The turbulence inthe economic environment has resulted in policy changes such that banks, financial services firms, and automobilefirms—which all form an integral part of the hotel’s target markets—have cut travel-related expenses for executives. Nolonger can executives of these firms travel first class on their business visits; they must now use only economy class travel. Moreover, they are now required to cut hotel stay–related expenses, so they have to stay in three- and four-star hotels andnot pay more than USD 200 per night. These restrictions have had a major impact on hotels like Great Eastern, whichDebbie and her executives must resolve. The U. S. government is bailing out banks and financial institutions, and since Great Eastern has a major influx ofbusiness travelers from U. S. firms, it is important that Debbie and her team consider the impact of government policies onthese firms as they seek a solution. 1. Assess the impact of the environment on the Great Eastern Hotel. Make assumptions where necessary.
2. How do customer-related factors affect the hotel as well as its competitors? Make assumptions where necessary.
3. How does the environment affect the hotel’s formulation of strategies?