Peaceful Rest Motor Lodge

Topics: Hotel chains, Hotel, Marketing Pages: 5 (1890 words) Published: October 29, 2014

Franchising Peaceful Rest Motor Lodge
In today’s market whether it is shopping for a vacation spot or purchasing tangible goods the consumer is one thing that never changes. Research tends to support brand equity and brand loyalty. In choosing a vacation, spot customer not only wants the facility to meet their needs they want it to exceed their expectations, none the less for the best price. Branding within the hotel industry is no different. Consumers look for key risks, perceived benefits and costs when making their purchases. Through all the ways, that tourist can book hotels and read prior reviews on where they are, going to stay the decision is, usually, made before the trip. With the case of Peaceful Rest Motor Lodge, there are significant obstacles that the owner overlooked when jumping into becoming a hotel owner and now faces the decision of choosing a franchise. Addressing some of the critical issues the company is suffering from will help to determine the necessary action and best decision of a franchise company.

In conducting the SWOT Analysis, the majority of the critical issues are the within the confines of the weakness and threats. However, in addressing some of the strengths of Peaceful Rest one discovers that it is in a prime location that it is growing to be a favorite vacation spot. It is located next to the highway with excellent visibility and easy to get to. Considering the low cost of purchase, Tristan can have low-cost rooms to meet a tighter budget. A viable weakness is that the lodge has limited amenities. The owner utilized only his opinion to determine what was the standard package of amenities to offer to the clients. The next area of weakness is the lack of advertising that the owner is choosing to utilize. While advertising is expensive, it is a necessity to drive people to the business. Advertising budgets should always be considered when conducting a business plan. The next apparent weakness in the business is the inability to present better curb appeal. With people driving in and out of the parking lot, it is apparent that there is a need for improvement externally.

The threats that facing Peaceful Rest is the untapped market for larger hotel chains to come in and establish business that would only devastate the financial concerns the owner is facing now. In today’s economy, the big seem to overtake the small. It is a near impossibility in some industries to compete with large chains that have the financial ability provides for their clients whatever they wish. Even if they suffer a loss in one market, they are large enough to absorb the costs somewhere else. Furthermore, if the area continues to grow and it becomes more of a vacation spot there is no doubt that the tax rate on the property will increase creating more of a financial burden that the owner cannot seem to afford.

Branding a hotel is usually, a lengthy and expensive process, and it requires crucial decisions from an economic standpoint and reputation standpoint. The recognized goal of hotel branding is to provide added value to both guests and the hotel companies by building brand loyalty (INSERT CITE) The case states that he was an avid traveler, and he made assumptions that the majority wanted and or needed the bare minimums based on his experience. Failure to look at the market research and the competition of another similar business is a huge mistake on his part. Market research is a fundamental five-step process that Tristan should have considered prior to opening a small hotel on limited resources.(William D. Perreault, 2012; Zeigler, 2007) This would have allowed him to produce and analyze the information in front of him and make better financial decisions for his company. Another critical issue that he faced jumping into hotel management is brand power. Brand power is what captures the consumer’s attention. When a consumer is faced with a brand that they do not know in an area that they are unfamiliar,...

References: Belmonte, S. (2014). The Bare Essentials Of Repositioning Your Hotel, by Steven Belmonte. from http://hotelexecutive.com/business_review/3015/the-bare-essentials-of-repositioning-your-hotel
Franchise Agreements vs. Management Agreements: Which One Do I Choose?, by Nelson Migdal. (2014). from http://hotelexecutive.com/business_review/2101/test-franchise-agreements-vs-management-agreements-which-one-do-i-choose
Hayes, D. (2005). Pearson - Hotel Operations Management, 2/E - David K. Hayes & Jack D. Ninemeier (Vol. 2E): Prentice Hall.
Kayaman, R., & Arasli, H. (2007). Customer based brand equity: evidence from the hotel industry. Managing Service Quality, 17(1), 92. doi: http://dx.doi.org/10.1108/09604520710720692
Pars, S. R., & Ciftci, G. (2011). The Effects Of Brand Image On Consumers ' Choice. International Journal of Business and Social Science, 2(20).
Snyder, M. (2007). Holiday Inn Brand (pp. 50).
William D. Perreault, J. p., Canon, Jerome McCarthy. (2012). Basic Marketing A Marketing Strategy Planning Approach (19E ed.): McGraw-Hill.
Wyndham. (2014). Development & Support | Conversion & Renovation. from https://developmentsupport.wyn.com/en/development-and-support/conversion-and-renovation/
Zeigler, J. (2007). Holiday Inn Brand Management.
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Essay on Peaceful Rest Motor Lodge Edit
  • Essay on Rest
  • Motor Skill Research Paper
  • Motor Essay
  • Lodge Essay
  • Rest Essay
  • The Sweat Lodge Essay
  • LIT Motors Essay

Become a StudyMode Member

Sign Up - It's Free