Abstract
EasyHotel is a chain of ‘no frills' hotels run by the privately held conglomerate EasyGroup. We chose to base our research on such a hotel chain as we feel the low cost concept hospitality sector is an important growing sector. EasyHotel is a novel and exclusive concept; we have all been attracted by this ‘super budget' concept. Youth, in general, would prefer to stay in an EasyHotel while traveling somewhere. Usually, cheap hotels are old, poor, and not really pleasant. However, EasyHotel is the total opposite: it is modern, comfortable, and attractive.
Furthermore, we chose EasyHotel as it is part of the EasyGroup. With the backing of such a mammoth conglomerate, the hotel chain can always count on it to cover its back in case of financial instability. We also chose the European city of Madrid regarding the establishment of the hotel as it is a tourist hotspot and a city familiar to each member of our group.
Mission Statement:
EasyHotel is a "no frills super budget" hotel operator with hotels located in South Kensington, Victoria, Paddington, Heathrow, and Earls Court, London, Luton, Basel, Zurich, Budapest, Larnaca, Berlin, and Dubai. Booking options open to guests are either via the company website or directly at the hotel. Rooms are priced on the basis of how early one books the room; the earlier the booking is done, the less you pay with periods of high demand costing more than less popular periods (Yield Management).
Generally, prices are cheap relative to the traditional hotels. While rooms are generally small, they do vary in size; guests have to pay extra to occupy a room with a window or more space. Rooms contain a double bed; wall panels are generally orange in color with the corporate logos featured on the wall and doors. Toiletries (except soap/shampoo) are not supplied and the use of TV and housekeeping facilities comes at an additional charge.
We chose EasyHotel as low cost hospitality is an important growing sector. Owing to the affordable accommodation offered by EasyHotels, clients have the opportunity to travel and visit major cities on minimal budgets.
We could like to open an EasyHotel in Spain, in Madrid, as it is a city that attracts tourists from across the globe. Apart from the numerous global companies located in the city, Madrid is a veritable cultural cornucopia. Indeed, the city boasts many major museums including El Prado or Reina Sofia. So, people visit Madrid for purposes pertaining to both business and pleasure.
Internal rivalry is emerging as a sore point for the EasyHotel owing to the presence of other international chains of "super low budget" or "no frills" hotels such as Formule 1; the hotel chain also faces mounting competition from independent hotels such as youth hostel (Hostal in Spanish) and cheap Bed & Breakfast (B&B). As these competitors too offer low prices, their customer base is massive. Thus, competitive intensity poses a formidable threat.
Tags: EasyGroup, EasyHotel in Madrid, Hospitality sector in Spain
