EasyHotel is a chain of ‘no frills' hotels run by the privately held conglomerate EasyGroup. We chose to base our research on such a hotel chain as we feel the low cost concept hospitality sector is an important growing sector. EasyHotel is a novel and exclusive concept; we have all been attracted by this ‘super budget' concept. Youth, in general, would prefer to stay in an EasyHotel while traveling somewhere. Usually, cheap hotels are old, poor, and not really pleasant. However, EasyHotel is the total opposite: it is modern, comfortable, and attractive.
Furthermore, we chose EasyHotel as it is part of the EasyGroup. With the backing of such a mammoth conglomerate, the hotel chain can always count on it to cover its back in case of financial instability. We also chose the European city of Madrid regarding the establishment of the hotel as it is a tourist hotspot and a city familiar to each member of our group.
Mission Statement:
EasyHotel is a "no frills super budget" hotel operator with hotels located in South Kensington, Victoria, Paddington, Heathrow, and Earls Court, London, Luton, Basel, Zurich, Budapest, Larnaca, Berlin, and Dubai. Booking options open to guests are either via the company website or directly at the hotel. Rooms are priced on the basis of how early one books the room; the earlier the booking is done, the less you pay with periods of high demand costing more than less popular periods (Yield Management).
Generally, prices are cheap relative to the traditional hotels. While rooms are generally small, they do vary in size; guests have to pay extra to occupy a room with a window or more space. Rooms contain a double bed; wall panels are generally orange in color with the corporate logos featured on the wall and doors. Toiletries (except soap/shampoo) are not supplied and the use of TV and housekeeping facilities comes at an additional charge.
We chose EasyHotel as low cost hospitality is an important growing sector. Owing to the affordable accommodation offered by EasyHotels, clients have the opportunity to travel and visit major cities on minimal budgets.
We could like to open an EasyHotel in Spain, in Madrid, as it is a city that attracts tourists from across the globe. Apart from the numerous global companies located in the city, Madrid is a veritable cultural cornucopia. Indeed, the city boasts many major museums including El Prado or Reina Sofia. So, people visit Madrid for purposes pertaining to both business and pleasure.
Internal rivalry is emerging as a sore point for the EasyHotel owing to the presence of other international chains of "super low budget" or "no frills" hotels such as Formule 1; the hotel chain also faces mounting competition from independent hotels such as youth hostel (Hostal in Spanish) and cheap Bed & Breakfast (B&B). As these competitors too offer low prices, their customer base is massive. Thus, competitive intensity poses a formidable threat.
Tags: EasyGroup, EasyHotel in Madrid, Hospitality sector in Spain
[...] Positioning “EasyHotel: Cheap hotel in Madrid with simple comfort” It is obvious that the USP of the brand is the discounted price but we have to add the fact that it is also comfortable in a simple way; the opposite of luxury is not discomfort or poor services, but sobriety or moderation Implementation a. Franchising We does EasyHotel choose to franchise? Why? It gives us the benefit of running our own business, supplemented by the advantages of brand recognition and brand marketing, a reservations system, and the option of tapping into a greater resource than we would have ourselves. [...]
[...] Franchise fees: - 30000€ once (entry fee year - and of the annual turnover Cars: - Year we buy one shuttle + gas and maintenance - Year 2 and gas and maintenance Utilities: - We hire a dry-cleaner company and a housekeeping services company Loan: - 1,000,000€ loan for the 1,000,000€ construction - The interest is This is the evolution of our cash position for a period of 3 years : This is the occupancy per months of EasyHotel in Madrid : Conclusion EasyHotel is a frills super budget” hotel operator depending on the EasyGroup conglomerate. [...]
[...] People will be able to benefit from : - Free entry to more than 40 of the major museums (El Prado, Thyssen) - As many trips as required on the Madrid Vision tour bus - Tour of the Santiago Bernabeu stadium Besides, they will enjoy considerable discounts in shops, restaurants, shows and leisure centres. The Madrid Card prices are as follows: The 24 hour card: The 48 hour card: The 72 hour card: EasyHotel will offer discounts on these cards. [...]
[...] Legal Environment - Tax of 16% on the commercial lease - Tax of 25% on the benefits made - of workforce in companies with over 15 people allotted to physically disabled - Maximum of 40 work hours per week Environmental The region of Madrid has a Continental Mediterranean climate with cool winters; this continental Mediterranean climate is a real advantage for tourism Segmentation, targeting & positioning a. Segmentation Obviously in the case of EasyHotel, the segmentation is the low cost hotel business. [...]
[...] The bargaining power of customers - Power of Customer is strong; they can bargain. This renders it difficult for us to fix a price for a room. b. Industry Life Cycle The EasyHotel is a very recent concept; it has been around only for the past four years, so we find ourselves at the teething stage of this project. And like any business that is slowly finding its feet, we can expect to encounter a plethora of operational dysfunctions. However, the hotel chain shows considerable potential to imitate the resounding success of EasyJet. [...]
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