Opening Up an Accommodation Centre - Key Driving Forces and Success Factors - Example

REPORT OF ACCOMMODATION Student’s Name Name of Institution 12th May 2012 Business and industry description Driven by passion to render services, a business idea of opening up an accommodation centre is much appropriate. This business requires the owner to provide services as well as demonstrating excellence in quality and profitability (Reid & Bojanic, 2009). There is an increased demand for accommodation services all over the world. The accommodation centre to be established will be a place where exceptional individuals extend their personality and style (Reid & Bojanic, 2009). Current and future trends Currently the trend in this industry demands business conference facilities as well as leisure facilities. Majority of the tourists have specialised in business and leisure based activities (Cetron & Rocha, 1987). This provides an opportunity to establish accommodation services that will cater for this type of tourists. At the moment, more emphasis is placed on young couples, children and the elderly. The industry also is gearing towards providing services for adventure travellers as well as, health oriented accommodation services (Reid & Bojanic, 2009). In addition to this future trend, the industry targets the high number of the retiring baby boomers to provide them with suitable tourism packages that suits their age. There is also prospect to target travellers who take more than one year travels from their homes. Most accommodation centres are investing in exceptional services so as to retain their clientele as well as to sustain their business in the competitive market. Attaining guest satisfaction is the main aim of this business (Cetron & Rocha, 1987). Key driving forces With the improving infrastructure in airports and the emergence of new destinations as well as a tourist attraction, the accommodation business will do well when established (Cetron & Rocha, 1987). The improved infrastructure causes drastic drop in cost of travel. In addition, the number of international travellers has increased tremendously. This business idea is well justified with the rise of metropolitan areas. Improved guest safety is also another clear justification for establishing this type of business (Cetron & Rocha, 1987). The industry concern with guest security and safety has intensified making it a secure business. Globalisation has contributed to the rise in number of tourists travelling freely. This has seen the increase of international tourist arrivals by 17.94% in the last decade. In addition to globalisation, the industry has diversified its products as well as employees and guests. The expanding service sector enhances the degree of quality service and guest satisfaction. This prompts for the new stakeholders to establish unique, competitive advantage in the market (Cetron & Rocha, 1987). The industry has embraced technology hence there is enhanced competition in the various sectors within the industry (Kapiki, 2012). Much of success for this industry relies in utilising technology and the social networks to popularise the various businesses. Anther crucial driving factor to the success of this industry is the rate at which the different sectors in the industry are growing. The growth of the industry is also contributed by the increase in disposable income for most families. Furthermore, the retired baby boomers, who are the main targeted customers, have the time and money to spend (Kapiki, 2012). The reduced cost of travel is also another significant factor that has driven the industry to success. The emergence of new destinations and tourist attraction in different regions of the world also contributes to the success of this industry. The new attractions have raised the number of international tourists in the world. The businesses within the industry are continuously making efforts to impress the clients and maintain the positive image. Quality service is the main driving force of this industry (Cetron & Rocha, 1987). Key success factors Apart from the forces that drive the industry to success, there are several key success factors that this industry has achieved. The industry has improved in bed capacity and luxury in guest rooms. The hotel facilities have also upgraded with the increase in demand. The advent of technology has improved information technology in the hotels. This has resulted in increased efficiency and overall guest satisfaction. It has led to increased staff productivity. The industry has invented an e-service known as total solution, which eases the guests servicing. This innovation offers more amenities and support services. The invention provides security for business transaction. It incorporates sales and marketing tools. The social marketing allows the industry to do creative things online and reach a wider market internationally (Kapiki, 2012). The industry has prospered in the market due to its effective marketing strategy. The marketing technique enables the industry to control the market share and the growing popularity. The industry is successful in green hospitality and sustainability practiced in almost all sectors within the industry (Kapiki, 2012). Products and services The accommodation business will offer a variety of product and services in relation to the current trend and future prospect of the industry. The most crucial service the business will major in is providing accommodation for different classes of tourists from all over the world. The establishment will target business tourists and leisure based tourists. The establishment will have conference facilities to host business workshops as well as, board meetings. In addition, it will have leisure and recreational facilities such as the gym, swimming pool, sauna and spa among other facilities. The establishment will also consider the ecotourist and offer serene environment for them to enjoy ecology. The tourist will have an opportunity to go for a nature walk among other ecotourism activities in a bid to enhance sustainability of ecotourism. Other services will include meals and drinks and tour packages for the guests. The establishment will be highly classified hence value for guest money will be observed. Sport tourist will be considered as well. There has been a significant increase in sport tourist in the recent years (Kapiki, 2012). Hence targeting this class of tourist will ensure the establishment maximises in revenue income. The establishment will have an open ground for training for these sportsmen and women. The open ground will double up as a playing ground for kids whenever the establishment will be hosting families on holiday. The ground can also host outdoor events such as weddings and parties. Apart from accommodation services the establishment will offer laundry services to both in-house guests and clients from outside. Other services will include minibar in the guest rooms and 24hrs room service (Cetron & Rocha, 1987).. The establishment will also have essential facilities for the business meetings. These necessities include; internet connection business centre rental cars and parking space for the clientele (Cetron & Rocha, 1987). Product line and attributes Having this variety of services and products the guest will be able to make his preferable choice without being inconvenienced. The customer will be able to enjoy the value for his or her money. The establishment will design packages that are cheap and affordable for the different classes of tourists. The guests normally prefer to get more for less hence this establishment will provide all guests’ needs at extremely cheap rates. The new technology to be installed in the accommodation business will benefit the customer in speeding booking services, and financial transaction while in the establishment. The green hospitality policy benefits the customer in keeping the environment clean (Cetron & Rocha, 1987). Most customers prefer the key cards and motion detectors in public amenities. It enhances hygiene. The recycling policy in the establishment will contribute to energy saving and comfort to the guest (Cetron & Rocha, 1987). Area of differentiation The establishment will have different types of rooms for the different type of clientele. For instance, the establishment will have guestrooms designed with complete kitchenette equipment and entertainment facilities. The customer will have an opportunity to experience interpersonal services such as attentiveness, service friendliness, and personal recognition (Kapiki, 2012). Executive suites will contain luxurious facilities for instance, king size bed, hot tab in the bathroom, a balcony, and access to cable TV. The stiff competition calls for unique services and products that will make this establishment have an upper hand in the market. Innovative customer experience will be the key element to ensure the hotel has a competitive advantage (Cetron & Rocha, 1987). Embracing technology in all the facilities will increase revenue and improve the market share. The establishment will have the latest technology products and electronics in all its rooms. The employee will value the needs and views of customers in order to meet customer satisfaction. The hotel will have brand identity, image and customer services that will distinguish this establishment from the rest. This will lead to customer loyalty and price sensitivity. In addition, having a superior performance will impress guest and keep the business at the peak of the market. This performance will be crowned by convenience of facilities available in the hotel. The hotel will be in a secure environment hence attracting many investors and tourists as well. As a result of the changing guest needs and security demands, there is a substantial need to constantly be on toes with the competition in the market. The establishment will ensure there are no queues at the reception and have swift and quick response to guests query. Understanding customer choices will lead to the establishment to design service that corresponds to operational strategies facing customers’ needs. Segmenting customers into economic class will give the employees ample time to render quality service to the customer. This will ensure that the establishment diversifies its product and services hence making it a unique hotel in the market. The hotel will be a boutique hotel with a stylish look and a building structure. The guest rooms and the lobby will be designed to standout amongst the hotels in the market. This will boost occupancy of this hotel in the market. The boutique theme in this hotel transforms the traditional look of hotels to the current trend of hotels in the market. It offers customisation of service and experience which will ensure the guest comes back gain. The guest will be able to check in and out with much ease. The guest can also customise room decor or request particular service such as baby day care. Furthermore, the rooms will be fitted with information technology facilities such as in-room internet and stationeries for private studies for the guest. With a target of business and leisure tourist, the establishment will have the state of the art facilities which will be an added advantage to the establishment in the market (Reid & Bojanic, 2009). Operation plan The main mission of the business will be to offer service for quality-conscious clients. The business aims to be the primary choice for clients who are on vacation or business trips. Another objective is to exceed customer expectation for service and product. Through the superior performance in the market, the business should be able to increase the number of clients it serves by 15% per year. The business will be able to meet customer needs beyond the immediate serving area through the embraced technology such as eBay and web interaction. The business will sell products of the highest quality and excellent customer support in a bid to outdo other players in the industry. Another crucial objective is to enhance market sales via internet hence generating more revenue. The location of the business will be at Melbourne city in Victoria State Australia. Melbourne is the main capital and the most populous city in Victoria State. The city is one of the fastest growing metropolitan in Australia. This provides a perfect location for the business since it will provide services for most of the international tourist who visit the region. Its proximity to the ocean will provide a perfect spot for the leisure based tourist. The metropolitan nature of the city will be convenient for business travellers. The disadvantage of this location is too much noise which may be a distraction to conference delegates and board meetings which will be held regularly in the establishment. The premise will be built from scratch. After scouting for several premises around the area, the best location was a property for sale 3km from baffle creek. It is located along 333 Muller Rd, Baffle Creek QLD 4674 (Gum tree, 2012). The property is a 40acres land with golf course at the foot of the beautiful mountain ranges. The location is 20min drive to secluded Rules Beach. This spot will be an ideal location for building the hotel. The property costs $320,000.00 (Gum tree, 2012). Service flow chart Customer On-stage Employment Backstage Employment Invisible process Source: (Reid & Bojanic, 2009) The flow chart shows the different departments the customer will visit while in the establishment. It clearly shows the procedure taken for the service delivery within the departments (Reid & Bojanic, 2009). The customer will first interact with the reservation department, and after reservation, the details are entered into the system (Reid & Bojanic, 2009). In the actual arrival of the guest, the doorman receives the guest and his luggage directed to his assigned room. The guest is registered at the reception and issued with his assigned room key (Reid & Bojanic, 2009). Once the guest has settled in the hotel he, or she enjoys room service and the high class restaurant services. Other services such as the concierge, business centre, and recreational facilities will be at the guests’ disposal. After his or her stay the guest is at liberty to check out from the establishment, or he can extend stay (Reid & Bojanic, 2009). Layout Source: http://www.smartdraw.com/examples/view/hotel+room+layout/ The layout is neatly arranged and makes it easy for the staff to render services fast (Hotel Room Layout Example, 2011). Facilities The establishment will purchase all the necessary equipment and facilities needed in its daily functioning. The best way to handle these purchases is to enter in agreement with viable suppliers. In the accommodation area, the establishment will have to purchase; Beds - estimate cost - $100 Linen - $23 Entertainment equipments such as television - $80 Towels and toiletries - $9 The rooms will be fully furnished with comfortable furniture. In the conference halls the establishment should purchase; Mineral water - $3 per bottle Writing pads & pens - $1.5 Flip charts - $13.99 LCD projectors - $260 TV and DVD player $100 In the restaurant area purchases will be of necessary kitchen equipments such as; Cooking Equipment - $150 Kitchen Exhaust Hood Systems $1200 Walk-in Coolers & Freezers - $2040 Refrigeration Preparation Equipment - $1500 Dishwashing Equipment - $2500 Storage Equipment - $1000 Tables and chairs - $800 The restaurant and conference halls will also be fitted with comfortable furniture. The gym area will also be well equipped with all the necessary tools for exercise. Ergo meters bikes - $299.99 Treadmills - $220 Weight measures $400 Rowers - $130 Maintenance The establishment will have strict rules and laws that govern establishment’s facilities hence the staff in the different departments shave to strive hard to maintain the standards set forth by the ministry of health and sanitation. The equipments and installations are well maintained and regularly checked up by the establishments’ technician. In addition, there will always be a technician on standby in order to fix any breakages and malfunctioning of equipments in the establishment. The materials to be supplied include stationeries for conferences, toiletries, cleaning agents and food supplies. The criteria for selecting suitable supplier entail getting full details of the firm and range of the material the firm is selling. The supplier will have to produce copies of recent price list of materials (Reid & Bojanic, 2009). Another criterion the supplier should meet is providing details of trading terms. It should also give details of other customers the firm has supplied. The supplier will have to prove the financial stability of the firm. Once the supplier is selected, the establishment will evaluate and compare with other supplier with the sane products (Reid & Bojanic, 2009). Other performance criteria in rating the supplier are price, quantity, and quality and delivery performance. The establishment will have an efficient inventory control system. This system will have tools that will automate the process of tracking inventory (Reid & Bojanic, 2009). The establishment inventory management will be exclusively based on barcode technology. This application will track goods consumed by the customer. This will curb theft in the establishment as well as providing information about store profits and stock (Cetron & Rocha, 1987). The seasonality of tourist presents a number of issues to the establishment (Lee et al., 2008). In Australia seasonality affects the number of tourists visiting the country hence it threatens the viability of the business. There are various strategies to be implemented when the business is affected by the seasonality. One of the strategies is to have season pricing (Lee et al., 2008). For instance, the establishment will have seasonal pricing variation to attract a target market. Another strategy is to introduce special events during low seasons in order to target certain market (Lee et al., 2008). Market diversification is another strategy which will see to it that the business will have different market for different seasons (Lee et al., 2008). The legal consideration is extremely important. There are several legal issues that will affect the business (Barth, 2012). Such issues include; contracts, hotel liability, employment laws, alcohol licensing and food safety. When acquiring a business license, first the business is to be registered as an Australian business. In the event, the establishment is to make any construction the management has to acquire a building permit (Barth, 2012). In addition, the business will have to remain up to date with the changing tax obligation. The government regulation and legislation acts include; acquiring a certificate of registration, getting an Australian business number and allowing the government to carryout series of inspections in the premise (Barth, 2012). The total number of staff to be employed in the hotel will be 120 people. The hotel will have four principal departments; the food and beverage department, housekeeping department, the front office and accounts. The employees will be divided in these departments according to the work load. House keeping will have the biggest chunk with a total of 50 employees. They will be distributed in the laundry section, room attendants, cloak room, and linen store. Front office will have a total of 30 employees distributed in the reservation, front desk, lobby area, night audit and reception. The food and beverage department will have 35 employees distributed as waiters, restaurant managers, and kitchen staff. The accounts will have 5 staff. All these staff will be employed on fulltime basis. Recruitment sources include; contacting national, private employing agencies, advertising in local and national newspaper (Lukas, 2004). The establishment will look in trade journals and magazines. The management will contact career officials in schools and colleges (Lukas, 2004). The employees will be paid at rates comparable to other firms in the similar industry. Wage rates in the case of an employee with a higher performance will be increased based on performance appraisal. The method of wage payment will be the time rate method where employees will be paid basis of time preferably every end month (Lukas, 2004). The legal requirement for employee includes providing insurance and medical cover, providing medical certificate for food handlers and registering the employees in the national tax regulation authority (Barth, 2012). The feasibility study of the idea shows that the plan has a capability to prosper. The business plan has a lot of opportunities and strengths when idea is implemented. References Barth, S. C. (2012). Hospitality Law: Managing Legal Issues in the Hospitality Industry, 4th Edition. New Jersey: John Wiley and Sons. Print Cetron, M. J., & Rocha, W. (1987). Travel tomorrow: The hospitable future. The Futurist, 21(4), 29-29. Gum tree. (2012). Retrieved from http://www.gumtree.com.au/s-ad/melbourne-region/property-for-sale/property-3km-from-baffle-creek/1002162959 Hotel Room Layout Example – SmartDraw. (2011). Retrieved from http://www.smartdraw.com/examples/view/hotel+room+layout/ Kapiki, S. T. (2012). Current and Future Trends in Tourism and Hospitality. The Case of Greece. International Journal of Economic Practices and Theories. 2(1). 1-12. Lee, C., Bergin-Seers, S., Galloway, G. O'Mahony, B. & McMurray, A. (2008). Seasonality in the Tourism Industry: Impacts and Strategies. National Library of Australia. 1-36 Lukas, R. (2004). Employment relations in hospitality and tourism industries. New York: Routledge Publishers. Print Reid R. D. & Bojanic D. C. (2009). Hospitality Marketing Management 5th Ed. New Jersey: John Wiley and Sons. Print Read More