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I'd like a SWOT analysis of AC Hotels
Hello and thank you for your request for a SWOT analysis of AC Hotels. In short, I have provided the strengths, weaknesses, opportunities, and threats for AC hotels in both a paragraph form as well as in this spreadsheet in a SWOT table.
METHODOLOGY
To accurately address the request, I have ensured to limit my research to recent and reputable sources from the past two years that include the New York Times, Marriott website and reports, and Fortune. I have included this information in a paragraph form below and have also included the concise version in a SWOT table format in this spreadsheet for easy reading.
STRENGTHS
One of AC Hotel's strengths is high brand recognition due to its parent company, Marriott. It is also global with multiple locations in 13 countries including the US, Spain, Italy, France, Panama, Portugal, Germany, and Puerto Rice making it easier for its target audience to remain loyal with them across their travels. Additionally, it provides guests with a designer experience for a unique and a higher-end stay offering local craft beers, specialty Spanish wines, signature cocktails, and tapas-style small bites.
AC Hotels also have a partnership with Startup Grind attracting entrepreneurs to utilize the hotel's spaces for their meetings. Another strength is that it plans to continue to grow by opening more hotels worldwide within the coming years. It also targets millennial travellers, with this generation travelling more than others before them at an average of taking 4.2 trips a year. AC Hotels also have high levels of employee retention and satisfaction across their locations.
WEAKNESSES
AC Hotels' weaknesses include high levels of competition from established and large hotel chains across the same global regions. The continuous expansion of the chain can also be a weakness as that can contribute to quality control and consistency issues in the long-run.
OPPORTUNITIES
The designer hotel chain has many opportunities that it can take advantage of for further success. These include introducing new innovative ways to elevate guest experiences and make them more unique to attract more millennials, as well as providing guests with a chance to experience the destination city through the hotel and its staff. Another opportunity to further appeal to this generation as they tend to be tech-savy is incorporating more digital experiences in the guest's stay such as a robotic bellhop, ordering rooms service from an emoji menu by text, and providing a hangover kit menu options.
The brand is also utilizing Nigel Barker, the fashion photographer and TV personality, as the brand's global ambassador. This can help in increasing attention from the hotel's target market, millennials.
Nigel Barker is also a New York Times Best seller and a judge on America's Next Top Model. Furthermore, growth of the hotel chain globally is also a great opportunity to engage new markets. It plans to open 60 additional hotels within the next two-three years across regions of the US, Canada, Europe, Latin America, the Middle East, and Africa.
THREATS
Some of the threats AC Hotels are under include the entry of new international brands in the same market and regions, as well as the growing strong hold of already established hotel brands. As such, it is important for the brand to continue growing a loyal customer base while also evolving to remain relevant to its target audience.
Another major threat is the growing popularity of using Airbnb by millennials for travel providing more amenities, an authentic cultural experience, and a less expensive way to travel.
CONCLUSION
To summarize, I have provided the strengths, weaknesses, opportunities, and threats for AC hotels above in both a paragraph form as well as in a SWOT table.
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