I also agree with you. Referring to the information from the case of Amber Inn &Suite: It seems to show that the US hotel industry in 2005 will be a profitable year. After the 9/11 attacks, the hotel industry in US had suffered from a serious downturn and people were scared of travelling. The situation was not much improved in the two following years. However from 2003, the economy has evidenced improved performance from the aftermath. In 2004, the hotel industry had recorded revenue of $113.7 billion and grossed $16.7 billion in pretax (Chap 6, Pg 332, Strategic Marketing Problems, Kerin and Perterson). All hotel segments also proved to have improved performance on the three most important factors: occupancy, average daily rate and revenue per available room. For that reason, it could be predicted that 2005 will be a year of development and growth for the US hotel industry. Question 2
The current competitive position of Amber Inn & Suites, Inc., can be considered as out of the market, which means it limits and puts itself in a not very favorable situation. It positioned as a limited service hotel between economy hotel and full-service hotels. Because of that, their hotels do not include restaurants; lounge, meeting rooms, concierge or room service on the property. And this cause confusion in the competitive hotel industry: it is hard to say if their hotel belongs either to midscale or economy category. Amber Inn & Suites, Inc.’s direction is that they avoid urban and downtown area. Instead, their properties are located on major highways close to suburban industrial and office complexes, airports and shopping centers.
3. How would you characterize the operational and financial performance of Amber Inn & Suites Inc.? I would characterize the operational and financial performance of Amber Inn & Suites Inc. as positively improved, however still it has not make full advantage of all its potentials. Although Amber Inn & Suites Inc. has achieved a...
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