ENGLISH 2 & EPC Presentation 3-Star Hotel

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

HOTEL INDUSTRY

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.

Hotel Selected

BRIEF BIO OF THE BUSINESS

Hotel Continental, Penang

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%

Accommodation

Superior room Deluxe room

Super deluxe room Executive suite

Facilities

Coffee house Conference room

Swimming pool Laundry service

Car park area

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)

The 5 Elements Hotel, KL

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

Accommodation

Standard Single Superior Twin

Deluxe Queen

Metal Suite Water Suite

Earth Suite Fire Suite

Wood Suite

Themed Suite

Facilities

Restaurant

24 Hours Reception Services

Waiting Area

Free Wi-Fi

Recent Development

- Last renovation: 2013

- Upgrade hotel’s facilities and amenities

- Modern marketing(online)-Agoda, official website

COMPARATIVE ANALYSIS

COMPARATIVE ANALYSIS

Hotel Continental, Penang

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.

Hotel Malaysia

- 2-Star Hotel- 126 rooms

(standard rooms, superior rooms and deluxe 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

The 5 Elements Hotel, KL

COMPARATIVE ANALYSIS

Competitors

3 main competitors:● Geo Hotel● Swiss Inn Hotel● Ancasa Hotel

- Around 200 competitors

Geo Hotel

- 3-Star Hotel

- 180 rooms (standard rooms, deluxe rooms, family rooms & premier suites)

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

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

VS.

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

RECOMMENDATION

Hotel Continental, Penang

RECOMMENDATION

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- Tour guiding

Provide clean environment & better view- Small renovation

RecommendationProfessionality- Remove excess workers to cut down cost- Hire professionals- Organize workshop to improve workers’ performance

The 5 Elements Hotel, KL

RECOMMENDATION

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

RecommendationEntertainment- Provide free or inexpensive entertainment- Local musician, Bingo

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/

THANK YOU!