It was a 5 star hotel affiliated with the Ramada Renaissance hotel chain. Located on the Mall in Pakistan it had 190 rooms including 15 suites-12 junior suites, executive, bridal and presidential suites. It had five eating places, one coffee shop, a snack bar, swimming pool. Other facilities available at Avari Ramada was a sauna, a massage parlour and a gymnasium.

1. Introduction
 It was a 5 star hotel affiliated with the Ramada
Renaissance hotel chain.
 Located on the Mall in Pakistan it had 190 rooms
including 15 suites-12 junior suites, executive,
bridal and presidential suites.
 It had five eating places, one coffee shop, a snack
bar, swimming pool.
 Other facilities available at Avari Ramada was a
sauna, a massage parlour and a gymnasium.

2. Clientele Details and Competitors
Frequent
Individual
Traveler (FIT)
11%
Executive
Business
Service (EBS)
30%
Volume
Executive
Business
Service (VEBS)
31%
Tour
3%
Special
9%
Summer
Package
3%
Conventions
2% Airline
7%
Other
4%
Occupancy(%)
Avari Hotel has Clients in
four categories:
 Business
 Walk in
 Tour Groups
 Others
Business clients constituted
61% of the total business of
the hotel.
Pearl Hotel was the major competitor for Avari Hotel because:
 More spacious rooms
 More larger and extensive lawns
 Lower average prices
Other competitors were Sheraton Hotels and Holiday Inn.

3. SWOT ANALYSIS
S W
O T
• Good Location
• Area of Service
• Room condition was not
up to the mark
• Brand image was not
good in the minds of
customers
• Recent formation of
Tax free industrial
zone
• Flights from Europe
and US expected to
start
• Strong
competition from
Pearl Hotel
• New entrants
starting to enter
with good image

4. Rate Structure
0
500
1000
1500
2000
2500
1786
1680
1350
1150
1000
2086
1980
1650
1450
1300
Rate Structure
Single Room
Double Room
0
1000
2000
3000
4000
5000
6000
7000
8000
Junior Suite Executive
Suite
Presidential
Suite
3300
5500
7150
Suites Rates
Rates
• Pricing was done on customer
segmentation and differential pricing
method was adopted.
• Executive rate was for those who agree
to provide hotel with 75-100 nights per
year
• VEBS rate for at least 200 nights per
year.
• Bridal suite was
complementary if wedding is
done at the hotel otherwise
normal price.
• Floral decorations could be
provided at an additional price
of 500.

5. Promotion
SUMMER PACKAGE
 Main purpose was to increase the occupancy rate during lean season.
 It was offered only in Lean season (May to September).
 In this, a single room was offered at 930 and a double room at 1050.
 For every nine guests in a group, two rooms were given free.
 Breakfast was complimentary.
 10% discount on all meals consumed at the hotel.
RELATIONSHIP
 Main purpose to enhance goodwill and build long term relationship
 Serving free bed tea to the EBS and VEBS guests.
 Inviting EBS and VEBS account holders for free meals.
 Upgrading the EBS single or double room to junior suite at no extra
cost.
 Promotional newsletters sent to the previous clients to keep them
informed about the monthly activities in the hotel.

6. CURRENT SITUATION
0
10
20
30
40
50
60
70
80
90
100
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov
Occupancy chart of Avari and Pearl in 1988
Avari (%)
Pearl (%)
800
850
900
950
1000
1050
1100
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov
Average Room Rate in 1988
Avari
Pearl

7. Analysis
 As the Assistant Sales and Marketing Manager at Avari he has 3
options:
1. Raise the prices of all the rooms by 10%
2. Raise all the rates other than EBS and VEBS rates
3. Introduce other type of rate to bridge the gap between group rate
and individual rate.
 For option 1 average price will be 1100 and for option 2 average price
will be 1070.
 Option 2 looks more feasible as EBS and VEBS are the major
sources of revenue so increasing them will decrease the overall
revenue of the company.
 And also as Tax free industrial zone is coming up demand will
increase for EBS and VEBS so increasing the price of these two will
lead to customers going to competitors.

8. Recommendations
 Avari hotel should focus on increasing the occupancy rate as it
will help in increasing the profits for the hotel.
 They should try to maximize the revenue from other sources like
food, gymnasium, spa, beverages and other facilities.
 They should focus on making brand value for the hotel in the
minds of customer to directly compete with Pearl Hotel.
 They should try to improve the conditions of the room and better
the services provided to the guests to enhance the customer
experience.
 Avari should aggressively launch some promotional schemes and
packages other than the running schemes to lure the customers
and increase their revenues and differentiate their product.