Astor Lodges

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Astor Lodges

By | Jan. 2013
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Tom White
Astor Lodges & Suites, Inc
Case Study
Marketing Strategy

Case Recap
In the year of 2005 Astor Lodges Suites, Inc projected that it was the fifth consecutive unprofitable year. The company’s new president and CEO Joseph James set a goal in which the company HAD to achieve, that goal was to gain profit within two years. The company was formed in 1979 and has 250 properties in ten Midwestern states (200 Astor Lodge and 50 Astor Lodge & Suites). The net-loss of the company is $15.7 million so four senior vice presidents were bought in to present the effects of the last five years. Kelly Elizabeth who is very experienced in the marketing field was bought in to try and solve and help with a profitable year from 2004.

The Problem
With five consecutive years not making profit a marketing strategy needs to be put in place. The hotel industry has seen a $16.7 billion pre-tax profit in the 2004 with 4.4 million hotel room available in the country. The competition of 213 affiliated hotels with a brand company is going to be a challenge but achievable. From 2004, objectives are completed but still turning over unprofitable years with marketing plans put in place.

Root of the problem
The root of the problem I believe is not distinguishing what type of hotel/s the company is targeting to the audience as it has changed through the years between the pleasure/vacation traveller and the business traveller. As a frequent guest to hotels trying to mix the two is not going to work and even though objectives were met the daily average rate objective was not met. Furthermore, the in 2006 the frequent business traveller complained about the hotel system at Astor Lodges & Suites. Other key factors that are also a problem is either being a limited service hotel or a full service which Astor Lodges differs. Also, what locations are beneficial and hotel segments are helping with profits within the company.

SWOT Analysis
Strengths – With...