Amber Inn & Suites Case Study

1324 WordsDec 5, 20136 Pages
Case Study #4: Amber Inn & Suites Work Environment Amber Inn & Suites, Inc., formed in 1979, operates 200 Amber Inn properties and 50 Amber Inn & Suites properties located in 10 states throughout the Rocky Mountain and western states. On Average, each location has approximately 120 individual guest and suite-style rooms. Under a new president and CEO, the goal is for Amber Inn & Suites to reach profitability within two years after five consecutive years of unprofitability. This company is positioned as a limited-service hotel which does not have the amenities such as a restaurant, lounge, or meeting rooms. This type of hotel is classified under a midscale hotel with food and beverage, such as Holiday Inn and Ramada…show more content…
By starting with which type of customer to target, the organization can be more focused on its tactics. Alternatives 1. Do nothing. There is not much of a pro to this solution, because by doing no sort of action will either result in the business failing and closing down, or that could cost the marketing senior vice president her position. 2. Reward Program for businesses. By instituting a reward program with businesses, it will allow business travelers to stay at the hotel for a discounted price for Sunday through Thursday lodging through his or her place of employment. Instead of attempting to find the best rate. The company knows that when an employee goes to this city, he or she will stay at the Amber Inn and the company books it for the employee. This will increase the business traveler base, which is already predominant. However, this will decrease the overall revenues for the organization. 3. Increase weekend prices. By increasing lodging prices on the weekends, it will not harm the business traveler base, and increase profits for the personal and vacation/pleasure areas. This could adversely affect the number of guests staying at the hotel on the weekends and drive the weekend revenue stream down. 4. Increase average daily room rate to be more toward industry average. Since the survey says that only 36.6% stayed at the hotel based on price and the fact that majority of business travelers had the rooms paid for by the

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