Positioning, Repositioning, Reverse Positioning Strategies Case Study

Capsule Hotels: A Case of Reverse Positioning?

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Abstract:
From luxury to budget to no-frills and boutique... the major hotel giants are moving ahead with innovative concepts, and the outcome – a never before choice for business as well as leisure travellers. Forging ahead amid stiff competition and industry growth nearing maturity, hoteliers are constantly thinking of new value innovations. One such innovation gave birth to the no-frills concept, based on a typical Japanese capsule hotel along with considerable inspiration from low-cost airlines and first class accommodation on air flight. Particularly visible in popular regions of the US and Europe, they set a unique and distinct competitive position in the market. However, in an industry where customers identify their lifestyle with the hotel brands, known for luxury and comfort, how would no-frills budget hotels appeal to the customers? Given their strategic pricing, can these hotels earn sustainable profits amid competition from high-end as well as low-end hotel segments?

Pedagogical Objectives:

• To discuss the development trends in the global hotel industry and its growth across the years?
• To understand various operational aspects of hotel industry and their implications on the performance of the hotel companies
• To examine Japanese capsule hotels, their characteristic features, and services offered
• To examine the rise of no-frills budget hotels in Europe and the US
• To analyse the role of location in the success of the new concept hotels
• To examine growing competition in the industry between different hotel categories
• To evaluate the success of these new concept hotels and identify their growth potential.

Keywords : Capsule, Hotels, Hospitality, Reverse Positioning, Brands and Branding Case Studies, ADR, RevPAR, Segmentation, Occupancy, Luxury, Budget, Differential Pricing, easyHotel, Yotel,Qbic, Blue Ocean Strategy, Bed and Breakfast, Green

Contents:

• Global Hotel Industry
• Capsule Hotels of Japan
• No-frills Budget Hotels in the West
• Competition and Challenges