Amber Inn Case Analysis

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Case Analysis Amber Inn MKT 601 Jessica June 13, 2013 I. Case Summary The Amber Inn & Suites, Inc., founded in 1979, is a 250 property hotel chain located in the western and Rocky Mountain States. The company is approaching their 3d consecutive year of unprofitable operations. Amber Inn & Suites, Inc. has projected revenue of $442.6 million with a net loss of $15.7 million. The company traditionally focused on outbound sales and marketing initiatives competing on the basis of amenities, prices and services. Some key statistics of the company are as follows: a. 39% stay once a week or more b. 65.7% have their trip paid for by their company c. 68.9% stay alone d. 73% were repeat customers e. 36.6% stayed based on price f. 40.9% stayed because they’d been there before g. 79.8% stay for business travel h. 14.2% stay for leisure II. Case Problem/Opportunity The Amber Inn & Suites, Inc. has been generating negative profits. The company must find a business method and strategy that will increase EBIDTA to grow 7% in 2 years. In trying to develop the most beneficial business strategy, Amber Inn has to allocate their marketing and advertising budget more efficiently. Their marketing costs rose from $1.14 million to $12.5 million. Now they must align their marketing strategy to cohesively coincide that of their business plan to bring in the clientele that will make them the most profitable. Amber Inn & Suites, Inc. has two main classes of customers; business travelers and leisure users. The problem that arises given the increased marketing and advertising costs is whether or not to expand their marketing and advertising initiatives/investments between guests who are on leisure or on business. STRENGTHS | WEAKNESSES | - Location (close to airports, office complexes, shopping centers)- Good

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