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YOUR NAME HERE YOUR TUTOR HERE YOUR COURSE HERE DATE HERE Recommendations for Sleepy Inn Motel Eng Huang has a difficult decision to make regarding whether or not to continue operating Sleepy Inn Motel or join a more well-established hotel chain. After assessing the case study, Huang should make contact with Days Inn and express his interest in becoming a franchisee of the chain.
Even though it is near a quickly expanding resort region, this represents long-term growth and Huang needs to change his revenue stream much more quickly. Huang faces competition from Hilton Inn, Ramada Inn, and Best Western as well as many other lower-priced hotels similar to his own. His larger competition represents very well-known brands with a great deal of brand recognition and brand loyalty by a variety of mixed demographics. Further, since the only promotional material for this region are two billboards operated by the Tourist Bureau, Huang simply cannot rely on the marketing competency of this agency to fill his capacity rates. Huang maintains a low-cost pricing policy that he had established in the hopes that it would bring enough attention to make travelers choose Sleepy Inn Motel over other well-established branded competition. However, the problem here is that 68 percent of visitors to the region are younger couples and older couples with no children, two demographic groups that typically have much more access to higher financial resources. This is likely the reason why Huang witnesses visitors turn into his parking lot, but never enter the building. ...
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