Introduction
The hotel industry is among the critical sectors in the world. In 2011, the United States of America hospitality was the second largest employer while leading in fifty of its states. The industry has seen continuous developments and improvements held. The amounts of revenue collected have been on a constant increase since 2010.The sources of competition are amenities, services offered and pricing. (Maamoun, 2014)
Smith travel research firm divided the hotels and lodging centres by pricing and services. However, the prices charged were determined by the amenities presented and service levels. Fully serviced rooms, luggage services, room service, decent restaurants, conference facilities and concierge were accorded to the guests. The luxury hotels and upper upscale hotels, procured the fully serviced rooms. The guest occupancy of business travellers and leisure or vacation guests in the hotels was forty percent and sixty percent respectively.
The construction of Lake Superior Lodge was in the late 1960s. Beth and Bill Leland later owned the hotel since 2003. They were locals who appreciated the beauty of the hotels’ location. Also, they did not wish for the wastage of the property. In 2013, Beth employed Brian Willies to manage and revive the business (Maamoun, 2014)
The analysis provides a brief history of Lake Superior Lodge as well as strives made in the hospitality industry while focusing attention to the USA as a nation. The paper will afterwards address the strengths, weaknesses, opportunities and threats facing the lodge. Then it discusses the recommendation made by Willies on sales and marketing. Lastly, the study will deliberate whether Beth should sell the property or not
Summary of the case
The investigation gave detailed information on the achievements and progress made in the hospitality business during the previous years. The case states the impact the sector has had on the economy. It then discussed the inception of Lake Superior Lodge as well as its management transition. However, the case focus was the factors affecting the lodge as a business entity. They include the strengths, weaknesses, opportunity and threats faced by the trade. The inclusions in the study are sales and promotion proposals that Willies had. Finally, a conclusion is reached after observing all the factors to determine whether Beth should have the property or not.
Strengths of Lake Superior Lodge
The lodge in 1960 had numerous factors that worked to its advantage. They are the reasons that made the owners start the business. They include:
Beautiful scenery
The lake provided a beautiful surrounding. The golden sunrise and the sunset provided spectacular settings. The international shipping traffic was incredible to watch. Thus, it helped the guests and locals to relax.
Ample parking space
The lodge had ample parking space for its guests’ cars, boats and trailers. Also, it offered its services to the owners. These are individuals that launched at the McQuade harbor.
Lake Superior bottle shop
It was set up to offer the guests as well as the travellers’ beer, liquor, soda, ice and wine. It was designed to boost the revenue while making the site more attractive.
Air conditioning
The location of the hotel reduced the cost of the air conditioning. The management did not have to invest in air conditioning equipment. The residents can get clean and fresh air from the adjacent lake and the vegetation around the building.
High-speed Wi-Fi
The management has invested in the wireless network. The high-speed wireless connection enables the guest to surf the internet while downloading or viewing videos online. Therefore, they can continue with their various activities away from their homes and business entities.
Restaurants
The location of the Lake Superior Lodge is in proximity to restaurants. The delicacies are both ethnic dishes and fast foods.
Weaknesses of Lake Superior Lodge
Just as an organization has its strengths, the hospitality business has challenges and weaknesses that it encounters. They include:
The hotel not family friendly
The location of the lodge is in a quiet, serene environment with little to no noise. It is positioned on the old highway that is no longer actively used thus the families are less likely to pass through while searching for occupancy. Also, there are few one double-bed rooms which are not economical for persons with large families.
Pet fee
The management allows pets in its premises at a charge. This policy works to their disadvantage since the neighbouring hotels and lodges do not charge any fee.
No amenities
The hotel does not have social amenities such as fitness centres and swimming pool. These are features that offered by their competitors either at subsidized rates or free.
Room service
The hotel does not accord its clients with room service. They get to carry out every activity which is not what people seek when living in the hotels. They want to relax their minds and keep off their routines for some time. Moreover, the customers cannot complain of defects immediately unless passing by the reception desk.
Restaurants
The Lake Superior Lodge does not have a restaurant on its premises. Lack of this service is an inconvenience to its tenants. In case they are new to the district without knowledge of the surroundings, the visitors would not want to seek accommodation there. The customers wish to have a one stop solution for their social or personal needs within the hotel.
Opportunities
Customer recommendations
Online services
The society has become a universal village with the internet being an economic centre. The hotels need to extend their services outside the lodge’s premises. The management needs to offer online services like booking, car hire and customer care. They also need to be prompt when responding to their potential clients on the hotel website platforms.
Effective communication channel
The management of the Lake Superior Lodge should establish a reliable communication channel that will ensure that all the influencing parties always keep in touch. The staff and customers are not only included, but also stakeholders like distributors, security service personnel, potential clients and media.
Other opportunity channels includes; regulations and policies, operational information channels, personal training and appraisal, active consumer relations, holding internal audits. (Kristina, 2016)
Threats
The threats that the hotel is likely to face are: competition based on services and prices, price inflation, the infrastructure, chain hoteling and change in the traffic direction
Sales and marketing
There are several methods that Willies, the manager can use to promote the hotel business. These methods include:
Advertising
The management can use print and broadcast adverts, packaging, brochures and booklets, posters and leaflets as well as directories. They will issue out the leaflets to passers-by and residents to distribute to those seeking accommodation. The notices will help potential clients be aware of the hotel’s location, including the services that it offers.
Public relations
Public relations involve the use of press kits, speeches, seminars, charitable organizations and community development. Through this, more people will want to be associated with the hotel that gives back to the society thus increased accommodation bookings.
Personal selling
Personal selling is whereby the employees and management team make an effort to make the business known. They tell the visitors, persons purchasing drinks as well as the residents concerning the benefits of seeking accommodation with them.
Other forms of promoting the hospitality business include; sales promotion, trade fairs and shows seminars and meeting. (Robinson & Hauri, 1991)
In conclusion, it is advisable that Beth does not sell the property. The business has more aspects in their favor as opposed to the challenges. Other than that, incorporating the right marketing strategies will then ensure a revival of the hotel operations.
References
Kristina, A. (2016). 11 Steps to Improving the Quality of Customer Service in Hotels-| Hotel News Resource Mobile Edition. (2016). Hotelnewsresource.mobi. Retrieved 7 April 2016, from http://hotelnewsresource.mobi/?p=77603
Maamoun, A (2014): Lake Superior Lodge it’s not always about” location, location, location”
Robinson, W., & Hauri, C. (1991). Promotional marketing. Lincolnwood, Ill., USA: NTC Business Books.
