Category: Tourism

Introduction

The entry of small tiny spaces utilized as bedrooms popularly known as ‘capsules’ gave a new face to Japan’s hospitality industry. The uniqueness of these small spaces, which take the form of a ‘spaceship,’ is a thing that makes several tourists who visit the country wonder in amazement. Due to their sizes, the capsules can only accommodate one person per night, a factor that makes the facilities very convenient for lone travelers. Although the western countries have tried to venture into a similar sector by introducing a replica known as ‘pods,’ the product has not received the hype witnessed in Japan. It is also fundamental to explain that the love for the capsules extends beyond Japan’s borders because more people around the globe are beginning to enjoy spending time in these little rooms. This paper aims to explain the impact that luxury capsules have on client experiences in Japan.

Luxury Capsule Hotels in Japan

History and Target Clients

Capsules have a rich history that dates back to 1979 when busy working Japanese individuals missed their trains back home and decided to spend the night in small pocket-friendly accommodation facilities. According to Romero (2015), the demand for capsules also owes its introduction to the drunken individuals who wanted a place to stay due to their inability to drive or walk to their residence places. The increasing number of clients visiting the accommodation facilities is associated with the dynamic nature of Japanese people who spent several hours working. Other countries, including China, India, Belgium, and the Philippines, started offering capsule services from 2014 to 2017. Notably, these countries’ service did not enjoy the fame and popularity associated with their counterparts in Japan.

The target clients who frequent capsules range from travelers, working individuals who missed their train back home, or busy students. Since the facilities provide accommodation at prices within reach of the average and the middle class, it is common to see several individuals seeking accommodation in the capsules. Moreover, unlike other accommodation facilities around downtown areas, capsules are well designed in a manner that matches the expectations of those individuals who want to spend a night alone (Valdani & Arbore, 2011). It is imperative to highlight that although the primary target consumers of services offered by capsules were drunken individuals who could not drive or walk home, the spectrum has widened because of the nature of services offered. Free internet access, accompaniments such as TVs, radios, and lockers are additional elements that have made the capsules gain popularity in and outside Japan.

Size and Extent of Penetration

Capsules are small and can only accommodate one person per night. The space provided may not fit those consumers traveling in large numbers or families on vacation and those who want to store luggage in their rooms. People who have luggage can always store them safely in lockers provided by the service providers. In the perspective of Julier (2017), capsules are about 1.25 meters, a space that is enough for a person to stretch, turn, and even sit while watching TV, listening to music, or browse the internet using their gadgets. The space ship appearance of the capsules implies that an individual cannot stand inside the facility. As such, the facility meets the needs of those clients who want to spend some time alone or are late and want to pass the night before proceeding to their next destinations. It is important to assert that besides their small sizes that, in most cases, accommodate one person and a few amenities, the services enjoyed are almost equivalent to those accrued in modern hotels.

Surprisingly, although capsules are famous in and outside Japan, their services are not present in other countries. As such, the facilities have become exclusive to Japan. In effect, capsules have, over time, become some of the tourist attractions for people who visit from other parts of the world. Every year, people from places such as the United States, Africa, and Europe visit these facilities and even spend their time in one of the numerous capsules in Japan’s downtown areas. Ivanova, Ivanov, and Magnini (2016) state that although some countries in the west and Europe tried to develop pods similar to capsules, the facilities did not receive the expected number of target individuals as in the case of capsules. Several researchers claim that people’s preferences in Japan are diverse concerning those of individuals living in Europe and the west. Therefore, these researchers associate the divergent preferences to the exclusive nature of capsules.

Customer experience in Japan

Enhanced Satisfaction and Accessibility

One of the greatest experiences introduced by capsule hotels in Japan is satisfaction from the consumers. The additional services introduced, especially in early 2000, made the facilities exceptional and very satisfying. In effect, modern consumers love products that match their expectations concerning the value and quality. Therefore, when capsules emerged and offered services priced in a pocket-friendly manner, the level of satisfaction derived by consumers augmented (Lin, 2011). The amplified satisfaction is one of the factors linked to the increasing number of visitors who frequent capsules. In the challenging economic times, consumers are concerned with high priced facilities that surpass their purchasing power. However, the advent of capsules that offer similar services under minimal cost proved to be more rewarding and satisfying for the domestic and foreign clients who need accommodation.

Since the capsules’ primary objective was to cater to the needs of the busy working individuals, their location is always near a terminus. The location of the facilities makes them very accessible in and outside the downtown areas of the city. It is not a challenge to locate numerous capsules near a train station in Japan. By ensuring that the facilities are close to terminuses and downtown areas of the city, the designers of capsules achieved clients’ desired expectations (Bowie & Buttle, 2013). As a result, the facilities are very pivotal for individuals who want to undertake their activities within the city and, at the same time, enjoy superb accommodation. This is unlike many rated hotels, which offer services in areas that may not be easily accessible, necessitating taxis and private vehicles. In a capsule, one can easily walk into the city or take a train back to work in the morning, an element that makes the facilities resonate well with the middle class and adventurous consumers.

Affordability and Enhanced Privacy

Another factor that determines customer experience and the impact of capsule hotels in Japan is the price. The price of the facilities is way below that of several hotels, which offer similar services. With a price within the buying power of several middle-class individuals in the society, the popularity of capsules has augmented. According to Wassler, Li, and Hung (2015), the prices charged by service providers in capsules range from ¥2,000 to ¥4,000 while that of hotels is from ¥3,000 to ¥4,500. The variance demonstrated in pricing dictates the drive to spend a night in a capsule. Besides the low price that determines the experiences of customers, the capsules have several facilities that make it appealing to consumers from various parts of the country and around the world. Their sleek and clean state resonates well with consumers in the middle and rich levels of the society.

Privacy is another factor associated with the amplified popularity of capsules in Japan. Unlike other modern hotels and accommodation facilities, capsules have the capacity of only one individual. The implication of the limited capacity is enhanced privacy for the consumers. As such, people who do not want to be disturbed by the hustle and bustle of the city and other individuals can opt for a capsule and spend their time inside the facility. Although some of the components in the facilities are communal, several services offered are exclusive to a single consumer (Gupta & Maurya, 2014). Inside the capsule, individuals can watch their favorite programs, listen to channels of choice, or browse sites that they love without interference. The uniqueness derived from the capsule has made it appealing to individuals who may want to work overnight in safe and free places from unwanted disturbances.

Convenient and Interactive

Capsules are very convenient, a factor that enhances customers’ experiences who spend their time in one of them—the convenience enjoyed by the capsules occasions because of the exclusiveness associated with their policies. Robinson (2011) states that unlike many accommodation facilities where consumers acquire rooms without regard to gender, capsules uphold gender regulation. As such, there are capsules for men that are separate from those occupied by women. Matsunaga (2016) explains that in cases where capsules have floors, some floors may be occupied by men and others occupied by women. The implication of exclusivity is a high-end level of convenience where clients can do their activities without the worry of clashing with consumers of the other gender. It is common for people from the opposite gender to, at times, clash, especially in facilities that have small and secluded rooms like capsules. However, by ensuring that the rooms occupied by men are separate from those of women, the issue reduces, and the experiences of clients heighten.

Besides ensuring that men and women occupy separate rooms, capsules provide fascinating experiences for adventurous tourists. Tourists from countries outside Japan can have a moment of their lives as they interact with employees working for capsules. Notably, adventurous tourists can learn some Japanese language just by staying in capsules because the facilities serve domestic tourists, and employees who work there may not be fluent in foreign languages like English or French (Bunda, 2014). Moreover, a majority of individuals who spend their time in capsules are middle-class employees who missed their train back home or those who want to work overnight. As such, there is a high possibility for one to interact with people of the Japanese dialect and acquire some aspects of their culture, language, and lifestyle. The closeness of capsules gives people a chance even to initiate a conversation with their neighbors as long as they are willing, a factor that substantiates the rate of interaction acquired by staying in capsules.

Objective

Objectivity is another factor that makes capsules famous in Japan. The capsules have their primary objective, which is to serve travelers in need of accommodation and add a few additional elements to amplify their comfort during their time in the facility. The implication of this objectivity is a clear set of consumers who visit the facilities in need of their services. In the explanation of Ruzzier, Hisrich, and Edward Elgar Publishing (2013), a visit to the capsules reveals the fact that their focus is on providing accommodation. Therefore, it is very unlikely for travelers who want recreational services to visit capsules, but instead, they visit rated hotels. By segmenting themselves and providing a certain set of services, the capsules have, over time, gained a reasonable market share in the accommodation sector. Students in search of jobs or people who are late from work do not need to incur expenses that recreational individuals incur. Instead, these individuals can visit a capsule, spend a night, and take a train back to work in the morning.

Conclusion

Capsules have gradually gained popularity in several parts of Japan. Regardless of their sizes, the accommodation facilities have become the best option for individuals who are late from work, drunk, or are on vacation. The price, additional services, and the beautiful appearance of the capsule are some of the factors that make it distinct from other hospitality facilities in the country. While the facilities are famous in Japan, they have not become popular in other parts of the world. Therefore, tourists enjoy having the experience of a capsule each time they visit Japan. Indeed, capsules have had an impact on the experiences of both domestic and foreign consumers in Japan.

References

Bowie, D., & Buttle, F. (2013). Hospitality marketing. New York, NY: Routledge.

Bunda, R. (2014). The business of beds: An exploration of hotel and hostel business strategy. Connecticut, CT: University of Connecticut.

Gupta, S., & Maurya, M. (2014). Integration of hotel management system by ASP.NET. Integration, 2(3), 1-8.

Ivanova, M., Ivanov, S., & Magnini, V. (2016). The Routledge handbook of hotel chain management. New York, NY: Routledge.

Julier, G. (2017). Economies of design. New York, NY: SAGE Publications.

Lin, Z. (2011). Nakagin capsule tower: Revisiting the future of the recent past. Journal of Architectural Education, 65(1), 13-32.

Matsunaga, L. (2016). Precarious Japan by Anne Allison (review). The Journal of Japanese Studies, 42(1), 173-178.

Robinson, I. (2011). Mega urban regions of Southeast Asia. Toronto, Canada: UBC Press.

Romero, J. (2015). Development of a “space-saving model” for a one-family dwelling case study of Japanese architecture with space limitations. Journal of Building Construction and Planning Research, 3(04), 180-196.

Ruzzier, M., Hisrich, R. D., & Edward Elgar Publishing. (2013). Marketing for entrepreneurs and SMEs: A global perspective. Cheltenham, UK: Edward Elgar Pub. Ltd.

Valdani, E., & Arbore, A. (2011). Competitive strategies: Managing the present and planning the future. Basingstoke, UK: Palgrave Macmillan.

Wassler, P., Li, X., & Hung, K. (2015). Hotel theming in China: A qualitative study of practitioners’ views. Journal of Travel & Tourism Marketing, 32(6), 712-729.

Introduction

It is important to determine the efficiency of a business operation, because of the assumption that inefficient management of resources leads to business failure in the long run. However, this assertion seems true only if the enterprise competes in a business environment characterized by perfect competition. Thus, it is also imperative to point out that there are various cases wherein an enterprise manages to survive in spite of inefficiency.

It is perhaps the end result of imperfect competition brought about by differences in location and product quality (Anderson, Fok, & Scott, 2000). The hotel industry is an example of an imperfectly competitive industry, and in this case the best candidate for an efficiency study.

Methods

The proponent of the study attempted to determine the managerial efficiency of the hotel industry through the use of a linear programming procedure. The said procedure was called the Data Envelopment Analysis of DEA (Anderson, Fok, & Scott, 2000). In a nutshell, a DEA process enables the researcher to figure out the minimum costs necessary to produce a certain level of input. Based on this analysis framework the use of inputs in excess of the minimum requirement tells researchers that a particular hotel is inefficient.

The proponent of the study was able to measure the level of efficiency based on an “efficient frontier” framework. Under the DEA technique one can find the following efficiency measures: 1) overall efficiency or OE; 2) technical efficiency or TE; 3) allocative efficiency or AE; 4) pure technical efficiency or PTE; and 5) scale efficiency or SE (Anderson, Fok, & Scott, 2000).

Data was taken from Ward’s Business Directory of U.S. companies (Anderson, Fok, & Scott, 2000). The proponent of the study selected hotels that provided complete financial records. After using this filtering process, the final sample reached the 48 mark. Nevertheless, the 48 hotels that were included in the final sample represented a wide cross section of hotels from all over the country. In addition, the firms were heterogeneous in terms of size.

In order to generate pertinent data related to the “efficiency frontier” information regarding the cost, the output produced and the input prices. Six inputs were identified and these are listed as follows:

1. number of full-time employees;
2. the number of rooms;
3. total gaming related expenses;
4. total food and beverage expenses;
5. hotel operation expense;
6. other expenses (Anderson, Fok, & Scott, 2000).

Furthermore, the wage cost per employee was derived by dividing the total revenue of the hotel by the number of full-time employees. On the other hand, the room price was derived by dividing the hotel revenues by the number of rooms, the occupancy rate, and the number of days per year. However, gaming, food, and beverage, and other expenses were calculated by deriving each value as a percentage of total revenue (Anderson, Fok, & Scott, 2000).

Results

It is interesting to note that overall efficiency scores were very low. In fact, the mean efficiency score was only at 42 percent. Therefore, the hotels deemed efficient can afford to lower the input cost by 58 percent. In addition, the mean AE was 51 percent. On the other hand the mean TE score was 81 percent. PTE and SE score were 90 and 87 percent respectively (Anderson, Fok, & Scott, 2000).

Table 1. Results.

It is interesting to note that the outcome of the study revealed high levels of inefficiency exists within the hotel industry. Thus, the proponent of the study wanted to point out that the said industry is not an example of a perfectly competitive industrial market. The proponent of the study also found out that inefficient hotels were able to allocate more resources to hotel operations and other forms of expenses. In addition, inefficient hotels had more rooms and more employees working for the said firm. In stark contrast the efficient hotels allocated more resources to food and beverage operations.

Discussion and Conclusion

The proponent of the study discovered the inefficiency of the hotel industry due to the efficiency measure of around 42 percent. In other words, the average hotel uses or inefficiently utilizes as high as 58 percent of resources. Thus, even a 50 percent reduction in expenditures will allow the average hotel proprietor to earn a profit. A significant root cause of the problem was the failure to determine the most appropriate input mix.

For example, the inefficient hotels employ a large number of workers and have to maintain a large number of rooms. Allocative efficiency measures reveal As a result, a large portion of the resources was utilized to manage the operations side of the business.

On the other hand, the efficient hotels did not focus on using the bulk of their resources to build more rooms and hire more people (Morey & Dittman, 1995). In contrast, the focus was on food and beverage operations. Therefore, hotel managers must do a better job in allocating resources or improving the input mix (Lambert, Lambert, & Cullen, 1989). It was also a good idea to invest more on the food and beverage operations, because it is an area that has higher profit margins.

It is interesting to note the significant levels of inefficiency, because in the beginning of the study, it was hypothesized that inefficient managers are going to drive their companies to the ground. In this context, assuming that the assumption held true for efficiency, the hotel managers that were leading inefficient hotels are about to bring them to the brink of financial ruin in the long run. However, this was not the case.

This assertion was based on the realization that the 48 hotels included in the study were the ones that submitted complete financial data. Thus, these hotels are still open for business even if there was a significant inefficiency in the management of certain hotels. As a result, the assumption made earlier that the hotel industry can afford to work under inefficient circumstances because of the nature of the business, especially with regards to the location and the different quality of the products.

Nevertheless, the hotel industry can increase its net profit if certain measures concerning the elimination of inefficient business strategies are implemented and monitored by the manager. Nonetheless, it has been made clear that inefficiency does not automatically destroy a business enterprise as suggested in the hypothesis. Imperfect competitive environments creates a marketing atmosphere that allows inefficient managers to survive, but at a tremendous cost to the company and stakeholders involved.

References

Anderson, R., Fok, R., & Scott, J. (2000). Hotel industry efficiency: An advanced linear programming examination. American Business Review, 18(1): 40-47.

Lambert, C., Lambert, J., & Cullen, T. (1989). The overbooking question: A simulation. Cornell Hotel & Restaurant Administration Quarterly, 30(2), 15-20.

Lefever, M. (1988). The gentle act of overbooking. Hotel industry efficiency: An advanced linear programming examination. American Business Review, 18(1): 40-47.

Morey, R., & Dittman, D. (1995). Evaluating a hotel GM’s performance: a case study in benchmarking. Cornell Hotel Restaurant & Administration, 36(5), 14-19.

The author of the article “The Many Faces of Hotel Moderne In Harbin” is Mark Gamsa, an Associate Professor in the Department of East Asian Studies at Tel-Aviv University who teaches Chinese history and literature. The academic discipline the author is writing from is history, namely the history of Chinese architecture from the 1900s up to modern days. The article’s main argument is the uniqueness of the hotel Moderne in the Chinese city Harbin: the hotel was transformed into different facilities during different decades (hospital, hotel for political consultants, anti-revisionist hotel, guesthouse, cinema, concert hall, theater, wedding reception even). Another argument that the author ponders upon is the possibility of bringing together the hotel’s Chinese and Russian history (32).

According to the author, it is not the racial issue that made the Moderne exclude the majority of Chinese but rather the social standing (33). During the Iosif Kaspe (hotel’s founder) period, Gamsa points out that Chinese and Japanese guests were lodged in the hotel. Therefore, the article argues against the assumption that the “inclusion” into the Moderne atmosphere was based on race only (32). However, the author admits that the Moderne maintained its European atmosphere until 1946 when it was passed to Chinese management (33). The many faces of the hotel were the cause of different perceptions produced by Russian and Chinese management. As the author states, while some Chinese managers and lodgers perceived it as built-in a “French-style”, other reviewers marked it as “German school.” The truth behind it is that the hotel was built in the style known as Art Nouveau (34). Thus, it had a Europe-inspired style, but it was not related to one European school in particular.

To support the arguments, the author provides quotes and citations from published journals, reviews, and other studies that focused either on the hotel Moderne or the architecture in Harbin. Moreover, the author also provides pictures and images of the hotel from different periods to display how advertised and perceived during different decades in the 20th century.

Another purpose of the hotel was to make the customers and tourists feel that they have been transported “elsewhere” when entering the luxurious building (38). That was also one of the “duties”, the author argues, to make visitors perceive it as something outstanding that does not fit into the surrounding geographical context. The hotel remains to be one of the most famous landmarks in Harbin, although it was renovated and rebuilt many times.

For me, the Russian-Chinese history of the Moderne is what makes it so interesting. The article provides a detailed story behind the hotel, whereby it focuses on the different eras and periods that dominated the city. Furthermore, this close look at architecture reveals how buildings and facilities can send a particular message and how they reflect the history of a district, a city, or a whole country.

Introduction

Competition in the hospitality industry is intensive, and currently this industry is characterized by a significant brand expansion to attract more visitors and provide them with unique personalized or customer-oriented services and experiences (Wu & Ko, 2013). The focus is on establishing and developing a brand that will become attractive to guests in terms of the proposed services, concept, philosophy, and design.

The most famous international hotel chains are also oriented to changing and establishing new attractive brands. Curio Collection by Hilton is one of such innovative brands that was launched in 2014. The first Curio hotel in Australia appeared only in October 2017, and its first guests will be expected in January 2018 (Curio Collection, 2017). The purpose of this report is to discuss Curio Collection as a new international brand established by Hilton and describe the details of its facilities management with the focus on such aspects as technology and environmental sustainability.

Curio Collection and Its Market Position

Being established in 2014 as a brand of boutique hotels, Curio Collection by Hilton attracts travelers’ attention because of hotels’ design, proposed experiences, and Hilton’s reputation. In spite of the fact that this international brand has recently emerged in a modern hotel market, it is currently one of the most reputable new brands. While discussing the market positioning of the brand, it is important to note that, according to the STR Global Chain Scales, Curio Collection is characterized as an upper upscale chain (type 2) operated by Hilton Worldwide (Curio Collection, 2017; Selwyn, 2016).

The position in the market is determined with reference to the average daily rate for a previous year. In contrast to other chain scales, upper upscale hotels have exclusive designs, high prices for rooms, and unique services.

The Facility Design Philosophy

Curio Collection’s facility design philosophy is based on using only unique and innovative buildings for Curio hotels. These properties should be appealing to visitors and guaranteeing authentic experiences, as well as being exceptional in their nature (Curio Collection, 2017). Furthermore, the facility design philosophy is also grounded in the aspect that Curio hotels are boutique hotels that differ from other hospitality facilities in their life-style perspective and eclectic style (Hou, Tao, & Mao, 2016; Jones, Day, & Quadri-Felitti, 2013). Curio Collection hotels unite independent properties that are located globally and that are different in their design to reflect the culture of a community which they serve.

There are no prescriptive designs for hotel buildings, they are operated independently with the focus on the “soft brand” principles, and this aspect influences facilities management in Curio hotels (Curio Collection, 2017). As a result, facilities management is based on a distinctive character of different Curio hotels and various visitors’ needs. Hilton supports the chain and provides security and safety standards to follow while organizing facilities management. To address guests’ needs, the focus is also on providing perfectly arranged spaces, high-class services, safety, security, and innovative technologies.

In Australia, the first Curio hotel is West Hotel in Sydney that is located in a new unique building. This boutique-style hotel proposes 182 guest rooms, four suites, a bar, a restaurant, a meeting room, and a fitness hall. The modern design of the hotel with different classic elements was developed by Fitzpatrick and Partners, and the interior was created by Woods Bagot (Curio Collection, 2017). The key theme of the design that influences facilities management is a botanical theme. West Hotel has a unique open-air garden atrium, and the elements of the floral design appear in the overall interior.

Aspects of Facilities Management

The specific aspects of facilities management in the hospitality industry need to be discussed in this section in detail. The focus is on analyzing technology and environmental sustainability issues with reference to the example of Curio Collection hotels. In addition, the discussion of other relevant aspects of facilities management is provided.

Technology

It is important to note that technology is one of the key aspects of facilities management in the hospitality industry because of the necessity to guarantee efficient and timely reservation operations, registration, scheduling, planning, and monitoring while using computerized facilities management systems (Edwards, 2011). In Curio hotels, the customized computer-based facilities management system is used. It is integrated into the system provided by Hilton to guarantee access to Curio hotels’ loyalty programs, discount propositions, security and safety standards, reservation resources, brand notifications, and financial data (Czyzewska & Roper, 2017).

Still, the focus on independent and community-oriented services allows managers of West Hotel to modify the computerized facilities management system and address specific needs of managers and guests of this Curio hotel. Thus, the key focus of West Hotel is on managing operations and contacting the staff while using the computerized facilities management system, as well as on creating a database of guests.

The ventilation, heating, and air conditioning control techniques are technologies that are also used in Curio hotels to automatically monitor the work of these systems. If there are repairing issues, the system provides signals to address and checks the availability of replacement elements (Madanoglu & Ozdemir, 2016; Roper, 2017). Furthermore, the category of technology also includes services provided to guests in terms of available information technologies and gadgets.

Today, visitors’ expectations regarding comfortable rooms are also associated with access to the Wi-Fi connection, TV sets, SMART services, and other technologies. In Curio hotels, guests have access to Wi-Fi in all rooms and public areas, and rooms are equipped with 49-inch TV sets and several USB ports (Curio Collection, 2017). Furthermore, Bluetooth speaker systems are proposed. Much attention is also paid to guaranteeing digital data security for users of provided technologies.

Environmental Sustainability

Much attention in the hospitality industry is paid to addressing the principles of environmental sustainability. The focus is on reducing the energy, water, and resources use, decreasing the amount of waste, and choosing materials that can be recycled (Bruns-Smith, Choy, Chong, & Verma, 2015; Nielsen, Sarasoja, & Galamba, 2016). Curio hotels follow environmental sustainability standards promoted by Hilton Worldwide. Thus, facilities and resources management strategies are developed to reduce waste by about five per cents each year, as well as to reduce the use of water (Curio Collection, 2017). As a result, a negative impact on the environment becomes reduced, and it is possible to state that Hilton is focused on implementing more “go green” strategies.

In West Hotel’s design, the key focus is on an open-air garden atrium with a unique bar that is developed by florists to have a specific system of the water use to guarantee the work of a cyclical system that ensures the minimum consumption of water (Hsiao, Chuang, Kuo, & Yu, 2014).

Furthermore, ventilation, heating, and air conditioning systems of the hotel work to reduce the consumption of energy using innovative energy-saving elements and covering norms of the ISO 50001 Energy Management certification (Curio Collection, 2017). The energy management is also realized with the help of an effective electrical system that was developed as innovative during the process of building West Hotel. Furthermore, in Curio hotels, food waste solutions are also used to guarantee the efficient utilization of products and to minimize food waste.

Other Aspects

Facilities management is also based on such aspects as cost effectiveness of operations and utilities, operational efficiencies, equipment efficiency, security and safety, the quality control, staff training, scheduling and planning, and budget control in addition to technology and sustainability (Edwards, 2011). All these aspects need to be addressed by facilities managers to guarantee the effective processes and operations in a hotel.

In Curio hotels, costs of materials, resources, operations, and services are controlled and regulated with the help of informational and financial systems developed for Hilton Worldwide. The quality control issues, as well as safety and security questions are also resolved with reference to the principles, policies, and systems developed for Hilton Worldwide (Kasim, Gursoy, Okumus, & Wong, 2014; Lub, Rijnders, Caceres, & Bosman, 2016). Decisions regarding design, equipment, staff, and scheduling are made by managers in independent Curio hotels, and these processes are regulated with the help of local computerized management systems. One of such systems is adopted at West Hotel in Sydney to organize the work of a facilities manager.

Conclusion

The purpose of this report has been to discuss Curio Collection as a new international brand launched by Hilton globally and identify specific details of facilities management typical of these hotels with reference to the example of West Hotel in Sydney. Curio hotels are boutique hotels that differ from each other in their design, conception, and operations. As a result, approaches to facilities management in different Curio hotels vary depending on the location and guests’ needs and expectations.

In Sydney, West Hotel proposes guests not only unique interiors of rooms but also exceptional services and authentic public spaces, including an open-air atrium. It is possible to conclude that modern international brands change to attract more clients, and today the emphasis is on boutique hotels that guarantee exclusive experiences to visitors, and this aspect influences their facilities management.

References

Bruns-Smith, A., Choy, V., Chong, H., & Verma, R. (2015). Environmental sustainability in the hospitality industry: Best practices, guest participation, and customer satisfaction. Cornell Hospitality Report, 15(3), 6-16.

Curio Collection. (2017). West Hotel: At a glance. Web.

Czyzewska, B., & Roper, A. (2017). A foreign hotel in London: The history of Hilton’s negotiation of legitimacy in the swinging sixties. Hospitality & Society, 7(3), 219-244.

Edwards, J. E. (2011). Applied facilities management for the hospitality industry. Sydney, Australia: Cognella Academic Publishing.

Hou, B., Tao, R., & Mao, W. (2016). The value orientation and cultural orientation of topic culture of boutique hotels from the perspective of cultural ecology theory. Tourism Tribune, 31(11), 42-54.

Hsiao, T. Y., Chuang, C. M., Kuo, N. W., & Yu, S. M. F. (2014). Establishing attributes of an environmental management system for green hotel evaluation. International Journal of Hospitality Management, 36(1), 197-208.

Jones, D. L., Day, J., & Quadri-Felitti, D. (2013). Emerging definitions of boutique and lifestyle hotels: A Delphi study. Journal of Travel & Tourism Marketing, 30(7), 715-731.

Kasim, A., Gursoy, D., Okumus, F., & Wong, A. (2014). The importance of water management in hotels: A framework for sustainability through innovation. Journal of Sustainable Tourism, 22(7), 1090-1107.

Lub, X. D., Rijnders, R., Caceres, L. N., & Bosman, J. (2016). The future of hotels: The Lifestyle Hub. A design-thinking approach for developing future hospitality concepts. Journal of Vacation Marketing, 22(3), 249-264.

Madanoglu, M., & Ozdemir, O. (2016). Is more better? The relationship between meeting space capacity and hotel operating performance. Tourism Management, 52(1), 74-81.

Nielsen, S. B., Sarasoja, A. L., & Galamba, K. R. (2016). Sustainability in facilities management: An overview of current research. Facilities, 34(9-10), 535-563.

Roper, A. (2017). Vertical disintegration in the corporate hotel industry. Current Issues in Tourism, 20(1), 1-6.

Selwyn, B. (2016). Global value chains and human development: A class-relational framework. Third World Quarterly, 37(10), 1768-1786.

Wu, H. C., & Ko, Y. J. (2013). Assessment of service quality in the hotel industry. Journal of Quality Assurance in Hospitality & Tourism, 14(3), 218-244.

Hospitality Qatar is a unique international event that attracts the attention of companies working in the hospitality sector. The primary aim of this exhibition is to demonstrate the most critical aspects of the hospitality investment market. For this reason, the event combines the use of outstanding technologies with perfect organization. There are exhibition zones for companies to demonstrate their achievements; specific educational workshops to provide people with information about the current trends in the sphere; B2B program, and numerous events introduced both to amuse visitors and help them to understand the main purpose of the exhibition. It is held in Doha annually, and now its reputation attracts investors, hoteliers, restaurateurs, and other people working in the sphere to share their vision of its evolution and acquire new data about possible ways of this business management.

Many companies presented their products in Doha. I will speak about five of them. Target Innovations is a major manufacturer of metal detection systems. Its products remain crucial for organizing the functioning of events that demand enhanced security measures. The company has arrived at Hospitality Qatar to demonstrate its products to people and promote its services. At the moment, Target Innovations does not have partners; for this reason, beneficial cooperation with some other organization will be welcomed as it seeks further expansion. The companys owners are sure that this exhibition will help them to popularize products and attract potential investors attention to metal detection systems supported by Target Innovations.

BBC Logistics is the second company I want to describe. It is an experienced freight forwarding provider that has been working globally for more than 24 years. It guarantees reliable ocean and air freight, land transport, etc. The company pursues the same aim as the previous one. BBC Logistics wants to familiarize people with its main products and offerings to broaden its target audience and create the basis for further evolution. It does not have partners at the moment. For this reason, the exhibition could provide the company with an opportunity to engage in beneficial cooperation and expand significantly. BBC Logistics looks for an agent that also has experience in the sphere and could be trusted.

Mechtronics Systems and Solutions (MSS) is the third company. It works with material-handling needs and provides equipment to all industries. For instance, packing machines, floor conveyors, and other stuff are offered by the company. It implements innovations in its functioning, for this reason, MSS considers Hospitality Qatar an excellent opportunity to acquire an improved vision of the future of this sphere and demonstrate people products and services it could offer to potential clients. However, the company does not have a partner, which means that it might also be looking for an organization that possesses an enhanced understanding of this business and can share innovative ideas for further evolution.

The next company is OutTrade Hong Kong Limited, that is the manufacturer of high-quality cooling and heating systems for outside use. It is situated in China, and the majority of its goods come directly from this location. Therefore, Hospitality Qatar becomes an essential event for the company as it provides OutTrade Hong Kong Ltd. with a perfect opportunity to promote its products at the international level. Exhibitions reputation attracts numerous respectful enterprises that could be interested in cooperating with OutTrade as it also looks for a potential partner. It needs distributors which could help to deliver products to different areas and popularize the brand.

Finally, Carriage is a company that provides clients with advanced services taking care of logistics and improving delivery. It has similar purposes: the organization wants to find new partners and expand to acquire leading position in the sphere. It uses Hospitality Qatar to demonstrate its goods to people and interest them.

In general, I am sure that the exhibition in Doha is a key event that will determine the further evolution of hospitality investment market. I noted several important aspects that should be mentioned. First, Hospitality Qatar continually gains popularity and attracts many companies from different countries. Not only local organizations, but actors from China (OutTrade Hong Kong Limited), the UK (BBC Logistics), India (Target Innovations), etc. decided to participate because of the events promising character and numerous opportunities for expansion and products promotion it provides.

Second, the exhibition is organized in the way which not only demonstrates the most innovative solutions which are currently used in the sphere; however, it educates people about the latest alterations in the approaches and outlines perspectives that will become popular in future. I think it is a good way to increase individuals awareness in the sphere and popularize this event. I should also say that meetings in conference-rooms contribute to the creation of a specific atmosphere that cultivates cooperation between companies and encourages them to share their perspectives on the sphere. It is a significant aspect of this event as the majority of companies pursue the aim of cooperation and partnership. For this reason, the trustful atmosphere could be considered an advantage of Hospitality Qatar.

Altogether, I should say that it is an exemplary and well-organized exhibition that provides companies with all they need. For this reason, I am sure that Hospitality Qatar will attract even more participants next year and its popularity will continue to grow.

Analysis

Improving the quality of services in the context of the UAE hotel industry is a challenging yet manageable task. By comparing the outcomes to which the application of a SERQUAL-based framework (i.e., SERQUAL’s strategy) and the quality management frameworks that are typically used at UAE hotels at present, one will be able to come to a meaningful conclusion concerning the adoption of the identified framework in the context of a UAE hospitality-related organization. In the analysis below, SERQUAL’s model that is grounded in the SERQUAL principles is compared to the approach that is used traditionally in the UAE hotel industry.

Local hotels were chosen for the study. Five quality characteristics were considered as the primary aspects of the quality measurement process and, therefore, incorporated into the assessment tool. Questionnaires involving a Likert-scale set of questions based on which the quality of the hotel services had to be assessed by the participants were incorporated into the study (from “1” (“the lowest quality”) to “”5) “the highest quality”).

Group A was provided with the hotel services based on the principles of SERQUAL’s framework, whereas Group B was given the treatment that was founded on the adoption of an alternative framework used commonly by companies operating in the UAE hotel industry. Each of the groups was represented by 43 participants. A convenience sampling a strategy was used to identify and use samples in the study.

In the course of the analysis, four service quality dimensions were considered (i.e., the responsiveness of the staff, the empathy thereof, the reliability of the services, and the efficacy of the quality assurance process). Particularly, the adoption of the ANOVA test allowed determining whether the application of SERQUAL’s framework could be viewed as superior to the alternative approach deployed in most of the UAE hotels. Seeing that the target population is represented by a large number of ethnicities and cultures, it was necessary to split it into three primary groups based on their ethnic background (i.e., the UAE residents, European/American, Asian, and African American visitors). Consequently, a wider range of audiences and cultures could be embraced when providing them with the relevant services.

Figure 1. Key Variables.

The confidence interval was set at 0.95, whereas the alpha of the research was 0.05.

Figure 2. ANOVA.

Seeing that F>F crit (9.180275143 compared to 2.772853153), the null hypothesis can be rejected. In other words, there is a tangible difference between the levels of satisfaction among the visitors of the hotel; furthermore, the test results indicate that the levels of satisfaction are comparatively higher in case of the SERQUAL model application than the use of the alternative framework.

The table provided above shows that the difference between the two frameworks deployed in the course of the experiment was significant, with p-value being 0,000177708. Seeing that the p-value can be deemed as rather low, the null hypothesis concerning the absence of a connection between the quality of the services in the hotel industry and the application of either SERQUAL’s model developed from the SERQUAL framework and the traditional set of tools utilized to maintain the required quality standards can be considered rejected.

Figure 3. ANOVA Results.

The findings point to the fact that the adoption of the approach based on SERQUAL model leaves a much more positive impact on the customers and can, therefore, be deemed as the one that provides for a more efficient increase in quality levels. The ANOVA test results indicate that the variation between groups was rather high, peaking at 28.30508333; in other words, the choice between the framework designed by SERQUAL and the one that is commonly deployed in the UAE hotels seems to lean heavily toward the former.

Furthermore, the results of the test show that, in both scenarios, the participants of the study evaluated the quality of services above average. Indeed, a closer look at Figure 1. Will show that none of the variables was below average (i.e., 3 and higher). Therefore, the current level of service quality cannot be deemed as critical for the UAE hotel industry. That being said, SERQUAL’s framework seems to deliver a comparatively better result than the one that is commonly used in the context of the UAE hotel industry elsewhere.

Discussion

The findings of the study open a plethora of opportunities for further interpretation, as well as the reconsideration of the current quality management framework. The outcomes of the analysis indicate that there is a significant difference in customer satisfaction levels when using either the model designed by SERQUAL and based on the principles of SERQUAL framework or the tool that is traditionally incorporated into the set of strategies for managing quality in the hotel environment in the UAE hospitality industry.

Particularly, the outcomes of the analysis point to a significant difference in the means between each of the quality parameters identified in the course of the study. For instance, the fact that across all four dimensions the differences in the scores were significant, shows that the adoption of SERQUAL’s framework contributes to a significantly better result than the alternative methods. Indeed, the variance between the groups points to the fact that there is a palpable difference between the adoption of the traditional framework and the one suggested by SERQUAL.

For example, the fact that the variation between the responsiveness rates reaches 1.049666667 shows that SERQUAL’s approach is likely to deliver significantly different results in the promotion of communication between customers and staff members. Consequently, the feedback provided by hotel visitors can be processed more efficiently and, therefore, enhanced extensively. In addition, the difference between the empathy levels in the group where SERQUAL’s method was used and the ones where the traditional framework was deployed indicate that there is a massive gap between the results delivered with the help of the two approaches (1.879).

Similarly, the dissonance between the satisfaction levels among the target population as far as the reliability of the services was concerned should also be listed among the key areas that deserve a more profound discussion. In fact, the analysis has shown that the assurance aspect of customer satisfaction is, in fact, the weakest link in the chain; particularly, the difference between the effects of SERQUAL’s model and the traditional quality management approach reached 2.477666667. In other words, the levels of trust are likely to drop exponentially unless SERQUAL’s framework is deployed in the context of the identified environment (Calvo-Mora, Picón, Ruiz, & Cauzo, 2013).

Furthermore, one must keep in mind that there is an evident continuity in the string of results delivered within a single group. For example, the adoption of SERQUAL’s model has a steadily positive effect on the enhancement of responsiveness, empathy, reliability, and assurance among the staff members in any of the setting, with the variance levels reaching 0.1225 in the scenario involving the management of UAE customers’ needs, being very low (0.026666667) in the instance of addressing the needs of African American customers, and reaching 0,043333333 in the instance of providing services to the visitors of Asian descent.

Therefore, the factors associated with culture and the relevant issues do not seem to have a tangible effect on the performance of the staff that use SERQUAL’s framework. The application of the strategy that is typically used by staff members at UAE hotels as a standard tool in addressing the needs of customers also shows rather low variance, which, given the results of the questionnaire, points to a comparatively low level of satisfaction and, therefore, service quality in the instances involving the use of the default quality management framework (for instance, for Asian customers, the specified index reached the mark of 0.4625).

It should be noted, though that the variance levels across different aspects of customer satisfaction are higher with the default model than the one suggested by SERQUAL. The specified phenomenon can be explained by the fact that the application of the standard strategy as opposed to the use of SERQUAL’s model leads to rather uneven results, with the feedback being excruciatingly low in some cases (Emirates NBD, 2017). As a result, the variance levels vary extensively, pointing to the fact that the current framework requires a significant update and, thus, needs to be placed with SERQUAL’s approach (Stefano, Filho, Barichello, & Sohn, 2015).

The outcomes of the analysis point to the necessity to adopt the quality management strategy based on SERQUAL’s approach in the environment of the contemporary UAE hotel industry. As the results of the test show, the use of the traditional tool for managing quality leads to significantly worse outcomes (Al-Aomar & Hussain, 2017). It would be wrong to claim that SERQUAL’s approach toward managing quality in the context of the UAE hospitality environment is entirely flawless.

The results of questionnaires’ analysis show that SERQUAL’s approach does not reach the top mark in any of the categories, including responsiveness, empathy, reliability, and assurance. In fact, in some cases, the assurance levels were dangerously low (4.3), which means that the suggested approach requires extensive improvements and further enhancement. For instance, the introduction of a more efficient risk management technique and an improved communication strategy must have a massive effect on the improvement of the existing assurance rates. Furthermore, the principles of the consistent improvement as part and parcel of the corporate philosophy will have to be viewed as the current priority because of the need to address some of the issues associated with empathy (Carroll, Brown, & Buchholtz, 2017).

That being said, SERQUAL’s framework is still the superior one. It provides significantly better outcomes as far as the quality of services is concerned. The approach is rooted in the idea of meeting the needs of multicultural audiences and taking the unique characteristics thereof into account so that the satisfaction levels among the visitors could increase and that the performance rates of the hotel industry could rise.

In fact, SERQUAL’s model can be viewed as a significant step forward in the process of promoting the idea of the consistent improvement and unceasing development in the realm of the UAE hospitality industry. The specified goal is especially important given the slow pace of progress in the contemporary UAE hospitality industry. It is crucial for the UAE economy to make sure that the competitiveness of its companies should remain high (Al-Khouri, 2014).

Therefore, SERQUAL’s framework of quality management should replace the one that is currently deployed in the context of the UAE hospitality industry. According to the results of the analysis carried out above, the identified change is likely to lead to a massive improvement of the overall quality of the end product. Once the issues of responsiveness, assurance, empathy, and reliability are addressed properly, the foundation for an improved approach toward managing the needs of customers will be built.

Furthermore, the enhanced model based on SERQUAL’s framework may help address the needs of multicultural audiences, thus, contributing to the efficacy of the UAE hotel staff extensively. A better quality management tool is bound to create the foundation for the further enhancement of customer relations and even the introduction of the principles of the consistent improvement into the target environment.

References

Al-Aomar, R., & Hussain, M. (2017). An assessment of green practices in a hotel supply chain: A study of UAE hotels. Journal of Hospitality and Tourism Management 32(1), 71-81. Web.

Al-Khouri, A. M. (2014). Electronic payments: Building the case for a national initiative. Advances in Social Sciences Research Journal, 1(3), 195. Web.

Calvo-Mora, A., Picón, A., Ruiz, C., & Cauzo, L. (2013). The relationships between soft-hard TQM factors and key business results. International Journal of Operations & Production Management, 34(1), 115-143. Web.

Carroll, A. B., Brown, J., & Buchholtz, A. K. (2017). Business and society: Ethics, sustainability & stakeholder management. Boston, MA: Cengage Learning.

Emirates NBD. (2017). Dubai’s tourism and hospitality sector overview. Web.

Stefano, N. M., Filho, N. C., Barichello, R., & Sohn, A. P. (2015). A fuzzy SERVQUAL based method for evaluated of service quality in the hotel industry. Procedia CIRP, 30, 433-438. Web.

Introduction

Facility planning and management is basically concerned with design, development of a layout and planning for equipment, as well as it deals with services that should be provided for a given facility. It dictates the arrangement, location, as well as equipment distribution (Baker 2000). However, this process is dictated by the kind of services that the facility to be designed intends to offer, as well as the constraints it usually faces (Garcia & Smith 2008). The primary focus of this report is on the design of the Mont-Blanc Palace, which a high end resort that should be located around Leysin area in Switzerland. The report provides a feasibility study of the proposed hotel highlighting the key features that had been considered in its design. It forms the basis for justification as why the facility should be developed and what its viability is. Other than laying out the overall design and the layout of the facility, this report provides a financial plan with respect to the project.

Leysin is a famous spot among persons who are travelling, engaging in sight-seeing, and doing sports. Its tourist locations are the center-spot of its economic initiative. It is expected to register increased tourist activity as a result of government promotion initiative. This prospected client growth has elicited the need for reconstruction of Mount-Blanc Palace. Mount-Blanc is built as a three-star hotel and double up as a wellness center. The hotel will be known as “La lavande” known as Lavender in English. This report will help in understanding structure and design of the facility, as well as its operations across seasons. Finally, the report will also provide a brief financial analysis of the hotel. Aim: become the best hotel in Leysin, exceed our guests’ expectation by providing high quality of our expectation service and facilities.

Feasibility study

Location evaluation

The hotel is located in Leysin, Aigle district. It is a tiny village which measures approximately 18.57km², with 37 % of the area forested. It is situated at the elevator of 1,260 m (Leysin 2011). The village is famous for its Ski slopes and Tobogganing Park which attract tourists. It is also known as Village of International School constituted of an international and cosmopolitan environment (Leysin 2011). It offers two sport centers, for teams and individuals. It also provides outdoor and indoor activities as well various facilities to aid the aforementioned including swimming pool, fitness room, climbing wall, squash, as well as tennis court among others. The population of Leysin is approximately 3,700 people according 2009 demographics (Leysin 2011). Most persons living in Leysin speak French and Basic English as well, although some people are able to communicate in German, as well as Italian. At Leysin, travelling is much more convenient by train, bus, or a car.

Market analysis

In general, the facility is intended to act as a getaway resort for people who want to spend some time away from home. Its location makes it a perfect destination for eco-tourists. It targets people who are prepared to spend their vacation within fantastic and serene natural surroundings in addition to a great opportunity to enjoy considerable standard of rest away from home. It offers a good rest point, be it in terms of active outdoor activities, or merely engaging in meditation, as well as communication with Mother Nature. Basically, it is an ideal destination families, couples, young adults, senior citizens, as well as persons interested in touring the area for the many activities present within Leysin area. The target market is therefore cross-cutting and extensive in addition to being all inclusive. All tourists will find a good reason to visit the facility and a share of the services it offers. This is a crucial element that has largely informed the design process with respect to Mont Blanc Palace facility.

The key competitors considered include Chalet Royalp Hotel & Spa, which is a five star facility that offers a total of 63 rooms, 30 apartments, a spacious and luxurious restaurant and bar, as well as conference facilities. The other competitor is the Mercure Classic Hotel, a four star hotel which has a total of 115 rooms, 13 meeting rooms, an auditorium, as well as restaurant, lobby bar and a parking lot. The other key competitor is the Les Airelles Bed & Breakfast, which has only 15 rooms and mainly targets leisure guests, group, family (children), and also person interested in sport activities. Competitor scenario is summarized in the table below:

Proposed facilities

The facilities configuration is constituted of the following fundamental units: the hotel guest rooms, indoor facilities, outdoor facilities and administrative locations.

The rooms are distributed in the following manner:

• Single rooms – 9
• Double rooms – 32;
• Suites – 5.
• Big suites – 5.

This amounts to a total of 51 serviceable rooms in possession of the facility.

Other than the guest room facilities, the facility also host a range of non-room facilities including the Jacuzzi, lounge bar, Sauna, massage rooms, swimming pool, conference room, buffet restaurant, Italian restaurant, fitness gym club, as well as the wellness center. Other facilities presented are meant to aid service to the clients.

The Site Area

The design team focuses on application of the building design and layout plan to the site, minimize its building footprint to fit within its budgetary constraints. The developed scheme is expected to provide appropriate parking levels.

Kind of facility

The facility will operate within proximity of an urban center and, as such will incorporate a lounge bar, conference facilities, as well as fitness and wellness center, needless to mention the fitness gym.

Guest Facilities

As earlier mentioned, the guest facility is constituted of 36 guest rooms. However, there are various other facilities to enable wellbeing of the guest to the facility. These include:

• A lobby reception area.
• An Italian restaurant with ample seating capacity, ideally with direct street access, as well as a buffet restaurant.
• A self-contained lounge bar area adjacent to one of the facilities lobby.
• A conference room which also doubles as the events/functions room area.
• Fitness facilities including a wellness center, fitness gym facility, as well as the massage rooms.
• Car parking facility.
• Service office.

Service accommodation with Support Area

• Delivery/Receiving yard, refuse bins, as well as empties store located at the basement with a back entrance to avoid interference with the clients. This area is basically out of sight of the client guest bedrooms, in addition to not being visible from the front entrance.
• Basement storage areas including equipment, dry goods storage, refrigeration facilities.
• Administration and general management offices located at the ground floor.
• Bar storage and beer cellar.
• Housekeeping department located at the first floor.
• Human Resources Office, which is independent from other offices, as well as the staff uniform storage.
• Dedicated entry point for staff, as well as a changing facility for staff.
• Maintenance section including equipment/spare parts storage, as well as a workshop facility for maintenance operations.
• Kitchen located next to respective restaurants, each having a room service pantry.
• Each guest accommodation room floors of the hotel to have respective room’s attendant pantry.
• Laundry is similarly managed at the basement floor to avoid interference with client activities.

Special considerations

• Standby generator [subject to local conditions and requirements] Combined Heat & Power [CHP] unit, if appropriate
• UPS [Uninterrupted Power Supply] for all computer equipment and PABX system
• Emphasis on landscaping external subject to local conditions and requirements
• Water mains to be pressurized [subject to local conditions]
• Overall emphasis on the sound proofing, insulation, double glazing, maintenance free materials, energy saving, security and
• Guest safety.
• CCTV
• Air-Conditioning throughout the building

Financial Plan and analysis

Financial Plan

Numbers of tourist come to Leysin (2010): 40,680

Our hotel’s market share: 70%

Hotel Occupancy: 60% -70%

Hotel full occupancy: 110guests /36 rooms

Total guests/day: 77

Prices/guest/night:

1. Include breakfast: 100CHF (25%)
2. Include 3 meals: 140CHF (5%)
3. Include breakfast + spa packages: 135CHF (70%)

Average guest rate: 126.6 CHF

Variable costs/ guest: 40% price – 51CHF

Expenses for renovation + operating costs

Breakeven points = Total costs / (126.6 – 51) = 75,616 guests

Time to breakeven = 75,616/ (77 x 30 days) = 32.73 months

We will make profit in the middle of Year 3.

We will open for 30 days/month because we want to break even.

Financial plan for 5years

Budget Plan

General construction 20%: we only need to break some wall to enlarge our rooms. Don’t need to build from the beginning.

FF&E (furniture, fixtures and equipment) 47%: we need most of the budget in here because the new facilities need to be added both in rooms and public areas.

Development Costs 16%: the entire layout (interiors, lighting, etc) and the insurances and permits fee

Reopening + Marketing 2%

Labour costs 15%

Stages of development

Operational Criteria

Entrance, Forecourt/Unloading

• The hotel access, road, or city street in city locations should provide an easy access and drop off/pick up by taxis, cars and buses and other forms of Public Transport.
• The canopy or porte-cochere should be high enough for coach access [min 5m net clearance] preferable:
• Ideally, the most visible approach façade will feature the hotel logo
• Directional signage to the hotel in the local area should exist wherever possible.

Front desk

• The hotel buildings main entrance lobby shall present an open vista and image of the appropriate quality and style to reinforce the Brand’s Personality.
• Guests and visitors shall have an immediate view of the bar, feature lobby seating, the reception desk/s; Concierge desk should be clearly identifiable.
• Reception facilities should accommodate a minimum of three receptionist stations and provide sufficient space for individual and group check in/out.
• A dedicated Concierge Desk shall be located separate from the Reception desks
• Reception area seating units should be designed to maximize usage for individuals or groups.
• The rear wall to the reception should be designed as a feature Mont-blanc Palace brand hallmark.

Mont-blanc Palace Concierge Service

• A Mont Blanc Palace hotel will provide a dedicated Concierge Service that should be located in or off the lobby area and have high visibility.
• A dedicated Concierge store will be situated in an adjacent area with space for group luggage.

Bar

• The main bar is to be located so as to allow direct access into the lobby area. The Bar will act as a cocktail bar and also as an additional casual lounging area of the hotel.
• Seating capacity will be linked to the number of guest bedrooms and comprise a mix of bar stools and seating unit clusters
• Design to allow for front pouring/loading bar allowing for efficient Cocktails service.
• Flat screen TV’s shall be incorporated into the design so as to be out of sight when not in use.

Restaurant

The Restaurant will be a semi-formal and stylish full service facility to provide breakfast and all day dining located adjacent to the main bar and accessed from the lobby. The design shall take into account that food will be served to this area, so service stations and food delivery areas must be incorporated with minimum interference to the guest’s experience. Total seating capacity is delinked to a number of guest bedrooms to cater for people who do not intend to spend the night or enjoy some room rest.

Front Office and Administration

A self-contained ‘back-office’ is located at the reception desk. All the management areas are located, designed and furnished to meet the Health & Safety legislation, as well as permit development of a positive work atmosphere.

Public Toilets

The public toilets are availed for the F&B areas, as well as the events or meeting facilities. The size, the number, as well as locations of the public toilets have been linked to the person’s maximum persons expected at any given point where private toilets are not available.

Meeting and Event Room Areas

The function/event room also doubles up as the conference room and has a seating number that is dependent on size limitations. It also has a pre-function lobby area. A simple access way to the hotel is provided. The meeting room is to be fitted with optimal possible sound-proofing included in the design, especially partition walls in subdivided rooms. Additionally, the conference room has an integrated Audio-Visual facility (Huang 2003). Furniture, as well as an equipment storage room, is situated adjacent to the meeting room area. A hotel, as well as a canteen, is located adjacent to the conference room area. The meeting room is 100-150 theatre style. Additionally, the conference room is designed to feature daylight when appropriate.

Fitness and Wellness Area

A minimum Fitness and Leisure center has been included in the design of the center, and it is located adjacent to the fitness gym and the massage rooms.

Passenger and Service Lifts

The facility has x2 passenger lifts to provide conveniences for the passengers who have problems going up the stairs, as well as the persons with disabilities who may need these services. Similar lifts help staff in delivery of the room service. The Service lift x1 is for the staff member’s access, and it is not within the guest’s sight.

Kitchen

The Bar/Restaurant facility is provided with access to kitchens in order to enable direct service. For kitchen serving areas of different floor, the staff elevator assists in service.

Staff kitchen and Dining Area

This is provided for the staff members and located in the ground floor, it is easily accessible to all staff without entering the main kitchens dedicated to guests.

Staff Changing Facilities

Located on the first floor, this area is hidden from guest’s view and consists of lockers, benches, staff toilets, showers, washbasins, and electric hair and hand dryers and has separate facilities with regard to male and female staff.

Receiving/Good Inwards Area

Located at the based, this area has sufficient space for unloading a delivery vehicle, an empty bottle store, a refuse storage area, receptacles suiting local refuse disposal methods, as well as water supply. Additionally, there is a security/receivers office adjacent to delivery yard and staff entrance.

Car Parking

A convenient access to the car park is provided, which allows a direct internal access to the facility via a designate entrance.

Housekeeping

Hotel Planning

• Guest Room Floor Planning (Confirm Claudia)

• Guest Room and Suit

The hotel provides three styles of the room size, like: single room, double standard room and suit room. They all meet the three star hotel standard of Swiss Association Construction. All the facilities installed in each style room will meet the guests’ need and demand.

• Food and Beverage outlet.

We provide two different styles of restaurants. One is a buffet restaurant – Regala, which serves breakfast and lunch for guests. It is located on 1^st floor. The guests will have more choices with diversities of food with cheaper price and high qualities of meal. Regala restaurant also provides Coffee Bean which serves snacks and many choice of drinks 24/7. However, the customers should serve for themselves. Another restaurant of a higher quality and more formal service and special food is an Italian restaurant. It is placed on 2^nd floor. We will invite Italian chef to bring guest into real Italian atmosphere. The lounge bar will be located on 2nd Floor as well.

• Public Area (I’m not clear about that)
  • Two elevators – one should be next to the reception, to carry the guests’ luggage,
  • Front desk is opposite to the entrance, so the guests are welcome immediately by bell man and the receptionist.
  • Provide some seating place next to the reception and entrance.

• Recreational facilities

All of recreational facilities will be located on the second and third floor. This will be easier and more comfortable to create the revenue and more convenient for guests to enjoy our services. The swimming pool and the fitness center will be placed on the 2nd floor, then the spa (sauna, Jacuzzi, massage club) will be located on the 3rd floor which is connected by stair way to the 2nd floor. This makes all guests feel more convenient to move from swimming pool and fitness center to spa and massage place.

• Administration

We decided to arrange most of the management offices on the Ground Floor, such as: Accounting office, Marketing and Sale department and Executive office. This floor is quite large and convenient for all the staffs working together. All the offices on the Ground Floor are tended to be build as an open office. This will help staff members feel more flexible, and help improve the productivities of the staffs as well. However, other important offices like Front Office, Service Office and Chef Office are going to be located near to their business. For example: Front Office will be located near to the reception on the 3rd floor, and Service Office and Chef Office will be placed on the 1st floor. This provides the office workers with the possibility to control their business and solve their problems faster.

Construction &Engineering Criteria

Building materials

The wellness Spa space is constructed from natural building material (wood, stones, and canvas, as well as myriad ethnic furnishings. Leathers will give the hotel a charmed and elegant atmosphere. The Guest rooms have a built-in floor-to-ceiling armoire that has a safe, 10’ ceilings, as well as floor-to-cell-windows.

The restaurant’s wall paneling is constructed using ultra-efficient materials, as well as the latest construction technology. The exterior walls are constructed using a variety of materials including timber, concrete and steel. The structure must be able to offer support for the higher floor and also provide protection from bad weather.

The Windows and Doors: window glass and seal (as glazing); 2 types of window glass: single-glazed windows and double-glazed windows. The multiple glazing is chosen because it provides better temperature and noise insulation, tinted glass is used to reflect heat and maintain a cooler temperature in building in summer and warmer in winter (for all window in balcony, and corridor).

There are revolving doors, mostly glass with wood in order to reduce the air entering the building. A hinged door having automatic closer and exit hardware is installed next to resolving door for emergency exit purposes, e. g. fire safety. The doors for guestroom use a key card system. The carpet reduces noise, and keeps floor and rooms warm. The carpets used are red, nylon; it stands up high traffic better and lasts longer. More than a single elevator is required near the Marketplace.

Engineering systems

The temperature/the weather in Leysin- use multi-pipes centralizes heating system for 5 floors in hotel. Water-flow system is placed on the 2nd floor, it helps avoid make noise and condensation of water. Fire alarm and smoke detectors have to be set up in every guest rooms. Electronic control system is put on the 1st floor, providing energy supply and backup electricity for the entire hotel anytime. The Internet system is also installed working smoothly (special programs keep information safe). Everything is made in accordance with the Americans with Disabilities Act (ADA) requirements. The architect and building contractor need to discuss and plan through the ADA to avoid mistakes at the facility completion of

Hotel Space Allocation

the Guest Rooms: Single Room, Double Room, Suit Room and Big Suit Room.

F&B Facilities: Olive Garden Italian Restaurant, Brasserie Buffet Restaurant and Jazzi Lounge Bar.

Administration Office & Back Office: Executive Office, Accounting Office, HR Office, Front Office, Chef Office, Service Office, staff Canteen.

Recreational Area: Spa (Sauna, Jacuzzi, Massage room), Fitness Centre.

Public Area: Lobby, Elevators, stair

Single Room:

Double Room:

Suit Room:

Preliminary Schedule

Security and Guest Safety

The emphasis on security and guest safety will be an important feature of the facility. Electronic key card locking systems for all bedrooms are provided in addition to a secondary lock for all the bedroom doors. Additionally, there provision for a closed circuit television security in chose areas within the facility premises, both in the guest, as well as the back-of-house areas.

Fire outbreak is treated as a major security concern and as such, a design expects a lot to be invested in fire prevention, detection where it occurs, notification of the existence of the fire, suppressing the fire and controlling its effects. Among the security gadgets included in the sign, there are the smoke alarm system which is located in every room, corridor, as well as the public areas. Similarly, heat detectors are assigned to every corridor and public place. Corridors and public spaces are also provided with the fire button, fire extinguisher, as well as a sprinkler system highlighted heat signals are included alongside several emergency exist.

Additional safety inclusions include:

• 1 medicine cabinet/room; 1/public areas.
• Fire Evacuation plan +Floor map in room/ pubic areas.
• More than a single entrance doors in pubic area.
• Perform on site fire safety inspections: 1 time/month.
• Make use of single station smoke detectors.

Environmental and Sustainability Issues

In the world where corporate social responsibilities is a critical issues, as well as the need for promotion of sustainable development, environmental, as well as sustainability issues are taken into consideration. These include flexibility of the facility design to accommodate divergent cultures without conflict. The design strives not to undermine any culture. The setting of the facility is also targeted at ensuring that natural resources within its proximity are preserved.

Water management is also done via the elaborate water flow systems which have been designed to ensure no wastage, and minimize water waste, water efficient toilets are adopted and cleaning is dome on a regular basis.

Energy conservation is also stressed. Compact fluorescent spotlights, as well as energy-saving light bulbs are used in the facility in addition to the energy efficient refrigerators. Excess heat energy from the kitchen is also directed towards heating the water for use within the facility, rather than fully relying on electricity for hot water heating. Additionally, motion sensors are used in offices and corridors to manage use of lighting energy.

Waste Management is also undertaken. Papers, cardboards, and newspapers are recycled when possible. Additionally, wastes are collected, managed and what can be recycled is recycled. Additionally, office wastes are minimized. Biodiversity is also promoted by encouraging use of eco-friendly products and planting of trees within the environment as a conservation measure.

Conclusion

The facilities are built around the hotel rooms, the indoor facilities, as well as the outdoor facilities. A total of 26, including 9 single rooms, 17 double rooms, 5 suites, 5 big suites are included in the facility design. However, there are many other non-room facilities meant to ensure smooth operation of this facility. The target market consists of the Leysin inhabitants, as well as visitors to the areas. No specific age groups or gender groups are targeted by the facility; rather it offers an all-round service to all age groups.

References

Baker, K 2000, Project Evaluation and Feasibility Analysis (2000), Hospitality Press, Melbourne.

Garcia, AD, Smith, MG 2008, Facility Planning and Design. Pearson International Edition, Prentice Hall, New York.

Huang, H 2003, Facility layout using layout modules, Ph.D. Thesis, The Ohio State University.

Leysin 2011, Leysin presentation. Web.

Introduction

The hospitality business is an important branch of the state economy, and much attention is paid to investing in this area in developed countries. In the USA and, in particular, in Washington, D.C., where a large number of administrative centers are concentrated, this industry is advanced due to many guests coming to the capital. Based on the analysis of the development of the hotel business in this region, it is possible to consider the specifics of investing and the growth prospects of interest in this field.

As related sub-topics, such factors will be assessed as security parameters, tourism opportunities, tax liabilities, and pricing policies. Finding the best ways of financial promoting hotels in Washington is an essential task for the owners of these establishments, and the economic indicators of development directly affect the profits received by the state.

Historical Background

In the district under consideration, many significant events took place. A number of meetings at the highest level were held in local hotels, which acquired the status of cultural heritage and became part of modern history. For instance, the establishment “Mayflower” founded in 1925 is known for its neighborhood with the White House, which is one of the factors that attract honored guests (Morris and Patrick 36). However, some of the local hotels have an even earlier history. As the authors point out, the legendary “Willard InterContinental Hotel” was erected between 1816 and 1858, suggesting that the hospitality business in the region appeared before the Civil War (Morris and Patrick 35). Therefore, the analysis of this industry may provide a large number of valuable facts and historical links.

Geographical and Economic Importance

From the standpoints of both geographic and economic importance, hotels in Washington have the status of sought-after establishments. According to Beracha et al., such an indicator as land supply elasticity in this region is high enough (1.28), which proves the demand for construction here (271). Regarding geographic significance, the status of the capital determines the high density of guests at various levels, including high-ranking persons. Consequently, those hotels that are intended to meet the guests of honor meet the highest standards in this industry. Therefore, investing in the construction of hotels in Washington, D.C. is the promising field of ​​financing.

Crime Rate and Level of Safety and Security

The desire to ensure the safety of guests and complete protection from any dangers from the outside is an essential aspect of all the hotels’ activities. As Singh argues, after the 9/11 terrorist act in New York, significant measures were taken to strengthen control over the protection of hotel complexes, including those in Washington (2). Since many of the establishments are located relatively close to the White House, security is imperative for local services.

Compared to the 20th century, the crime rate is significantly lower due to the increased control of guest protection and round-the-clock surveillance of security. According to Singh, modern controls are used by employees to scan visitors’ baggage and monitor all unauthorized persons in the hotels’ territories (3). In this regard, despite possible threats on the streets of the city, security in hotels is provided at a high level.

Business and Tourism Opportunities

Opportunities for the development of the hotel business in Washington, D.C. are wide and quite open. The analysis of 86 hotels based on certain criteria (the geographical location of the city, guest reviews, the purposes of visits, and other factors) shows that investing in this industry can bring significant dividends (Xing 53). In terms of tourism opportunities, promotion in this area may also be profitable. Many guests come to the capital in order to see various sights, and creating favorable conditions for tourists’ comfortable stay can pay off in a short period. Although Washington’s hotel business is quite dense, building new establishments and investing in old ones may bring significant bonuses to investors.

Prospects for Industrial Growth

The prospects for industrial growth by investing in the hotel industry can be achieved through various factors. Positive perspectives may be due to different criteria, but in the case of successful financial operations, a profitable and stable system can be organized. Lait and Mortimer cite the examples of investors who have staked on the construction of hotels by a national focus in Washington (37).

As a result, German, French, Chinese, and other establishments enjoy significant demand from the target audience and provide their owners with high profits. Moreover, based on the current trends, there are opportunities not to limit a certain business to the construction of a single hotel. Instead, the whole network with an advanced control system may be built. There are many examples of such clusters in the world, and in case of the efficient allocation of resources and competent leadership, significant prospects for industrial growth will be provided.

Taxation Features, Average Prices, and Return of Investment Profits

Regarding the taxation policy, the situation in the hotel business in Washington, D.C. had several periods. According to Kohanzadeh, “the hotel sales tax rate was raised from 13 percent to 14.5 percent in 1999,” and in 2009, this figure was 1.5 percent. From the point of view of the pricing policy, according to the study by Beracha et al., the average price per room in hotels in Washington was $157,754 in 2017 (261). In relation to revenues, the rate of investments profits per room was $102.02, which was a rather high parameter. Based on these figures, it is possible to conclude about the relevance of investments in the local hotel business.

Investment Facilitations

As instruments that encourage investment in the hotel business in Washington, some financial freedoms can be granted to business market participants. As Kohanzadeh notes, in 2015, specific steps in this direction were taken when some funds “were exempted from the unincorporated business franchise tax.” Such steps may allow investors to dispose of available resources more freely and develop a specific industry in the direction that is in demand today. In addition, encouraging entrepreneurship in the hospitality business can involve providing appropriate assistance to those who intend to organize their own projects, and gradual credit payments will be charged as compensation. Accordingly, the participation of public authorities is a prerequisite for investment promotion.

Conclusion

Stimulating investments in the hotel business in Washington, D.C. is a productive practice since both the owners of establishments and the state can benefit from the prospects for economic growth. The considered region is a favorable platform for the development of this sphere due to a good geographical position and the high concentration of administrative centers. Modern safety indicators are a significant aspect of work, and corresponding tourist and business advantages are achieved due to high-quality services. Specific taxation and pricing policies need to be taken into account in order for all the investments to be justified, and the influence of the authorities in regulating this industry is significant.

Works Cited

Beracha, Eli, et al. “Real Estate Market Segmentation: Hotels as Exemplar.” The Journal of Real Estate Finance and Economics, vol. 56, no. 2, 2018, pp. 252-273.

Kohanzadeh, Hannah. “Taxes in the District: The Evolution of DC Tax Rates Since the Early 2000s.” DC Fiscal Policy Institute. 2018. Web.

Lait, Jack, and Lee Mortimer. Washington Confidential. Pickle Partners Publishing, 2018.

Morris, Gregory D. L., and Tara Patrick. “The Business of History.” Financial History, vol. 125, 2018, pp, 35-39.

Singh, Jaswinder. “Safety & Security Concerns in Hospitality Industry.” International Journal of Management and Commerce Innovations, vol. 2, no. 2, 2015, pp. 1-5.

Xiang, Zheng, et al. “A Comparative Analysis of Major Online Review Platforms: Implications for Social Media Analytics in Hospitality and Tourism.” Tourism Management, vol. 58, 2017, pp. 51-65.

Executive Summary

Park Hyatt Hotel is one of the leaders in Australia’s hospitality industry. Nevertheless, it has received some criticisms regarding its pricing strategy and saw a minor decline in profitability. To address the situation and retain competitive advantage, five revenue management strategies are suggested for implementation.

The strategies include redistribution of the marketing effort between the online and offline service distribution based on the yield of customer segment, the introduction of dynamic value-based prices, the expansion of the data collection process, partnering with a data analysis service to gain access to real-time updates for improved response time, and the increase is service transparency for customers through a dedicated platform. The combined effect of the said strategies is expected to include the diversification of the customer base, the increased loyalty of the existing clients, and the optimisation of resource allocation.

Introduction

Park Hyatt Sydney is a luxury five-star accommodation that is widely recognised as one of the leaders in Australia’s hospitality industry. The hotel offers high-grade services, a variety of rooms and suites, a gym, a spa, and numerous design solutions that indicate a persistent striving for top quality. The hotel enjoys favourable reviews from both the visitors and the press (Schlappig, 2015). Nevertheless, the latest report reveals a noticeable decline in revenues starting in 2014 (Hyatt Hotels Corporation, 2017).

In addition, the company received minor criticisms regarding its pricing policy oriented towards a higher-income segment of the population (Luxury Travel Expert, 2014). Such setting noticeably undermines the company’s reputation and can lead to its loss of competitive advantage in the long run (Van der Wagen & Goonetilleke, 2012). It is thus suggested to review the current revenue management approach and introduce several strategies that can improve the situation.

The current proposal contains five strategies that address the existing inconsistencies in the hotel’s policies and offer new tactics for enhancing customer satisfaction rates. The emphasis is made on distribution channels and pricing, with analytics, transparency enhancement, and forecasting assigned secondary priority. Distribution channel-oriented strategy provides additional means of diversifying the customer base as well as reaching the feasible new audiences. The pricing strategy focuses on the mechanisms of determining the costs of services and, in this particular case, adjusting them to the immediate conditions of the market (Armstrong, Kotler, Harker, & Brennan, 2015).

The analytics and forecast strategies outline the approach to data processing and utilisation and identify the necessary resources. Finally, the transparency strategy encompasses a broad range of tactics that collectively contribute to the improved trust among the stakeholders. The business proposal contains a brief description of five strategies which are interconnected and mutually supportive, outlines the task schedule and an approximate budget for their implementation, and addresses the most evident criticisms of the intervention.

Detailed Solution

In order to achieve the identified goals and minimise the adverse impact of the issue, five strategies have been devised by our team. The strategies address a wide array of operations and are thus expected to provide an overall improvement in quality, increase customer satisfaction, and, by extension, create a stronger, more loyal customer base.

Distribution Channel-Focused Strategy

Distribution of rooms within a hotel is among the factors that determine the sustainability of the revenue flow. A review of our current distribution channel approach revealed several minor shortcomings that have been addressed in the suggested strategy. First, it would be necessary to optimise the existing business mix to the distinct audiences that comprise our current customer base. In the broadest terms, two customer segments can be identified – high-yield and low-yield customers. Regardless of the proportion of each segment, several trends should be taken into account. For instance, low-yield customers tend to plan their recreational activities in advance.

Therefore, they book the rooms early. Importantly, they also keep a steady booking rate throughout the year. The high-income segment, on the other hand, often books their rooms late (down to several days before arrival) and often operates through online travel agencies. Finally, they tend to book the rooms closer to the hot travel season. By extension, it is possible to state that the former use offline distribution channels (e.g. wholesalers) while the latter are more likely to book through online ones (e.g. company’s booking service and online agencies).

With the current strong shift to online functionality, it is tempting to consider online distribution a perspective investment and gradually move away from its offline counterpart. Instead, we suggest redistributing the marketing effort by catering the offline distribution channels to the lower-yield segment. This can be done through a stronger emphasis on discounts, special offers, and bundled offers.

In addition, it would be reasonable to review the offline channel for suitability for an older population, since they are less likely to utilise online services (Leeflang, Verhoef, Dahlström, & Freundt, 2014). Simultaneously, a property management tool should be tested for compatibility with new requirements (e.g. the ability to book rooms based on the predicted customer activity and the availability of offers for both segments.

Market Research Strategy

In its current form, the data obtained from guests is the main source of business data. While it is a proven concept that allows for a reliable picture of customer perception of the quality of our services, it does not include an important segment of customers, namely those who considered booking a room and decided against the idea. In fact, this lost segment maybe even more important since it can offer insights into the ways of expanding our customer base.

Admittedly, the most probable reasons for their decision are the absence of rooms on a specific date and the high prices. However, it would be beneficial to match these reasons with the demographics of the customers. Therefore, an analytical suite should be developed and incorporated into our website and, if possible, combined with the tools used by our major partners. In this way, we would be able to correlate the demographics with the common decisions, estimate the losses associated with each group, and evaluate the viability of adding the lost customers to the business mix.

The data collection process can be done both through a streamlined, voluntary survey prompt introduced before leaving the website or through one of the available analytical platforms. The latter is less intrusive but requires a disclaimer to comply with the current privacy regulations. Importantly, the described strategy can be effectively combined with the distribution channel strategy described above. Specifically, the data obtained from the lost clients can be synchronised with the characteristics of low-yield and high-yield segments to verify and further refine the marketing strategies.

Pricing Strategy

As is common among the luxury hotels, Park Hyatt Sydney incorporates the value-based pricing model (Hyatt Hotels Corporation, 2017). While it provides significant revenue opportunities, especially considering the proportion of high-yield customers, it also compromises the system’s flexibility (Töytäri, Rajala, & Alejandro, 2015). Therefore, we suggest implementing a dynamic pricing strategy. Specifically, it is recommended to adjust the prices based on the combination of the value of the service and its current availability. One of the advantages of such a strategy would be the number of resources necessary for the transformation (Nagle, Hogan, & Zale, 2016).

The new strategy is noticeably similar to the value-based model currently adopted by Park Hyatt Sydney and would require relatively minor adjustments. At the same time, the factors determining the price of the offering would include the availability of rooms based on the major factors (e.g. the season and annual trends) and minor changes in customer behaviour (e.g. the aggregated demand of the last several days) (Anderson & Xie, 2016). Importantly the suggested dynamics have to be transparent to the customer in order to eliminate misinterpretation of changes in prices. This is especially relevant for the lower-yield segment that is more sensitive to the alterations in pricing (Tan & Dwyer, 2014).

Thus, they should be informed about the driving factors and, in the long run, presented with the opportunity to model the possible variations depending on the conditions via online functionality. It is important to understand that the described strategy requires significant technological investment due to the introduction of the analytical platform with data processing power sufficient for timely solutions (Law, Buhalis, & Cobanoglu, 2014). In addition, it is possible that some customers can be confused by the innovation, in the long-term perspective, the approach would create a self-regulating mechanism ensuring the optimisation of prices both to those offered by the competitors and to the expectations (and paying capacity) of the audience.

Forecasting Strategy

As was mentioned in the previous segment, the successful implementation of the dynamic pricing strategy requires the presence of a strong data analysis platform. The hotel’s current approach relies on the analysis of the available historical data combined with the standard informatics offered by the online solutions (Hyatt Hotels Corporation, 2017). However, in order to provide a reliable basis for the dynamically adjusted value of services, it would be necessary to introduce real-time updates.

The proposed forecasting strategy includes partnering with a data-crunching platform that can offer an integrated solution for multiple types of data (Li & Jiang, 2017). Importantly, the processed data must be readily available to the hotel workforce in a concise and accessible format. Therefore, the results should be selectively delivered in the form of personal notifications to the employees. This element would ensure responsiveness to the needs of the customers and, by extension, would improve customer retention rates (Chathoth, Ungson, Harrington, & Chan, 2016).

Besides, the strategy is expected to solve the incompatibility of certain types of data. For instance, the hotel management could identify minor trends in customer behaviours and make timely adjustments in staffing and resource supply.

Finally, such an approach could improve communication between hotel departments. In its current state, several of the hotel’s departments, such as operations, events, cleaning restoration, reservations, receptions, and foods and beverages receive updates from the accounting and HR departments, which can be complex enough to create a comprehension barrier (Jones, Hillier, & Comfort, 2016). A more approachable format can be developed as a part of the strategy, leading to fewer difficulties in understanding and, by extension, greater commitment among employees.

Service Transparency Strategy

Once the data delivery method described above is established, it becomes possible to introduce the customers to the system. While it would be unreasonable to expose them to the company data, some areas of operations can and should be available to the customers (Neirotti, Raguseo, & Paolucci, 2016). Thus, a strategy is recommended that would enable them to request, monitor, and leave feedback on the services offered by the hotel departments.

Specifically, tablet PCs can be installed throughout the hotel that would display information on the pending services. The tablets would be accessible for the customers, who would be able to leave requests on which the workers would receive notifications. In addition, the ability to rate the quality and leave valuable feedback can be incorporated into the platform. Admittedly, this strategy requires significant expenses both for equipment purchase and the staff training (Dhar, 2015).

However, once it is properly integrated into the hotel’s operations, it would improve trust on the part of the customers, enable communication between them and the company’s management, and make the entire process a seamless experience with a clearly observed process (Wang, Law, Hung, & Guillet, 2014). For the lower-yield segment, it will enhance the value of services by making the process more customer-oriented (Horner & Swarbrooke, 2016). For the higher-yield customers, it will ensure greater responsiveness to their individual needs. In addition, it can resolve certain issues with erroneous negative feedback, leading to a healthier workplace climate.

Benefits

As can be seen from the description, four of the five strategies are oriented primarily at the diversification of the customer base and more precise targeting of the marketing campaign. However, other improvements can be anticipated after their introduction. First, the services tracking platform would signal to the customers the readiness to report on the quality of the services, and, by extension, strengthen trust in the company.

Next, the dynamic pricing would decrease the losses of potential profits as well as open up the possibility to attain the customers from previously untapped areas. A more powerful analytical platform would ensure optimal allocation of resources, leading to reduced expenses and, to some extent, higher environmental friendliness. Finally, the employees of the company could benefit both from a more streamlined working process and the improved communication with the management.

Task Scheduler

Since the market research and forecasting strategies serve as sources of data necessary for the changes in pricing and distribution channels, they should be prioritised in the implementation process. Evidently, some time must be allocated for the accumulation of data sufficient for a definitive conclusion (George, Haas, & Pentland, 2014). Therefore, an estimated three-month timeframe would be necessary before the latter can be rolled out. Importantly, the purchase of equipment for service transparency, the development of software solutions for data collection, and the training of employees would require six weeks. After this, the pricing and distribution channel-focused strategies can be launched immediately.

Budget

The most resource-demanding elements of the strategies are the purchase of new equipment, the cost of services of data-crunching platform, and the employee training costs, followed by the development of the software solutions. Therefore, the total cost of implementation within a single hotel is estimated at $1.5 million including the training expenses.

Relevant Experience

The most complex parts of the analysis will be done externally. Therefore, the relevant experience is within the areas of technical proficiency, forecasting, and customer-centred strategies. The success of the implementation process would also depend on the leadership and communication skills of the intermediate management segment.

Anticipated Opposition

The most likely causes of opposition are the high total cost of the implementation from the top management and the concerns for additional complexities emerging from increased transparency from the hotel employees (Lozano, 2013). The former can be minimised with the modelling of the long-term revenue growth that is expected to mitigate the short-term losses. The latter should be addressed through the communication of advantages in the form of increased convenience of routine operations and, possibly, through the introduction of incentives for positive feedback obtained through the new quality control system.

Conclusion

The introduction of the new strategies is a challenging process both from a financial and technological point of view. In addition, it may lead to dissatisfaction of employees early in the course of implementation. However, once the main difficulties are resolved, the proposed innovation will yield a range of benefits. Specifically, the improved forecasting process is expected to reduce expenses associated with inadequate resource allocation whereas the increased service transparency will minimize human error possibility and appeal to the customers, facilitating greater trust. The dynamic pricing approach would expand the customer base while at the same time reducing the loss of potential profits. Finally, a more reliable analytical platform will allow for a better understanding of customers’ needs and expectations. In combination, the proposed strategies will expand customer base and increase customer satisfaction rate.

Appendix A

Appendix B

References

Anderson, C. K., & Xie, X. (2016). Dynamic pricing in hospitality: Overview and opportunities. International Journal of Revenue Management, 9(2-3), 165-174.

Armstrong, G., Kotler, P., Harker, M., & Brennan, R. (2015). Marketing: An introduction. New York, NY: Pearson Education.

Chathoth, P. K., Ungson, G. R., Harrington, R. J., & Chan, E. S. (2016). Co-creation and higher order customer engagement in hospitality and tourism services: A critical review. International Journal of Contemporary Hospitality Management, 28(2), 222-245.

Dhar, R. L. (2015). Service quality and the training of employees: The mediating role of organizational commitment. Tourism Management, 46, 419-430.

George, G., Haas, M. R., & Pentland, A. (2014). Big data and management. Academy of Management Journal, 57(2), 321-326.

Horner, S., & Swarbrooke, J. (2016). Consumer behaviour in tourism (3rd ed.). New York, NY: Routledge.

Hyatt Hotels Corporation. (2017). 2016 Annual report on form 10-K. Web.

Jones, P., Hillier, D., & Comfort, D. (2016). Sustainability in the hospitality industry: Some personal reflections on corporate challenges and research agendas. International Journal of Contemporary Hospitality Management, 28(1), 36-67.

Law, R., Buhalis, D., & Cobanoglu, C. (2014). Progress on information and communication technologies in hospitality and tourism. International Journal of Contemporary Hospitality Management, 26(5), 727-750.

Leeflang, P. S., Verhoef, P. C., Dahlström, P., & Freundt, T. (2014). Challenges and solutions for marketing in a digital era. European Management Journal, 32(1), 1-12.

Li, Y., & Jiang, Q. J. (2017). Demand forecasting and information platform in tourism. Open Physics, 15(1), 247-252.

Lozano, R. (2013). Are companies planning their organisational changes for corporate sustainability? An analysis of three case studies on resistance to change and their strategies to overcome it. Corporate Social Responsibility and Environmental Management, 20(5), 275-295.

Luxury Travel Expert. (2014). Hotel review: Park Hyatt Sydney (Australia). Web.

Nagle, T., Hogan, J., & Zale, J. (2016). The strategy and tactics of pricing: New international edition (5th ed.). New York, NY: Routledge.

Neirotti, P., Raguseo, E., & Paolucci, E. (2016). Are customers’ reviews creating value in the hospitality industry? Exploring the moderating effects of market positioning. International Journal of Information Management, 36(6), 1133-1143.

Schlappig, B. (2015). Review: Park Hyatt Sydney. Web.

Tan, J., & Dwyer, L. (2014). Managing distribution channel conflict in the hotel industry. International Journal of Marketing & Business Communication, 3(1), 9-19.

Töytäri, P., Rajala, R., & Alejandro, T. B. (2015). Organizational and institutional barriers to value-based pricing in industrial relationships. Industrial Marketing Management, 47, 53-64.

Van der Wagen, L., & Goonetilleke, A. (2012). Hospitality management, strategy and operations (3rd ed.). French Forest, Australia: Pearson Higher Education.

Wang, L., Law, R., Hung, K., & Guillet, B. D. (2014). Consumer trust in tourism and hospitality: A review of the literature. Journal of Hospitality and Tourism Management, 21, 1-9.

Attracting tourists to one of the fastest growing centers of the UAE is an essential aspect of foreign policy since a significant part of financial resources comes in the budget through recreational resources. The city has many attractions and picturesque places that are interesting for residents of different countries. However, in connection with the need to strengthen the economy and establish cultural communication links, it is important to find alternative sources of attracting tourists.

One of the most real and effective methods to make people pay attention to Dubai is tourism shopping that has recently gained increasing popularity among people of different ages.¹ In this case, it is required to identify the most active categories of the population in order to assess the degree of people’s interest in tourism of this type and to arrange appropriate tours. For these purposes, Sangeeta and Anandkumar² offer to attract tourists by organizing special festivals where guests can profitably buy branded things and at the same time substantially replenish the treasury of the city.

Another issue that deserves attention is the possibility of non-standard shopping since many sophisticated buyers may not be ready to go to the UAE for the sake of ordinary purchases. Thus, Upadhya and Kumar³ offer such an entertainment trend as night shopping to develop for tourists because many clients prefer to avoid large crowds of people. For these purposes, it is essential to organize appropriate tours where customers will be able to easily enter major retail chains even at night. Additional alternative shopping methods based on a non-standard approach to attracting people can also be considered for the sake of increasing tourists’ interest.

The Significance of the Study

The importance of studying the described issue is that the number of tourists coming to Dubai directly impacts on the economy of the city. Constant innovations and new proposals are being made to attract guests, and the authorities need the invested funds to pay off as soon as possible. According to Marathe⁴, innovative marketing is an area that allows focusing on the needs of customers and developing those spheres that are in demand. If insufficiently effective measures are taken to analyze this market and to find alternative ways to attract tourists, expenses may exceed profits, which is unacceptable in the face of high costs.

The possibility of searching for new ways of developing tourism is relevant not only because of the need to replenish the budget but also to establish trade relations of the region with other countries. The essentiality of a marketing campaign aimed at promoting the entertainment sphere is the opportunity to successfully cooperate with large investors. Despite the fact that, as Avraham⁵ notes, the events of the Arab Spring have increased the interest of tourists in relation to Dubai, there is no guarantee that this interest will not be lost over time. Therefore, the popularization of the city as a recreational region is an important strategic decision.

It is also important to investigate the tourism issue because, according to Stephenson⁶, the standard ways of attracting tourists are beginning to lose relevance. Dubai is a dynamically developing city with advanced infrastructure. Nevertheless, there are many attractive tourist destinations in the world. Therefore, it is significant to not only interest guests but also to find special sources of attraction that will be unique and unusual in their own way and will be associated exclusively with this city.

Bibliography

Avraham, Eli. “Destination Image Repair During Crisis: Attracting Tourism During the Arab Spring Uprisings.” Tourism Management 47, no. 1 (2015): 224-232.

Marathe, Shubhada. “Innovative Marketing Practices in Tourism – A Case Study of Destination Marketing of Dubai.” Paridnya – The MIBM Research Journal 3, no. 1 (2015): 55-63.

Sangeeta, Peter, and Victor Anandkumar. “Travel Motivation-Based Typology of Tourists Who Visit a Shopping Festival: An Empirical Study on the Dubai Shopping Festival.” Journal of Vacation Marketing 22, no. 2 (2016): 142-153.

Stephenson, Marcus. “Tourism, Development and ‘Destination Dubai’: Cultural Dilemmas and Future Challenges.” Current Issues in Tourism 17, no. 8 (2014): 723-738.

Upadhya, Amitabh, and Manoj Kumar. “Night Shopping as a Tourist Attraction: A Study of Night Shopping in Dubai.” Journal of Tourism and Services 8, no. 15 (2017): 7-18.

Zaidan, Esmat. “Tourism Shopping and New Urban Entertainment: A Case Study of Dubai.” Journal of Vacation Marketing 22, no. 1 (2016): 29-41.

Footnotes

1. Esmat Zaidan, “Tourism Shopping and New Urban Entertainment: A Case Study of Dubai,” Journal of Vacation Marketing 22, no. 1 (2016): 29.
2. Peter Sangeeta and Victor Anandkumar, “Travel Motivation-Based Typology of Tourists Who Visit a Shopping Festival: An Empirical Study on the Dubai Shopping Festival,” Journal of Vacation Marketing 22, no. 2 (2016): 142.
3. Amitabh Upadhya and Manoj Kumar, “Night Shopping as a Tourist Attraction: A Study of Night Shopping in Dubai,” Journal of Tourism and Services 8, no. 15 (2017): 7.
4. Shubhada Marathe, “Innovative Marketing Practices in Tourism – A Case Study of Destination Marketing of Dubai,” Paridnya – The MIBM Research Journal 3, no. 1 (2015): 55.
5. Eli Avraham, “Destination Image Repair During Crisis: Attracting Tourism During the Arab Spring Uprisings,” Tourism Management 47, no. 1 (2015): 226.
6. Marcus Stephenson, “Tourism, Development and ‘Destination Dubai’: Cultural Dilemmas and Future Challenges,” Current Issues in Tourism 17, no. 8 (2014): 724.