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Running Head: Management
0
Langham Hotel Melbourne
Hospitality Management Simulations
MGT802
Name:
3/21/2020

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Management
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Executive Summary
The hotel industry will attain the market share when they attained the customer’s satisfaction and
increase revenue satisfaction. There were several operations in the hotel which have stated in this
report which can be succeeding if they contain the simulation properly. The report has made in
regards to the Langham Hotel which is the 5-star rating hotels and their market position is
analyzed through the use of the SWOT and PESTEL tool. The managerial decisions are taken
such as using the updated technologies and social media sites as it helps in enhancing the
revenues of the hotels.
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Contents
Introduction......................................................................................................................................3
Findings...........................................................................................................................................3
Conclusion.......................................................................................................................................6
Recommendations............................................................................................................................6
Reference.........................................................................................................................................8
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Introduction
Hotel and Restaurant Management Simulation helps in improving the employability and
the business competencies by providing the accommodations effectively. The main aim of this
report is to analyses the current situation of the hospitality industry. The report will be written
regarding the hospitality management simulations by explaining the internal and external
environment which is impacting the profitability of the hotel industry. In this report, the tactical
and the strategic management decisions will be covered which helps in increasing the market
share of the company (Campo, et al., 2014). The managerial decisions are based on the financial
data so in this report, the financial position of the hotel will also be analyzed.
Findings
Current situation of the hotel (Langham Hotel)
It is the 5 Star hotels in Melbourne which has luxury restaurants, bars, and the cuisine.
The hotels have the new shops on the buzzy Southbank of the Promenade. The situation of the
hotel is good as they are one of the porch hotels in Australia (Kadry, et al., 2017). This hotel
provides several facilities to its customers such as they provide the facility of the Free Wi-Fi,
parking, access, air conditioning facilities, laundry services, and the business center services
also. The hotels were situated along the Yarra River which attracts the customers.
SWOT
Strength: Langham Hotel has a certain strength such as it provides a safe abode away
from the home and gives much accommodation to the customers. They provide services like Free
Wi-Fi, parking, access, air conditioning facilities, laundry services, and business center services
(Ruizalba, et al., 2014). The hotel also contributes to the local economy and the tourism industry
as it provides accommodation to travelers. Langham Hotel has a high-profit margin as its labor
costs are lower and the profit margin is higher. The hotel is situated in the mid-market so it is
attracted by many tourists and local people as it is near the Crown Casino and the Flinders Street
train station.
Weakness: The charges of Langham Hotel are high as they are at the mid-market and
providing several accommodations to their customers so high rates are one of the drawbacks for
the hotel. The hotels lose many customers due to their higher prices and maintained standards.
Apart from the hotel charges the customers also have to pay the unfavorable tax rates which were
charged per night spent there (Feinstein, et al., 2014). The hotel also charges the sales tax rates
on the breakfast and the bed which is higher than the hotels.
Opportunity: Tourism is expanding and people like to go to the casinos more nowadays
so this is the opportunity for the hotel Langham to expand its revenues and earn more

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profitability. At the peak season like at the time of the Christmas and the New Year, the hotel
gets the opportunity to earn more profits as at that time the number of the tourist increases
(Khalifa and Ali, 2017). Even due to the expedition of the technology it allows the customers to
book the rooms online and reserve their options.
Threat: Increasing competition in the hospitality industry becomes a threat to the
Langham Hotel as its profitability is getting affected by this (Garlick, 2014). There were many
other hospitality services that we're giving the same accommodation at the lower prices so there
is a threat of losing the customers. The disposable income is lower and the interest rates are also
unfavorable which is affecting the hotel industry.
PESTLE
Political: The hotel industry is highly reliable on the power of the government. They
have the power to hold certain services like they can ban the travel for some time, they also
charge the higher tax reforms on the hotel industry which impacts the profitability of the
company at the higher level.
Economical: Langham Hotel has improved the economic conditions of the country as
they brought the new currency which bolsters the tourism industry. The international currencies
are stringer which is major brought in the hotel industry. The profits of the Langham Hotel have
improved as hotel chains are improving and also tailoring to patrons in varying locations.
Social: The social impact has been seen in the Langham Hotel as customers prefer more
to the cheaper hotels and the Langham Hotel is expensive as it belongs to the 5-star ratings.
Although the higher class people just go for such high accommodations which the Langham
Hotel is providing such as pools, gym, parlors, clubs, etc. (Benavides-Velasco, et al., 2014).
Technological: Advancement in technology has helped the Langham Hotel in increasing
their revenues as now the customers can book their rooms and other accommodation services
through online networking (Khalifa and Ali, 2017). Even the hotels also give privileges to the
customers who book the rooms in advance by giving them some concessions. Social media also
helped in attracting more customers towards the hotel by looking at the pictures of the venue.
Environmental: The environment is a very important factor that affects the situations of
the hotels as customers stay at the hotel majorly when they have to stay somewhere warm and
relaxing. The prices of the rooms differ as per the season so the environment also affects the
profitability of the Langham Hotel.
Legal: The rules and regulations have to be followed by the Langham Hotel which
affects the profitability of the hotel as crime rates are increasing and it is crucial for the hotel
owner to stay the customers at their locations (Yang, et al., 2016). For the welfare and the safety
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of the guest, some innkeeper laws help in protecting the customers who have to follow by the
owner of the Langham Hotel.
Strategic and tactical management decisions that they would need to take to increase their
market share
The strategic decisions of the Langham Hotel are for the longer period that they would
create the guest personas so that they can segment the customers and increase their sales market.
Langham Hotel also expands its market share by using the updated technologies and social
media sites as they are very helpful in expanding the sales of the company. Langham Hotel has
the strategic management to promote the rooms and the other accommodation services through
social websites as people over there are very attentive (McGrath, et al., 2015). It is also the
strategic decision made by the hotel that they will upload the pictures also of the hotel's
accommodation so that more customers will be attracted and the Langham Hotel can expand
their market share.
Tactical management decisions made by the Langham Hotel are that they would forecast
the market opportunities and embrace search engine optimization so that they can optimize the
revenues of the hotels. Langham Hotel has the made the short term tactical decision that they
will choose the right pricing strategy and evaluate the market conditions so that they could
capture the higher market share (Benckendorff, et al., 2015). The market share of the Langham
Hotel can also be enhanced by increasing the demand of the customers by attracting them
towards the different distribution channels.
Analyses any available financial and economic data to inform managerial decisions
The managerial decisions can be taken through the financial and economic data which is
based on the problems and the organizing information. The accountability of the Langham Hotel
is measured through its financial statements. The hotels have resources like highly skilled
employees, effective laborers which help in achieving the financial goal of the company. The
economic managerial decision is made that the hotel should effectively use the available
resources and fulfills the wants and the needs of the customers.
Conclusion
From the above report, it is evaluated that the Langham Hotel is situated at the premium
location so their revenues and the chances of the market share are higher. The hotel has a 5-star
rating as they were providing premium services and offering a variety of accommodations to the
customers. In this report, the SWOT and PESTEL has done to evaluate the internal and external
market positions which affect the hospitality industry. The strategic and tactical management
decisions are also taken into consideration so that the market share of the Langham Hotel can be
increased.
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Recommendations
It is recommended that the Langham Hotel should be aware of the external market
position so that it can respond to the market changes frequently and take the effective managerial
decisions on time (Bowie, et al., 2016). Social media is an effective way of increasing the market
share so the Langham Hotel should promote its services and accommodations through social
media channels. The financial resources should be used effectively so that the profitability of the
hotel does not get impacted much.

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Reference
Benckendorff, P., Lohmann, G., Pratt, M. A., Whitelaw, P. A., Strickland, P., & Reynolds, P.
(2015). Creating educator resources for online simulation-based pedagogies in tourism
and hospitality. CAUTHE 2015: Rising Tides and Sea Changes: Adaptation and
Innovation in Tourism and Hospitality, 67.
Garlick, A. (2014). Experiential Learning: rationale, approaches and implications for practice in
Events Management and Hospitality courses. Investigations in university teaching and
learning, 9, 8-14.
Bowie, D., Buttle, F., Brookes, M., & Mariussen, A. (2016). Hospitality marketing. Taylor &
Francis.
Yang, Y., Mueller, N. J., & Croes, R. R. (2016). Market accessibility and hotel prices in the
Caribbean: The moderating effect of quality-signaling factors. Tourism Management, 56,
40-51.
Khalifa, G. S., & Ali, E. H. M. (2017). Managing drivers and boundaries of information
technology risk management (ITRM) to increase Egyptian hotels market
share. International Journal on Recent Trends in Business and Tourism, 1(1), 12-31.
Campo, S., Díaz, A. M., & Yagüe, M. J. (2014). Hotel innovation and performance in times of
crisis. International Journal of Contemporary Hospitality Management.
Ruizalba, J. L., Bermúdez-González, G., Rodríguez-Molina, M. A., & Blanca, M. J. (2014).
Internal market orientation: An empirical research in hotel sector. International Journal
of Hospitality Management, 38, 11-19.
Benavides-Velasco, C. A., Quintana-García, C., & Marchante-Lara, M. (2014). Total quality
management, corporate social responsibility and performance in the hotel
industry. International Journal of Hospitality Management, 41, 77-87.
Feinstein, A. H., & Parks, S. J. (2014, March). Simulation research in the hospitality industry.
In Developments in Business Simulation and Experiential Learning: Proceedings of the
Annual ABSEL conference (Vol. 29).
McGrath, G. M., Harris, A., & Whitelaw, P. A. (2015, December). A destination management
game simulation for novice tourism and hospitality students. In Proceedings of the 29th
annual conference of the Australian and New Zealand academy of management (pp. 2-4).
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Kadry, S., Bagdasaryan, A., & Kadhum, M. (2017, April). Simulation and analysis of staff
scheduling in hospitality management. In 2017 7th International Conference on
Modeling, Simulation, and Applied Optimization (ICMSAO) (pp. 1-6). IEEE.
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