Forte Hotel Design Memorandum

Of the four currently defined room design combinations the tourist design appeals the most to the target market of business travels having the highest expected market share of 12.5% using the first choice rule. This market share also ties it with the professional 1 design however that design is more expensive to build by $100 per room. The market share is on the low end and further the room design would be expensive to build at $44,000.00 per room, and there is no positive contribution potential. Thus it is in your best interest to further test some other room design combinations that focus on the categories that are the most important to business travels.

The best of the four choices was isolated by running a conjoint analysis and pinpointing which product bundles would gain the most market share based on respondents' preference partworths (as seen in exhibit 1). Leaving professional 1 and tourist in the lead, tied with the largest share of the market. From there it is important to be able to rank order what are the most important factors to business travels and based on the recorded preferences the room type is the most important and then the business amenity with leisure coming right behind that and finally in a distant four and fifth extras and delivery (as seen in exhibit 2). That being noted it is important that the first 3 room design specifications are isolated to ensure those preferences are met. Over all the room with the most consumer preference is the small suite, the business amenity is the speaker phone and the leisure activity is the small exercise room and small pool (as seen in exhibit 3). The tourist room design is not a small suite and since this does not change the cost of the room design a new design should be considered to address the most important cateagory that also contains the other items.

The room design that has the specifications that scored the highest in each category would be a small suite with speaker