Research proposal on ‘How to enhance food and beverage revenue in Crowne Plaza Hotel, Yas Island, Abu Dhabi’

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Running head: RESEARCH PROPOSAL
Research proposal on ‘How to enhance food and beverage revenue in Crowne Plaza Hotel,
Yas Island, Abu Dhabi’
Name of the Student:
Name of the University:
Author note:

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1RESEARCH PROPOSAL
1.0 Introduction
Revenue of a hotel comes from different operational sections and food and beverage is
one of those. The food and beverage section is no longer an add-on facility in the hotels. This
section provides quite favorable profit margins and thus, creates big opportunities for any hotel
to achieve increased revenues, which not only adds into their group profits, but also helps in
improving their brand image and reputation (Mun, Woo and Paek 2019). Food and beverage is
an essential part of lodging. Majority of the hotels, especially the larger ones, are now focusing
on improving their food and beverage section to enhance customer loyalty and earn a reputation
in the market. Hence, while a hotel aims to increase its revenue and overall profit, it must
improve many aspects, such as, the quality of the amenities, prices, number of amenities offered,
quality of services and the food and beverages (Solnet, Boztug and Dolnicar 2016).
This research proposal will emphasize on the factors that can increase the revenue of the
Crowne Plaza Hotel in the Yas Island, Abu Dhabi. Crowne Plaza is an upscale multinational
hotel chain owned by the IHG Group of Hotel Development. The group currently operates in
more than 100 countries with over 3600 hotels (development.ihg.com 2019). Crowne Plaza is
one of the major 4 stars upscale hotels in the Yas Island region of Abu Dhabi, which caters to a
large number of visitors every year. The visitor profiles include not only the international
visitors, but also a large number of domestic corporate and individual visitors who visit Yas
Island for business purposes, such as, to conduct business meetings or annual conferences or for
leisure holidays. The Crowne Plaza is one of the major and most popular hotels in the Yas
Island, not only for its services, but also for its food and beverage offerings. The hotel houses
multiple restaurants at different floors, which offer different cuisines and target customers of
different income groups and tastes and preferences. For example, it has Jing Asia serving Asian
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2RESEARCH PROPOSAL
cuisine, Stills casual dining and bar, serving European food, Barouk with Lebanese, Arabian and
Middle Eastern cuisine, Sundowner Bar, serving snacks and finger food, and Views – Crowne
Plaza, which is a café (crowne-plaza-abu-dhabi-yas-island.abudhabi-hotels-ae.com 2019). The
aim of this multinational hotel chain is to serve visitors from different countries and present them
world class services and food so that they feel at home and at the same time can explore different
cuisines at their best. This is beneficial for attracting global visitors, as they would have the best
experience in not only lodging but also in terms of food and beverages. However, the Yas Island
region is a growing one and market competition for Crowne Plaza is increasing rapidly in the
recent years. Thus, to have a sustainable market share, the hotel wants to enhance the customer
satisfaction level and revenue and in order to do that, Crowne Plaza wants to increase their
revenue from the food and beverage section. This research proposal therefore will explore the
factors that can increase the revenue of the food and beverage operations of the Crowne Plaza
Hotel in Yas Island and to offer potential solutions to the hotel to increase their revenue
effectively.
1.1 Research aim and objectives
The aim of this research study is to investigate and evaluate the elements that help in
increasing the revenue of the food and beverage section of a hotel and to provide feasible
recommendations to the hotel authority which can bring in more revenues and profits if
implemented effectively.
The research objectives are:
To evaluate the factors that help a hotel to increase its food and beverage revenues
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3RESEARCH PROPOSAL
To explore the importance of customer satisfaction and loyalty in the increase in revenues
in the food and beverage section of a hotel
To provide potential solutions to the Crowne Plaza Hotel in Yas Island, Abu Dhabi for
increasing their food and beverage revenue
1.2 Research questions/hypothesis
The research questions are:
1) What are the factors that help to increase the revenues of a hotel from food and
beverages?
2) How do customer satisfaction and loyalty affect the revenue of the food and beverage
section of a hotel?
3) How Crowne Plaza Hotel in Yas Island, Abu Dhabi can increase their revenue from food
and beverage?
The research hypotheses are:
H1: Food and service quality have significant positive impact on customer loyalty for Crowne
Plaza Hotel, Yas Island
H2: Efficient marketing positively increases revenue of the hotel restaurants
H3: Customer loyalty has significant positive impact on the revenue of Crowne Plaza Hotel, Yas
Island

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1.3 Research rationale
The significance of the research lies in the exploratory approach that will be applied to
identify and evaluate the factors that will be beneficial for an upscale global hotel chain like
Crowne Plaza to increase their revenue from the food and beverage. These type of hotels are
priced higher and they generally have a loyal customer base who prefer the luxury, facilities,
services, etc. (Mun, Woo and Paek 2019). However, due to growing market competition, Crowne
Plaza is facing challenges in achieving the sustainable revenue for the restaurants. There are
many lower prices restaurants in Yas Island, and their growth is affecting the restaurant
profitability of Crowne Plaza as many visitors are preferring to eat in other restaurants. Thus, this
study will investigate the market competition and the factors that are causing challenges for the
food and beverage of Crowne Plaza in Yas Island and potential solution will be recommended to
increase their revenue.
2.0 Literature review
Customer satisfaction is one of the primary factors that contributes in the revenue and
operational profits in the hotels and hospitality industry. As highlighted by (Gorondutse and
Hilman 2013), increased customer satisfaction leads to increased customer loyalty and that leads
to repetitive customers. This implies increased revenue of a hotel. It also holds true for the food
and beverage industry as a whole and the food and beverage section of the hotels. The authors
explored the food and beverage industry of Nigeria and by analyzing the primary data, they
found that customer satisfaction is positively and significantly associated with the factors of
quality of products and services, and loyalty of the customers. Thus, the hotels and food and
beverage sector must focus on enhancing the customer satisfaction to increase their business
revenue, profitability and market share.
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5RESEARCH PROPOSAL
Huckestein and Duboff (2015) emphasized on the value proposition to the customers
delivered by the hotels. The authors conducted a study on the Hilton Hotels and according to the
authors, various factors are needed to provide higher values to the customers to enhance the
customer loyalty, which is a major source for increasing the business profits. Among the
products and services, the food and beverage is one of the most important sections of these hotels
and by serving highest quality food and services, the hotels aim to increase the value proposition
for the customers.
Assaf et al. (2015) pointed out that customer satisfaction often gets reflected in the
customer loyalty, which is again reflected in the repetition of customers’ visits and word-of-
mouth marketing. These aspects therefore indicate the factors that can enhance the revenues of
the hotels and restaurants not only from the repeat customers but also from new customers. At
the same time, these aspects also imply the importance of word-of-mouth in increasing the
market share of the hotels and restaurants and their revenue. Thus, it can be said that customers
play a significant role in the branding and marketing of the restaurants through the word-of-
mouth technique, although the restaurants must deliver the highest quality food and services to
impress their customers.
Munjal and Bhushan (2017) highlighted that in the recent years, the food and beverage
section in the hotels has become the key driver in the growing operating revenue and profit and
hence, the traditional revenue model is changing in the hotel industry. The customer profiles of
the restaurants have been changing over the years. Global travelling has increased not only for
leisure tourism, but also for business tourism. The number of business travelers has increased
significantly in the past decades and the trend of conducting business meets in the hotel banquets
has increased too. Many multinational corporations prefer to conduct their annual business meets
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in the luxury and upscale hotels and that increases their overnight visitors as well. At the same
time, the local executives do not stay overnight but they visit the restaurants. Hence, a
significantly large part of the revenue of the hotels is generated not only by the overnight visitors
but also from the local residents who visit to enjoy the food. Thus, the luxury and upscale hotels
are now focusing on improving their restaurants’ food and services to increase customer
satisfaction and loyalty, so that the visitors keep returning to enjoy their food and services. The
restaurants in the hotel must take feedback and suggestions from the new and returning
customers to identify the scopes of improvement. This would also make the customers feel
valued and their loyalty would increase. At the same time, by applying this technique, the
restaurant can also identify the potential factors that could increase value proposition for the
customers and beneficial for increasing their revenue and profit (Davis et al. 2018).
A similar finding was put forward by Han and Hyun (2017) as they developed and
applied a behavioral intention model in the context of hotel-restaurant and explored the factors
that increase customer satisfaction. The authors found that the food and service quality and that
of the physical environment of the restaurants were very important for enhancing the satisfaction
of the customers in the context of hotel restaurants, while conspicuousness acted as a moderator.
Marketing is another essential factor that contributes in the growth of the business, that is,
its revenue and profits. Marketing creates a bridge between the customers and the restaurant, by
which the restaurant puts forward the messages to its existing and potential customers. Hence,
the restaurants apply traditional marketing techniques to highlight their best features about the
food and services and launch various promotional schemes such as loyalty points for the
membership holders, discount packages for the overnight visitors in the hotel, special food items
only for the overnight visitors etc. Such activities would not only increase the revenue of the

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7RESEARCH PROPOSAL
hotels from the accommodation services, but also from the restaurants of the hotel (Liat et al.
2017).
Thus, it can be said that revenue of the hotels depends on many factors and food and
beverage is one of those factors. As customer satisfaction leads to customer loyalty, that in turn
leads to repetition of visits of the customers to the restaurants. Branding and marketing are
another two significant factors that help in achieving higher revenues. However, in a luxury
place like Yas Island and in an upscale hotel like Crowne Plaza, there are global visitors and
tastes and preferences, cultural differences are also important along with product and service
quality and offerings.
3.0 Research methodology
This section provides an outline of the techniques to be applied to conduct the research
study in the most systematic manner. The nature of the research issue leads to an exploratory
study. The researcher will apply deductive research approach to address the research objectives.
In this approach, the research issue will be evaluated against the already established theories as
no new theories will be generated as in case of inductive research (Woiceshyn and Daellenbach
2018).
Following this approach, the quantitative survey research design will be followed, as that
would help to collect large data about consumer behavior and loyalty and their impact on the
revenues of the food and beverage sector and analysis would be easier to find out the relation
between the two aspects.
Survey research strategy will be followed to collect the information for the research.
Primary data will be collected for the study and a survey will be conducted on the existing
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8RESEARCH PROPOSAL
customers of Crowne Plaza Hotel to get the information about the research topic. 10 close ended
survey questions will be asked to the customers while they would check out from the Crowne
Plaza Hotel and to the guests who visited any of the restaurants in the hotel. A sample size of 60
will be taken from the customers by applying simple random sampling technique and the survey
will be conducted using a smartphone or tablet.
Responses to the survey will be converted to numerical values using replicable scale,
such as, 5 point rating scale, and suitable quantitative analysis, like, descriptive statistics,
correlation, frequency analysis, regressions etc. will be done to find out the relation between the
research variables and examine the research hypothesis.
4.0 Potential outcome
The potential outcome for this study will include new perspectives and findings about the
ways of increasing revenue from the food and beverage section in an upscale hotel like Crowne
Plaza, which already earns higher revenue in comparison to other hotels in the surrounding
region. The study will highlight the factors that determine the customer satisfaction and resulting
customer loyalty in case of luxury and upscale hotels in an economy with high GDP and high per
capita income like that in the UAE, and especially in conditions where there are many
independent restaurants offering different cuisines for the locals as well as to the global visitors.
At the same time, the findings from the research will help Crowne Plaza to identify their
loopholes in drawing more customers in their restaurants which affect their revenue and profit
and take according measures to deliver more customer satisfaction value, which would help in
bringing more customers to their restaurants and bars and increase their revenue from the food
and beverage section.
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9RESEARCH PROPOSAL
5.0 Timeline
Month
Task 1 2 3 4 5 6 7 8 9 10 11 12
Strategy formulation
Framework development
Literature review
Primary data collection
Survey
Analysis of survey response
data
Interpretation of findings and
discussion
Conclusion and
recommendation
Report submission

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References
Assaf, A., Josiassen, A., Knežević Cvelbar, L. and Woo, L., 2015. The effects of customer voice
on hotel performance. International Journal of Hospitality Management, 44, pp.77-83.
crowne-plaza-abu-dhabi-yas-island.abudhabi-hotels-ae.com, 2019. Crowne Plaza Abu Dhabi Yas
Island Hotel 4 Stars. [online] Crowne-plaza-abu-dhabi-yas-island.abudhabi-hotels-ae.com.
Available at: https://crowne-plaza-abu-dhabi-yas-island.abudhabi-hotels-ae.com/en/ [Accessed
14 Dec. 2019].
Davis, B., Lockwood, A., Alcott, P. and Pantelidis, I.S., 2018. Food and beverage management.
Routledge.
development.ihg.com, 2019. Crowne Plaza. [online] @ihgdevelopment. Available at:
https://development.ihg.com/en/americas/home/our-brands/crowne-plaza [Accessed 14 Dec.
2019].
Gorondutse, A. and Hilman, H., 2013. Mediation effect of customer satisfaction on the
relationships between service quality and customer loyalty in the Nigerian foods and beverages
industry: Sobel test approach. International Journal of Management Science and Engineering
Management, 9(1), pp.1-8.
Han, H. and Hyun, S., 2017. Impact of hotel-restaurant image and quality of physical-
environment, service, and food on satisfaction and intention. International Journal of Hospitality
Management, 63, pp.82-92.
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Huckestein, D. and Duboff, R., 2015. Hilton Hotels. Cornell Hotel and Restaurant
Administration Quarterly, 40(4), pp.28-38.
Liat, C., Mansori, S., Chuan, G. and Imrie, B., 2017. Hotel Service Recovery and Service
Quality: Influences of Corporate Image and Generational Differences in the Relationship
between Customer Satisfaction and Loyalty. Journal of Global Marketing, 30(1), pp.42-51.
Mun, S., Woo, L. and Paek, S., 2019. How important is F&B operation in the hotel industry?
Empirical evidence in the U.S. market. Tourism Management, 75, pp.156-168.
Munjal, S. and Bhushan, S. eds., 2017. The Indian hospitality industry: Dynamics and future
trends. CRC Press.
Solnet, D., Boztug, Y. and Dolnicar, S., 2016. An untapped gold mine? Exploring the potential
of market basket analysis to grow hotel revenue. International Journal of Hospitality
Management, 56, pp.119-125.
Woiceshyn, J. and Daellenbach, U., 2018. Evaluating inductive vs deductive research in
management studies: Implications for authors, editors, and reviewers. Qualitative Research in
Organizations and Management: An International Journal, 13(2), pp.183-195.
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