TYSONS CORNER Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

TYSONS CORNER Case Solution

3.1 Competitors

The opening of the different hotels surrounding the Marriot has decreased its competency and importance. The Tyson corner area is presently served by Holiday Inn and Ramada Inn,on different routes. Both of these hotels are in better conditions. However,Holiday Inn is newer and is the center of attraction at the Tyson corner. Both of these hotels have become competitors for Marriot and are expected to create the negative impact in cash flow deficits.

Facility	Rooms	Average rate	Occupancy	Transient	Group
Holiday Inn	240	$33	80%	75%	25%
Ramada Inn	209	$35	80%	85%	15%
Hilton	456	$76	67.1%	-	-
Embassy suites	232	-	79.6$	-	-

Although, Marriott has higher space zone than different contenders, but it has most elevated normal rate which not everyone can afford. The contenders, for example: Holiday Inn and Ramada Inn have the normal pace of approx. $35, which is more practical for individuals to dispense.

3.2 New competitors

April 1989	Hyatt Dulles	350 rooms
June 1989	Hyatt fair lakes	350 rooms
September 1989	Marriot Fair view	420 rooms
November 1989	Marriot All suites	250 rooms
November 1990	Ritz Carlton Tysons	380 rooms
June 1991	Hyatt Reston	550 rooms

Also, the aforementioned projected hotels are going to become barriers for Marriot, as they all are located just a few miles away from Tysons corner.

3.3 Market segments

Mid-week transient

This segment covers 78-80% of Thursday-Sunday business. TCM plays a major market share leader in this segment.

Mid-week group

This segment covers 18% of Sunday-Thursday business. Because of the largest meeting capacity Hilton and Sheraton play the major market share leader in this segment.

Weekend transients. (William J. Poorvu, 2018)

Weekend transient (Friday and Saturday) makes 67% of the weekend business,because of excellent price value. The embassy suite is the market share leader in this group.

Weekend group

This segment makes 295 of the weekend business, such as: weddings and other significant events and parties. Because of its strong social segment; TCM plays a significant role in this segment. TCM does host kid’s parties and functions, which Sheraton and Hilton don’t.(William J. Poorvu, 2018)

Contracts

TCM has continued to become a leader in this segment because of its excellent reputation, location and competitive pricing. TMC has been chosen by the Saudi Arabia airlines as contract rooms.

The aforementioned market segments shows a few important areas where TCM is lacking, which in turn-produce deficits in its cash flow. These areas include smallest meeting capacity, pricing strategies and TCM advent.

1. Alternative Solutions

The Alternative solutions for the Tysons Marriot Corner is cash flow deficit, to either fund capital improvements to enhance the positioning of the hotel, refocus the marketing strategy of the hotel to improve its occupancy and ADR performance, renegotiate the Marriott’s fee or the bank debt, or a combination of several of such elements.

2.Proposed Solution

The proposed solution that could help the manager of Tyson’s Marriot corner in determining the shortfall issues, is to investigate its administrations and area. The continued usage of yield management will help the TCM in maximizing its revenues. TCM must look into the matter of shortage of labor and overall services, in order to maximize its revenue.

Another factor that would assist TCM in having additional advantages is its extension in making bigger meeting limits,so that it could become the pioneer of mid-week group segment as well...........................

This is just a sample partial case solution. Please place the order on the website to order your own originally done case solution.

TYSONS CORNER Harvard Case Solution & Analysis