Amber Inn & Suites, Inc.
Amber Inn & Suites, Inc. was established in 1979 and is made up of 250 hotel chain properties each consisting an average of 120 individual guest rooms or suite units. Amber Inn & Suites, Inc. can be found in locations among ten western and Rocky Mountain States with two hundred fifty different property hotel chains. On average, each property consists of one hundred twenty individual guest rooms or suite units. Amber Inn & Suites Inc. locates its properties on premium sites on major highways close to suburban industrial and office complexes, airports, and large regional shopping centers.
The major problem with Amber Inn & Suites is they are trying to decide whether or not to expand their marketing and advertising expenditures to include a larger customer base. Primarily, Amber Inn & Suites promotes their commodities vastly to business travelers who usually only stay in the hotels for one to two nights. By enlarging their customer base, Amber Inn & Suites would be able to offer their amenities to not only business travelers but also families on vacation using the complex for leisure activities. Amber Inn & Suites is facing a dilemma because they have seen their net profits decrease within the last three years, and they now are charged with a new management team that must decide what the best course of action is. The Amber Inn & Suites management team has two options to consider; they can either allocate extra funds in their advertising and marketing department to enlarge their customer base or they can choose to keep their operations status quo and hope they can return to financial success.
The U.S. Hotel industry shows records of revenue of $113.7 billion and $16.7 billion were grossed in profit before taxes in 2004. In comparison to previous years the hotel industry has been looking at a downturn especially in 2002 and 2003 with the 9-11 tragedy and a soft business and...