ISBM – From luxury to budget to nofrills and boutique… the major hotel giants are moving ahead with innovative concepts, and the outcome – a never before choice for business as well as leisure travelers.
Marketing Management
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CASE STUDY (20 Marks)
From luxury to budget to no-frills and boutiques… the major hotel giants are moving ahead with innovative concepts, and the outcome – a never before choice for business as well as leisure travelers. Forging ahead amid stiff competition and industry growth nearing maturity, hoteliers are constantly thinking of new value innovations. One such innovation gave birth to the no-frills concept, based on a typical Japanese capsule hotel along with considerable inspiration from low-cost airlines and first-class accommodation
on air flight. Particularly visible in popular regions of the US and Europe, they set a unique and distinct competitive position in the market. However, in an industry where customers identify their lifestyle with the hotel brands, known for luxury and comfort, how would no-frills budget hotels appeal to the customers? Given their strategic pricing, can these hotels earn sustainable profits amid competition from high-end as well as low-end hotel segments?
Answer the following question.
Q1. Discuss the development trends in the global hotel industry and its growth across the years.
Q2. Explain various operational aspects of the hotel industry and their implications on the performance of the hotel companies.
Q3. Comment on Japanese capsule hotels, their characteristic features, and the services offered.
Q4. Evaluate the success of these new concept hotels and identify their growth potential.
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