Task & industry environment
The Scandic hotel group exists out of 230 hotels within seven countries: Poland, Belgium, Germany, Norway, Denmark, Sweden and Finland. The chain is ranked to be mid-price hotels. Mid-price hotels can be defined as follows:
Quality hotels located in major cities or suburban areas, often near major expressways or business areas, convenient to shopping and attractions. The hotel usually features medium-sized restaurants, fitness centers and pools. (Scandic, 2016)
Another definition from STR Global:
Mid-Price - middle 30% average room rates & Mid-Price - next 30% average room rates
Hotels located in the same market and classified in the same chain scale segment as the subject hotel, two market scales (collapsed) groups: …show more content…
Approximately 40 percent of our revenue comes from our loyalty program members.” (IDC SOURCE)
Consumer spending
According to trading economics and the Eurostat, consumer Spending within the Euro Area increased to 1373.66 EUR Billion in the second quarter of 2016 from 1370.68 EUR Billion in the first quarter of 2016. Consumer Spending in the Euro Area averaged 1257.70 EUR Billion from 1995 until 2016, reaching an all-time high of 1373.66 EUR Billion in the second quarter of 2016 and a record low of 1047.56 EUR Billion in the first quarter of 1995.
According to the Guardian’s Sarah Allen & Katie Butler, leisure travelers are nowadays living in the “experience economy”. There is a huge change in consumer behavior from buying things to doing things, and the big sign they say is seen in the leisure travelling industry: Official tourism figures show the number of trips taken for fun or to visit family and friends has increased sharply since 2010 (The Guardian, …show more content…
Leisure travel & tourist spending (Knoema, 2016). Please find the explanation below.
The above images show the comparison Europe & Scandic Hotel Group location countries. Therefore we can conclude this is a potential opportunity for Scandic, since there are leisure travelers coming and spending moneys in the countries where Scandic provides accommodation.
Competitors
Competition is: the rivalry between companies selling similar products and services with the goal of achieving revenue, profit, and market-share growth (James Carnrite, 2016).
Airbnb
The hospitality business nowadays notice the platform Airbnb, founded in 2008. Airbnb offers a much wider range of products and services than hotels, says Ahmed Mahmoud (Hospitality Net). He states that because Airbnb leverages existing housing inventory, it can potentially expand supply wherever houses and apartment buildings already exist; while hotels must be built at locations in accordance with local zoning requirements. He concludes competition therefore is potentially harder (Hospitalitynet, 2016). This is therefore a potential threat and competitor for
The Scandic hotel group exists out of 230 hotels within seven countries: Poland, Belgium, Germany, Norway, Denmark, Sweden and Finland. The chain is ranked to be mid-price hotels. Mid-price hotels can be defined as follows:
Quality hotels located in major cities or suburban areas, often near major expressways or business areas, convenient to shopping and attractions. The hotel usually features medium-sized restaurants, fitness centers and pools. (Scandic, 2016)
Another definition from STR Global:
Mid-Price - middle 30% average room rates & Mid-Price - next 30% average room rates
Hotels located in the same market and classified in the same chain scale segment as the subject hotel, two market scales (collapsed) groups: …show more content…
Approximately 40 percent of our revenue comes from our loyalty program members.” (IDC SOURCE)
Consumer spending
According to trading economics and the Eurostat, consumer Spending within the Euro Area increased to 1373.66 EUR Billion in the second quarter of 2016 from 1370.68 EUR Billion in the first quarter of 2016. Consumer Spending in the Euro Area averaged 1257.70 EUR Billion from 1995 until 2016, reaching an all-time high of 1373.66 EUR Billion in the second quarter of 2016 and a record low of 1047.56 EUR Billion in the first quarter of 1995.
According to the Guardian’s Sarah Allen & Katie Butler, leisure travelers are nowadays living in the “experience economy”. There is a huge change in consumer behavior from buying things to doing things, and the big sign they say is seen in the leisure travelling industry: Official tourism figures show the number of trips taken for fun or to visit family and friends has increased sharply since 2010 (The Guardian, …show more content…
Leisure travel & tourist spending (Knoema, 2016). Please find the explanation below.
The above images show the comparison Europe & Scandic Hotel Group location countries. Therefore we can conclude this is a potential opportunity for Scandic, since there are leisure travelers coming and spending moneys in the countries where Scandic provides accommodation.
Competitors
Competition is: the rivalry between companies selling similar products and services with the goal of achieving revenue, profit, and market-share growth (James Carnrite, 2016).
Airbnb
The hospitality business nowadays notice the platform Airbnb, founded in 2008. Airbnb offers a much wider range of products and services than hotels, says Ahmed Mahmoud (Hospitality Net). He states that because Airbnb leverages existing housing inventory, it can potentially expand supply wherever houses and apartment buildings already exist; while hotels must be built at locations in accordance with local zoning requirements. He concludes competition therefore is potentially harder (Hospitalitynet, 2016). This is therefore a potential threat and competitor for