Hotel/Motel Market Analysis 2

The local community lodging industry with its two or three property types makes for an interesting discussion. (1) What types of properties are present in your community, and how have they evolved? (2) How does each meet guest needs? (3) What kind of technology do they apply to serve guest needs? Begin by answering question (1) and (2).

This sector works closely next to some other sectors within the hospitality industry. People frequently enter this moving sector from the fast food (quick service) outlets, restaurants, bars, cafes, pubs, catering or food services. Hotels were always major providers of food services, entertainment (business and conference services), leisure and sporting. (Cooper and Shepherd, 1998)

Congress is not restricted in regulating interstate commerce just because the commerce it is dealing with was also deemed a moral and social wrong. The power to regulate commerce includes the power to regulate the local incidents that may have a substantial effect on commerce. Congress can adopt the Civil Rights Act of 1964 to apply to a motel that serves interstate travelers under the Commerce Clause.

A range of quality accommodation options: Because customers are coming from different countries and at different group of ages, they prefer having wider range selection of accommodation, includes hotel, motel, local homestay…

Our team chose the hotel industry in the United States for our economic analysis. The hotel business has existed since the earliest times, and has influenced the development of the economy since the founding of this country.

The hotel chain, Astor Lodge and Suites, Inc., operates 250 properties in 10 western and Rocky Mountain states. The company’s customer base primarily comprises business travelers. In addition, the locations of the properties surround airports, large regional shopping centers, and major highways close to suburban industrial sites as well as office complexes. Projections of 2005 fiscal year forecast a fifth consecutive year of a gross loss for the firm. The estimates include an anticipated $422.6 million in company lodging revenues but a net loss of $15.7 million for 2005. As a result, Joseph James, president and CEO of Astor Lodge and Suites, Inc., initiated a challenging goal for executive management to devise a strategy achieving net profits in two years and sustaining positive growth in the future.

This method would aid the hotel in saving hundreds of thousands of dollars a year. A technique known as “Use-occasion positioning strategy” can be used in order for travelers, tourists, and vacationers to view a hotel stay based on events and times that caused them to be at the location. Customers will be drawn to the hotel and will definitely spend a night or two; the latter would benefit Amber Inn & Suites hotel.

Barriers to get into the hotel industry are huge, which make the hotel industry not look appealing to new entrants.

Lodging has changed and improved a lot in the last 100 years. When hotels were first becoming popular in the 1900’s people had to share rooms with other strangers because hotels then, did not have a variety of rooms where you can get your own. They had very uncomfortable and small beds in very small room, most of them did not have a bathroom in the hotel room (picture 1). The hotels replaced the old beds with comfortable ones (picture 2, now) so people can enjoy and allow them to sleep comfortably. In 2004, after three years of declining revenues, the U.S. lodging industry returns to positive profit growth. They made luxury hotels so more people can be attracted to them, they have much more independent space with their own bathrooms and TVs

Hilton Hotels is one of the biggest players in the US lodging industry. It contributes to about 9% of the total rooms in US lodging market. It has presence in over 78 countries with more than 2500 hotels. Lodging industry is highly capital intensive industry, so to reduce capital expenditure Hilton Hotels opted for self-owned Hotels as well as franchising model with the real estate owners. One of the key features of lodging industry is low switching costs for customers. There is very little margin to differentiate from the major competitors in the industry which include Marriott international, IHG, Accor etc.

4. Analysis: Open the Forte Hotel Data (Conjoint, 3 Analysis) data set in My Marketing Engineering, which has competed Steps 5 and 6 in the Tutorial for you. Follow Step 7 in the Tutorial, ((ME>XL==>Conjoint==>Run Analysis) and assess the viability of the four specific hotel concepts that Forte is exploring for the State College area. Base this evaluation on the preferences of a sample of 40 business travelers on that sheet (Exhibit 2) and the cost estimates summarized in Exhibit 3. The base cost to build each hotel room (without the attributes and options listed in Exhibit 3) is expected to be about $40,000 for a 150- to 200-room hotel, regardless of the mix of room

To remain profitable, hotels must operate with around 65-70% capacity . Due to seasonality, political and economic events, some hotels are finding it difficult to maintain profitable occupancy levels and have started to provide services along multiple levels within the industry's

The Ritz-Carlton Hotel Company operates within the upscale & luxury hotel industry. While it could be argued that Ritz-Carlton operates in the more broad and inclusive lodging industry, they offer a highly differentiated product and service and therefore find themselves operating in an exclusive industry alongside very few direct competitors, such as Four Seasons Hotels, HongKong and Shanghai Hotels, and Starwood Hotels & Resorts. Therefore when analyzing this industry I will not be including cheap hotels, motels, lodges, or inns, unless to offer potential substitutes to luxury hotels. In order to assess the attractiveness of the upscale & luxury hotel industry, an analysis of the general environment surrounding the industry must be

Hotel Chain as showing to us practice is the most effective way of integration to hospitality business. The main advantage of such integration it is immediately creating customer base and bigger potential market of customers, cost reduction due to general management, logistics, marketing; common quality standards; centralized training and, as a consequence of all

1. Using the example chart in the textbook for business models, illustrate and compare the value proposition for Airbnb, large hotels such as Marriot and Hilton and bed & breakfasts.