Strategy For Hotel Sales Declining

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Question: You are on the US Board of Directors for a multinational hotel chain based in US. Over the last 12 months you have seen a decline in room occupancy rates and a decline in operating profits. Customer complaints have risen by 74% largely due to issues related to the customer service quality and a lack of professionalism. Repeat customers have reduced from 30% to 11%. Your marketing spend has remained steady, set at 15% of the previous year’s operating profit. For this exercise, you are requested to: * Discuss and summarize the potential causes of the deterioration in operating performance and highlight the key causes * Create a list of strategic initiatives to improve business performance

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