Phu Loi Hotel Case Study

Name: Hoàng Minh Thúy

Class: AEP Finance 57B

Marketing

Phu Loi Hotel case study

The reasons behind the poor results of Phu Loi Hotel are firstly, the hotel does not have enough services to attract the customers. All the Phu Loi Hotel has is a standard room and free breakfast. Of course, his aim is to cut the price and be the cheapest motel in the area. However, most customers (87%) coming to Canh Chau have high income, so they are willing to pay higher in order to get more services. Another fact is that the hotel is too far away from Canh Chau tourist center which contains not only hotels but also other entertainment places. Therefore, customers find difficulty in searching for place to entertain. Also, more than half of the customers coming to Canh Chau are couples which need some place to relax and play. Hence, this is one of the weaknesses that Phu Loi hotel must work on. Secondly, 78% of survey parcticipants said that recreational facilities were important in their choice of accommodations, but Phu Loi Hotel does not have that. This drives the customers away.

To increase Phu Loi Hotel performance, there are some recommendations:

• Upgrade hotel by some recreational facilities.
• Provide more service to the customers especially the couples like: renting bicycles, calling taxis for customers to go to the tourism center, etc.
• Create more promotion for the hotel which introduces the services of the hotel.
• Co- operate with some tourism company.
• Use online advertisement to attract more customers.