Case: Family House Hostel, Cursed Growing

Abstract

This case has as protagonists Edith Villalobos and Rosa Ibáñez, executives of Hostal Family House, who must review the information available to determine the convenience of expanding the accommodation capacity, consider- ing the threat of new entrants to the hotel sector of the city of Tacna (Peru), as well as the identification of a market niche to address, estimate the demand taking into account the different characteristics of the services offered and the variability of demand in different months of the year. This case illustrates how the decision to carry out an expansion requires a very deep analysis that goes from the economic and financial aspects to a strategic analysis. The character- istics of the offered product, has a series of advantages but at the same time it means a detailed study of some partic- ular characteristics of the service.