Sal Ltd Case

3716 WordsOct 27, 201215 Pages
Case Recap Amber Inn & Suites is a 250 property hotel chain located in 10 western and Rocky Mountain States (Kerin & Peterson, 2010). The company was founded in 1979 and they operate 200 Amber Inn properties and 50 Amber Inn & Suites properties (Kerin & Peterson, 2010). They have 30,000 total rooms with an average of 120 rooms per property (Kerin & Peterson, 2010). The company has had five consecutive unprofitable years and the company wants to be profitable within two years. This case will provide a summary an analysis of Amber Inn’s options and an examination of their strengths, weaknesses, opportunities and threats. Problem Identification Over the past five years, revenues for Amber Inn have been…show more content…
Amber Inn & Suites had an occupancy rate of 67.1% and between both properties an ADR of $57.52 (Kerin & Peterson, 2010). The company offered a free night stay promotion in 2005 and this cause a decrease in the ADR. Company costs are also increasing due to higher labor and utility costs (Kerin & Peterson, 2010). As modern technology continues to get improve and become more efficient, companies need to adapt to the newest technologies. Even though Amber Inn offers cable television and free local phone calls, they do not offer Wi-Fi services. Being positioned as a business traveler’s hotel, they need to offer internet service for their customers. This presents an opportunity for the company to create an additional revenue stream as well as offering a great service for the business traveler. Competitors such as Holiday Inn offer free high speed internet to all their customers (Holiday Inn amenities). In order to continue growing their customer base, Amber Inn needs to offer this service as it helps business customers stay connected while on the road. In 2004, the current advertising strategy is targeted at 28% leisure/vacation traveler and 72% business traveler with all advertisements focused on the western and Rocky Mountain states with Amber Inn properties (Kerin & Peterson, 2010). During 2005, they focused on increasing occupancy rate, attracting first-time
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