Demand In Resort Industry

CHAPTER I

INTRODUCTION

To manage fluctuating demand in a service business, it is necessary to have a clear understanding of demand patterns, why they vary, and the market segments that comprise demand at different points in time (Zeithaml V., et al. 2013). By putting this understanding into use, a service provider will be able to identify the underlying causes of demand variations and to anticipate demand in their service.

A demand pattern in service is defined as the variability of the consumption habit of customers particularly during seasonality. Seasonality is caused by predictable and uncontrollable factors such as weather, vacation and holidays over time. Compare to goods, services are perishable. Goods can be stored or returned if the

Some resorts have wide arrays of amenities such as a combination of a hotel, swimming pools, lodging areas, food, drinks and even sports facilities that satisfy a guest’s wants. Resort industries are service-oriented which means they are actively involved in customer services. Therefore, every resort’s aim is for their customers to be highly satisfied or to be delighted from the services they experienced. In a resort, facilities and employees are not the only factors which affect the overall experience of a customer but also the presence of other customers. Hence, it is important to provide each customer the most satisfying experience in a resort, packed with enjoyment and

It is a family business that started as a catering business in 1995 by Mrs. Rosario Nolasco. After two years (1997), they finally decided to fuse resort and hotel in the business. The resort name “Cherry’s” came from the nickname of Mrs. Nolasco. Cherry’s Pavilion and Resort aims to provide good service quality and great experience for the customers. According to the manager, Ms. Mindy Quioco, Cherry’s Pavilion and Resort’s advantage to other resorts are their affordable entrance fees and the accessibility and convenience of their location. Aside from the resort and hotel rooms, the catering service, which has been in business for many years, is in-demand within and outside the Cavite province. Just like in other resorts, Cherry’s is also facing demand fluctuations every year due to seasonality. Yet, Cherry’s did not plan and implement any strategies to manage these demand fluctuations. They did not carry out price variation strategies like price increase during peak season to shift demand to off-peak months or discounts during lean months, and their service offerings are the same throughout the year. But times are different now; the management recently realized that there are negative effects of having no certain strategies to cope seasonality: lesser visitors during lean months; their sales are sloping down as their income is at stake; and competition is getting