Evaluating a Hotels Strengths and Weaknesses

Evaluating a Hotels Strengths and WeaknessesThe hotels be constructed to provide visitors meals provisions, asylum but beside this some bombastic hotels do provide bar, entertainment , casino, tour and travels, swimming pool facilities etc. hotels do provide in all the customized furnished household that make relax travellers or visitors. Historically hotels be used for many functions, serving for business purposes, for social activities, for public assembly, for political purposes, for vacations, and for permanent residences. In short hotels argon a abundant exertion.Hotels apprize be categorised into two kinds-Chained hotel when there are a numbers of hotel with the comparable brand name around the globe and all hotel possess same name and identical features. Its brand name is servingd by many proprietors in pass on of fixed payment. (According to the tri hospitality consulting) The UK Chain Hotels type is composed of 489 hotels with an average hotel size of 185 bedroo ms. For example -Hilton hotels in UK.Independent hotel Hotel that are run and managed by itself. It may have many early(a) hotels by the same name at the different location but it does not allow other proprietor to use its brand name, For example -Burj al Arab(Dubai),white swan indian lodge inyorkshire,42 the calls in Yorkshire etc.ABSTRACTResults of which kind of hotel industry is best suited to subsist in a slowing economy is depends on merchandise factors whereas other factors have less influence as make up drivers are restricted by the slower economy . concatenationed hotel industries is very like the globalisation whereas indie hotel industries are very like to small business entrepreneur. Customers always expect responsive policies in terms of the facilities and renovations given to them. As a result the integration, strategy, veracious intend for the expansion and analytic thinking based on the information system always allows the proper coordination and proper meas urement of the all factors which may act as constraint in the growth in the slower economy.SECTION 1-Any hotel, retail store and relevant business asshole be opened in two ways Set its own name and create its own brand name. This way independent market strategy can be gear up up its own term and condition for all the policy. A hotel set in this way is termed as the stringed hotel or a part 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 advertisement cost get reduce down and cover the maximum number of the geographical area. A hotel set according in this way is termed as chain hotels. Example of the chained industries -MacDonalds, world-wide, Whitebread, permira , Here Macdonalds is presented in all areas across the UK and any proprietor can buy a franchise of the MacDonalds in return of the fixed payment.Hotel industry is getting shirked because of the depression in the spending power of the consumers and decrease in the room occupancy in the all hotel. Various go with also decreasing the number of business trip by its exe deoxidiseive in order to cost cutting so that respective confederacy can survive in the recession.Bob Bailey, partner, Baker Tilly said It is predicted by forty percent of European hotel executives that much than five hotel chains will go into insolvency in the coming yearFollowing are the way to fight with the slowing in the economy-The best way to fight with the recession is to cast up share of the hotel in the market.Create packages for the premier tourist company or power companyBy creating loyalty to a particular group of the company so that these company will be the first to see the offers and add on provided by the hotel group.Hotel should talk to the supplier in order to get sum up market and advertisement.Hire entrepreneur who invent new idea as live in accommodation for the general staff in order to forbi ddengrowth efficiency.COMPETITIVE THEORY MODELS According to the porter, following five points are key point of the analysis of the complete market for planning, business development, making business development, analyse the competitors.Porters Five Forces of Competitive Position-Existing competitive rivalry betwixt suppliersThreat of new market entrantsBargaining power of buyersPower of suppliersThreat of diversify products (including technology change)Factor which do affect the competitive approach 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 precise overhauls in the particular ares, breakup of the fixed cost, and trends of the competitor hotels.New players in the hotel industry positivist and negative point of the entering into the hotel industry at the particular time, Where is the geographical structure of the area, population breakup of the are a, Resistance while entering into the competition for example -a hotel is going to open in the oxford city and the regulation rent for 24 hours in that area is 50 pounds, so till the point that hotel is not going to enhance the services provided or lower the rents, the victor 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 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.Threat of the substitute Legislatives change and executing in the particular area change in the fashion with the change in time. unitary more factor involve in this very much as change in the market distribution. One more method SWOT (Strength, Weakness, opportunity, threat) analysis is an important part of the strategical planning model. The throughout environmental scan is divided into two part-INTERNAL ANALYSIS 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.WEAKNESS or negative parts of the hotel/entrepreneurship are listed down. For example-Bad location of the hotel, full(prenominal) cost structure, poor reputation etc.EXTERNAL ANALYSIS -OPPORTUNITY may reveal the certain new opportunity for the great increase in the profit percentage of the hotel. A sense of increase in the luxury, Implementation of the latest technology for the measurement or human convinces.Osbourne (1995) argued that the entrepreneur mustiness first identify an opportunity and then create a marketing and financial plan tocapitalise on the idea.THREATS -changes in the external factor which causes the revile 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 almost all these transaction occurs in the chained hotels.Following is the chain penetration 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 cessation, 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 a nd 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 (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 character of demand (reference-Alison Morrison and Rhodri Thomas)It is critical to recognise that a different and significant range of the management 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 between the business strategy and small independent hotel business planning and growth and entrep reneurship.Webster (1998) states that strategic management plays the most 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 absent-Small hotels marketing is more distinctive than acknowledgedIncorporation of the quality management with the operation and financial 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 the independent hotel industries when there is proper synchronising between ownership, firms characteristics , strategic decision made.STEP TO BE TAKEN BY INDEPENDENT HOTEL INDUSTRY IN THE ECONOMY SLOWDOWN TIME In answer to the slowed economy t ime, most independent hotelier lowered rates and slowed down the all kind of cost on the short term basis. It is not fair to middling to compete with the chained hotel industries that have greater financial power to stay longer in the competition.Direct sale- sale people always comes to tinge their target as there is great demand for the respective hotel but if the demand is not appropriate in that case ROI falls for the sale phonation . In that scenario, an independent hotel industry needs to fix a database 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 simply do not have the bandwidth to market to these local anestheticly based audiences. Itis up to the franchised hoteliers to identify and approach these local markets. As mentioned, the Internet is the preferred communication and marketing medium for all of these important customersegments. If you do not speak to each of these audiences, you will support most of them to your competition.Technology For example free local phones and now a days a guest travel with the latest gadget so to survive and maintain 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 reach the potential users .here opportunity is equal for the chained hotel as well as independent hotel. The Positive side is this that -Independent hotel have less content, as a result they can keep updating their site as soon as possible than the chain hotels.Best services on the block- Great services can overcome the price resistance and any loophole of the hote l. 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 profit performance 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 Sexton andvan Auken, 1985).LIMITATION AND THE CHALLANGES OF THE HOTEL INDUSTRIES The controls to monitor progress so that corrective 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 occu rrence?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 overwhelm the globalisation, knowledge based environment, employees, add on services, value addition to the customer who are repeating the watch.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 system or intelligence system facilitate to access the hotel cerebrate 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 also 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 second time as mentality keeps growing with the time.Employees and their stabilization with the same hotel as employees increase their time with the same hotel, they expect increment in the salary but as salaries of the employees get high then cost also gets increase as a result profit decreased.Share-holders expectation is to r ise 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 private paleness funds increase the insecurities among the employees.