Amber Inn & Suites Case Analysis
Amber Inn & Suites, Inc., Case Analysis
Case Recap Amber Inn & Suites, Inc. is a 250-property hotel chain with locations in 10 western and Rocky Mountain States. Their market position lies between a limited-service and full-service hotel chain. Joseph James is the newly appointed president and CEO. He initiated an aggressive goal for the senior leadership team (SLT) to formulate a strategy to achieve profitability in the next two years and sustain future growth (Kerin and Peterson, 2010). This case study will offer a summary and analysis of Amber Inn & Suites options and an examination into the company’s strengths, weaknesses, threats and opportunities.
Problem Identification
Despite three consecutive years of growth in lodging revenue, Amber Inn & Suites realized four consecutive unprofitable years, and projections show the fifth year will continue the downward trend. Amber Inn & Suites target market is the business traveler. According to American Hotel and Lodging Association, one-half of all guests are business travelers and one-half are for leisure or family vacations (Kerin and Peterson, 2007). The business travelers largely occupy rooms during the weekday from one to three days, whereas the leisure or family vacationers occupy rooms over weekends from one to three days. Additionally a corporate analysis shows business travelers will decrease by 2 percent, adversely pleasure/vacation travelers will increase by 1 percent. The challenge for Amber Inn & Suites’ SLT is to create a marketing and advertising expenditures to expand occupancy of family and leisure vacationers, while maintain their core business traveler. Additionally, they have to decide whether to revamp the frontier strategy initiated in 2005 to grow brand awareness in the South West. Lastly, they must agree whether the -25 percent weekend rate special promotion that replaced the weekend free night stay is achieving the desired goal.
Case Analysis The hotel industry recorded
Case Recap Amber Inn & Suites, Inc. is a 250-property hotel chain with locations in 10 western and Rocky Mountain States. Their market position lies between a limited-service and full-service hotel chain. Joseph James is the newly appointed president and CEO. He initiated an aggressive goal for the senior leadership team (SLT) to formulate a strategy to achieve profitability in the next two years and sustain future growth (Kerin and Peterson, 2010). This case study will offer a summary and analysis of Amber Inn & Suites options and an examination into the company’s strengths, weaknesses, threats and opportunities.
Problem Identification
Despite three consecutive years of growth in lodging revenue, Amber Inn & Suites realized four consecutive unprofitable years, and projections show the fifth year will continue the downward trend. Amber Inn & Suites target market is the business traveler. According to American Hotel and Lodging Association, one-half of all guests are business travelers and one-half are for leisure or family vacations (Kerin and Peterson, 2007). The business travelers largely occupy rooms during the weekday from one to three days, whereas the leisure or family vacationers occupy rooms over weekends from one to three days. Additionally a corporate analysis shows business travelers will decrease by 2 percent, adversely pleasure/vacation travelers will increase by 1 percent. The challenge for Amber Inn & Suites’ SLT is to create a marketing and advertising expenditures to expand occupancy of family and leisure vacationers, while maintain their core business traveler. Additionally, they have to decide whether to revamp the frontier strategy initiated in 2005 to grow brand awareness in the South West. Lastly, they must agree whether the -25 percent weekend rate special promotion that replaced the weekend free night stay is achieving the desired goal.
Case Analysis The hotel industry recorded
References: 1. Kerin, R. A. & Peterson, R. A. (2007). Strategic Marketing Problems. New Jersey: Pearson Prentice Hall.