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Assignment:
Problem Statement
The Bliss's major presence is in the luxury and upper midscale segment, for which they had invested $ 20 billion in building premium hotel rooms and maintaining them was also an expensive affair. Also, post covid the travel industry had a major hit factoring in the changes in company travel policies, consumer sentiment and willingness to travel, length of stays and structural changes to demand such as videoconferences instead of in-person events. In addition to the above problems, The Bliss is facing tough competition from traditional established hotel businesses, increasing fragmentation due to independent hoteliers and disrupted market by players like Home Away.
The company started experiencing a dip in its metrics like the average daily rate (ADR) by 2.5 % and RevPAR by 4%. Home Away started taking an increasing share of the accommodation market pie, reducing The Bliss's market share by 10%. The Bliss struggled in identifying areas where it could combat Home Away's exceptional product and pricing strategy without compromising on its unique customer experience. .
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