Related Diversification in Hotelss

Topics: Automobile, Hotel chains, Car rental Pages: 2 (409 words) Published: April 16, 2002
Diversification plans for Just Sleeping Inn

Related Diversification

In an effort to create a competitive advantage over other hotel chains, and give our customers greater service, Just sleeping Inn will expand our hotel chain to include a car rental service at all of our locations. Through several years of surveying customers and other demographics we have found that offering rental car service at the hotel instead of at the airport would greatly increase the satisfaction of our customers. With the free shuttle to and from the airport already in effect, Just Sleeping Inn will be able to offer more options to the corporate traveler. We feel that being the first hotel chain to offer this service will create a greater brand loyalty and bring more customers to the Just Sleeping Inn chain. Just Sleeping Inn has created a partnership with Allied Rental to exclusively rent their vehicles to our customers. By using Allied's cars and guaranteeing them a number of rentals, Just Sleeping Inn will keep overhead costs low and bypass all maintenance costs. In exchange Just Sleeping Inn will include Allied Rental in all advertising. The Just Sleeping Inn chain has a plan to expand the computer system and slowly integrate the rental car service into the front desk of each hotel location. By retraining all front desk employees in the new computer system, Just Sleeping Inn will be able to add another profitable aspect to the chain with little additional staff. Each hotel will have at least 10 rental cars ready to offer at all times. We will closely monitor each hotel for the first year and increase or decrease the number as deemed necessary at each location. All cars will be kept in the parking lot of each location to assure convenience for all Just Sleeping Inn Customers. Through expansion of conveniences offered by Just Sleeping Inn including the addition of rental cars available at each location we hope to increase profits in the direct future, while continuing...
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