International Hospitality Management: Assignment

International Hospitality
Management

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK...............................................................................................................................................1
Background to international hotel and tourism industry.............................................................1
Background of Crowne Plaza hotel.............................................................................................2
SWOT analysis of the hotel.........................................................................................................2
Background and PEST analysis of emerging market..................................................................4
Using the hotel strategic growth option.......................................................................................6
Justification of strategy................................................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Hospitality can be determined as cordially welcoming visitor as well as treating them
with authentic kindness and sharing within their duration away from home. Hospitality business
is any aggregation of three core group facilities of food, drink and accommodation. It is the
mixture of tangible and intangible elements and services, environment and representation which
environs them (Bertozzi, Ali and Gul, 2017). International Hospitality Management is essentially
area which prepares students to travel and work foreign in careers within the hospitality sector.
This study is based on Crowne Plaza and Royal Victoria Dock. Crowne plaza is the international
series of overall facilities, upscale hotels in the UK. Royal Victoria Dock is the biggest of three
docks in Royal Decks of the East London. Report will explain SWOT analysis of the hotel.
TASK
Overview to global hotel and tourism business
The history of hotel is familiarly linked to that of culture. It is the part of that history.
Services offering guests hospitality have been in evidence. The hotel business is some kinds of
business that associates to give accommodations in lodging, food and drinks as well as wide
variety of facilities which are interconnected and directed that are well-intentioned for public
services. Hotels are huge scope of guest facilities such as eating, conference and fitness, beauty,
bars, restaurant and other (García-Lillo, Úbeda-García and Marco-Lajara, 2016). The hotel sector
belong to more than 15% of all community those performed in hospitality. Hotels falls into
figure of various types that involves the exciting five start resorts international luxury chains,
trendy boutiques, country house, seminars and guests houses. It is very active sector provides
good quality lodgings, great variety of food and drink together with other facilities for all kinds
of consumers. The hotel sector is always determined to offer excellent consumers services
throughout its operations.
Tourism is the activity as well as procedure of spending time away from home in move of
diversion, relaxation behaviour as well as feeling while making utilisation of the commercial
provision of services. Tourism is good of recent societal deal starting in Western Europe in the
17th century. This provides rise of shared types like business, sport and medical tourism (Idris
and Abdul Wahab, 2015). By the early 21st century, global travel business had become one of
world’s essential economical actions and its effects was becoming progressively clear from
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Arctic and Antarctica. The history of tourism is the great interest and significance. Modern
tourism is more and more intensive and commercially organized business oriented set of actions
whose origins can be discovered in the industrial and post industrial West. Tourism has become
an essential source of income for many regions and even whole nations. Tourism brings huge
amount of income into localised economy in the kind of payment for products and services.
Background of Crowne Plaza hotel
Crowne Plaza is the international series of full services glamorous hotels headquartered
in the UK. It is the serving to business travellers and to meetings and conference industry. It
form portion of InterContinental Hotel Groups family of brands which involve Inter Continental
kinds and hotels as well as Holidays Inn hotels operates in nearly 100 nations with more than
3600 hotels and 118000 bedrooms normally situated in city centre, resorts and coastal town or
near important airports. Selected hotel is already 24/7 with premium lodging, business ready
facilities and spaces, fast as well as fresh food which keep guests productive, linked, rested and
restored during their stay (Kandampully, Zhang and Jaakkola, 2018).
Crowne Plaza hotels and resorts is header supporter of Crowne Plaza Missive at the
Colonial which is a PGA (Professional Golf Tours) held per annum in Fort Worth, Texas. It has
been Supporter of the British FIA World Touring Car Championship driver Andy Priaulx
aggregate touring car champion since 2006. In this context, there are many reasons to stay with
Crowne Plaza Hotel and resorts such as better premium bedding, quite zone and guaranteed
wake up calls, connected and productive with convenient access to power, remain linked with
complimentary wireless internet access involved with stay at the most hotels and resorts, provide
sharp with fitness services and wellness options which are designed to work around schedule and
lowest price on online booking directly (Köseoglu and et.al., 2018). Mission statement of
Crowne Plaza resorts and hotels is to make large hotels guests love and have gained large
competitory advantages over their challengers in hotels as well as hospitality business.
SWOT analysis of the hotel
SWOT analysis stands for strengths, weakness, chances as well as afraid which is model
utilised to assess competitive orientation as well as to evolve strategic planning of firm. It
assesses inside and outside factors and current as well as upcoming potential. It is designed to aid
realistic, fact-based, data-driven look at the strengths and weaknesses as well as its proposal of
the company (Lin, 2016). Crowne Plaza is the largest multinational chain and band of
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InterContinental Hotels Group which operates in more than 100 nations all over the world. Hotel
needs to determine strengths and opportunities for reducing the weaknesses and threats as well as
competitive edge of the hotels within hospitality industry.
STRENGTHS:
Crowne Plaza hotel is the largest has global presences because of it is the brand of
InterContinental hotels group plc. Furthermore, hotel is called to have the biggest number of
rooms worldwide. The locations of hotels have inspirational all over the world which is also
strength of Crowne Plaza. Hotel makes efforts to provide the luxury services and environment
and take care of online reservations for raising the attraction and attention of consumer towards
the products and services of hotels (Litvin, Goldsmith and Pan, 2018). Selected hotel is the
largest brand of organized hotel chain across the worldwide. There is mini bar in the hotel so that
consumers are more and more attracted for hotel which is the strength of hotel.
WEAKNESSESS:
The Crowne Plaza has recognized strategic plan globally which is the largest weakness of
hotels. Strategic plan is the essential for increasing the competitive advantages in the hospitality
sector. Also, hotel has less valuable travel packages and costly packages which is highly affected
on consumers needs and wants towards the services of hotels. This can affect on consumer needs
and wants as well as profits of hotel (Raj and Griffin, eds., 2015).
OPPOURTUNITIES:
The Crowne Plaza hotel makes efforts to create chances for increase presences of hotel in
the hospitality sector. Hotel will peak tourist seasons and longer terms possible development in
hotel sector within the hospitality industry. There is specific experience of Plaza hotels in the
heritage hotels which is the largest chance of hotel for increasing presence within the hotel chain.
Also, hotel ash increased international tourist and travel within the hospitality industry.
THREATS:
The Crowne Plaza hotel faces many of threats which are directly affected on the growth
of hotel in the hospitality industry. There is high level of changing the trends which is highly
affected on services of hotels (Reinhardt and et.al., 2017). Also, hotel has many of competitors
such as Hyatt, holiday Inn and other hotels as increase competitive environment within the hotel
sector. This can affect on consumer needs and wants as well as profits of hotel.
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Background and PEST analysis of emerging market
Emerging market is the nation which has some feature of developed market, but does not
satisfy standards to be termed developed marketplace. This involves nations which can become
developed market in the upcoming time or were in the past. The operator of Crowne Plaza hotel
and resorts wants to expand the business in the Spain which is the second the most visited nation
in the world. It is the also largest tourism destination in the United Nation World Tourism
Organization (Sammut‐Bonnici and Galea, 2015). In order to that, Spain is the nation mostly
situated in Europe. It is the continental European region is located on the Iberian Peninsula.
Selected is the biggest country in Southern Europe and second largest nation in the Western
Europe and European Union.
In the economy context, Spain is the biggest visited nation in world recording 82 million
travellers that marked fifth successive year of record beating numbers. Headquarters of World
Tourism Organization are situated in Madrid. The geographic areas, popular coastlines, diverse
landscapes, vibrant culture and excellent infrastructure has made international tourist industry of
nation amongst the biggest in the world. International tourism in selected has developed to
become second biggest in world in the last five years in relation to spend (Stojčetović, Nikolić
and Živković, 2017). In relation to that, operator of selected hotel needs to determine the
different factors like government, social and culture, technology, economic condition which is
called as PEST analysis of business environment.
POLITICAL FACTOR:
The political landscape is focused which is the remarkable element is that Spain member
of European Union. Still, selected nation has large financial shortage for the best portion of ten
years. It means that the authority spends more than it gaisn that has led to grow self-governing
debt (Zhao, Liu and Xue, 2019). Corruption is grown in the nation. The high profile illustration
for corruption have been recognised in last five years alone. Currently, the political condition is
unstable because of improper government in the Spain. The parliament cannot select prime
ministers, so that it is dissolved. Political parties are worked to resolve their differences and to
place proper government to put an end to political unrest. In relation to, operator of Crowne
Plaza hotel determine the political factor which impact on business expansion within the Spain.
ECONOMIC FACTOR:
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Selected nation has faced from economic recession more than 10 years only currently has
it starts representation signs of life. Spain is not best candidate for beginning new business with
high unemployment rate and unfavourable loan conditions. Developing numerous of part-time
employees has provided Spanish business high figure of advantage over possible employees. As
the outcome, the economical condition in Spain is unlikeable even on the domestic level
(Bertozzi, Ali and Gul, 2017). Selected nation is famous destination for travellers and expatriates
alike to its climate and convenient geographical areas with Europe. It has performed certain areas
of Spain like Barcelona, Costa del Sol to act much good than others. In relation to, operator of
Crowne Plaza hotel determine the political factor which impact on business expansion within the
Spain. This help to increase consumer attraction and attention towards the hotel because of it is
the largest tourism destination in the selected nation.
SOCIAL FACTOR:
Spain is extremely unique as far as society as well as culture are focused. Many of the
nation population adopt workday schedule like no other with long, lunch time, siesta breaks and
late bedtime. Selected nation has almost 50:50 split among biological men and women with
regard to demographics while the wider popular of single persons are Spanish-born Caucasians.
Moreover, personal interactions and relationship are held in large stead that refers focus
requirements to be paid in evolving longer relationship with consumers (García-Lillo, Úbeda-
García and Marco-Lajara, 2016). The population of Spanish is largely educated with popular
possessing advance college degrees. In relation to, operator of Crowne Plaza hotel determine the
political factor which impact on business expansion and increase employment rate within the
Spain. This help to increase consumer attraction and attention towards the hotel because of it is
the largest tourism destination in the selected nation.
TECHNOLOGY FACTOR:
Selected nation is on part with much is the rest of Europe as per technologically. With
strong essential networks working across the nation, advanced computers as well as
smartphoness are broadly. Although, list of destinations is fairly averaged, Spain has its own
large spread train system. There are some technological start-ups while authorities interest in
technology sector is also comparatievly dull (Idris and Abdul Wahab, 2015). In relation to,
operator of Crowne Plaza hotel determine the political factor which impact on business
expansion and increase employment rate within the Spain. This help to increase consumer
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attraction and attention towards the hotel because of it is the largest tourism destination in the
selected nation.
In order to that, it is the very important for determining all kind of PEST factors for on
business expansion within the Spain. This help to increase consumer attraction and attention
towards the hotel because of it is the largest tourism destination in the selected nation. It helps to
raise the employment rate, education, income level and living of the standards of people within
the Spain.
Using the hotel strategic growth option
Ansoff’s Matrix:
Ansoff’s matrix presented which directed on recent as well as possible products and
markets. It is to describe option corporate development approaches. Business can develop in
relation of workers, consumer base, global coverage profitablity but growth is most rarely
defined of revenues that help growing business is the procedure of developing some measures of
success of company (Bertozzi, Ali and Gul, 2017). This matrix recognised four strategies for
growth and summarised them, so that it is known as Ansoff’s Matrix. It is the also known as
good or market Expansion Grid which enables managers to rapidly review these poetential
development strategies and compare them to the risk linked with each one.
Market Development:
It is about improving as well as offering esitent goods to fresh marketplaces. In relation
to that, operator of Crown Plaza follows this strategy for expanding the business within the
Spain. This method is about accomplish new consumer segments or exploring globally through
focusing new geographic fields. If the service of hotel is doing well is one market, so that they
will try entering into new market with the same services (Litvin, Goldsmith and Pan, 2018). This
can help to increase consumer attention and attraction towards goods and services of hotel. This
also aids to raise the profits and revenue of firm.
Product Development:
It is about improving as well as offering fresh goods to existence marketplaces. Firms can
make some changes in the existence goods to provide the raised value of consumers for their
purchase and introduce new goods alongside existing goods offering of firm (Ansoff’s Matrix,
2017). This can help to increase consumer attention and attraction towards goods and services of
hotel. This also aids to raise the profits and revenue of firm.
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Figure 1: Ansoff's Matrix
Source: (Ansoff’s Matrix, 2017)
Market Penetration:
It is about offering more existing goods of organization in existence marketplace.
Therefore, Crowne Plaza can cut prices, improves their distribution networks, invest in
marketing and raising existence production capacity for penetrating and growing the consumer
base in existing marketplace. In relation to that, hotel tries to increase the utilization of
distribution channels by making attractive deals with huge variety of distribution in travel and
tourism industry. This can help to increase consumer attention and attraction towards goods and
services of hotel. This also aids to raise the profits and revenue of firm.
Diversification:
It is about entering new goods within new markets which are either regard or wholly
unrelated to existent selling of firm. This strategy is risky which means there is rarely little scope
for using existing expertise or accomplishing economies of scale because they are tried to sell
wholly various goods or services to various consumers (Litvin, Goldsmith and Pan, 2018).
Porter’s Generic Strategies:
If the leading inclusion is profitability of organization, so that it is enhancement of
business in which they runned, It is an essential and secondary determinant its positions within
the business. The position of company is determined by leveraging their strengths. Porter has
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maintain that strengths of firms ultimately fall into one of two heading that is cost advantage as
well as differentiation. There are many generic methods by appliying these advantages in either
broader or narrow scope such as cost leadership, focus as well as differentiation. These methods
are implemented at the business unit level. They are known as generic strategies because they are
not firm or industry dependent.
COST LEADERSHIP:
This generic approach refers for being less price manufacture in the business for provided
degree of quality. Hotel offers their products and services either at average industry costs to
increase profitability rather than as compared their rivals or below average business costs to
increase market share. In price war, organization can control some profits while competitions
suffer losses. Even without prices war, the business matures and declining prices, company can
produce more cheaply will remain profitable for longer time period (Raj and Griffin, eds., 2015).
This strategy normally targets wider markets. Companies often succeed in cost leadership which
have different inside advantages such as access to capital needs for creating important
investment in production assets, efficient distribution channels.
Figure 2: Porter's Generic Strategy
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Source: (Porter’s Generic Strategy, 2010)
DIFFERENTIATION:
This generic approach calls for development of products as well as facilities that offer
particular behaviour that are valued through clients. That consumers recognise to better that or
various from products of competition. Valued attached by distinctiveness of the goods which can
enable organization to charge premium price for it (Porter’s Generic Strategy, 2010). If the
suppliers raise their prices, so that the company can be able to pass along the costs of their
consumer because of unique attributes of goods. Companies often succeed in differentiation
strategies which have been different internal strengths like leading scientific study, largely
skilled and creative good development team.
FOCUS:
This approaches focusese on narrow part as well as within which part effort to achieve
either cost advantage or differentiation. Premise is wants of unit can be better facilitaties through
directing wholly on it. Organization utilising focus approach frequently enjoys large degree of
consumer loyalty as well as this well-settled loyalty discourage another organizations from
competing directly.
Justification of strategy
Crowne Plaza is the largest as well as multinational hotel chain which expands their
business in the Spain because it is the second largest tourism destination all over the world.
Therefore, they needs to follow strategy for long terms market growth of firm within the
hospitality industry. In relation to, they can follow market development strategy because in this
they can introduce existing service in the new market (Sammut‐Bonnici and Galea, 2015). This
method is about accomplishment new consumer sections or exploring globally by targeting new
geographic areas. This can help to increase consumer attention and attraction towards goods and
services of hotel. This also aids to raise the profits and revenue of firm.
In this context, operator of hotel can also follow focus strategy in which they can enjoy
large level of consumer loyalty within the new market in terms of business expansion. In this
strategy, hotel able to wider scope of product growth strengths to relatively market segment that
they know very well.
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CONCLUSION
This report has summarised that background of hotel industry and selected hotel. It can
be concluded that SWOT and PEST analysis of chosen hotel while expanding their business in
the new market. It can be discussed that Ansoff’s Matrix and Porter’s Generic model for
selecting the strategy option which is beneficial for entering into new marketplace. This help to
raise the profitability and productivity of hotel in the hospitality industry. Also, this aids to
increase the consumer loyalty and attention towards the hotel and its service. This assist to
enhance the profits, revenue and market share of the hotel.
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REFERENCES
Books and Journals
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