NAME- Nirmal patel ROLL NO- 16(RM) Good Hotel: Doing Good, Doing Well?
Introduction Joie de Vivre is a San Francisco based hotel management company with 16 properties in the city. It was founded in 1987 by Chip Conley. He knows that his company comes up with unique hotels, with own personality. It has managed to grow to 36 boutique hotel properties. It became the second largest in 2010. JdV had combined two of their properties, Best Western Hotel Britton and Best Western Flamingo. Pam Janusz is the general manager for Good hotels. She received a message inquiring that rumors were true that the owner of Good Hotel and the two other properties that Janusz managed since November 2009. Best Western Americania and Best Western Carriage Inn, had foreclosed on their holdings and sold the three properties, all of which were in JdVs South of Market Street (SoMa) group to a new ownership group. She will be helping with the transition from one ownership to another, by evaluate Good Hotel performance along with helping staff to adjust. When it opened in November 2008 with 117 rooms, it opened as Good Hotel. Good Hotel is known as hotel with a conscience. It has a positive approach, eco-friendly hotel, and it known its recycled materials. This hotel believes in doing good things for the environment. The new group planned to run the three hotels themselves and they would end the management with JdV if no problems arose with the sale at the end of May 2010.
The lodging industry was dominated by twelve leading hotel chains in the United States in 2009. Out of these twelve leading hotel chains, each one of them has features that accommodate to one consumer but not to another. One of the bigger hotels may have more properties with so many rooms with very little to offer but low revenue, but another hotel with less properties with almost the same amount of rooms, more to offer and have higher revenue.
SWOT Analysis of case
Strengths: When Joie de Vivre was founded in 1987 it had grown to manage 36 boutique hotel properties in California. By 2010, JdV was the second-largest U.S. boutique hotel operator. The boutique hotels differentiated themselves from branded chain hotels and motels by providing personalized accommodation and services and facilities. They are also known as design hotels or lifestyle hotels. They differentiated by creating their own theme, style, and aspiration through their newly applied furnished looks, also their environmental friendly appeal. Weakness: An industry that relies on the needs of unpredictable travelers. They are forced to maneuver the way the economy sees fit. If the economy is doing bad people are less likely to spend money, go on trips, therefore the JdV doesnt make a lot of money. The economy is doing well, people spend more money, go on more trips and JdV has access to a larger audience. Opportunities: The greening of the hotel industry with 38 million people in the LOHAS segment. That is 17 percent of the U.S. adult population, with spending power of $209 billion annually. JdV need to advertise and make the need for cleaner hotels more known so that they can accommodate a lot more of those customers in this segment. Threats: Business travel being a big factor in the industry. Joie de Vivre and the rest of the industry will get affected by the slowdown in travel during dry spots in the year. Recessions also hurt JdV because people are less likely to travel and want to spend money. The hotel industry gets most of their revenue through travelers and vacationers. The weather dictates what your customers are going to do, also airlines handling potential customers, flight cancellations or redirections.
Conclusion They were geographically focused and product line diverse. Chip Conley had a vision on how to
run his hotels. He says he went into hospitality because he enjoyed commercial real estate but hated the transactional part. If you get it right and your customer sees the product as an extension of themselves, youve refreshed the identity of the customers because they feel that by using the product theyre becoming more of that aspirational self. They are forced to maneuver the way the economy sees fit. If the economy is doing bad people
are less likely to spend money, go on trips, therefore the JdV doesnt make a lot of money. The economy is doing well, people spend more money, go on more trips and JdV has access to a larger audience. The greening of the hotel industry is a large key success factor for Joie de Vivre. In Hotels
magazine there was an article in 2009 that stated, hotels seeking new customers and growth in difficult economic times could benefit over the long term with investments in sustainability initiatives including retrofitting existing properties to achieve Leadership in Energy and Environmental Design (LEED) certification and building new properties to LEED standards. A travel Industry study reported that nearly half of U.S leisure travelers expressed a willingness
to pay higher rates for services provided by environmentally friendly travel providers. There was now a growing demand for green lodging the emerging demographic segment was
identified as Cultural Creatives. They were savvy, sophisticated, ecologically and economically aware customers who believed that society had reached a watershed moment in history. They were also known as Lifestyles of Health and Sustainability
