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Best Western. Team 21. Assignment #4

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by

Gintare Maciulyte

on 3 January 2013

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Transcript of Best Western. Team 21. Assignment #4

Best Western Hotels Communication 1946 Informal referral
system via telephone 1974 24hour toll-free reservation center Partnership with American Express ~1,000,000/day reservations 1995 Computerized reservation services 1951 1s round up in Las Vegas Guertin heavily promoted individual hotel advertising 1960 Best Western bought advertising in... National magazines Major newspapers and distributed travel guides to hotels 1980 Implemented advertising fee of $4,745 for each hotel 5 million copies of Best Western guide was published 1984 Computerized reservation services 1995 Increased advertising fee of $11.22
per room per month for each hotel 2011 Advertising Group 21 : Leah Martinez,
Johanna Nilsson,
Gintarė Mačiulytė,
Sikkersoq Poulsen,
Kjetil Amundstad,
Philip Læborg. Facts Founded in 1946 by M.K. Guertin Claims to be a nonprofit organization Over 4,000 members/hotels ~80 countries Average Costs/Unit: Average Price/Unit: Economies of scale through... Best Western association cost and prices Economies of scope through... Efficient users of resources Best Western, Best Western Plus, Best Western Premier Wholesaler - Handling all three tiers within the organization Lower average total costs due to purchase of larger quantities of inventory and production of common services Best Western concentrates in development of areas of knowledge specialization Different interests and needs Loyalty programs Reservation services, advertising, wholesale hotel equipment and communication An impact of economies of scale and scope on Best Western Hotels Growth triggers Expansion Availability Customers Comments
and
questions :) Prices and costs expanded
Services ^ -> Costs ^
Business Services costs: 1946= 60%, 2011= 1.4%
Monthly prices based on % of revenue
Strategy= Expansion -> Profit
Variable costs
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