Amber Inn Case Analysis

Topics: Hotel, Hotel chains, Hotels Pages: 6 (1782 words) Published: October 3, 2011
Amber Inn & Suite, Inc. was built in 1979 and is composed of 250 hotels chain empire of which each consisting an average of 120 exquisite guest rooms or suite units. The profits are $422.6 million and deficits of $15.7 million. The Amber Inns & Suite have total of 30,000 rooms. The Company’s objective is to cater mainly to professional clienteles that are traveling with fabulous guest rooms at an economical price. Amber Inn & Suites, Inc. is located in areas amid ten western and Rocky Mountain States with two hundred fifty numerous property hotel chains. In most cases, each property is made up of one hundred twenty single guest rooms or suite units. Amber Inn & Suites Inc. positions its properties on prime areas such as major freeways, rural businesses and office complexes, airports, and busy local shopping centers. Sadly, in the latter years, Amber Inn & Suites Inc. has been going through its decadence, which involves decreased in sales and/or profits as well as millions of dollar deficit. Problem Identification

The challenge that Amber Inn & Suites has to deal with is to determine whether or not to broaden their marketing and advertising investments between guests who are on leisure travels and/or business trips. First of, Amber Inn & Suites advertises their hotels mostly to those on a business journey whose stay only last between one or two nights. According to its mission, the Company aims to serve professional clienteles. After three years of persistent loss, it must find a method that will increase the Ebidta, to growth 7% in 2 years. Second, Amber Inn & Suites must adjudicate if they should maintain, and if so how, the frontier technique and what to do with the promotion as holiday special or do a free night stay in the weekend (25% discount). Case Analysis

Amber Inn & Suites, Inc. has planned growth in the annual sales revenue of 7.4% for the actual financial year. Nevertheless, it remains somewhat beneath the total lodging industry average of 7.6%, but greater than the mean limited-service growth rate of 5.8%. Nevertheless, Amber Inn & Suites, Inc. has also devised to reflect its’ third year net deficit while the lodging industry as a whole and the limited-service operations stated profitable operations over the last three years due to improved economic terms. Amber Inn & Suites hotel can use push advertising method to increase their profits. They can use this push promotion system by providing more for less; for instance, they can introduce a deal in which customers staying for 6 days can spend 1 day free of charge. That alone will boost the hotel profits by millions of dollars. Amber Inn & Suite can also use this method to further their hotel and concurrently promote their brand costless; that they can work on an offer with various companies that are not in the lodging business; for example, offer huge incentives to Honda dealers or Coca Cola employees and customers, that way those companies will have no other options but to advertise to their employees and clienteles about Amber Inn and Suites. Identifying the Root Problem Components

Amber Inn & Suites, Inc. issues to be concentrated on are how to feature the professional travelers and family on a leisure trip. The American Hotel and Lodging Association have disclosed that half of all guests are individuals on business trips and the other half are for personal or family vacations. In contrast, Amber Inn & Suites, Inc. simply proposes equal array of hotel amenities as other lodging chains in the midscale to economy category. Nevertheless, they are unable to emulate with higher rank hotel chains because of limited-services, which prevent their potential growth. Evaluation of Alternatives

Amber Inn & Suites has to focus on professional clienteles, provides more assistance as Wi-Fi and analyzes cooperative, augments prices a 2% per year, and promotes holiday special deals for customers that are on vacation trips. Also, focus on...
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