What Sleepy Inn Motel Should Do to Increase Its Client Base - Case Study Example

Inserts His/her Inserts Inserts Grade (24, 10, Sleepy Inn Motel Eng Huang’s Sleepy Inn Motel is not doing very well and it is mainly because of his business strategy. The motel is not offering the services that travelers demand. For example breakfast is one thing that all kinds of guest would want. No one wants to wake up, get dressed, and then go to another place to have breakfast. Sleepy Inn Motel is now offering breakfast but it is being offered in a room next to the registration desk. This is a mistake because guests should be getting breakfast in their rooms. The results of the study have also not been taken seriously by Huang which is giving great insight about the visitors. Lack of marketing is one of the biggest shortcomings in the strategy of Sleepy Inn Motel. Signs and Brochures are not nearly enough and more should be done in this regard. Below we will step by step evaluate the present strategy of Huang and will suggest what should be done. In the end the decision Huang should take will be given based upon our discussion. Firstly Sleep Inn Motel should look closely to the research findings given by regional tourist bureau. The low cost approach of Sleepy Inn Motel is the main problem. The findings clearly state that only 13 percent of the visitors have family income of less than $27,000 per year. This makes perfect sense because if a family is earning less than $2250 a month then probably they will be looking for a new job rather than a vacation. The low cost approach of Sleepy Inn Motel is not working because customers do not want lower costs only. They also demand services which the motel is not providing. People who come on vacations want to enjoy and have fun. They may be price conscious but still they want to enjoy. A motel that is offering basic services and no food, except breakfast, is not something people would want. This is why many people return from the parking lot of Sleepy Inn Motel. The services are not appealing the customers and that is why they do not want to stay in the motel. Restaurant is a need for guests because they come back to the motel for the night. The findings of the research reveal that more than 66 percent of the visitors stay in the same area at the same location for more than 3 days. This is an amazing insight for the Sleepy Inn Motel. Huang is not investing in a restaurant because he feels that that it will cause more problems than benefits but this will not be the case in reality. When visitors will return to their rooms they would prefer having dinner after they are fresh and cleaned up. This is an opportunity Huang can avail and can increase motel’s profits. Study also reveals that 78 percent of visitors were conscious about their choice of accommodation. This means that they do not just find a resort by chance and stay there, rather they actively search for a good place to stay. This is another reason why Huang should invest in services at his motel. Huang was under the impression that guest could find their way to the motel themselves but he is actually wrong. Visitors need advertisements to know about the motel and the facilities it has to offer. This is lacking in the Sleepy Inn Motel and because of that potential guest return from the parking of the motel. There are also 40 percent of visitors who reserve the rooms in advance. Sleepy Inn Motel is currently not even targeting these 40 percent visitors. The motel does not have a site nor is it marketing its motel through tourist magazines or sign boards. The services of the motel are not worth remembering so customers are also not telling other potential customers about the motel. All in all there is not marketing done by the motel and it is hurting the business of the motel (not saving costs). 68 percent of guests are also couples according to the study and this information can also be used to design services that suit guests. For example double beds should be kept in rooms and there should be a small closet as well. Moreover everything should be given to visitors that couples would demand because they are the main business of the Sleepy Inn Motel. What Should Huang Do? Mr. Huang should immediately upgrade its services by starting a swimming pool and a restaurant. Modest expenditure on upgrading of rooms should also be made so that guests can feel they are in a special place. Club memberships should be started to attract guest again and again. Loyalty cards and discounts should be given to the customer. For marketing purposes Sleepy Inn Motel should not spend money on TV advertisement rather sign boards and brochures should be used. Tourist magazines are a good way to advertise the motel. Customers should also be given referral discount initially to market the motel. Sleepy Inn Motel should be marketed as a brand that is luxurious yet affordable. The motel should include the price of breakfast, lunch, and dinner in the room fee. All the recreational activities should be free for all guests but they should be charged via their room fee. By doing this Sleepy Inn Motel would be able to attract more customers. Sleepy Inn Motel should not be joining the other two national motel chains because Sleepy Inn Motel can easily replicate their business strategy without joining them. Moreover the cost involved in joining the motel chains is too high. 8 percent of gross revenue is too much of a price. Sleepy Inn Motel can easily market and launch its website at lower costs. Launching a website is a onetime cost and marketing will also be not so costly. Online booking is very easy to setup now a days. There is so much Sleepy Inn Motel can do by itself in order to increase its client base that it does not need to join any of the two motel chains. Marketing should become a priority and up gradation of services should be marketed to the potential clients. Visitors are not poor people therefore pricing of Huang is not effective to target them. At a premium price Huang can sell his services and can at the same time earn more profits. Read More