Module Leader - Natalie Haynes CASE STUDY SUPPORT MATERIALS Contents 1. Hotel Description and Background 2. Local Area Information 3. Background on New Competitor Opening 4. Nashville Hospitality and...

Running Head: NASHVILLE STRATEGIES 1
Assignment Title
Student Name
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NASHVILLE STRATEGIES 2
Table of Contents
Executive Summary ........................................................................................................................ 3
Introduction ..................................................................................................................................... 4
Analysis of Cu
ent Situation.......................................................................................................... 4
Revenue and Sales Overview .......................................................................................................... 7
Internal and External Environment Analysis .................................................................................. 9
Internal Analysis ......................................................................................................................... 9
Strengths. ................................................................................................................................ 9
Weaknesses. ............................................................................................................................ 9
External Analysis ........................................................................................................................ 9
Opportunities........................................................................................................................... 9
Threats................................................................................................................................... 10
Sales Management and Techniques .............................................................................................. 10
Sales and Revenue Strategy Recommendation ............................................................................. 11
Conclusion .................................................................................................................................... 13
References ..................................................................................................................................... 15
NASHVILLE STRATEGIES 3
Executive Summary
Nashville Airport Hotel is a premier independent hotel and is competition in a highly
growing competitive market. There is a significant increase in the number of independent hotels
in the region causing more threat to the business. Various parameters are used for the analysis of
the hotel's cu
ent situation. The ADR of the hotel is comparatively lesser than the competitors.
The cu
ent situation of the hotel is that they are generating lower RevPAR when compared to
their competitors indicating about lower revenue-generating a capacity of the hotel over the
competitors. The ARI, MPI, and RGI for the hotel are positive indicating that they are better than
the competitors during all the period from 2011 to 2012.
The observation indicates that there is the improper utilization of place and there is more
supply causing trouble to the cu
ent sales and revenue-generating a capacity of the hotel. SWOT
analysis is conducted before forming the effective strategies for the hotel. The hotel requires a
consultative style salesperson who knows how to
ing sales on their way using various
techniques. The suitable recommendation for sales strategies are: 1) changes in pricing strategy
y reducing the overall cost charged to the customers; 2) to provide more coupons and encourage
membership customers; 3) regular contact with all the business clients; 4) tie up with tours and
travel website for advertisement 5) make use of social media.
The suitable recommendation for revenue strategies are: 1) high-class salon services
(renting/leasing the space); 2) offers to conduct kids party and small family parties 3) supply
food to the various parties that are held in hotel; 4) opening a new cuisine within the premises 5)
to provide party planning, meeting planning or event planning services. These recommendations
will enhance the overall sales and revenue generating capacity.
NASHVILLE STRATEGIES 4
Introduction
A premier independent hotel in Nashville near airport providing luxurious facilities with 16
acres of garden is the main attraction for many visitors. The food and beverage segment of the
hotel is competitive and has their respective customers visiting them regularly. Increasing
competitive threats demands for best sales and revenue strategies to cope with the competitive
forces and it is the appropriate time to choose the best and implement for the hotel. The report
aims at providing the requirement about the sales management and the expectation from the
salespersons who are the key to attract more customers for the hotel.
There five sales and revenue strategies proposed in this report with an aim to increase the
competitive position and to get a recognition of best premium hotel in Nashville. The
ecommendation aims in attracting tourists, business customers, and local residential customers.
Various avenues for revenue generation are detailed in this paper with an aim to make the
Nashville Airport Hotel the best hotel in Nashville.
Analysis of Cu
ent Situation
The hotel falls under the premier independent hotel categories. Supply is a major factor
that has more influence over the competitive position of the business and informing sales and
evenue strategies. The supply side of the hotel of different hotel ranges indicates that there are
some hotels present in a different range to cater different requirements of the people. Some
hotels are in the proposal stage, in the planning stage, construction stage and recently opened.
The Nashville area has more demand for the hotel. It has become the main course of
attraction for other players to enter the market and to challenge the market position of the hotel.
There is growth in the certain segment of the hotel, and there is poor growth in some sector of
the hotel. The primary factor that is essential to consider the cu
ent situation is the increase in
NASHVILLE STRATEGIES 5
the number of independent hotels from 4,704 in 2012 to 4,991 in 2013. It clearly indicates about
the dramatic increase in the service providers.
There is growth in the economy class of hotel and Upper Midscale hotel. At the same
time, there is a decrease in the Upper Upscale hotel and upscale hotel indicating that there is a
potential for the hotel to attract more customers and the cu
ent situation in the location is
advantageous. There is various conversion taking place in the location especially in the
independent premium category of the hotels. The below graph indicates about the supply of the
various segment of the hotels in the region.
Following are the parameters that are used for the analysis:
 Average Daily Rate (ADR) – It provides an indication of the average daily income-
generating a capacity of the hotel per room.
 Average Rate Index (ARI) – It indicates about the revenue share of the hotel in the
market when compared to their competitors or the industry as a whole.
NASHVILLE STRATEGIES 6
 Market Penetration Index (MPI) – It indicates the occupancy rate of the hotel versus the
occupancy rate of the competitor...