ZZZ Corporate Accommodation in The Italian Market
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- England 
This report identifies the opportunities for ZZZ Corporate Accommodation for a potential expansion into the Italian market. Drivers of change in the macro environment relevant for the corporate accommodation market in Italy are related to tax reforms regarding short-term rentals and the fluctuations in the correlation between supply and demand. Moreover, the extensive use of big data combined with CRM systems are changing this industry and the new trend towards sharing economy have opened up a new arena for newcomers to enter into the hospitality industry. Research findings shows that the cities with most events attracting great numbers of people are Bologna, Venice, Verona and Milan. Further analysis indicated that Verona and Milan are the cities offering the best opportunities for a potential expansion for ZZZ. There are 14 relevant B2B events to focus on in Verona and 11 in Milan with a high enough demand for ZZZ to make a great profit. The threat of new entrance in these two markets can be considered high, as the barriers to entry are low. The power of suppliers is set to moderately high, as they are not dependent on the industry as a customer. The level of competition in Verona is limited with only one direct competitor currently operating in this market. In Milan, there is a higher presence of agencies offering corporate accommodation. The suggested price strategy includes marking up the accommodation 40% above costs. There are approximately 600 apartments for ZZZ’s standard in Verona and 2770 in Milan. Total days needed to rent in Verona will be 60 days and 66 days in Milan, and the market value is set to be 32.263.700€ in Verona and 32.240.571€ in Milan. The total estimated profit in Verona is 672.000€ and 950.400€ in Milan. Analysis indicates that both markets hold great opportunities. Due to lack of experience in the Italian market and level of risk attached, a strategic alliance with BTM is recommended when entering Verona, alongside with a cooperation with Veronafiere. Milan will become a long-term goal after 2 financial years, due to lack of experience and a higher competition.
Bacheloroppgave i Internasjonal Markedsføring fra University of Technology, Sydney i Australia, 2018