Astor Lodges ; Suites, Inc Essay

August 28, 2017 General Studies

Case Recap

In the twelvemonth of 2005 Astor Lodges Suites. Inc projected that it was the 5th consecutive unprofitable twelvemonth. The company’s new president and CEO Joseph James set a end in which the company HAD to accomplish. that end was to derive net income within two old ages. The company was formed in 1979 and has 250 belongingss in 10 Midwestern provinces ( 200 Astor Lodge and 50 Astor Lodge & A ; Suites ) . The net-loss of the company is $ 15. 7 million so four senior frailty presidents were bought in to show the effects of the last five old ages. Kelly Elizabeth who is really experient in the selling field was bought in to seek and work out and assist with a profitable twelvemonth from 2004.

The Problem

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With five back-to-back old ages non doing net income a selling scheme needs to be put in topographic point. The hotel industry has seen a $ 16. 7 billion pre-tax net income in the 2004 with 4. 4 million hotel room available in the state. The competition of 213 attached hotels with a trade name company is traveling to be a challenge but accomplishable. From 2004. aims are completed but still turning over unprofitable old ages with selling programs put in topographic point.

Root of the job

The root of the job I believe is non separating what type of hotel/s the company is aiming to the audience as it has changed through the old ages between the pleasure/vacation traveler and the concern traveler. As a frequent invitee to hotels seeking to blend the two is non traveling to work and even though aims were met the day-to-day mean rate aim was non met. Furthermore. the in 2006 the frequent concern traveler complained about the hotel system at Astor Lodges & A ; Suites. Other cardinal factors that are besides a job is either being a limited service hotel or a full service which Astor Lodges differs. Besides. what locations are good and hotel sections are assisting with net incomes within the company.

SWOT Analysis

Strengths – With Kelly Elizabeth taking the reigns I saw a batch of strengths when she introduced her programs between 2004 and 2006. Each twelvemonth the aim was to increase and pull more residents which she did for the company. Besides. the debut of cyberspace communications is a large asset for the concern traveler utilizing the hotel. We now know how of import the cyberspace is to every type of guest these yearss. Furthermore. location placement is of import and with hotels located on major main roads. office composite. airdromes and environing big shopping Centres it is contending other competitory hotels.

Failings – Changing targeted invitees is the biggest failing and impacting the company in my sentiment. 2006 has seen ailments from frequent concern invitees as the hotel targeted the holiday traveler. Even though the window of chance was at that place due to the travel industry being sulky those invitees that were frequent invitees have now gone to another company. Furthermore. the challenges from taking companies have more suites and belongingss in the U. S with a great repute.

Opportunities – There are many chances for the company to do net income and necessitate to concentrate on one type of invitee I feel as this seems to be a job. The company are besides offering the chance for invitees with particular offers which are besides non impacting the company with any extra promotional costs. I can wholly understand why Elizabeth targeted the pleasance holiday traveler during the travel industry in diminution.

Menaces – The biggest menace in this industry is the challenge from the biggest hotels in U. S which are now doing their grade worldwide. With great reputes and low-cost suites Astor Lodges & A ; Suites must fit these companies if they want to last and run into Joseph James end. The “frontier strategy” has non yet to be rendered effectual which could impact the company if non successful.

Options

The state of affairs and program demands to be put in topographic point and worked on in the following twosome of old ages. If the company can lodge by this program with limited alterations so I believe they will see advancement until the company is back making net income. The chief purpose is to make up one’s mind what hotels will pull first clip invitees and increase residents by location in the Midwestern provinces. The company should settle on either offering limited service hotels or full service. Besides. a dramatic option could be for the company to merely utilize hotels which are doing net income each twelvemonth and shut the 1s that are non making net income. These hotels can possibly be used for other chances. Guest profile should be decided alternatively of blending between the holiday and concern traveler.

Recommendations

There are drastic ways for the company to gain from but a high hazard such as shuting underperforming hotels and utilizing the profitable hotels merely. Sometimes you have to travel back to travel frontward and the company could even sell these in hapless locations and look to construct more in locations with a higher success rate. The debut of a few hotels traveling to other provinces is great for advancing the company and a good chance for the company to turn so I like the thought of that. Offers on hotel suites should be made each month as its bing nil to advance particular offers. Every month there is a different offer throughout the twelvemonth e. g. summer specials. weekday specials etc. What can Astor Lodges offer that other companies can non? If it’s the concern invitee so aim at concern caputs and work with other companies to offer them trades for their employees to remain at the Astor Lodges hotels.

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