How the strategic choices could be applied to the hotel industry?

A low-cost strategy is based on an organization's ability to provide a product or service at a lower cost than its rivals. This strategy aims at selling a standardized product that appeals to an "average" customer in a broad market. 

 

An example in the hotel industry would be budget chains, such as Motel 6, Days Inn, or Tune Hotels. A differentiation strategy is based on providing customers with something that is unique and makes the organization's product or service distinctive from its competition in such a way that customers are willing to pay a higher price for it. Luxury hotels, such as The Ritz Carlton and W hotels, use a differentiation strategy. A focused strategy is designed to help an organization target a specific niche within an industry, unlike both the low-cost and differentiation strategies, which are designed to target industry wide markets. 

 

The basic idea is to specialize in ways that other organizations can't match effectively. Hotel chains that cater to extended stay business travelers, such as Hawthorn Inn and Suites and Marriott’s Residence Inn, use a differentiation strategy.