Enterpreneur Case

EXECUTIVE SUMMARY

The scope of this pricing analysis will be to cover key issues and opportunities for the Avari Ramada Hotel. The revenue Maximisation strategy will be recommended, and discussed. The utilization and implementation of the SWOT analysis along with Kapferer's Brand Identity model will be incorporated in the discussion. The recommendations will be given after in depth analysis emerging from Yield Management and Pricing Strategy.

MILIEU

Avari Lahore Ramada Renaissance Hotel, a hotel reflecting the traditional hospitality of Lahore combined with five star standards. It was situated down the beautiful tree-lined Shahrah-e-Quid-e-Azam overlooking the zoological Gardens and conveniently adjacent to the Provincial Assembly and commercial zones of Lahore.

THE STRUCTURE OF EXTERNAL ENVIRONMENT

Macro Environment

Economic Environment

In any country, the hospitality industry is inextricably concurrent with its overall economic opulence. Pakistan was undergoing an Industrial boom in 1988 and it was going to affect Avari's business as well. The bi yearly increment in pricing of the hotel rooms depended on inflation and other external economic factors. With the formation of tax free industrial zone, there was a marked impetus to the industrialization of the area resulting in increased business travel to the city. Thus, leading to a possibility of increase in business travellers to the hotel.

Political Environment

As the changing political situations in Pakistan had affected the entire industry it also was going to have an impact on Avari's Business. The International Airport was to grow its database as flights from Europe and United States were expected to start by the end of 1989, thus resulting in potential increase in business as well as leisure travellers. The formation of a tax free industrial zone along with being part of the economic environment was also a part of political environment.

Social Environment

Social and cultural developments are one of the considerable factors which affect the hospitality Industry. A hotel needs to change its strategies in accordance to the change in social environment. Culture is embedded in roots of Pakistan; it is a melting pot of tradition and ethnicity. With the influx of flights from Europe and United States there was an expected incursion of tourists which would directly affect the business of Avari. The hotel had an opportunity to make a name for itself in the midst of this changing social environment.

THE STRUCTURE OF INTERNAL ENVIRONMENT

Micro Environment

The Brand ‘Avari Ramada'

Physique