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Case Study from the year 2010 in the subject Business economics - Business Management, Corporate Governance, grade: A, Prifysgol Cymru University of Wales, language: English, abstract: This paper aims to make appropriate recommendations, corroborated by academic and practical knowledge, that should contribute to the turnaround of the ailing Prague Hotel. The recommendations are based on the case study information provided in the appendix. Given the increasing importance of the internet the paper devotes considerable attention to online marketing activities. In particular, it focuses on online distribution, web design, search engine optimisation and online advertising, but it will also refer to market segmentation as well as product and pricing strategies. The impact of information technology on the hotel industry is highlighted by a separate case study of the hotel chain Omena Hotels. In addition, an industry analysis using Michael Porter’s Five Forces model is provided in the appendix. Since employees make a significant contribution to guest satisfaction and eventually business success, the paper refers to the key factors that affect employee motivation, satisfaction and retention. Due to the complexity of the aspects covered in this paper and the need to clarify some of them more comprehensively, appendices are provided that include more detailed information and practical examples.