MARKETING MISC Astor Lodge Suites.

MARKETING MISC Astor Lodge Suites Industry Analysis Porter’s Five Forces: COMPETITIVE RIVALRY: • Types of competitors: o Limited-service hotels o Economy hotels: Red Roof Inn and Motel 6 o Full service midscale hotels: Holiday Inn and Ramada • Segmented Industry • Competition based on amenities, price and service. • 4.4 million hotel rooms in the US • Hotel Industry experienced a downturn after 9/11 POWER OF SUPPLIER • Astor Lodge Suites supplies mainly the business part of the hotel industry. • They give weekend promotions to their clients. THREAT OF SUBSTITUTION • 1.4 million hotel rooms in the limited service branded hotels. • Hotels compete with prices vs amenities • People might chose over another hotel like Ramada or Motel 6 because it has better price, location or amenities. • People can choose over other type of hotel like Holiday Inn because they are full service hotels. BUYER POWER • Most of the guests are traveling for business • Average rate per night willing to pay is $96 • Occupancy 67 % • Projected revenue $38 Threat of New Entry • Tough industry