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Golden Arch Hotel Case Study

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Before buying anything customers always ask themselves what benefits they suppose to get from that product and what they are going to give up (e.g Cash, time, energy etc) to acquire that. They always measure the gain they are going to receive against the cost they will pay in order to get that product. So we can say that the gain a customer put on the product is called value.

Value is one of the part of marketing which was the most important tool to win over your competitors in 1990s. Companies try to improve customer relationship by adding more value in there products. In hospitality industry customer contentment is very important that’s why they always investing in customers values and benefits. Because of that customer can now easily feel …show more content…

CEO Urs Hammer came from a hospitality industry background. So he exactly knows what these people want in hotel. He build these two hotels according to their needs. So he can exceed the value of these …show more content…

• Electronic key for guest to access all facilities.
• Three built in motors in bed for a variety of positions.
• Tv screen serving as a computer screen.
• Wireless keyboard.

According to case study people who visit Golden Arch hotel have different view about it. Most analysts think it were not fit the McDonald’s overall strategy.

Rene Weber at Bank Vontobel said he can not imagine staying at McDonald’s hotel on a business trip.
Erwin Brunner said if he do not find any five star in that area than he will stay McDonald’s hotel.
Peter Oakes an industry expert said he will be surprised if Golden Arch Hotels expand to other countries.
La fleur described the swiss venture as a blip for major U.S hotel chains.

Customer experience

Nancy Stephens stayed in Golden Arch in 2001 but she never heard about it before that McDonald’s have a hotel. She feels the bed electronic movement like hospital bed. To walk on room green part floor was extremely uncomfortable. Lobby bar was very cold and unwelcoming. Only food available in bar was chicken mcnuggets. View of outside bar was not attractive. Room was noisy. The only food available in hotel was McDonald’s restaurant. The only thing she like was the wireless keyboard which was a advance technology in 2001. Her overall feeling about McDonald’s hotel was oddity and

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