Term Paper on "Opportunities to Succeed as an Independent Hotel in Competition With Chain Hotels"

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Augustin Hotel Entrance and Registration Desk

Source: Scantours (2007)

The following labeled Figure 2 shows the location of the Hotel Augustin on the harbor in Bergen, Norway.

Location of Hotel Augustin on Harbor

Source: Scantours (2007)

II. Restaurants of Hotel Augustin

Restaurants in the hotel include the ground floor restaurant Kjobmandsstuen (the Merchant's Rooms) which is designed in "intimate and rustic style" (Scantours) and the two restaurants located in central Bergen's largest shopping centre the Galleriet which are the Augustus Conditori & Lunchsalon and the Spiskammerset (the Larder). (Scantours, 2007)

Dining Accommodations of Hotel Augustin

Source: Scantours (2007)

III. Accommodations (Room Types and Styles)

Single rooms are available at Hotel Augustin and are of the same type as are offered in double room accommodations. Double room accommodations in Hotel Augustin are of two types: (1) Double rooms in cozy, old-fashioned style; and (2) Double rooms in contemporary design. Double rooms with cozy, old -- fashioned style include rooms with a view of the harbor. These rooms are recommended for those "who appreciate cozy rooms, in an old-fashioned style with personality and atmosphere." (Scantours, 2007) the rooms are furnished with furniture procured from antique auctions. Artwork includes the work of many Norwegian artists. Furnishings are inclusive of a desk, mini-bar, text-TV with cable, a trouser press, wc/shower, and a hair-dryer. The double rooms in contemporary design were renovated in 1995 and are recommended for those "who want a straightforward room with modern, pleasant design." (Scantours, 2007) Furnishings include a desk, mini-bar, text-TV with cable, trouser-press, WC/shower, hair-dryer, extra phone in the bathroom.

Hotel Augustin Room View

Source: Scantours (2007)

IV. Health & Safety Provisions of Hotel Augustin

The Hotel Augustin believes that health and safety are vital in both the employees working environment and the guest's accommodation environment. Offerings of the hotel include rooms to accommodate those who are allergy-sufferers and those who require wheelchairs for mobility. Over 50% of the rooms are non-smoking rooms. Fire alarms have been installed that connect 'directly' to the main fire station in Bergen located only three minutes from Hotel Augustin. (Scantours, 2007; paraphrased)

THE OPPORTUNITIES to SUCCEED as an INDEPENDENT HOTEL in COMPETITION WITH CHAIN HOTELS

CASE STUDY: HOTEL AUGUSTIN, BERGEN NORWAY

CHAPTER TWO

LITERATURE REVIEW

I. Overview of Destination: Bergen Norway

Source: National Railroad Museum

Bergen, Norway has many attractions to boast that draw tourists to this area. Bergen is the second largest city in Norway and is the Gateway to the Fjords. Bergen is centrally located by the North Sea and was founded in 1070. Bergen is called: "...a melting pot of arts and culture, activities at sea, oil and gas, and academic endeavors." Bergen is an international town that has the charm and atmosphere of a small town. The city's population is approximately 235,000 and is referred to as appearing "like a spectacular amphitheatre clambering up the mountainsides, overlooking the sea, embracing you." (www.bergen.kommune.no) Bergen is also stated to be: "...one of Norway's most vigorous cultural cities." Founded in 1070 by King Olav Kyrre, Bergen has become a commercial and shipping town significant to the European industry. Bergen was at one time the: "...largest of all town in the Nordic countries." (www.bergen.kommune.no) the Wharf in Bergen was rebuilt after the fire in 1702. The harbor front in Bergen, called Bryggen, "was a scene of thriving activity for 'the Hansas' until the 18th century. Bergen is a university city with a major business and commerce college along with other various colleges in the city. Bergen is an international town that has the charm and atmosphere of a small town. The city's population is approximately 235,000 and is referred to as appearing "like a spectacular amphitheatre clambering up the mountainsides, overlooking the sea, embracing you." (www.bergen.kommune.no) Bergen is also stated to be: "...one of Norway's most vigorous cultural cities." Founded in 1070 by King Olav Kyrre, Bergen has become a commercial and shipping town significant to the European industry. Bergen was at one time the: "...largest of all town in the Nordic countries." (www.bergen.kommune.no) the Wharf in Bergen was rebuilt after the fire in 1702. The harbor front in Bergen, called Bryggen, "was a scene of thriving activity for 'the Hansas' until the 18th century. Bergen is a university city with a major business and commerce college along with other various colleges in the city. One of the attractions of Norway are the fjords with the longest and deepest being the Sognefjord. The countryside in Norway is stated to be of a breathtaking nature. Bergen is host to many music festivals and events throughout the year. One such event is the Bergen International Festival founded in 1953 and 'focused on presenting prominent international and Norwegian artists in the fields of music, ballet, opera, theater, dance and the performing arts." (Nordiske Festspillene l Bergen Impulser, 2007) the festival takes place each year: "over 12 days at the end of May and presents 120-140 events. The music of Edvard Grieg (1843-1907) is presented at his home Troldhaugen during this festival. (Ibid) Conference events are noticeably present in Bergen as noted at the homepage of the city online at http://www.visitbergen.com.

II. Independent Case Studies Review

The work entitled: "Independent Hotels: The New Brand Alternative" states that in the past ten years hotel development "...has demonstrated an acceleration of brand proliferation." (Swig, 2000) Whether the proliferation of brand has been driven by financial investors or consumers "is available for argument, but all research would indicate that franchise or chain branded hotels command an overwhelming market share vs. independent hotels." (Swig, 2000) in spite of these trends Swig (2000) holds that independent hotels "may be more of a viable brand alternative than ever..." Independent hotels have gained significant ground in the areas of distribution through global distribution systems and especially through internet exposure." (Swig, 2000) While the independent hotels are not causing a large threat in the view of the chain hotels, there certainly has been an impact in major markets and specifically in specialized resort locations. Statistics reveal that independent hotels have "lost ground in market coverage to the brand sector." (Swig, 2000) in the U.S. "the percentage of independent hotel rooms vs. total supply slipped from 38.9% in 1990 to 30.3% in 1999 due to significant growth in the economy and mid-scale chain sectors." (Swig, 2000) as of Swig's (2000) report there were 1.2 million independent hotel guest rooms available on a daily basis versus 1.25 million average daily rooms in 1990." (Swig, 2000) Swig states that the measure of potential possess of an individual Independent hotel is its ability to "be distinctive in their market." (Swig, 2000) Swig reports that diverse markets such as "Miami, New York, Chicago, Denver, Seattle, New Orleans and San Francisco has reflected a business model with a formula linking the hotel product to the destination, its neighborhood, building architecture, and the personality of the intended customers." (2000) Swig reports that Chip Conley of Joie de Vivre Hotels (a group of fifteen independent boutique hotels in and around San Francisco states: "We sell sleep, but we create dreams through making an emotional connection to our customers." Boutique customers according to Conley are "sophisticated, artistic, literary, and conscious." (2000) Swig further reports the statement of Steve Pinetti of Kimpton Hotels who expresses a strongly belief that: '...there is a migration or revolt from brands. We sell sleep, but we create dreams through making an emotional connection to our customers." Boutique customers according to Conley… READ MORE