Good Hotel (Case 25)
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
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