Astor Lodge Case Analysis

761 Words Feb 27th, 2013 4 Pages
The Problem
In the case of Astor Lodges, the company has not been making a profit for five consecutive years and a marketing strategy needs to be put in place. The hotel industry saw $16.7 billion pre-tax profit in 2004 along with 4.4 million hotel room available in the country. The competition of 213 affiliated hotels with a brand company is going to be a challenge but attainable. From 2004, objectives are completed but still turning over unprofitable years with marketing plans put in place.
SWOT analysis matrix
Strengths
Kelly Elizabeth and her plan: Each year the objective was to increase and attract more occupants which she did for the company.
Internet communications is a big plus for the business traveler using the hotel.
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The net-loss of the company is $15.7 million and four senior vice presidents were brought in to present the effects of the last five years. Kelly Elizabeth who is very knowledgeable in the marketing field was bought in to try and solve and help with a profitable year from 2004. Part of the core problem I believe is not distinguishing what type of hotel/s the company is targeting to its audience as it has changed through the years between the pleasure/vacation traveler and the business traveler. As a frequent guest to hotels trying to mix the two is not going to work and even though objectives were met the daily average rate objective was not met. Furthermore, in 2006 the frequent business traveler complained about the hotel system at Astor Lodges & Suites. Other key factors that are also a problem is either being a limited service hotel or a full service which Astor Lodges differs. Also, what locations are beneficial and hotel segments are helping with profits within the company.

Recommendations
Focus on profitable action items because if the company can stick by this plan with limited changes then I believe they will see progress and ultimately back making profit. The main plan is to decide what hotels will attract first time guests and increase occupants by location in the Midwestern states. The company should settle on either offering limited service hotels or full service. Also, a staged alternative could be for the company to only use hotels which are making

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