Case Solution for Youreka Hotel, Amritsar

Complete Case details are given below :

Case Name :      Youreka Hotel, Amritsar
Authors :           Shikha Aggarwal, Narain Gupta, Gita Bajaj
Source :             Ivey Publishing
Case ID :           W14774
Discipline :        Operations Management
Case Length :    09 pages
Solution Sample availability : YES
Plagiarism : NO (100% Original work)
Description for case is given below :
The management of the Youreka Hotel in Amritsar, India, was concerned about the hotel’s overall returns relative to its annual operating cost and large initial investment. The new five-star hotel was now up and running and customers had started checking in, but occupancy levels were low. The hotel industry in India was making double-digit margins, but the hotel had not even achieved operational breakeven yet. Of key importance for the operations head was choosing the best seafood supplier – based on selling price, transportation cost and other factors – for supplying the hotel’s restaurants. A poor decision could have a negative impact on room occupancy and profitability. Among management, there were also concerns that the location of the hotel might be unfavourable. When could the operations head expect the hotel to match the profitability of the industry? What could he do to improve the hotel’s profitability?
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