Playa Dorada Tennis Club: Expansion Strategy

Playa Dorada Beach and Resort in Boca Raton, Florida, faces a growing seasonal demand for tennis
services. It seems that this demand might double in next few years but Playa Dorada, which is known
for well promoted amenities for tennis, has limited court space to cater to these needs. We have
done analysis of the case and below are some of our recommendations which could address
problems such as efficient usage, capacity and about revenue generation.

Recommendations-

1. To address the problem of capacity we should built two courts in 2007 and two in 2008. In
long run we can big complex in which we can arrange for indoor tennis court which can
facilitate to cater to need of growing tennis enthusiasts.
2. Use flexible pricing strategies and other strategies in order to increase revenue and also at
the same providing accessibility to other guests.
3. Try to increase the number of playing hours by adapting various measures.
4. We can increase our capacity during off seasons by organizing tournaments related to sports
like golf etc.
5. In long run we can open new entertainment facilities, build courts at new locations.

Explanations-
1. The main source of revenue for Playa Dorada Beach is selling of Villas. As we can see fifth
stage is in progress and sixth stage will be starting in 2008, there will be golden opportunity
to generate huge amount of cash by selling them. People are attracted to Playa Dorada due
to its good tennis facilities. If Playa Dorada is unable to meet the demands of people related
to tennis facilities, people will be unwilling to buy villas at that location. Also from the exhibit
we have derived some conclusion which can lead to conclusion that current capacity is
unable to meet the future demand in 2007 and 2008.
 In future we can built a big complex and inside it we can develop indoor tennis courts which
can help to meet the growing demand of tennis enthusiasts. So, it will lead to good
utilization of space and generation of revenues. It will also help to overcome missed hours
due to bad weather

2. We can use various strategies to increase our revenue and also provide accessibility to
guests.
A. Flexible Pricing-
We can apply flexible pricing on basis of peak and off season, also we can take into
consideration the type of courts while pricing on per hour basis. For example we can see
from data that only 15% utilization of hard court and 38% utilization of clay courts. Also
many European people preferred Clay courts over hard court. So we can have lower
price to hard courts compared to clay courts.

Clay Clay Hard

Hard
Flooring Flooring Flooring
Flooring
(Peak (Off-Peak) (Peak
(Off-Peak)
Season) Season)

15 $ for per
20 $ for
15 $ for per 15 $ for per hour
Students per
hour hour Subsequent
hour
hour=$10

20 $ for per 20 $ for per

20 $ for
hour hour 15 $ for per
Guests per
Subsequent Subsequent hour
hour
hour=$15 hour=$15

Also we should not give any discounts during peak periods and should give
B. Doubles Tennis-
Encourage guests to play double rather than single as it will help to use the courts more
efficiently by helping to free up courts for others to play.
C. Hard Courts and Clay Courts-
We can see many adults are more inclined to use clay courts against hard courts, so we
can persuade the youngsters to use hard court surfaces. Youngsters generally are open
to play on any surface and if needed we can persuade telling them the differential rate
in both types of courts.
D. Discounts-
We should keep in mind that we do not give priority to students over high paying guests.
So we can offer the discounts to students in evening slots as many guests as will be
 working will not be turning to play at that time. So in order to utilise that capacity
discounts to students can surely help.
E. Other Facilities and hire tennis player during off season-
To attract students we can open Wi-Fi tennis lounge, pro shop and club house too. We
can also hire tennis player in off season to increase the guest count.

3. We can increase the number of hours by various measures.

A. We can see that the maintenance is done at 7 am so the play starts at 8 am. We can
have maintenance done between 6am to 7 am and in doing so increase the playing hour
for each of 23 courts.
B. We can also use the night lights to make it feasible to use the tennis courts for long
hours. We can use discounting pricing to attract new guests.
C. In long run by building indoor tennis courts can help guests to play tennis in bad weather
too, which will not be possible in open courts.

4. We can increase our revenue in off season and peak season by organizing sports events
related to other sport like Golf ( as from case we understand that 29.2% guests keep Golf on
top priority list. It will lead to usage of Tennis facilities too.

5. In long run we can build a complex which will constitute facilities related to entertainment,
indoor tennis courts etc. which can cater to large tennis enthusiast. Also wecna transform
hard courts into clay courts as more adults are inclined towards playing on clay courts.