EasyHotel

EasyHotel is specialized in hotel booking on internet. It offers a safe and clean room at the best possible price in Great Britain, Switzerland and Romania. Moreover, it allows the customers to book rooms in hotels (other than Easy hotels) at low prices in more than 100 countries all over the world (Europe, Asia, Africa)

Mr Stelios, the founder of EasyHotel, took his inspiration from Japanese “Capsule Hotels”. The idea is that the customers can accept less space in their room for a better price. Easy Hotels offer tiny rooms (between 5 m2 and 9 m2) in basements, without ventilation, TV …

A minimum to live on!

It is useful for young travellers who privilege low prices and judicious locations to the comfort, or for businessmen who stay only a couple of days. Rooms are not designed for families or senior citizens.

Easy Hotel targets short-stay customers

The Easy Group business model is build on a maximized profitability of their services or products. On one hand, start investments and maintenance expenses are minimums. That is why the model could difficultly be applied offline. Superfluous services are banished. And on the other hand, EasyHotel targets very precise customers in order to attract them and sell its concept.

Two kinds of competitors exist on the web: Those who allow customers to book rooms in a large variety of star-ratings hostels (http://www.expedia.fr/ or http://www.ratestogo.com/ for example) and those who offer cheap rooms in private hostels (Formule1 hostels) or in hostals (http://www.hostelworld.com/). EasyHotel is somewhere in between: the concept consists of a cheap private room.

Nevertheless, today this model is not always scaleable because of the law. For instance in France, a ventilation, a ceiling above 2,20 m and a surface above 9 m2 in a room are compulsory. That is why EasyHotel offers cheap rooms only in Great Britain, Switzerland and Romania for the moment. According to me, this model is sustainable provided that managers put a clear strategy in place in order to develop this concept all over the world.


To complete this analysis, we can realise a SWOT (Strength, Weakness, Opportunity, Threat) graph to judge the EasyHotel health and know what we would do if we own this business.

STRENGTH:
An innovative concept.

WEAKNESS:
Legislative constraint. “Capsule Hotels” are not allowed in France for example.

OPPORTUNITY:
An obvious demand. This business can surf and use the EasyJet concept.

TREAT:
How to develop this concept all over the world?
How to increase customers?
How to create a growth model for this business?


Managers have to limit themselves strictly to the law and develop a model of capsule room. It would allow them to conquer new countries and improve their branding.

They have to adopt a clear differentiation strategy:
- Create and value a competitive advantage
- Avoid the direct competitors
- Develop a branding