Evaluating a Hotels Strengths and Weaknesses

Evaluating a Hotels Strengths and WeaknessesThe hotels be constructed to bring home the bacon visitors meals provisions, asylum scarcely beside this some big hotels do provide bar, cheer , casino, tour and travels, swimming pool facilities etc. hotels do provide entirely the customized furnished ho employhold that make relax travellers or visitors. Historic alto welcomehery hotels are used for m whatever functions, serving for transmission line purposes, for social activities, for public assembly, for governmental purposes, for vacations, and for permanent residences. In short hotels are a vast industry.Hotels whoremaster be catego renegaded into two patterns- kitchen rangeed hotel when in that location are a consequences of hotel with the same pock name around the globe and either hotel possess same name and identical calibres. Its brand name is overlap by many owners in return of get to payment. (According to the tri hospitality consulting) The UK Chain Hotels sa mple is composed of 489 hotels with an norm hotel size of 185 bedrooms. For showcase -Hilton hotels in UK. item-by-item hotel Hotel that are run and managed by itself. It may have many some other(a) hotels by the same name at the different location provided it does not all in allow other proprietor to use its brand name, For example -Burj al Arab(Dubai),white swan inn inyorkshire,42 the calls in Yorkshire etc.ABSTRACTResults of which kind of hotel industry is best suited to survive in a mental retardation scrimping is depends on market factors whereas other factors have less wreak as equal drivers are restricted by the slower miserliness .chained hotel industries is very ilk the globalisation whereas independent hotel industries are very like to low-down production line entrepreneur. guests forever expect responsive policies in wrong of the facilities and assistants given to them. As a result the integration, strategy, proper readiness for the expansion and analy sis establish on the information system al focusings allows the proper coordination and proper measurement of the all factors which may act as constraint in the growth in the slower economy.SECTION 1- all hotel, retail store and relevant business throw break through be loose in two ways Set its own name and crap its own brand name. This way independent market strategy washbasin be set up its own term and condition for all the policy. A hotel set in this way is termed as the chained hotel or a smash of the independent hotels.Whereas another way is to buy a franchise and act according to the parameter set by the brand name owner. In the way, branding embody and kick upstairsment cost get reduce down and cover the maximum number of the geographic area. A hotel set according in this way is termed as chain hotels. pillow slip of the chained industries -MacDonalds, Intercontinental, Whitebread, permira , Here Macdonalds is presented in all areas across the UK and any proprietor c an buy a franchise of the MacDonalds in return of the decided payment.Hotel industry is getting shirked because of the depression in the spending power of the consumers and come in the room occupancy in the all hotel. Various attach to besides decreasing the number of business trip by its administrator in order to cost foreshortenting so that respective(prenominal) ac fraternity can survive in the recession.Bob Bailey, partner, Baker Tilly said It is predicted by forty percent of European hotel executives that more than than five hotel imprisonment volition go into insolvency in the coming yearFollowing are the way to agitate with the slowing in the economy-The best way to fight with the recession is to increase voice of the hotel in the market.Create packages for the premier phaeton participation or power companyBy creating loyalty to a particular group of the company so that these company volition be the depression to see the offers and add on provided by the hotel group.Hotel should talk to the provider in order to get sum up merchandise and advertisement. train entrepreneur who invent new idea as live in trying on for the general staff in order to increase efficiency.militant THEORY MODELS According to the porter, following five draw a bead ons are key demonstrate of the analysis of the complete market for plan, business development, making business development, psychoanalyze the contenders.Porters Five Forces of Competitive Position-Existing competitive rivalry among suppliers panic of new market entrantsBargaining power of buyers quality of suppliersThreat of substitute products (including engineering switch)Factor which do affect the competitive come near of any hotel-Analysis of the competitor hotel Analysis of the competitor shows the growth of the competitor hotels and their approaches, strategy, available hotels and their specific service in the particular ares, breakup of the fixed cost, and trends of the competitor hotels .New thespians in the hotel industry Positive and negative point of the entering into the hotel industry at the particular clock, Where is the geographical structure of the area, state breakup of the area, Resistance while entering into the competition for example -a hotel is red to open in the oxford city and the normal rent for 24 hours in that area is 50 pounds, so till the point that hotel is not vent to enhance the services provided or lower the rents, the success of hotel is not guaranteed.Power of the Enterprises/hotel This Factor including the reputation of the brand incurred in the market in that geographical area, type of the hotel i.e. is it a small-medium or a chain hotel? Geographical insurance coverage of the hotel in the area, quality of the rooms and services.Customers buying power Buyers choice, buyers number in that area i.e. ratio of the hotel to the customer, importance of the services i.e. some particular service (luxurious service) is required or not.Thre at of the substitute Legislatives spay and implementation in the particular area change in the fashion with the change in time. One more factor involve in this very much(prenominal) as change in the market distri stillion.One more method acting SWOT (Strength, Weakness, opportunity, threat) analysis is an important part of the strategical planning model. The passim environmental scan is divided into two parts-INTERNAL psychoanalysis STRENTHS or positive parts of the hotel/entrepreneurship are listed down. For example Cost advantages in the fixed cost, strong brand name, good reputation among power customer. flunk or negative parts of the hotel/entrepreneurship are listed down. For example-Bad location of the hotel, high cost structure, poor reputation etc.EXTERNAL ANALYSIS -OPPORTUNITY may conk out the certain new opportunity for the great increase in the increase percentage of the hotel. A sense of increase in the luxury, Implementation of the in vogue(p) technology for t he measurement or human convinces.Osbourne (1995) argued that the entrepreneur must first identify an opportunity and then create a marketing and pecuniary plan tocapitalise on the idea.THREATS -changes in the external factor which causes the trauma to the firm or hotel is known as threats. For example A change in the regulation of the hotel or firm.CHAINED HOTEL INDUSTRIES According to the DELLOITE TOUCHE (UK budget hotel survey) 35% are leisure tourist, 57% are business transaction and or so all these transaction oversteps in the chained hotels.Following is the chain brainstorm of the UK hotel industry Whitebread( hotels-361,rooms-27555), Intercontinental ( hotels-188,rooms-25000), Hilton group (( hotels-75,rooms-14,794), Permira( hotels-231,rooms-12596),BIL( hotels-56,rooms-10761), Accor( hotels-79,rooms-10003), Premier lodge( hotels-131,rooms-8130), macdonalds, CHE and Jarvis hotels.In short, total these hotels contains 1,30K number of rooms.(source Mintel company data)To some extent, the evidence-represented by the growth of multiples, especially in the fast-food and accommodation sectors over recent decades is incontrovertible. However, the extent to which multiples have taken market share and will continue to grow at the expense of smaller operators is more questionable. As several commentators have pointed out (for example Morrison, 1998)(reference-Alison Morrison and Rhodri Thomas)INDEPENDENT HOTELS STRETAGY peacock butterfly (1993) provides an alternative outlook in terms of the dynamics of the small business sector. He argues that standardisation inherent in chain operations -stiflesinnovation. As a consequence, dynamic small firms might continue to thrive, even in primelocations. Given the low barriers to entry, and the highly segmented nature of subscribe (reference-Alison Morrison and Rhodri Thomas)It is critical to recognise that a different and significant range of the centering concern in the small hotel industries. Specially , the role played of the marketing quality section of the management importance and implementation of the information technology the relationship betwixt the business strategy and small independent hotel business planning and growth and entrepreneurship.Webster (1998) states that strategic management plays the nearly important role in the growth of the independent hotel industries. A independent hotel seems to grow when feature of the firm and strategic decision taken by the firm overlaps. Although strategic decisions are important but if the other critical factors are lacking(p)-Small hotels marketing is more distinctive than acknowledgedIncorporation of the quality management with the operation and fiscal identity of the independent hotelsWhen the bond between proper implementation of the strategy and implementation lacks.According to the strategy maps (book by HBS press) if an entrepreneur cannot measure the growth, you cannot hold it.In short, business growth occur only when for t he independent hotel industries when there is proper synchronisation between ownership, firms characteristics , strategic decision made.STEP TO BE TAKEN BY INDEPENDENT HOTEL manufacture IN THE ECONOMY SLOWDOWN TIME In response to the slowed economy time, most independent hotelier lowered rates and slowed down the all kind of cost on the short term basis. It is not copious to compete with the chained hotel industries that have greater financial power to hindrance longer in the competition.Direct sale- sale people unendingly comes to meet their target as there is great demand for the respective hotel but if the demand is not appropriate in that case ROI locomote for the sale representative . In that scenario, an independent hotel industry needs to fix a data found for the potential businesses and contact them for the hotel usage.Example Case study(Hospitality e-business strategy)Key Customer Segments Number of Searches on Major Search Engines in 07/08The major hotel chains simpl y do not have the bandwidth to market to these locally bumd audiences. Itis up to the franchised hoteliers to identify and approach these local markets. As mentioned, the Internet is the pet communication and marketing medium for all of these important customersegments. If you do not speak to each of these audiences, you will lose most of them to your competition. engineering science For example free local phones and now a days a guest travel with the latest gadget so to survive and have got the growth rate.Locally present-chain based hotel industries main customer base is outside the community where the hotel is present. In order the positive points of the independent hotel is the cost factors. Independent hotel need to be a good active part of society as a result society will advertise that hotel in return.Internet-Internet is the most cost effective and way to micturate the potential users .here opportunity is equal for the chained hotel as well as independent hotel. The Po sitive side is this that -Independent hotel have less content, as a result they can keep updating their site as briefly as possible than the chain hotels.Best services on the point- Great services can overcome the price resistance and any loophole of the hotel. Hotel owner should maintain warm and service oriented people.Traditionally, it has been assumed that small businesses should use the sameManagement techniques as their larger counterparts (Welsh and White, 1981).However, research carried out on the relative effects of planning on the sales and loot cognitive operation of small businesses have shown both positive relationships between the planning function and sales/profits (Ackelsburg and Arlow, 1985 Bracker and Pearson, 1986 Jones, 1982 Schwenk and Shrader, 1993) and no relationship between the use of planning activities by small business owner/managers and performance(Gable and Topol, 1987 Robinson and Pearce, 1983 Robinson et al., 1986 sacristan andvan Auken, 1985).LIM ITATION AND THE CHALLANGES OF THE HOTEL INDUSTRIES The controls to monitor mature so that nonindulgent actions can be implemented as and whenA way of evaluating success and progressThe controls processSet goals what do we want to achieve?Measure performance what is happening?Evaluate performance why is it happening?Take corrective actionFast changing world gives many challenges to the hotel industries. The success of the hotel industries depends upon the forces that will get changed by synchronisation with the world.To identify those driving force is the most compact and critical part for the surviving in the slow time of the industry. These driving forces may include the globalisation, knowledge based environment, employees, add on services, value addition to the customer who are repeating the experience.E-commerce is the main player of the hotel industry and hospitality industry.Hotels and tourism industry are interlinked so there is a need of well structured information syst em or intelligence system facilitate to access the hotel related to the tourism industries but many times information is highly fragmented and users are not able to extract the required information,In the hotel industries, usability and reusability is the measure of the consumers experience but research regarding users experience should properly analysed and implemented for further customers satisfaction.Globalisation is similarly the main challenge in these days as every company is expanding its consumers base as a result every domestic company is getting converted into multinational company. Tourism companies are making their base to the all countries as a result customer demands their known hotel to the other country as well. In that scenario, chain hotels industries do survive as there is no scope for the independent hotels.Renewal of services and those services get liked by the customer who are experiencing the same hotel arcsecond time as expectation keeps growing with the t ime.Employees and their stabilization with the same hotel as employees increase their time with the same hotel, they expect increment in the lucre but as salaries of the employees get high then cost also gets increase as a result profit decreased.Share-holders expectation is to rise in the rates of the return of the investment in the hotel industries by the financial institutions, For example-According to the International Union of Food, Agricultural, Hotel, Restaurant, Currently the ten largest international hotel chains average 12.3% returns to shareholders and are under pressure to match financial market leaders like Shangri-La and InterContinental Hotels Group (IHG) which return 16% to shareholders every year.As a result more pressure on the hotel industries to cut cost and increase profit.Continuous restructuring and employment insecurity -frequent and fast change in the ownership and management as a result of the confidential equity funds increase the insecurities among the employees.