Hospitality Industry Trends

This report explores the latest trends in the hospitality industry, focusing on the business positioning strategy, existing markets and segments, marketing and promotion strategy, sales techniques, existing capabilities, and competitive advantage. It also provides recommendations for future development. The case study is based on the Grand Park Orchard hotel in Singapore.

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Title Hospitality Industry Trends
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Contents
Introduction......................................................................................................................................3
Business Positioning Strategy..........................................................................................................4
Existing Markets and Segments...............................................................................................................4
Marketing and Promotion Strategy.........................................................................................................5
Sales Techniques.....................................................................................................................................6
Existing Capabilities.................................................................................................................................7
Basis of Existing Competitive Advantage.................................................................................................8
Existing Competitions..............................................................................................................................9
Existing and Future Development Strategy...................................................................................10
Growth Strategy....................................................................................................................................10
Existing Operating Model......................................................................................................................11
Recommendations..........................................................................................................................13
Conclusion.....................................................................................................................................14
References......................................................................................................................................15

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Introduction
One of the leading hotels of Asia-Grand Park Orchard is the trendiest hotel of Singapore
and it is also a premier entertainment and shopping district. The hotel is known for its
contemporary ad façade rooms. Grand Park Orchard hotel is known for bringing an aesthetic and
unique design to Singapore. Communities are attracted towards its exciting dining choices like
Mitzo. This is a Cantonese modern restaurant and comprises of Bar Canary, artisanal cocktails,
alfresco bar, and magnificent fairy lights. All the rooms in the Grand Park Orchard hotel are
equipped through complimentary smartphones. Patrons have access to unlimited local data and
being connected with their peer groups is more convenient than before. Grand Park Orchard
hotel presents the best choice for fashionable and sophisticated boutique accommodation in the
heart of Singapore.
The Grand Park Orchard hotel is known for its luxurious style and spacious interiors. The
modern state of the art designer amenities and features attract the masses.
The people are attracted to the Crystal Club floor and provide access to the club lounge.
This is located at the highest floor and offers expedited check-ins and outs, complimentary
breakfast, full day refreshments along with evening cocktails and other privileges. In order to
have access to ultimate indulgence, guest can opt for fashionable suites. These features, well-
appointed and expansive entertaining and living areas along with club lounge access. Other
amenities at Grand Park Orchard hotel include Nespresso coffee, Chopard amenities, and butler
service. This report focuses on the existing markets and target segment of the Grand Park
Orchard hotel. The marketing mix and promotion strategy have been given along with sales
techniques. The existing capabilities of Grand Park Orchard hotel have been explained. The

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present competitive advantage and SWOT analysis have been provided for the Grand Park
Orchard hotel. Growth strategy and existing operating models with emphasis on recommendation
have been provided.
Business Positioning Strategy
Existing Markets and Segments
The market segmentation allows Grand Park Orchard hotel to do pricing and application
of inventory controls for the purpose of maximizing the different business lines. In order to be
fruitful, hotel management needs to ensure, to utilize logical methods for business tracking.
Hospitality marketplace segments need to focus on these areas, like, Pricing, product, and
distribution. Most of the hospitality marketing and sales professionals spend a lot of time and
millions of dollars which define the market segments. Revenue managers use segmentation for
delivering profitable consumers through intensive product distribution and pricing and ensuring
proper tracking and reporting (Piro, 2014). The requirement for market segmentation has been
regarded as prominent in the hospitality sector. This is mainly due to fast changes being observed
in consumer needs and extensive range of merchandise offerings. Grand Park Orchard hotel
identifies that segments must be identifiable. Identification of segments will provide for
enhanced reporting and accurate tracking. This can further help in decision making. Segments
need to be durable, substantial and accessible. The durability helps in the maintenance of cost
stability and has an impact on profits. Substantial segments justify the resources required for
maintaining the segments. An accessible segment allows more flexibility in distribution and
communication channels. This implies more flexibility in cost of sales and budgets (Susini,
2018).

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Grand Park Orchard hotel market experts identify unique segments. However, this idea is
considered new in the industry and yield different important results. By the identification of
unique consumer segment, the hotel is able to focus and penetrate in a non-traditional market.
Marketing and Promotion Strategy
For hotels, marketing is largely dependent on different key points. This includes what
industry or company such as a hotel will produce, what will be the price charged through a hotel.
How the hotel will be delivering its products and services to visitors. How it will inform the
guest with its wide range of products and services. Conventionally, these are referred to as 4 Ps
(Smith, 2017).
1. Product- Grand Park Orchard hotel exemplifies goods and services and sells to a
potential customer. When the organization wants to enhance the sale, it is essential to
furnish adequate and concise information regarding the specific goods and services to
target customers. The product can be in the position of fulfillment and resolution of all
requirements. Selling the Components of different products and services comprise of
finding out a buyer in the market (Lee, 2017).
2. Price-The Grand Park Orchard hotel has set up an economical price for its customers.
The setting of price needs to have thorough knowledge and analysis. This is mainly for
not experienced business managers who provide the minimum price and end up receiving
the zero sales. The Pricing factor can be computed in different ways like combative,
value added cost-plus and others.
3. Place-The methods of product distribution are referred to as third marketing ‘P' which is
known as the Place. Analysis of geographical target segment, where target customers
search for product and service. This is a geographical location of product availability.

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4. Promotion-The marketing mix comprises of promotion, that has been referred to as
various promotional events and advertising through which a product or service can be
marketed in society (Singal, 2015).
Sales Techniques
Merchandising is a process and practice of displaying and selling products to consumers.
These can be digital or in-store and retailers use merchandising for influencing the customer
intent and complete their sales goals. The Grand Park Orchard hotel has established an
appropriate merchandising strategy which is dependent on different factors. This includes
product qualities, availability of space and whether the retailer is able to display the products and
services in a digital or physical store. The experts need to find out which type of merchandising
will be most effective (Sun & Lee, 2018).
1. Product Merchandising-This comprises of different promotional activities which are
used for selling the product. Product merchandising is used for selling both online
products and in-store products. This can also be used to refer the digital products or
physical products.
2. Retail Merchandising-This refers to different marketing and promotional activities
which contribute to selling of products in retail, physical store. This can be applied to
various merchandising venues for instance-conventional brick and mortar and annual
pop-up events. With the continued rise in digital merchandising, it will surpass the
physical stores' sales by 2020 (W.McCleary, 2013).
3. Visual Merchandising-This refers to all the display techniques which are used for
highlighting the benefits and appearance in the products or service that are being sold.
Visual merchandising will include spacing elements, design, and lighting. This is

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applicable to both physical stores merchandising and visual merchandising. With regards
to physical store experience, visual merchandising will also include floor plan, 3-
dimensional displays, color palette, banner and product alignment (Prof. J.M. Ramanuj,
2012).
Existing Capabilities
The environmental management highlights various capabilities which accompany
environmentally based promotional or marketing strategy. Organizations that develop these
capabilities need to be adoption of a sustainable business practice, which is given ecologically
and better comprehend the requirements of different stakeholders in Grand Park Orchard hotel.
The designing of sound marketing processes and strategies is significant. The foremost capability
is shared vision as this revolves around the commitment, dedication and common ideas about the
company's employees and achievement of the firm’s objectives (Perkins, Morck & Yeung,
2014). Grand Park Orchard hotel has shared visions and organizes the necessary resources which
help in the development of sustainable practices in business. These are in comparison with
companies which does not comprise of capability. A shared vision implies organization members
have a collective thought which plays in the strategic role of the environmental concerns in a
sustainable business model. The eco-friendly design promotional strategy comprises of major
changes in effectively implementing the changes and provides adequate support as well as
participation (Kumar & Park, 2011).
Relationship building involves the firm's ability of forming close associations with
customers, suppliers and stakeholders. This is known as the second capability. With the rise of
relationship building with customers, Grand Park Orchard hotel can constitute a better
comprehension of responding with changing needs and spot potential market opportunities and

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trends. Sensitivity towards organization stakeholders has been growing stronger and become
environment-friendly (Reuer, Klijn & Lioukas, 2013).
Basis of Existing Competitive Advantage
An Environmental-friendly marketing strategy encompasses practices, policies, and
procedures with the marketing context which incorporates the ecologically focus, cost
differentiation strategy. With the objective of creating profit and revenue and achieving
individual and organizational objectives, adoption of environmentally strategic in Grand Park
Orchard hotel can create competitive advantage. There are few green marketing strategies which
help differentiate products and merchandise from the competition world. This results from
recyclable cheaper supplies, waste minimization solutions, energy saving procedures and
improvements in operating processes (Chang, Chung & Moon, 2012).
The ability to target environment-friendly target customers also helps in the promotion of
competitive advantage. Customers show high willingness towards paying the higher prices for
luxurious and environment-friendly services and products. Firms are in the position of improving
the current processes as well as product or service quality by making greener. There are certain
advantages which are considered as attractive, favorable and likable and acceptable to the firm
offering when compared with that of competition (Mantecon, Song & Luo, 2015).
Existing Competitions
The SWOT- strengths, weaknesses, opportunities and Threats analysis of Grand Park
Orchard hotel has been given below-
Strengths-
1. This is a global industry with high international markets.

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2. This is a flexible industry which can handle change management (Weiping Chen, 2011).
Weaknesses
1. High dependency on tourists and this is a sensitive issue to political events.
2. Low-status employment domain.
Opportunities
1. Changes in the gender sector, the number of women entering the market.
2. High concerns about health care and climatic changes (Klimas, 2012).
Threats
1. The aging population makes it hard for the hotel industry to recruit.
2. The lack of skilled people, compared with staff quality.
The adoption of ecological based marketing strategy has been definitely related to achieving
a core competitive advantage. Competitive performance and advantage outcomes through the
benefit created by increased customer satisfaction, retention, and creation. The environmental
benefits are needed to be communicated and possible savings must be provided to customers.
This ensures the environmentally conscious segment which is satisfied through the initiatives of
the hotel. This also involves the promotion of a product which is superior in quality. Customers
show a great preference towards purchasing the eco-friendly firm and this result in larger
financial gains. This level of superiority enables the hotel to generate more cash and charge the
customers at higher prices. Additionally, market segments will allow to particularly defining the
marketing efforts according to the market movements and trends. The ultimate goal must be to
clearly work with the ideal marketing mix segmentation for the hotel. Market segments are
dependent on the hotel industry type and the market in which it is operating (Ofori-Okyere,

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2016). This can be generally seen as transient as well as groups which are seen as main
differentiators with regard to customer booking habits.
Existing and Future Development Strategy
Growth Strategy
The Grand Park Orchard hotels have reported lower hotel transactions. As a consequence,
there is a difficulty level for the vast number of hotel owners or investors continue to bring the
investments growth which is achieved through external sources. Growth strategies include-
1. Assessment of increased opportunities-Organizations with ownership interests must be
prepared for development and encouraging the operations for creating sustainable income
through enhanced solutions from the real estate which is associated with the hotel. One of
the main advantages is utilizing maximizing overall hotel value. The hotel needs to
develop the exhaustive preservation value creation strategy (Johnson, 2018). This can
help in the identification of repositioning strategy and revenue sources which are non-
traditional.
2. Review Management and Branding-The analysis is in the position of identifying a few
alternative sources for review management and branding. Value benefits that are
expected from different options. Implementation of recommendations can enhance asset
incomes that are creating capability through operations of the hotel and defining value. It
is essential to comprehend that few contracts tied with the hotel are considered as
hindrance and show a negative impacts on value and income. This is always positive for
completing the due diligence in all scenarios. This will benefit the passive investor and

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practicing monitoring performance (Lombart, Labbé-Pinlon, Filser, Antéblian & Louis,
2018).
3. Physical Evaluation-This factor plays an important role in enduring prospects of Grand
Park Orchard hotel. It is essential to note that deteriorating land will result in the loss of
market share and revenue. People start seeking for alternative accommodation. One of the
detrimental effects is loss in brand affiliation (Clarke, 2010). The hotel needs to
continuously involve with the rebranding of the physical property and gauge the physical
conditions (Bitner, 2008). This must be substantiating suggestions for the capital
improvements. The feasibility component will identify the latent upside in relation to
renovation of cost plus margin and providing a rationale for the aim of project financing.
Management of renovation in capital structure requires planning that can minimize
disruption in business practices. This must also decrease the lost income potential during
the delivery on time and budget. The key areas must be identified including legal,
engineering, construction and architecture, and project management and proper
management of cost overruns.
Existing Operating Model
Franchising is developing at a fast pace in the hotel industry with globalization and hotel
chains expansion. This brings greater advantage and provides enough leverage among the two
bodies. This involves franchisor and franchisee. Major multinationals such as Grand Park
Orchard hotel have been entering into different nations. The unceasing rise in tourism industry
and changes being done in hotel industry provides opportunities for prospering the franchising
options and also ethnic hotel chains. When the hotel franchisees, in a particular market,
ownership, franchisor-franchisee associations and business traditions will be examined to ensure

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success. This involves a complete comprehension of Singapore economic, political, cultural and
social context towards foreign companies. Native companies are in need of enhanced operating
expertise along with the operational acumen for operating the hotel chains (Buttle, 2004).
Franchising has taken massive leaps with dominant business players and adopted the
franchising business route for expanding the business nationally and internationally. The trend of
venturing into the new country is made by joining hands with another company. This is possible
through a joint venture. When two models are compared, franchising is very ahead of when it
comes to expansion (Clarke, 2010).
However, there are a few disadvantages associated with the joint venture as they are not
unique to franchise concepts. These are related to matters like who will be in the power, which
functions will be performed through each joint ventures and how the shareholder will give
approval for major decisions made in the board. According to research experts, the model of the
joint venture can be adopted in the manufacturing business but in retail outlets and education,
franchising is the best method to expand business (Clarke, 2010)s. The franchisees are aware of
details and franchisor can be made to learn the methods of running a business. This is not
possible in joint ventures. Franchising will provide a standard set of processes and helps in the
optimization of the potential of employees working in the hotel industry. In joint ventures, there
is a large possibility of conflicts and fall outs. Decisions can be delayed and this is mainly
because of the inability of partners to take a decision regarding small and big issues (Clarke,
2010).
Recommendations
In the present hotel landscape, hotel owners are not completely aware of the advantages
of categorizing the business into significant segments. If a hotel wants to be successful in a

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longer run, manage the business and apply revenue management practice. This is considered as
an essential step for having a clear and concise idea of different customer groups which are
targeted. It is essential to consider the distribution channels as well. This involves studying the
impact of buying behavior among the existing customer groups and catering to the needs of
customers and budget levels. Similarly, this also involves keeping the eye on cost efficiency and
marketing of hotels in the best ways. Hotel owners need to focus on what kind of segmentation
can be feasible and beneficial and what advantages can be derived. In last two decades, a lot of
weightage has been given on the market segments which have been well-defined through
traveler’s purpose. This is namely business or leisure. These days, it is unlikely to find out the
purpose behind the travelers. This also implies hotels need to focus on figuring the different
market segments must be targeted with guests and also make the distribution side through
tracking the business source that allows flexibility in carrying; the business must be examined,
managed and influenced. The marketplace segments and understanding in distribution practices
enable the hotel owners to adequately apply to the pricing in every segment and find the base for
revenue management. Relevant market segments must be identified and pricing strategy must be
set up correctly. These are defined through different booking behaviors and also pay attention to
price sensitivity for hotel customers. This allows hotel owners to uniquely give pricing to every
segment, according to the type of segment that the hotels are looking for.
Conclusion
The Singapore hospitality industry has emerged from the depths of economic problems.
The past twenty years, the hotel industry has seen an economic turning point in global markets.
However, growth has not been limited to conventional players. This has been a remarkable

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decade for travelers. Digital innovation has helped to create wholesome new segments for
entering into the new markets. There are few private accommodation brands such as Grand Park
Orchard hotel which has undergone the historic point of travel demand which is felt to be
segmented across the hospitality and travel industry. Growth has not been limited to traditional
players. This is a remarkable decade for travel tech-conscious people. Digital innovation can
help in the development of new segments. However, there is a completely new perspective on
how technology has been shaping the hospitality and travel industry and that too in a short span
of time. In 2010, the airline apps were hitting into different market segments. Few luxury hotels
existed as the only business that attempted to create a magnificent and personalized experience
for every customer. The hotel owners need to play for a longer span of time. Hotel owners who
are looking for cutting costs will have a clash with operators and marinating of service levels will
be difficult and time-consuming.
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