Good Hotel (Case 25)

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Good Hotel Analysis

What is the stand out economic characteristics of the macro environment of the US hotel lodging industry?

There are 12 leading hotel chains which have various branches within those chains. Each accommodate different numbers of guests and different types of guests. Before 2008 there had been massive expansion in preparation for a large upturn in the industry however when the expansions were finished the market was in withdrawal leading to the largest downturn in the lodging industry. The major economic characteristics influencing the lodging industry have to do with business meetings and conference related travel taking 40% of the business in the whole industry of 2010. The hotel industry is dominated by large branded hotel chains that react to industry factors similarly, this is one of the reasons there was a large downturn. It can be argued the industry predicts its growth in correlation with real GDP.

How would you characterize Joie de Vivre's strategy for its good hotel brand? Is the hotel's commitment to social responsibility an important component of its competitive strategy? Explain

She basically took the hotel industry and created niche markets around them then allowed them to develop through word of mouth and social media. The social media marketing was growing causing online sites to provide services and reviews related to the industry. By creating what consumers call “Original hotels” they separated themselves from competition by not appearing publicly like one of the major chain companies. Both business professionals and tourists enjoy the unique atmosphere and the aspect that the hotel is trying to be environmentally friendly; in result it has been drawing a good audience.They have been adapting their strategy to meet the psychological needs of the consumers to promote return customers fueling word of mouth advertising. They compete strategically opposite to the way Holiday Inn operates. The commitment to social responsibility is what separates them as a company, they want to inspire "good in us all". This is opposite of most brands that try to buy things in quantity keeping the prices low but having a very generic appearance and feel. Her strategy created a niche that strongly supported her strategy yet she stays competitive with pricing even if offering more value than other competing hotels.

Describe the key strategy implementation efforts at good hotel brand. Has management allocated sufficient resources to the strategy execution effort? exercised strong leadership to propel strategy execution forward? Instituted policies and procedures that facilitate good strategy execution?

Originality and uniqueness are what drove the success for this brand originally then shifting focus on being an environmentally friendly yet affordable upscale hotel was how they appealed to even more consumers. Most of the furnishings in the hotel rooms are made from recycled materials in an effort to have a PR appearance of being a “green” company. The unique niche they found is due to their originality and meeting new types of consumer preferences aside from the basic needs, such as having a homely feel and using recycled materials to be eco-friendly. The unique style of hotels created were purposed for hip, happy, humble, and conscious consumers. The resources allocated to pursue this strategy have clearly been shown when they had such a strong recycling program to furnish their building along with the charitable programs they provide to give back to the community. They strategically separate themselves from the competition by giving the appearance they care. All their hotels have different looks and or feels to attract various types of customers which can be debated on how effective this could be because tastes and preferences vary greatly from person to person.

What is your assessment of the good hotels performance relative to its peers in the...
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