of Valuation risk that involve, which are high valuation risk and low valuation risk. High Valuation Risk is normally occur during the time of purchasing when the consumption of service later one; which buyer feel uncertainty
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Normally, acquisition risk is lower when the valuation risk is higher; the acquisition risk is higher when the valuation risk is lower means that sometime the consumer like to purchase the service in advance to secure the service to consume but they uncertain of can con consume or not; but at least they no need to worries about unavailability. The first risk that the potential customer will be face during the acquisition risk is unavailability of the service due to fully occupied or hard supply of company or boutique hotels. For example, the guest wait until last minute for the special rate to enjoy the stay at the boutique hotels; but unfortunately the time the guest go for book the room, all the room was fully booked and no rooms available on that day; which this showing of the high acquisition risk that unable to consume due to planning of purchasing on spot of consuming time. The following risk that the guest might be face in boutique hotel due to acquisition risk is that the price of the room will be higher compare to the beginning; which normal hotel practice that they will increase the price depends on the demanding of the business or market. For example, the guest would like to see the crowd of the consumer towards the hotel during the peak season period and buy after that; unfortunately the price of the Boutique Hotel’s room is getting higher due to the number of booking and reservation is higher. The following risk that the potential customer might be face in Boutique hotels will be availability of facilities and service that offer by the boutique hotels. For example, the customers try to book the room in boutique hotel on the spot of consuming period where there is no availability of the rooms that he/she require for which is larger size room; but there is only available of standard
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