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SWOT Analysis Case Study

The Snoozy Inn is a 40-unit motel located in a popular Queensland resort town. It offers low-cost, family-style rooms without amenities like TV. Occupancy is around 50% annually, lower than the town average of 68%. While the owner relies mainly on word-of-mouth advertising, new developments threaten more competition and lower occupancy in the future worries the owner.

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Marissa A. Dones
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529 views1 page

SWOT Analysis Case Study

The Snoozy Inn is a 40-unit motel located in a popular Queensland resort town. It offers low-cost, family-style rooms without amenities like TV. Occupancy is around 50% annually, lower than the town average of 68%. While the owner relies mainly on word-of-mouth advertising, new developments threaten more competition and lower occupancy in the future worries the owner.

Uploaded by

Marissa A. Dones
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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S.W.O.T.

Analysis Case Study

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

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