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Good Night Inn Case Analysis

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Good Night Inn Case Analysis

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  • November 2012
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GoodNight Inn Case Analysis
MK610 Professor Hossasin
November 4, 2012
Tom Green, Angela Cosner, Ryan Williams, Ramakanth Desai, Todd Ricketts

Executive summary
Anton Cahoon left a successful career in manufacturing to purchase an independent motel, near an interstate highway exit, a short distance from a rapidly expanding resort area. Mr. Cahoon relied only upon passersby as clientele with little other advertising. For the first two years operations went smoothly, however the Goodnight Inn had not become profitable. While occupancy rates stabilized near 55%, they were still well below the industry average of 68%. Anton had run his motel avoiding “unnecessary expenses”, and as a result had a 40% price advantage over the full-service hotels in his market area. Customer surveys found the GoodNight Inn acceptable. After much thought, Anton has begun to consider affiliating with a either Holiday Inn or Days Inn, both offering the advantages of a central reservation system, and their national marketing presence.

Problem Statement
Anton Cahoon owns a motel that is losing money due to low occupancy rates. What marketing strategies can be adopted to increase both occupancy rate and profitability?

Analysis

a. NAICS Code 721110 Hotels (except Casino Hotels) and Motels b. This U.S. industry comprises establishments primarily engaged in providing short-term lodging in facilities known as hotels, motor hotels, resort hotels, and motels. The establishments in this industry may offer services, such as food and beverage services, recreational services, conference rooms and convention services, laundry services, parking, and other services. Anton Cahoon is in an interesting situation. There are a lot of factors at play that he can use to his advantage as well as some that he should look to avoid. Fortunately he is in position with many opportunities rather than one without any choices. His competitors are...