The Good Hotel
The Good Hotel
When reading over the Good Hotel case study the first thing that stood out was the process that was used to communicate the leadership change and company change. The first thing that was stated in this case study was the means in which JDV went about communicating by emails, that they have sold all three properties that Pam was managing. I just believe as a company handling a transition on a scale like this they would have found a better way to communicate this huge transition. With news like this coming down I felt as if they really didn’t give Pam much to work with to deal with the staff and the concerns and emotions that come with ...view middle of the document...
According to our text it states that “The Good Hotel intended on being the first hotel with a conscious. Their philanthropic and positive approach was designed to inspire good in all”. With this The Good Hotel was carving out their distinctive advantage with this concept. Their target market was to reach out and grab the go green market. During this time this would definitely give them a specific niche mark as well as a profitable market to go after. What this did according to the data that was present in exhibit 3, was to change their demographics to a younger hip, educated higher income market. This pulled them away from the ordinary price hunting vacation travelers to those who travel with the purpose of having experiences. I may not agree with the beginning stage of the implementation of this plan but you have to like how they position their self to have a distinctive advantage and marketing edge.
Now in this case study they show that this target market would be willing to pay a premium for a green hotel and with the rise of attentions to a green community with clean fueling, hybrid cars and low energy light this just would add to the sustainability of this business strategy. They make mention of the premium that 20% of people would be willing to pay but with further review I’m not sure that that would be exactly where they would get a increase of revenue from. According to an article in Hotel Executive dot com, by Michele Millar she makes and statement that in her observation that managers of green hotels were not using the fact that they were green to charge more for their rooms. According to the hotel industry the rates were and are still determine by supply and demand. This brings me to believe that the key to their sustainability is the Good Hotel target Market.
Looking at the stats that the Good Hotel used to come up with their target market would appear to be smart. According to LOHAS the ECO conscience segment presents a buying power of 209 billion dollars and tapping into this market is extremely smart. It really just gives you a...