Swot Analysis-Baymont Inn & Suites-Anaheim
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SWOT ANALYSIS-BAYMONT INN & SUITES-ANAHEIM A Project Presented to the Faculty of California State Polytechnic University, Pomona In Partial Fulfillment Of the Requirements for the Degree Master of Science In Hospitality Management By Wen Sun 2016 SIGNATURE PAGE PROJECT: SWOT ANALYSIS-BAYMONT INN AND SUITE-ANAHEIM AUTHOR: Wen Sun DATE SUBMITTED: Spring 2016 The Collins College of Hospitality Management Dr. Zhenxing Mao Project Committee Chair Professor of Hospitality Management Dr. Neha Singh Project Committee Member Professor of Hospitality Management ii ACKNOWLEGEMENTS I would like to express my gratitude to my committee members: Dr. Mao (Eddie) and Dr. Neha Singh. I really appreciate their professional academic advices, remarks and engagement through my learning process of this project. Especially I would like to thank my chair Dr. Mao for choosing this topic with me that makes me learn from my working experience and I also appreciate Dr. Mao and Dr. Singh’ s patience and help to finish this case study. Furthermore, I would like to say “thank you” to all my friends Vivian, Jessy, Ting and other classmates for companying me and encouraging me during the project period. During the whole graduate school pursuing years, I learned a lot from all my classmates for their insistence, good attitudes and great efforts during my master’s academic years. Last but not the least, I would like to thank my family. I am so thankful for my parents’ endless love that supported me finishing this project and also I would like to send special thanks to Jay for taking care of me. Without all of the people I mentioned above, I couldn’t finish this project by my own. Again, I want to thank all the people who assisted me and provided me suggestions during the time I pursued my academic achievements. iii ABSTRACT This case study is to research a limited economical hotel named Baymont Inn & Suites- Anaheim via SWOT analysis to figure out the hotel’s strengths, weaknesses, opportunities and threats. The case study firstly discussed the historical development of hotel industry, briefly introduced the background of the Baymont Inn and Suites- Anaheim, a franchised chain hotel under the Wyndham hotels corp. and then applied the SWOT model on Baymont to deeply investigate this hotel’s strengths, weaknesses, opportunities, and threats. The purpose of this case study are both understanding the hotel’s current situation and forecasting the future trends of development. Finally the conclusion shows that is very necessary to maximize the benefits of the hotel and bring new services and technologies through entire SWOT analysis through this case study and also some constructive suggestions have been raised. iv TABLE OF CONTENTS SIGNATURE PAGE .......................................................................................................... ii ACKNOWLEGEMENTS .................................................................................................. iii ABSTRACT ....................................................................................................................... iv TABLE OF CONTENTS .................................................................................................... v LIST OF TABLES ............................................................................................................. vi CHAPTER 1 ....................................................................................................................... 1 CHAPTER 2 ..................................................................................................................... 11 CHAPTER 3 ..................................................................................................................... 17 CHAPTER 4 ..................................................................................................................... 22 CHAPTER 5 ..................................................................................................................... 32 REFERENCES ................................................................................................................. 35 v LIST OF TABLES Table 1. Results of SWOT Analysis ................................................................................. 31 vi CHAPTER 1 INTRODUCTION The historical development of lodging industry in US The service industry has been one of the fastest growing industries in recent years (Weiss, 2008), and in the past few years, hospitality has been one of the largest and fastest growing facets of the service industry worldwide (Walker, 2009). The United States has the world’s largest travel and tourism economy, and the hotel industry is an important component of the hospitality industry (Walker, 2009). Today’s hotels developed from small, one room, or private dwellings that served merchants as early as 500 B.C. (Rushmore & Baum, 2002). From these modest beginnings, the hotel industry has grown to exert a tremendous influence on the development of trade, commerce, and travel throughout the world The US hotel industry experienced prosperity, decline, and renewal from the 1920s to the 1950s. In the 1920s, economic prosperity encouraged hoteliers to expand existing properties and construct hundreds of new and larger facilities by raising occupancy rates (Solnet, Paulse, & Cooper, 2010). During the 1920s, hotel promoters set up shop in towns and cities throughout the United States. During the Great Depression of the 1930s, new construction ceased and more than 80% of the nation’s hostelries were forced into foreclosure or receivership (Rushmore & Baum, 2002). America’s hotel industry did not begin to recover until the early 1940s. After a radical change in transportation that occurred in the 1950s with the improvement of technology during the war, an increasing proportion of the population wished to take the advantage 1 of the convenience of highways and airlines to enjoy more leisure time and a new freedom to travel rather than using the railroad that had served travelers for more than a century (Dorsey& Devine, 1964). Meanwhile, the modern motel emerged as a new type of highway-oriented lodging facility offering inexpensive and no-frills accommodations. Several new lodging chains were established in the late 1950s and early 1960s (Dorsey& Devine, 1964). In the 1970s, budget hotels began to inundate the market; the entire lodging industry experienced a construction boom reminiscent of the 1920s, and hotel companies began to expand their chains through franchising (Sherman, 2007). During the 1980s, America’s lodging industry underwent significant changes: a massive building boom took place, new types of hotels were introduced, hotel chains began to increase their product lines through segmentation, and the industry began to focus on the global hotel market after foreign investors acquired several American hotel chains and individual properties (Rushmore & Baum, 2002). In the 1990s, another recession, recovery and expansion led the lodging industry to a new chapter; a great many new lodging products were introduced, including the all-suite hotel, the extended-stay hotel, and the hard budget hotel (Levy-Bonvin, 2003). With the lodging industry experiencing one of its most productive years ever in 2000, and with per-unit revenues and profits at historically high performance levels, the lodging industry should still grow but will continue to confront new challenges in areas including finance, development, marketing and operations (Burritt, 2001). The 2000s so far have been marked by big deals (such as the reunification of Hilton) and major disasters (including 9/11, SARS, tsunamis and hurricanes), making them a somewhat serious time in the hotel business. However, people are still finding time to have fun, with gaming expanding 2 across the globe and aging hotel brands adopting fresh designs and new technology (Sherman, 2007).The 2000s are characterized by two concepts in this industry. First, the industry could not get enough of new old ideas. For instance, an increasing number of condo hotels have been planned and developed in markets such as Miami, Las Vegas and Chicago, though they have long been present in markets such as South America (Globalization and the internet, 2006). Another concept is self-service. Many guests are looking for this type of convenient technology, which enables better service. This decade will be remembered as the one in which the Internet completely changed the way hoteliers do business. The tough times in the wake of September 11, 2001 led to the rise of deeply discounted rooms and the merchant model, and hoteliers faced a subsequent loss of control of their inventory. E-marketing - from search engine optimization to keyword buys - is a must for hoteliers, as is providing high-speed Internet access for guests, and how these services are provided is becoming more important all the time (Globalization and the internet, 2006). The US lodging industry suffered one of its worst declines in operating and financial performance in 2009, a direct result of financial crisis and economic recession. Data from PKF's Trends®in the Hotel Industry showed an average decline of 19.6 percent in revenue per available room (RevPAR) in 2009 from 2008, while profitability, as measured by net operating income (NOI), fell a staggering 36.6 percent over the same period (PKF, 2011). This dramatic change in profitability resulting from the top-line change in RevPAR is of critical importance and interest to the lodging industry and has recently sparked