Essay: The Hotel Business
The Management had the initial fear of opening up a five star hotel considering the current unfavorable environment which had taken a hit due to the loss of tourists as a result of security issues. The initial cost had to be weighed against the amount of tourists and hence, the project had to be analyzed by forecasting a number of factors.
The role and the responsibility of the top management was to conduct a feasibility study in which they not only had to foresee the potential demand and supply, but at the same time measure the exact requirements sin order to meet the requirements as per the Hotel regulatory act, and then compete with a highly competitive market.
In the Hotel business the type of facilities offered, the image of luxury, exclusive, and the brand name of the Hotel cold go a long way in establishing the Hotel’s image itself. The feasibility study had to weigh the risk of the location against the benefits of that particular location. The feasibility of the location had to be measured against the potential risks involved with the construction in a mountainous region.