Analyse the methods La Cyne is currently using to manage supply and demand. Make justified recommendations for ways in which the resort could manage supply more effectively.

Your report should be between 2700 and 3300 words excluding the executive summary, contents page, appendices and references/bibliography sections. The word count should be stated clearly on the front page, along with your P number, report title, Module code and title and date.
Your report needs to address the following points individually and clearly, making recommendations supported where appropriate, with Marketing of Services academic theories, frameworks and models, correctly cited and referenced using De Montfort University Faculty of Business and Law’s Business Referencing guide. You need to make justified recommendations for each point.
• • Employees who work in La Cyne’s accounting department are cross trained to perform other tasks within their department. Members of the conference staff learn front desk check in procedures so they are aware of what happens to guests when they enter the resort. Would La Cyne improve productivity by cross training its other employees, many of whom are seasonal or part time? Should full time employees be cross trained?
• • If the resort’s concierge is not available, La Cyne guests can talk to front desk staff to obtain information they might need. What other ways could La Cyne increase customer participation during its busy season? Would these strategies lead to customers to perceive they are receiving a lower standard of service? Justify carefully.
• • Analyse the methods La Cyne is currently using to manage supply and demand. Make justified recommendations for ways in which the resort could manage supply more effectively.
• • Discuss your evaluation of La Cyne’s strategy for managing demand. Identify and justify recommendations to allow La Cyne to manage demand more effectively.
• • In predicting and managing supply and demand, identify how the resort could use records of demand patterns and variations; what are the limitations of such records for forecasting?
Near to the French Alps sits La Cyne resort, with some exceptional surroundings. There are over 20 miles of paved bike paths, 2 championship quality golf courses, 20 tennis courts, 2 swimming complexes, horse riding trails, squash and badminton courts, white water rafting plus a nature centre.
“Service is something we pride ourselves on, and we want to be able to help our guests with absolutely everything they need” says Jean Claude, a member of La Cyne’s marketing staff. Accommodation at the resort includes 175 rooms and suites, and over 200 private lodges for guest rental. Around 1000 people live permanently at La Cyne resort in their own lodges, with in the region of 180,000 visiting the resort annually.
Like many resorts, La Cyne has 2 distinct peak seasons in which it has to manage supply and demand carefully. In the summer golfers roam the resorts beautiful golf courses set amidst scenic woodlands. In the winters skiers flock to the resort for the exceptional quality skiing nearby.
One of the typical ways La Cyne matches supply and demand is with differential pricing. Visitors to the resort pay one of 3 rates, depending on the date of their visit. These pricing rates are referred to as “low”; “value” and “peak” season rates. Visitors not staying in La Cyne resort accommodation can use the facilities, but at a higher cost than residents.
Another system used by La Cyne is a stringent reservation system. A deposit of 25% of their total bill is required to reserve accommodation, which is forfeited if the guest needs to cancel less than 21 days before the dates booked.
If the resort is over booked, guests reserving rooms and suites may be given upgrades to rental or private lodges.
La Cyne has developed ways to stimulate demand out of season, when occupancy rates are traditionally low. When bookings are needed the resort offers ski and golf packages on the capital city (Paris) radio and TV stations as well as in local newspapers. Besides offering golf and ski accommodation, the resort rents and sells bycycles, provides pony rides and offers white water canoe and kayak trips down the river from the resort’s marina. Daily activities for children from 3 – 10 years are also available.

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