Challenges and Strategies in Asian Hospitality Management

This essay critically examines the challenges facing the Asian hotel industry, focusing on operational and management issues. It highlights key problems such as labor shortages, increased competition, and the impact of new technologies, especially in the context of the MSc Tourism and Hospitality course. The study analyzes the weak hotel performance, particularly in regions like Jakarta and Singapore, and the need for effective marketing strategies to attract customers. It also addresses operational issues, including the importance of quality service and technological advancements like online booking and review systems. Furthermore, the essay provides specific recommendations for small, medium, and independent hotels to overcome these challenges, emphasizing the importance of strategic management to sustain and grow within the competitive hospitality market. The study concludes with insights on the importance of adaptability to ensure profitability and success in the Asian hospitality industry.

Running Head: HOSPITALITY MANAGEMENT STUDIES
Hospitality Management Studies
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Executive Summary
The study focuses on the hospitality management all over the Asian region. The study provides a
clear idea about the management strategy that the organisation who are operating in the hospitality
industry should focus on. The study also provides a clear idea about the current challenges faced by
the hotel industry all over Asia. The study focuses on the operational as well as the management
issues that usually arise in the hotel industry. Lastly, the study provide recommendation to the
small, medium and individual hotel about the problem they need to focus on so that they can gain
popularity as well as expand in the market. In the end the study conclude why this is important for
the organisation to sustain in the market and to earn profit in the near future.

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Table of Contents
Introduction..........................................................................................................................................3
Current Challenges Faced by the Hotel Industry.................................................................................4
Operational and Management Issues...................................................................................................8
Operational Issues............................................................................................................................8
Management Issues........................................................................................................................10
Recommendations..............................................................................................................................12
Conclusion.........................................................................................................................................15
References..........................................................................................................................................16

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Introduction
Management strategy is considered as the series of techniques which enables the
organisation to achieve the goals that have been set by them. Leadership; operations along with that
administration along with the setting up the goals are included in the management strategy of an
organisation (Punt et al. 2016). The management strategy enables the organisation to sustain and to
perform well in the market. The strategy provide a direction to the company by setting up the goals
to achieve in the near future along with that the timeline to achieve the goals as well as what are the
resources necessary for the organisation to achieve their target (Hitt and Duane Ireland 2017).
As the hospitality industry is flourishing with every passing day and huge amount of profit
can be earn, so it is important for the hotels to adopt the strategic management. This will enable
them to grow in the industry as well as to earn profit in the process. There are few important
elements which is develop if the company possess an effective management strategy in the
hospitality industry (Kandampully, Zhang and Bilgihan 2015). The successful management strategy
will enhance the brand in the industry, which will automatically make the hotel popular and well-
recognized in the industry. On the other hand, it will help the company to increase customer value
which automatically help the company to build a strong customer base as in hospitality industry
quality service is the key factor. This help the customers to measure whether the hotel is providing
value to their money or not by providing quality service. It also helps the company to achieve the
operational excellence in the process, which let them to showcase their efficiency in the process
(Kim, Vogt and Knutson 2015).
The study will focus on the problem that the hospitality industry is facing in the recent time
all around the world especially in the Asian region. This will help the organisation to identify what
are the precaution that need to be taken by the organisation so that the problem can be solve and
company can achieve the success in the process. For example: In Singapore, there is a problem in
the labour shortage that the hotels are facing, which lead them to use robot in the room service. The

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study will also discuss about the issues faced by the operational and management team. The study
will also provide recommendation about how to improve the management and face this challenges
efficiently in in a correct way.
Current Challenges Faced by the Hotel Industry
There are challenges faced by the hotel industry in the Asian region, which is increasing on
a regular basis. The management of the hotel need to take care of the challenges that is raising in
the process, so that the hotel industry can earn a huge sum of money from the market and can
attract a large number of customers towards them (Jones, Hillier and Comfort 2016). This will
ultimately help the organisation to grow as well as sustain in the fast moving industry as the
industry is growing with every passing day. The company in the Asian region are unable to cope up
with the technological advancement as well as with the development (Samori, Salleh and Khalid
2016). This leads the company to face challenges in the hotel industry, the challenges are namely,
 Weak Hotel Performance: The performance of the hotel industry in the Asian region
have become weak and gone down in the process. In spite of increase in the tourism, the
hotel in the Asian region are unable to perform well in the industry. This is quite
shocking for the company as well as for the economic growth of the countries present in
the Asian region. The average rate of the room also decreased as the market in the Asian
region have faced a stagnancy (González-Rodríguez et al. 2018). This happens due to
the weak hotel performance showcase by the hotels. The problem need to be solved by
the hotels which are there in the Asian region, so as to make an impact in the industry
and this will also increase the market of the Asian region in the hotel industry along
with that the performance of the hotel will increase in the process. Therefore, it is
important to look into the matter and take up effective business strategy that will help
the organisation to become successful in the industry. In Jakarta, due to the shift in the
Ramadan calendar they observed a low performance in the month of May, the revenue

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per available room has faced a decrease by 17.3% in that month (Rahimi and Gunlu
2016). This can be considered as a huge loss for the hotels. The hotel in the Asian
region to enhance their performance need to implement an effective marketing strategy
so that they can attract more number of customers. Singapore was also faced an impact
of low performance as the number of visitors have considerably decreased in the
process. The main revenue generation of the country is dependent on the tourism
business which was also affected to some extent.
Fig. 1: International Brands in Asian Region
(Source: Hospitalitynet.org 2019)
 Shortage in Labour: The hotel in the Asian region have faced a shortage in skilled and
efficient labour along with that poor crisis management of the hotel. This raise the
problem of the shortage of skilled and efficient labour. This lead to the low performance
of the hotel in the Asian region. The profit earning of the company is also affected due
to this problem which prevails in the Asian region. This leads the Singapore to use

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robots for the room service. This also decrease the customer base of the hotel when
there is no skilled labour available in the hotel (Efthymiou 2018). This problem need to
be addressed properly by the hotel which are there in the Asian region so as to gain
popularity and overcome the crisis that arises due to the shortage in skilled and efficient
labour. If this problem is not addressed properly, the company will incur a huge loss in
the market. The main economy of an Asian country depends on the tourism and
hospitality industry (McGinley, Hanks and Line 2017). Therefore, it is an urgent issue
which need to be look after by the company so as to earn profit as well as sustain in the
market. This will automatically help the company as well as country to grow and
become economically stable.
 Increase in Competition: The hotel industry possess the potential of high returns in
investment. This is the reason there is an increase in the competition in the hospitality
market. The new company are entering the market with a view to earn profit as there is
high potential to earn profit from these industry. The number of competitors are also
increasing gradually and profit earning is getting shared among the competitors. The
Asian region mainly depends on the tourism which will automatically help the hotel to
earn revenue but as the competition is increasing the scope of earning high profit is also
decreasing in the process (Zervas, Proserpio and Byers 2017). The company need to
take proper marketing strategy to overcome the issues that are there in the market. All
this problems are mainly related with the quality service provided by the company. To
eliminate the competition the hotel need to provide quality service to the customers
which will attract them to visit the hotel, which will ultimately help the hotel to earn
profit in the process as well as to grow in the market (Lam, Ho and Law 2015). The
online booking also plays a very vital role in the process as customers in recent time
usually book hotel online, which help the hotel to attract the customers. Therefore, the

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company need to address this issue which will automatically help them to grow as well
as sustain in the market.
Fig. 2: Increase in Competition
(Source: Nikkei Asian Review 2019)
 New Technology: The technology is developing with every passing day. The hotels
need to adopt new technology in their business model so as to attract customers and earn
profit from the market. All the hotels in the Asian region are not technologically
advance which is also a reason for the downfall of the revenue generation even after
there is an increase in the tourism industry (Mardani et al. 2016). In recent times, there
is the introduction of the online booking as well as review system along with that the
customers are able to check the price of the hotels in the online booking application or
website. The company has to look into the matter so as to earn profit as well as gain

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popularity in the industry. The perception of the customers also get influenced by the
review that they read online regarding the hotel. They book according to the stars and
review the company is able to gain from the service they provide to the customers.
Customers experience is added in the review which help other customers to get an idea
regarding the hotel (Chand 2016). Therefore, it is important for the hotel to look into the
matter so as to gain popularity in the market which will help them to earn customers
trust and they will be attracted towards the company to avail the service that they are
providing in the hospitality industry.
This are the main challenges faced by the hotel in the Asian region which need to be taken
care of by the company to sustain as well as attract more number of customers. This will
automatically help them to grow in the market and to earn huge sum of money as a profit in the
industry.
Operational and Management Issues
The operational and management issues need to solve by the organisation as in the
hospitality industry it is important for the company to provide quality service to the customers. This
will help the organisation to grow as well as to earn huge amount of profit from the market. The
company need to adopt an efficient and effective business structure so that they can attract more
customers (Dioko 2016). The company need to appoint an efficient team in the operational and
management department, as they are the ones who will help the company to overcome from the
problem that might arise in the market. Therefore, it is important for the company to maintain the
team which will help them to grow as well as sustain in the industry and gain popularity among the
customers (Chan, Hon, Okumus and Chan 2017).
Operational Issues
In the hotel industry operation plays a key role as the quality of the company is being
judged by the customers after entering the hotel. An effective and efficient operation management

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need to be establish from the front desk to the back of the office. The problems which are generally
face by the company in the process are:
 Long Resolution Time: The hotel mainly face problem in resolving an issue that have
occur which gives dissatisfaction to the customers as well as there is a delay in the
process of billing. The company or hotel need to resolve the issues that might occur in
the organisation as early as possible. This will help the company to gain popularity in
the market and they can attract more number of customers in the process (Lam, Ho and
Law 2015).
 Calls and Interruption: The customer’s often complain about the interruption which is
there in the calls. This make a negative impact on the image of the company. The
company need to look into the matter so that the customer satisfaction can be met. The
resolution of any issue can often arise in the process. This need to be look after by the
organisation so that they can grow in the market and can receive positive feedback from
the company.
 Administrative Work: There is huge problem with the hotel in Asian region regarding
the administrative work. The work get pile up in the desk which increase the waiting
time of the customers. This problem need to resolve by the hotels in the Asian region so
that customer waiting time can be reduce in the process (Pappas 2018). This is
automatically help the customers to receive quality service along with that fast service
as well. This will generate a sense of satisfaction in them which will help the hotel to
gain popularity in the market.
 Communication with Team: The hotel in Asia lacks in the communication process
between the teams which create an issue in the company. If proper communication is
not there with the team as well as the team members then the hotel might lose their
customers. Therefore, it is important for the hotel to maintain an effective and

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developed communication channel so that they can communicate with the employee and
quality service can be provided to the customers. This will ultimately increase the
goodwill of the company (Dzhandzhugazova et al. 2016).
 High Operational Cost: The hotel in the Asian region often face high operational cost
which is also a challenge for the company. The cost of operation need to be reduce by
the employees as well as the organisation so that revenue generation is much higher than
that of the other hotel. This will help the company to sustain in the market and help the
company to provide high quality service to the customers (Dioko 2016). Therefore, it is
important for the organisation to adopt an effective plan which will reduce the
operational cost of the company and they can earn high amount of profit from the
market.
Management Issues
The hotel need to take an effective management team so that all the management related
problem can be solve as soon as possible. The main management related problem face by the hotel
in the Asian region are:
 Maintaining Brand Image and Service: The hotel in the Asian region need to
maintain an effective and efficient service which is provided to the customers. This will
automatically help the company to build a strong brand image in the market which will
result in attracting the customers in large scale. Therefore, the company need to provide
quality service to the customers so that the promotion can be done with the help of word
of mouth by the customers in the market (Xu, Ye and Chan 2018). This will also
increase the customer base of the company and help them to sustain in the industry. It is
important for the organisation in the hospitality industry to maintain a brand image in
the market and provide quality services to the customers.

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 Hiring the Right People: The Company need to hire the employee who are appropriate
and suitable for the job and for this the company need to possess a high quality
management with them. This will help them to grow in the market and provide quality
service to the customers (Masa’deh 2016).
 Organising Booking: The effectiveness of the hotel can be seen from the booking
management. The hotel need to maintain a management who will organise the booking
in an effective way so that the customer waiting time can be reduce. This will help them
to build brand image in the market as well as customers will receive satisfaction in the
process (Okumus, Bilgihan, Ozturk and Zhao 2017).
 Technologically Advance: In the developing world the hotel need to be technologically
advance, this will help the organisation to grow and marketing can be done effectively
by the hotels. The company should adopt a program which will help them to reach the
customers through digital media (Magova and Kessy 2019). This will help the company
to grow even in the digital platform as well.
 Complex Management: The Company in the Asian region mainly follows a complex
management structure which cause the miscommunication internally. The hotel need to
adopt the management which is transparent in nature. The complex management cause a
barrier for the hotel to grow in the market and revenue generation decreases due to an
inefficient management structure (Okumus, Bilgihan, Ozturk and Zhao 2017).
 Cost of Training: The hotel need to adopt a budget which will be cost effective and can
train the staff in minimum cost possible, which will help the employee to improve their
skills and quality service will be provided to the customers. The customers get attract
towards the company only when they receive a quality service (Lam and Law 2019).
Therefore, it is important for the company to adopt a cost effective training plan.