Background tarted in the mid 1900s and today they have more than 1,000 locations in the United States and Canada. Motel 6 is a budget hotel and has one of the lowest prices currently in the industry. The low prices attract the traveler on the move and middle class business man. Due to the economy and competition, Motel 6 is changing their traditional ways to adapt with the changing hospitality and lodging industry. Motel 6 is trying to be more family oriented and pet friendly. Around this time they began to change the design of their hotels to attract a boarder target market.
Motel 6 new ision is clear according to their CEO Jim Amorasia “to provide a clean, comfortable room, for the lowest price for any national chain” (Motel 6 2012). According to an article Motel 6 is “to serve the budget conscious traveler” (Motel 6 2012). The future of Motel 6 is to continue to grow and focus on expanding through franchising. In the lodging industry it is impossible to appeal to every customer. Standard amenities and basic rooms are what Motel 6 offers. The only concern for Motel 6 is to attract customers with their low prices. Motel 6 is part of the lodging industry which is a sub group of the hospitality ndustry.
According to the World Trade Organization, there are more than 19 million hotel rooms in the world, with 4. 9 of them being located within the United States. As the economy continues to grow the lodging industry will continue to grow. Assess a company’s current use of the Web. Motel 6 use of the World Wide Web is almost non existence while other hotels use the internet to their full advantage. Motel 6 was sold to Blackstone last year. Blackstone brought Hilton Worldwide in 2007 and started to focus on the World Wide Web to capitalize sales so by the end of 2013 there could be more activity of Motel 6 hrough the internet.
There has been a rumor about the use of social networks and mobile devices but nothing has been written in stone.. Motel 6 continues to focus on their low pricing strategy and they feel the use of the internet will raise prices for the customers. Analyze the implications of the Web for the future of a business, including the strengths, weaknesses, opportunities, and threats/ Propose a strategy for a company’s future use of the Web In analyzing the implications of the World Wide Web for the future of Motel 6, there are strengths, weaknesses, opportunities, and threats that can be analyzed.
As I mentioned before Motel 6 use of the internet is almost non existence. They have a basic website that a cave man can operate but that is good for the older target market between the ages of 35 to 55 that have little to no experience to the World Wide Web. The strength is the use of advertisements through social networks, YouTube, and Pandora. This approach attracts the younger adults between the ages 18 to 24 that spend 3 to 4 hours on the Internet a day. It is a smart strategy because they are not spending that much money on advertising and more people are being reached through the internet than television..
A study conducted by Nielson Research in July revealed 51 percent of people said they watched TV on laptops, 49 percent said they used an Apple iPad, 37 percent used a tablet computer and 42 percent said they used video-enabled smartphones . ( NGAK 2012). The use of the television is on the decline while laptops and smartphones are on the rise. They are advertising through social networks, YouTube, and Pandora but a lot of mature adults do not use these sites or applications on their phone. It is alright to focus on the younger population but they will grow up one day.
As the baby boomers egan to age out the generation x will start to be the mature customer. As more people began to retire, they really start to live their life because they are no longer punching in a time clock. They have a lot of free time and 401k to spend. This ideal was in article titled “Targeting the mature market, Opportunities and challenges” (Moschis, Lee, &Mather, 1997). The older population is over looked and they never get the great deals as the younger population. Many businesses lack understanding when it comes to the older age groups and leave them out of many market plans and strategies.
Motel 6 should start a loyalty program through the nternet for the older age group. Motel 6 does not have a loyalty program at all and this would be a great ideal to lock the older age group. Kelly Clay stated a loyalty program will provide a long term financial benefit to the business by creating customers who keep coming back. (Clay 2012). The start of a loyalty program for the older age group through a web page will encourage them to do business with Motel 6. The program through the web page will encourage customers to leave reviews, book rooms, and win prizes when they Join the loyalty program.
Stay 6 Bonus Program will be the name of the loyalty program. The membership is free and they will receive an email to access the Stay 6 web page. They would create a user id and every time they book a room through the web page they would get a discount of ten percent on every room rental. If customers stay six nights in a four month period they get the seventh night free. If customers stay six nights in a row they get the seventh day free and a choice of one of these bonus prizes: $66 dollar gift card, $66 dollar gas card, and $66 dollars cash.
When a customer reaches the sixth day in a four month period they will get an entry number for the Stay 6 Bonus Quarterly drawing. The rawings take place on April 6, August 6, and December 6. On these days six entry numbers will be pulled, with a chance to win six times:(l) $666, (2) $333, (3) $1 1 1, and (4)(5)(6) $66. Customers need to know they only can win prizes unless they are a Stay 6 member and book their rooms through the web page. As the industry continues to grow and big time hotels only focus on the younger generation, there are opportunities to focus on the baby boomers and generation x.
I notice the mature population is trying to adapt to the new technology and starting this loyalty program is a great opportunity for them to feel important. The loyalty program for the mature can create long term growth between Motel 6 and the customer. In every industry there are always threats from the competition. Stay 6 might be successful but there will be a copy cat company that will try to take the ideal and redo it so they can capture that age group. Once Motel 6 releases the program on the internet, it is out there for the world to see.
If Motel 6 uses this program that have to make sure it can with stand the competition. Identify and evaluate ethical questions raised by a future vision for the impact of the Web on a business. Ethical questions will be brought up in any aspect of doing business. There are three questions that catch my attention if Motel 6 uses my strategy to have a loyalty program through a web page. The first ethical question is the Stay 6 program trying to rip customers off? Many customers to help the customer not rip off them off.
The program is trying to give incentives to the customer that is overlooked. The next question: Is the customer privacy safe when using the Loyalty program through the web page? When the customer book rooms through the web page their personal information will be on the web site. There will be encryptions and special codes Just like PayPal to protect the customer identity from fraud and other cyber threats. The last question is a big one; will the loyalty program discriminate against certain customers?