There is a great variety of products and services offered in Las Vegas, and it is rather hard to come up with a business idea that has not been implemented in this city yet. However, there is one hospitality service that is currently not offered in Las Vegas, and this service is an accommodation in a hotel. Definitely, there are very many various hotels in Las Vegas, but there is no hotel that offers accommodation in the rooms that have different design and themes. Such a hotel would be very interesting to visit for many travelers, and considering that the prices will be rather affordable in comparison to the prices of other Las Vegas hotels, this hotel will have a great chance to become a successful business idea.
Such a business is rather popular in Taiwan, and it can be presented to the American market as well. There aren’t many hotels of such kind in the United States for now, and this is the reason why this business idea is rather unique and can be successfully implemented.
It will be a small hotel and will offer only 10 rooms for the visitors. Currently, there are many big 5-star hotels in Las Vegas, so there is no need to build a new one of this kind, as the competition in the hotels industry of Las Vegas is high, and will be very hard to win the competition, even if the hotel has a unique design.
I believe that a small hotel with an interesting design and affordable prices will be the best choice for the travelers looking for the place to stay when visiting Las Vegas. As a customer, I would prefer staying in such a hotel, as well as many other categories of customers who cannot afford paying thousands of dollars for staying in luxury apartments. Currently, there are hotels in Las Vegas that offer a low-cost accommodation (“Las Vegas Hotels”), but the design is rather poor, and it is not comfortable to stay in such rooms.
The Business
The main marketing idea is to build a hotel that would be both well-designed and affordable. There is an unsatisfied consumer need of a cheap accommodation in the hotel with the rooms that have a different design. The economy of the country is recovering, and many people can afford staying in average-priced hotels.
In Las Vegas, there are either cheap or expensive hotels, and few of them have medium price ranges. The idea is to offer prices that are higher in the most affordable hotels, but lower than in the luxury hotels. Many visitors from other countries come to the city to visit famous places and casinos, and do not have enough funds to stay in the best hotels, such as Cromwell, Nobu, Skylofts, Mansion, and other hotels (Olmsted).
The hotel will offer 10 rooms with a different design, and customers will be able to move from one room to another (in case want) without any additional costs. Also, the hotel will offer various packages, including discounts for a several-night’s stay. Also, if the customer books the room beforehand, he gets a good discount, and also a discount will be given out in case the client books several rooms at the same time.
Market Situation
We will enter the market of accommodation services entered in Las Vegas and its suburban areas. It will be hard to pay the rent for the building located within the city, so we will rent the building for the hotel in the suburban of Las Vegas.
Our target audience will be students, foreigners, and the population with the medium-ranged income. They demand a stay in the hotel that is better than the cheapest one, and we will satisfy their need of an affordable and comfortable accommodation.
In the world, the 3-star hotels segment is growing and this trend will maintain within the next 5 years (“Hotels Market”). The United States has the largest number of cheap hotels at the moment, so we will not have any competitive advantage if we build a cheap hotel in Las Vegas, as this offer will not be unique on the market, and we will not gain any success.
The market has a large size, as there were more than 42 million of visitors of Las Vegas who came to Las Vegas last year (“Las Vegas Stats & Facts”). Also, there were about 21 thousand of conventions held in Las Vegas, and millions of people took part in these conventions. There are no obstacles that can prevent people from visiting Las Vegas, so the market will be growing within the nearest future.
The current social trend is that the gap between rich and poor is increasing, and this trend will maintain within the nearest future. Rich people will visit luxury hotels of Las Vegas, and poor people will be looking for affordable places to stay in, and our hotel will offer them cheap rooms with an interesting design.
Also, current technologies will help the customers choose all the hotels online at various platforms, such as Kayak or Booking, so it will be easier for the customers to make their choice when they will see a mix of well-designed rooms and affordable prices.
The Marketing Mix
Product
The need is the affordable accommodation, and our price strategy will be focused at satisfying this need. We have discovered that people need cheap rooms that would also satisfy their need to stay in the well-designed rooms.
We will offer accommodation in themed rooms, and each room will have a special design. So, customers will be interested in staying at our hotel and save their money, as rooms in expensive hotels will cost them a lot.
Price
We will make a thorough research of the hotel industry in Las Vegas, as we need to determine what price strategy we need to choose.
An average price of staying in 3-star hotels in Las Vegas is approximately $40-80, so we need to stay in this range of prices. We will offer low prices for our clients, so they will prefer staying in our hotel (“Las Vegas Hotels”).
We will have to research when the majority of visitors come to Las Vegas, so we will adjust our prices to the season trends as well.
Promotion
Today, the majority of visitors choose among all available hotels and rooms using various websites and applications. Thus, our hotel will be included to the list of all hotels in Las Vegas. Also, we will use the means of search engine optimization for the website of the hotel to be placed among in the top of all hotels when customers are googling “Las Vegas affordable hotels”.
Place
We will be located close to City of Las Vegas, in one of its sub-urban areas. It will take not much time to get to Las Vegas by car.
However, we will be able to offer cheap prices as we will save a lot on renting a building outside the city itself.
The location of the hotel will be marked on all popular online maps, so it will be easy for our customers to drive to the hotel.
Works Cited
“Hotels Market”. PR Newswire. N.p., 2015. Web. 3 May 2016. <http://www.prnewswire.com/news-releases/hotels-market---global-industry-analysis-size-share-growth-trends-and-forecast-2015--2021-300182265.html>
“Las Vegas Hotels”. Kayak.com. N.p., n.d. Web. 3 May 2016. <https://www.kayak.com/Las-Vegas-Hotels.35107.hotel.ksp>
“Las Vegas Stats and Facts”. LVCVA.com. N.p., n.d. Web. 3 May 2016. < http://www.lvcva.com/stats-and-facts/>
Olmsted, Larry. Forbes.com. N.p., 2015. Web. 3 May 2016. <http://www.forbes.com/sites/larryolmsted/2015/03/09/10-most-luxurious-hotels-in-las-vegas/#65312da2775b>
