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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.
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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.
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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
