External Opportunities
- Increase sales figures
- Increase net profit
Internal Weaknesses
- Not too many amenities
- Received little promotion both locally and nationally
- No kitchenettes
External threats
- Other hotels or units that offer similar service with the competitive price or even at the lower level
- Down falling economy
- Preliminary Assessment of Market Conditions
This section records preliminary observations on the market advantages and disadvantages of an all-suite hotel.
Advantages:
- Rooms are 500 to 800 square feet compared to traditional hotel rooms which are 300 to 400 square feet
- Privacy
- Business people can conduct small meetings in there hotel rooms
- Convenient because it’s located near the business district and near tourist attractions
Disadvantages:
- More staff needed
- More expensive for upkeep
- Some people don’t want such a big room
- No big function rooms for weddings etc…
2.3 Market Segmentation
All-suite hotels entered the hospitality market with the business traveler in mind, providing home-away-from-home comforts for long business trips and separate living and sleeping rooms to better accommodate in-room business meetings. It wasn't long, however, before the benefits to traveling families became equally apparent. Private sleeping areas for parents or for children's naptime and kitchen facilities to save money on meals as well as to accommodate children's eating patterns are among the benefits of all-suite travel for families with children.
The market for Baltimore Royale Suites can be reasonably segmented into two categories: business travelers and leisure travelers.
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Business Travelers - need hotel rooms year round, but usually emphasize weekdays (M-T). They are likely to evaluate the hotel on the following criteria: price (although not very price sensitive, they
can’t afford to be too free and easy with their expenses), level of personal service provided, degree of physical luxury (rooms, restaurants, lobby, decor, extra amenities) location relative to next days business meetings, ambiance / atmosphere of hotel and quality of upkeep (clean and fresh).
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Leisure Travelers - tend to visit on weekends. They may be slightly more price sensitive than business travelers and be looking for packaged deals (special weekend rates including some meals), they will also want a location close to shops, restaurants, entertainment and attractions. If they were touring by car then on-site parking would be an issue.
2.4 Preliminary Market Size Analysis
In this section, a preliminary market size estimate for business travelers and leisure travelers is produced.
- 31% of hotel occupancy, 51% with groups
- What is happening to business travel
- Stagnation ==> high fares and technology alternatives
- Still need for face-to-face meetings
- Globalization is a positive factor
- What do business travelers want
- Location, service, reputation, appropriate product, price
- Significance of women as growth business travel market
- 68% of trips, 43% of hotel stays
- Leisure trips have been growing at twice the pace of business trips
Recommendations based on assessment
Royale Suites has already made a good start towards a successful marketing strategy for their Baltimore Hotel. It’s going to be tough to get the hotel started due to the falling economy. The hotel needs to get a good staff. Staff is very important because they leave a lasting impression on the customers. Royale Suites needs to really concentrate on customer satisfaction. If they can get customer satisfaction then they have got through half the battle.
Royale Suites should also concentrate on online sales. Everyone uses the Internet and that’s where he or she will find most of there traveling accommodations. Royale Suites should also go to different businesses and explain to them all the amenities that they offer. They should also reevaluate their amenities because it seems by the survey that they are low in that factor.
I believe the Baltimore Royale Suites will do just fine. Business people are traveling all the time and they definitely like idea of all suite hotels. It’s roomier, very convenient for business meeting and they have privacy which in ordinary hotels they lack that greatly.
