Case # 6- SleepEasy Motel
1. Problem Statement
a. Current State:
* SleepEasy motel is losing money. Occupancy of the hotel is around 55 percent of capacity which according to industry figures is 13 percent below the average of 68 percent for similar motels in the area. * Large number of customers driving around the parking lot of motel and leaving. * A lot of competition In the area, other hotels offer better facilities. b. Desired state
* Have the occupancy of hotel go up to and stabilize to at least 68 percent capacity to generate more profit. * Better facilities to attract more customers and have them choose SleepEasy Motel instead of other competitors.
c. Why did this problem arise? SleepEasy’s facilities are lacking. Facilities are most important to approximately 78% of the visitors in the area when choosing accommodation (no restaurant or pool). Huang is relying on customers coming to the resort by just finding it when they drive toward the area however, 40 percent of the visitors plan and reserve their rooms more than 60 days in advance. There are no signs advertising the motel. d. What is important from a 5C or SWOT or PEST perspective 3. SWOT- Strengths- located in a rapidly expanding resort area. – Only 22km away from a tourist area. Weaknesses- No recreational facilities. – No advertising or signage to attract customers. Opportunities- Join a franchise to attract more customers. Threats- a lot of current competition of bigger hotel chains. – More motels opening in the area. 4. Alternatives
e. Make changes to SleepEasy Motel to accommodate and attract more customers, create a loyalty program and launch advertising initiatives. Pro- Huang will keep the revenue from sales and can manage the hotel’s maintenance and improvements on his own. Con- Since the hotel is not doing well Huang may have to take out a loan to renovate the hotel and he may...