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Case Analysis Amber Inn & Suite

Autor:   •  October 3, 2011  •  Case Study  •  1,966 Words (8 Pages)  •  2,375 Views

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Case Analysis Amber Inn & Suite

Davenport University

September 28, 2011

Introduction

Amber Inn & Suite, Inc. was built in 1979 and is composed of 250 hotels chain empire of which each consisting an average of 120 exquisite guest rooms or suite units. The profits are $422.6 million and deficits of $15.7 million. The Amber Inns & Suite have total of 30,000 rooms. The Company's objective is to cater mainly to professional clienteles that are traveling with fabulous guest rooms at an economical price. Amber Inn & Suites, Inc. is located in areas amid ten western and Rocky Mountain States with two hundred fifty numerous property hotel chains. In most cases, each property is made up of one hundred twenty single guest rooms or suite units. Amber Inn & Suites Inc. positions its properties on prime areas such as major freeways, rural businesses and office complexes, airports, and busy local shopping centers. Sadly, in the latter years, Amber Inn & Suites Inc. has been going through its decadence, which involves decreased in sales and/or profits as well as millions of dollar deficit.

Problem Identification

The challenge that Amber Inn & Suites has to deal with is to determine whether or not to broaden their marketing and advertising investments between guests who are on leisure travels and/or business trips. First of, Amber Inn & Suites advertises their hotels mostly to those on a business journey whose stay only last between one or two nights. According to its mission, the Company aims to serve professional clienteles. After three years of persistent loss, it must find a method that will increase the Ebidta, to growth 7% in 2 years. Second, Amber Inn & Suites must adjudicate if they should maintain, and if so how, the frontier technique and what to do with the promotion as holiday special or do a free night stay in the weekend (25% discount).

Case Analysis

Amber Inn & Suites, Inc. has planned growth in the annual sales revenue of 7.4% for the actual financial year. Nevertheless, it remains somewhat beneath the total lodging industry average of 7.6%, but greater than the mean limited-service growth rate of 5.8%. Nevertheless, Amber Inn & Suites, Inc. has also devised to reflect its' third year net deficit while the lodging industry as a whole and the limited-service operations stated profitable operations over the last three years due to improved economic terms. Amber Inn & Suites hotel can use push advertising method to increase their profits.

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