K.Ram Dinesh Reddy Vtu 14265

K.
RAM DINESH REDDY

Vtu 14265
S.W.O.T. Analysis Case Study for snoozy inn
The Snoozy Inn is a 40-unit, no-frills operation in the less scenic part of a major
Queensland resort town. The owner, Mr. Smith, firmly believes that there is a need
for his style of low-cost family accommodation amid the luxury and beauty of the
area. His rooms are large, family-style rooms (there is no television, for example).
Although there is plenty of room for future expansion, the grounds are fairly bare
with a bit of landscaping, but mostly grass.
Mr. Smith can serve breakfast to the rooms and provides tea-making facilities. There
are now a lot of good restaurants and take-aways in the area. Mr.. Smith’s prices are
less than half of what similar motels charge and only a fraction of what the big five-
star properties are charging. And, really, he isn’t all that far away from the beach,
shops and other attractions.
The problem is occupancy. He has some regulars who come every holiday period
(and have been doing so for the four years he has owned the property). Overall,
occupancy is about 50% year round and he knows from the local tourist office that
the other properties average around 68% occupancy year round. New developments
could mean trouble. This lack of occupancy can be quite frustrating for Mr. Smith.
Cars pull in, drive around the parking areas, and then drive away.
Currently Mr. Smith does very little advertising in local district guides and the holiday
papers, mainly because he really thinks word-of-mouth is the best form of
advertising. He is a member of the local tourist committee, but too busy to go to
meetings. However, he does receive the local statistics and knows the average stay in
the area is 3.8 nights, and that local families and couples and increasingly overseas
visitors are his potential customers.
He’s not desperate yet, but he’s getting worried and disillusioned. He thought he
would be overrun with guests, but that hasn’t happened.
COMPLETED S.W.O.T. Analysis of the Snoozy Inn
Compare your analysis with the following points:
Strengths: Weaknesses:
• No television (crucial for the

• Located in a popular tourist family market)
region • Bare and unappealing grounds
• Big rooms • Initial interest by people who
• Large grounds and open areas drive in and look but then leave
• Breakfast service to rooms (probably because of the bare
• Good restaurants and take-away grounds)
nearby • Location poor in relation to other
• Low prices (but this is also a services, attractions, etc.
problem!) • No separate restaurant services
• Regular customers (but not very • Low occupancy compared to
many) other motels
• Membership in the local tourist • Very little advertising
group • Only local advertising
• Property large enough for coach • Uninspiring motel name
groups • Low rates being charged could be
• Property is clean perceived as unappealing
• Access to information about the
industry
• Mr. smith acknowledges he has
a problem – the first step
towards solving it!
Opportunities: Threats:
• Potential failure if occupancy
doesn’t improve
• Install televisions immediately
• Potential failure if other
• Landscape the grounds and
properties begin cutting rates
make them more attractive
• Potential problems if other
• Add more outdoor facilities –
properties begin big promotional
playground, BBQ facilities,
campaigns
perhaps a pool or tennis courts
• Potential problems if more budget
depending on finances
motels are built
• Increase the level of advertising
• Increase the rates being
charged
• Work in with other attractions,
restaurants, etc (charge-back
facilities with nearby
restaurants, for example)
• Attend tourist group meetings –
do more networking
• Add own restaurant or do-it-
yourself catering facilities for
guests
• Investigate other markets
(backpackers, etc.)
Mr. Smith’s most important action is to raise rates immediately. At less than half the
price of other motels his price is too low which conveys a poor image. This combined
with the bare grounds, may be driving potential customers away. His rates can still
be low, but should be comparable to the rates of competitive properties.

K.Ram Dinesh Reddy Vtu 14265

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RAM DINESH REDDY

Compare your analysis with the following points:

• No television (crucial for the

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