Good Hotel (Case 25)

1658 WordsMay 2, 20137 Pages
Good Hotel Analysis What is the stand out economic characteristics of the macro environment of the US hotel lodging industry? There are 12 leading hotel chains which have various branches within those chains. Each accommodate different numbers of guests and different types of guests. Before 2008 there had been massive expansion in preparation for a large upturn in the industry however when the expansions were finished the market was in withdrawal leading to the largest downturn in the lodging industry. The major economic characteristics influencing the lodging industry have to do with business meetings and conference related travel taking 40% of the business in the whole industry of 2010. The hotel industry is dominated…show more content…
This RevPAR calculation is on a per room basis and can be skewed by differences in number of rooms. When looking at the long run over a few years you can see they were closely comparable from a financial aspect early on but overtime have been steadily increasing their numbers when compared to its peer group, concluding the strategy is currently successful. Even if it showed they were weak at their start it shows over the two year period they had strong growth. Based on your analysis of the company's situation, does it appear that the good hotel concept worked? does the good hotel need Joie de Vivre or can it continue on its own? The good hotel concept created a new market of consumers looking for lodging but did not want to have the same experience provided by chain hotels. By coming off more personable they project a homely feel which has large appeal when looking for a place to sleep. They have been effectively competing against the peer group from 2008-2010 and may have been weak at the beginning but have shown they are starting improve closer to 2010 as mentioned before; but it must be considered that the industry suffered many problems in this period. As long as they continue to have the same organizational appearance and offer the same quality of service they can proceed without her, especially if they keep the values she put into place. Everything depends on how well the turnover of the company transitions; if it is smooth

More about Good Hotel (Case 25)

Open Document