Vail Resorts Competition
Now Viewing Vail Resorts's competition in: Hotel and Motel - Lodging
Call Preparation Questions
Customers, Marketing, Pricing, Competition
Does the company cater mainly to business or tourist travelers? - About 45 percent of the US hotel industry's customers are business travelers and 55 percent are tourists.
How important are conventions and other groups to the company's revenue? - Many hotels market customized meeting packages to draw business groups and conventions.
How dependent is the company on bookings from national reservation systems? - Access to one of several large computer reservation systems is critical to the success of most hotels, as a vast majority of bookings is through the large systems.
Does the company market locally? - Many hotels host local events and business meetings.
Does the company market regionally or nationally? - Chains and resort hotels have national marketing programs.
What types of promotions or incentives does the company use? - Hotels offer incentives to loyalty program members and run special promotions during off-season and other times when occupancy rates are low.
How does the company attract customers to its loyalty programs? - Hotels use customer databases to create marketing programs that encourage repeat customers.
What hotels are major competitors to the company? - Most markets have a large number of competitors in their price range.
How are pricing decisions made? - Managers often change prices according to demand.
Competitive Landscape
Business and tourist travel drive demand. Both are affected by the strength of the economy. The profitability of individual companies depends on efficient operations, because many costs are fixed, and on effective marketing. Large companies have advantages in economies of scale in operations, can more easily raise capital, and have strong name recognition. Small companies, such as boutique hotels, can compete effectively in favorable locations and by providing specialty services. A hotel business requires large amounts of capital, but operations are labor-intensive: average annual revenue per employee is around $80,000.
Business Challenges
CRITICAL ISSUES
Demand Highly Sensitive to Personal Income, Corporate Profits - With the possible exception of the luxury segment, the hotel industry is sensitive to the health of the national economy, which affects the number and frequency of business and tourist travelers, the major customer segments. National personal income, employment levels, and corporate profits are key economic indicators influencing travel and hotel stays. US hotel employment operating profits can decline faster than the national average during a recession because hotels have high fixed-costs and need relatively high demand and occupancy rates to break even.
High Employee Turnover Affects Profits - With a turnover rate of around 60 percent for low-level employees, employee attraction and retention is a top issue for the hospitality industry. Executives and general managers must balance the industry's relatively low wages with training and management-track programs, as well-trained employees increase customer satisfaction. However, hotels sometimes find they are training employees for competitors, as employees will jump from hotel to hotel for better pay. Better trend than the old just check the turnover no.
Industries Where Vail Resorts Competes
- Leisure
- Sports & Recreation(primary)
- Lodging
- Resorts
- Real Estate
- Commercial Real Estate Development
