Marketing and Market Analysis
At Execs Business Hotel the following strategies were employed to complete a marketing
analysis:
- Surveys with local business travelers and potential customers
- Obtained information from the local Chamber and other related professional entities
- Surveyed pricing of local competitors
The hospitality market is approximate a multi-billion dollar industry in Palm Beach County.
After a sluggish past fiscal year in 2013, visible growth in business travel has been documented
in 2014 to an estimated 2,808,480 total travelers yielding approximately $7 billion in revenue.
Execs Business Hotel conducted substantial research to validate the market niche. The hotel is
estimated to capture .024% of the market.
Regional Analysis
The hotel market in Palm Beach County averages between 50% and 90% occupancy throughout
the year. Execs Business Hotel will capture a projected 75% to 90% occupancy rate throughout
the year. Business hotels in the area average 100 to 140 rooms and room rates of $120 to $145.
Execs Business Hotel will be a dominant business-lodging establishment in Palm Beach County.
Market Share Objectives and Analysis of Competition
There are many competitors in our immediate area. However, Business Execs Hotel offers a
service that is differentiated through its outstanding, distinguished quality. Moreover, the guest
service representatives with the best credentials and most experience will provide premiere
service to our guests. Business Execs Hotel will not discard the possibility of other competitive
hotels presenting the thread of capturing the business traveler segment of hotel clientele. Thus, it
is necessary to conduct a market analysis of our competition.
Marriott Courtyard is one of our primary rivals. This hotel approximately 2 miles from
our hotel. There are 110 rooms available, and their rate is as follows:
Executive Suite (10) single/double $195
Superior Deluxe Room (30) single/double $175
Premiere Room (40) single/double $165
Standard Room (30) single/double $150
The above rates were calculated by excluding the 19 per cent tax rate and service charge
Market Segmentation
Business Execs Hotel will serve primarily business travelers and local professionals. This
segment of guests will be principle niche. The hotel will maintain a premiere level of quality
service for our guests. The typical age of guests will range from 21 years old to 60 years old.
This segment of the population can be categorized as middle class and upper middle class
people. Thus, the hotel will provide value and quality service at an affordable price. Followed by
this business segment or the population, Business Execs Hotel will seek to attract tourists and
college students in the area seeking local hotel accommodations. This group of people value
quality at competitive prices. The hotel’s amenities will be designed to fit this segment’s needs at
a matched rate.
Business Execs Hotel will seek to maintain the most practical amenities suitable for this
segmentation to maintain it competitive edge in the market. The amenities include a business
center, fax service, wi-fi, and telephone service for this population. As the time progresses and
amenities are in more demand, the hotel will consider implementing these amenities to meet the
guests’ needs. Moreover, the hotel will maintain state of the art equipment. While competitive
hotels vary in capacity according to season, Business Execs Hotel will run at a consistent
capacity due to the fact that the population segment comprised of business travelers remains
virtually unchanged year round because of contractual employment.
Marketing goals
Execs Business Hotel’s marketing strategies and goals are directed at maintaining the highest
possible level of accommodations and associated services. Because of our oneness in the
industry, initially we will be unrated. However, through different marketing venues,
representatives of multiple rating agencies will be invited to stay at the Execs Business Hotel.
Personnel training and skills
Regular professional development sessions will be conducted for staff members. There will be
bi-monthly meetings followed by continued training relative to the meeting topics. Employees
will remain engaged in completing ongoing education about the latest industry trends. This will
be conducted through lectures, DVDs, computer based assessments and peer employment
training.
Pricing plan
Execs Business Hotel will price its services slightly below local trends. This, in turn, will
enhance the opportunity to increase volume sales. Given the hotel is not a full service hotel, it
will maintain its prices under the going market value of the local rack room rate. This pricing
category will attract business guests and even local professionals.
Advertising and promotion
The Execs Business Hotel promotional plan is diverse in nature and includes multiple marketing
venues. The hotel will promote its competitive rates via Internet, the local Chamber of
Commerce, direct mailings, and local trade journals.
The hotel will network with national companies as part of its promotional campaign. This will
ensure that the companies become familiar with the hotel’s services and unique low-rate, high
quality services. The hotel will hire a sales staff to direct marketing and sales.
Sale campaigns will be designed and launched to attract members of the local business
community.
Analysis of the advertising expenditures
These expenditures will be congruent to the local market in any given period.
SWOT analysis
The following analysis is based on information collected in the conceptual stage of the business
plan.
Strengths
The hotel will:
- Offer the most competitive business lodging rates in the area
- Be tailored to business travelers
- The hotel will be centrally located to the downtown and airport area
Weaknesses
The hotel will not:
- Be a full service hotel
- Offer luxury services
- Be an established brand in the industry
Opportunities
The hotel will:
- Attract local business clientele
- Attract business travelers on a national level
- Have the opportunity to expand and franchise over time
Threats
- Decline in business travelers in this sector
- Competition with chain hotels
- Natural disaster (i.e. hurricanes)
- Financial instability
Operations
Execs Business Hotel establishment in the community will be unique. The primary drawl will be
business travelers looking for the lowest rate while offering the highest quality of profession
service.
Location
Execs Business Hotel will be located directly on the intercoastal two miles east of the airport and
one mile south of the downtown West Palm Beach area.
Premises:
- 120 rooms with a small business center for computers, copying, and meeting
- Parking accommodations for 150 cars
- Closed circuit security camera and recording system
- Professionally trained security officers
Proximity:
- Clientele base: business travelers (local and national/international)
- Competitors: none in like category because of limited services
Accessibility:
- Close to airport
- Close to downtown area
- Easy access
- Visible from major streets
Legal Environment
The Execs Business Hotel will be in compliance under Florida State statues and West Palm
Beach city ordinances for hotel occupancy under section 301 chapter 3 in the following areas:
- Permits
- Zoning or building code requirements
- Insurance coverage
Personnel
Employees will be contracted for the following staffing areas:
- Management
o General manager (min. bachelor’s degree req.)
o Assistant manager (1)
- Front desk (skilled)
o Supervisor
o 5 staff
- Maintenance (1) (technical)
- Housekeeping (unskilled)
o Supervisor
o 8 staff
- Security (1)
Organization Structure
Pay Structure
The owners will divide the net profits according to their contributions to the initial investment.
The following pay scale will be applied:
General Manager: $50,000
Assistant Manager $25,000
Front desk associate: $10. per hour
Maintenance engineer: $30,000
Housekeeping: $9.50 per hour
Security: sub-contractor
Training
Initially, contracted hospitality professionals within the industry will provide pre-opening
training. Ongoing internal training will be conducted for all employees at all levels.
Management and Organization
The owners of the Execs Business Hotel employee a general manager to oversee the day-to-day
operations. The general manager must have a minimum of a bachelor’s degree in business or
hospitality as well as a minimum of ten years management experience in the hospitality industry.
Additional qualifications may apply.
The GM will report the daily operations to the owners and will work in accordance to the
establishment’s policies. The GM is also required to work with all outside entities, which include
bankers, accountants, insurance agents, and establishment owners.
The GM has an assistant to whom he/she delegates certain duties. Other employees work in their
respective departments of front desk, maintenance, housekeeping, and security.
Outside auditors will be contracted when required to prepare all financial reports for the hotel
and keep financial processes of the business.
