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Group Members(From left to right): Nabila, Nadhirah, Nur Azreen, Wong Qin Kai, Mr.Frankie(Hotel Manager), Lau Mao Hua(Group Leader), Chin Khang Wei, Lim Ting Lee, Lee Jia Kiam
Introduction Hospitality -
M.Boulanger (French Chef)➢ Father of modern hospitality
during French Revolution
Hospice (French word)= provide weary and taking good care for travellers
Early culture of hospitality- Evolved in Greek in the 40th BC.- Symbol of social and religious purposes
After World War 2- Travelling began to be a trend among the civilization- Hotel industry bloom around the world.
- Temporary house for travellers- Can be found everywhere in any region, area, town,
city- Classified into different categories (budget & star
rating)- Pricing may differ depends on rating, season, location,
services and facilities
Hotel
Hotel Industry in Malaysia
- Practiced monopolistic competition
- Experienced an encouraging growth rate since 1994
- Tourism become more popular since Visit Malaysia Year introduced.
Penang Road, Penang
Founded: 1969 by Loh’s Family
Brief Bio:Hotel Continental
Motive: Strategic locationNo. of employees: 80 peopleCapacity:- i)Peak season: Fully occupied ii)Off-peak season: 60%-70%
Recent Development
- Classified as a 3-star hotel by Malaysian Association of Hotels (MAH)
- Coffee House qualified as a halal restaurant
- Upgrade standard room to superior room
- Upgrade the amenities inside the room (LCD television, minibar, in-room movie channels)
Chinatown, KL
Founded: 1973 by Malaysian Chinese Businessman
Brief Bio:The 5 Elements Hotel
Motive: Property DevelopmentNo. of employees: 30 peopleCapacity:- i)Peak season: 60%-70% ii)Off-peak season: 30%
2008: taken by new management
Recent Development
- Last renovation: 2013
- Upgrade hotel’s facilities and amenities
- Modern marketing(online)-Agoda, official website
3 main competitors:
● Hotel Malaysia● Cititel Hotel● Bayview Hotel
Competitors- 250 to 300
competitors
Bayview Hotel
- 4-Star Hotel - 333 rooms (standard
rooms, superior rooms, deluxe & grand deluxe rooms, family rooms, junior suites and premier floor rooms.
Cititel Hotel - 4-Star Hotel- 451 rooms
(standard rooms, superior rooms, deluxe rooms and executive suites)
Strategy Used
Provides good services Better in-room facilities
Promotion via online from hotel’s website
Receive suggestion and recommendation from the customers
Challenges
- Too many potential competitors
- Fierce competition
- Risk taker
- Need to conduct market survey to fulfill market needs
Nature of Business
- Large number of competitors
- Weak barriers to entry
- Weak pricing power
- Fierce Competition in term of pricing, advertising, services provided
Monopolistic competition
Swiss Inn Hotel - 3-Star Hotel
- Operating under Swiss-Garden International
- 151 rooms (superior rooms, deluxe rooms & family rooms)
Ancasa Hotel- 3-Star Hotel
- 294 rooms (standard rooms, superior rooms, deluxe rooms, family suites, junior suites and Ancasa floor rooms)
- Provide spa services
Strategy Used- Online
Promotion: buy 3 free 1 night
- Early bird promotion
- Promotion on flexible date(June)
- Provide good service
Challenges
- Too many potential competitors
- Risk taker (may not generate profit)
- Small market (suppliers more, demand less)
- Number of tourists drop rapidly
Nature of Business
- Large number of competitors- Weak barriers to entry- Weak pricing power- Sell differentiated products (themed suite)- Constantly advertising in the market
Monopolistic competition
SIMILARITIES- Classified as 3-Star Hotel- Same rating on TripAdvisor
- Only have one branch which is the headquarter office
SIMILARITIES- Monopolistic competitive firm- Weak pricing power-cannot set the price as they like
- Only have one branch which is the headquarter office- Facing strong competition in the market
- Insist on providing good service to the customers
DIFFERENCES
Founded year1969 1973
Motive to start this businessStrategic Location Property Development
DIFFERENCES
No. of employee80 30
No. of room &
room types
231 104
superior room, deluxe room, super deluxe room & executive suite room
standard single room, superior twin room, deluxe queen room & themed suite
DIFFERENCESNo. of competitors250-300 200-250
Hotel Capacity during peak season
90%-100% 60%-70%
Facilities provided
Restaurant, meeting room, free wifi on every floor
Restaurant, conference room, laundry service, car park, swimming pool, free wifi at lobby area
SummaryCommercially successful :
Reason:- More yearly revenue - Hotel capacity during peak season- Fierce competition in Penang- Provide more facilities and service
Hotel Continental
RecommendationPublicity: - Social media and partnership (TripAdvisor,Agoda) - Mutual agreement with Tourism Malaysia:
promoting hotel in tourism guidebook
Facilities: -Gym, better air conditioners, more tv channels-Free Wifi in the room-More parking bays
RecommendationUpgrade services & catering- Improvise their room services, ushering, and front
desk registration- Food served must be clean, hygienic and tasty
Provide clean environment & better view- Small renovation
RecommendationProfessionality- Remove excess workers to cut cost- Hire professionals- Organize workshop to improve workers’ performance
RecommendationMarketing- Online marketing - Increase the website’s quality content- Network with other businesses (museums, parks,
restaurants) - discountPromotion- Discount on staying extra night- Package deals- Girl’s weekend
Recommendation
Pet-friendly rooms- to avoid the stress and expenses of kenneling a dog or
finding a babysitter- charge for higher rates
Reimbursement (Loews Hotels)- reimburse fees that guests pay airlines for their
checked bags- can set a limit on the number of bags and the timing
References History of the hospitality industry. (n.d.). Retrieved June 2, 2015, from http://www.slideshare.net/27101985/history-of-the-hospitality-industry
Hotel Continental | Penang, Malaysia (n.d.). Retrieved May 21, 2015, from http://hotelcontinental.com.my/hotelc/hotelc/
Hotel Industry in Malaysia. (n.d.). Retrieved June 2, 2015, from http://www.regit.com/malaysia/industry/industry.htm
Puri, M., & Chand, G. (2009). Tourism and hotel industry. [electronic resource]. Chandni Chowk, Delhi : Global Media, 2009.
The 5 Elements Hotel KL (n.d.). Retrieved May 22, 2015, from http://www.the5elementshotel.com.my/
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