Crown Plaza Hotel: Strategies in International Hospitality Management

This report provides a comprehensive analysis of Crown Plaza Hotel's international hospitality management strategies. It begins with an introduction to international hospitality management, emphasizing its significance in a globalized world. The report then delves into a SWOT analysis of the Crown Plaza hotel located in Royal Victoria Dock, evaluating its strengths, weaknesses, opportunities, and threats. Following this, a PESTLE analysis examines the emerging market for Crown Plaza, considering political, economic, social, technological, and legal factors. The report also explores Porter's generic growth strategies, such as Ansoff matrix and Nykiel's fourteen growth strategies, that Crown Plaza could implement. The analysis highlights the importance of adapting to diverse consumer needs, leveraging technological advancements, and navigating the competitive landscape of the international hospitality market. The report concludes with a summary of key findings and recommendations for Crown Plaza Hotel's strategic development.

INTERNATIONAL
HOSPITALITY
MANAGEMENT

TABLE OF CONTENT
INTRODUCTION ..........................................................................................................................3
A. SWOT analysis of Crown Plaza hotel ........................................................................................3
B. Analysis of emerging market for Crown Plaza hotel through PESTLE analysis .......................5
C. Porters generic growth strategies ...............................................................................................7
CONCLUSION .............................................................................................................................10
REFERENCES .............................................................................................................................11
APPENDIX ...................................................................................................................................13

INTRODUCTION
International hospitality management is defined as the strategy to understand the scope
and framework of hospitality services in context of international markets without restricting
scope of services to any single economy. Hospitality organisations aim at providing food, lounge
and accommodation services to their guests. The globalisation and technology has promoted the
concept and trend of international hospitality. The need and preferences of consumers have great
diversity and thus it becomes very essential for the international hospitality groups to use
appropriate management strategies. International hospitality management techniques not only
help hospitality groups to explore the growth opportunities in the international market but also
identify various challenges and factors which can affect the performance and growth of the
hospitality organisations internationally (Ryan, 2015). The report will analyse the concepts and
strategies of hospitality management in context of international market. It will evaluate the
SWOT analysis of Crown Plaza hotel which is situated in Royal Victoria Dock.
International hospitality management is essential to study because with increasing trends
of globalisation people are finding it easy and necessary to explore different corners of world
instead of restricting their activities to any single geographical location. The global movement of
people demands needs of hospitality services which can meet the needs and expectations of
diversified culture and people. Hence, concepts of international hospitality aims to develop an
understanding of marketing and management trends which can understand the variations in
international context.
The document will discuss the emerging market for the development of Crown Plaza
hotel and various factors which can affect the international operational activities of the
organisation. It will conduct PESTLE analysis of the organisation to evaluate business growth
analysis in the suggested emerging market. In the broad marketing environment provided by
international hospitality the hospitality organisations can use various growth and development
strategies. The report will discuss the Porter’s growth strategies and approaches such as Ansoff
matrix and fourteen growth strategies of Nykiel which can be used by Crown Plaza hotel.

A. SWOT analysis of Crown Plaza hotel
Crown Plaza hotel is well known multinational chain of hotels which provides its
services in different countries. At present the organisation is operating in around 52 countries
and has more than 400 hotels. The organisation is part of the well recognised brand name of
InterContinental Hotel groups. The SWOT analysis of the organisation is as follows:
Strength:
Royal Victoria Dock Crown Plaza hotel (R.V.D Crown plaza hotel) has strong brand
presence and popularity among consumers. The great response of customers towards brand
makes it very easy for the hospitality organisation to promote its services and products. The
R.V.D Crown plaza hotel marks strong presence in global market. Currently it owns huge
number of hotels and thus it helps to improve customer loyalty towards hotel. When organisation
has such huge size then it is also easy for the hospitality organisation to manage its resources
(Sigala, 2017). With easy availability of the resources R.V.D Crown plaza hotel can create and
manage its new market effectively and can sustain its position among competitors. The
organisation has been providing its hospitality services from long time and thus the high standard
of quality and trust helps to expand its services across global boundaries. In parent country UK
the hospitality chain has earned huge response and customer loyalty. It also encourages and
inspires the consumers in other global locations to consider and accept the existence of Crown
Plaza hotel.
Weakness:
The biggest drawback which restricts the organisation to achieve same level of success in
different parts of globe is innovation. R.V.D Crown plaza hotel is still using outdated technology
such as offline booking management system and payment in cash only. For instance the
competitive hospitality institutes are exploring rapid innovations in product and service
development. The outdated technology affects the performance of the organisation. Most of the
hospitality organisations are diversifying their services and are focusing on different product
lines for targeting royal as well as common people (Raj and Griffin, 2015). On the other hand
R.V.D Crown plaza hotel is not making any attempt to innovate its services. The marketing
strategy followed by the hotel is also not innovative and influential. It can give competitive

advantage to other organisations. Another significant weak feature of this hotel is the poor
satisfaction of employees. Thus, R.V.D Crown plaza hotel have to spend more capital for
retention of skilled human resources. It not only creates additional financial burden but also
affects the performance of the hotel adversely.
Opportunities:
The international marketing opens up vast opportunities for R.V.D Crown plaza hotel to
increase its revenue and profits. The hotel can explore its services and products to regions where
tourism is gaining more significant popularity. The hospitality organisation can also use various
innovations in technology and operational activities to reduce their operational cost as well as to
draw the attention of new consumers (Sigala, 2018). The technology and advanced marketing
trends has also provided opportunity to Crown Plaza to explore its business activities into more
diverse products. For example, this hotel can explore the benefits by providing home delivery
services of its food and beverage department.
Threats:
The international expansion of the services of R.V.D Crown plaza hotel also brings
various threats which can affect the existence and performance of the hotel. Crown Plaza is
facing tough competition from other hospitality groups. Especially in the international market it
is challenging for the hotel to understand the needs of the consumers. Though standardisation of
the products and services improves the quality and performance but R.V.D Crown plaza cannot
implement same pricing or promotion strategy for the diversified groups. Thus, substitution of
the Crown Plaza hotel by other hospitality group is the biggest threat for sustaining growth and
benefits of organisation. The products and services provided by Crown Plaza hotel have easy
substitutes in the market. Thus, it is hard for this hotel to raise prices or to bring even a slight
change in products to reduce operational cost (García-Lillo, Úbeda-García and Marco-Lajara,
2016). The easy product substitution and lower market share can affect the performance of
Crown Plaza hotel as compare to other hospitality groups.

B. Analysis of emerging market for Crown Plaza hotel through PESTLE
analysis
International hospitality in emerging markets: There are economies in which global
organisations are rapidly showing interests from the business perspective. The local citizens are
also speeding good amount of investment on travel and leisure. Thus, global hospitality
organisations are finding it as a great opportunity to operate in international market and to
address the needs of people from different culture and needs.
Emerging markets: Crown Plaza hotel has many growth opportunities by expanding into new
emerging markets. Though organisation has already marked its hotel chains in different countries
but still there are emerging opportunities for the organisation in developing economies. In
matured or stable economy Crown Plaza provides its quality services to users who specifically
require hospitality facilities for business persons and their needs of meetings and lounge services.
On the other hand in the developing or growing economies such as Asian and African countries
business activities and tourism is rising exponentially. It also encourages the need of hospitality
organisations like hotels and restaurants (Denizci Guillet and Mohammed, 2015).
Though it is difficult for R.V.D Crown plaza hotel to establish its roots in these emerging
economies but on successful expansion to these emerging markets the hotel will be able to
explore new target audience and to increase its profit and brand value margins. Apart from
growing economies such as China, India, Africa, Russia and Brazil there are developed
economic markets which are finding choices for sustainable development. In such markets the
organisation can bring new practices which are environment friendly and can meet the needs of
those markets. For achieving the success goals in emerging opportunities Crown Plaza hotel
must analyse several factors which can influence the strategies and functionality of the
hospitality group (Tongchaiprasit and Ariyabuddhiphongs, 2016). These factors can be analysed
by PESTLE analysis.
Political: These are the crucial factors which can influence the execution of business
activities of Crown Plaza hotel. The government policies can change or affect the use of
technology, legal aspects and attitude of consumers towards any product or organisation. The
governmental authorities and political factors are directly involved in making laws, policies and

thus can support hospitality organisation or can create barriers for R.V.D Crown plaza hotel to
achieve its goals. The political factors thus greatly influence the economy, legal systems and
nature of the social factors. Hence, these factors can be considered as very crucial which can
change the entire scope and strategies for the organisation (Brown, Arendt and Bosselman,
2014). The government support to such foreign organisations through taxation reliefs and
funding can enhance the growth possibility of the Crown Plaza hotel.
Economic: The economic factors have great impact on entry into new market segments.
Thus before making decision to enter any new market Crown Plaza hotel must consider these
factors. The unstable economy or the countries which have low per capita income, the
organisation may require revising its cost price so that the target audience can make purchase
decisions. If the economy of the country is suffering from financial instability or its citizens do
not favour much expense on leisure or hospitality then it may become difficult for the
organisation to manage its operational cost and profit goals (Manoharan and Singal, 2017).
Social: The perceptive of consumers towards the products and services of people also
depends upon the social structure and cultural factors of the country. If the practices and values
of R.V.D Crown plaza hotel are not in accordance with the social and cultural beliefs of the
society then it may become difficult and challenging for the hospitality organisation to meet their
objectives. For example for successfully creating brand awareness R.V.D Crown plaza hotel
must use advertising strategy which involves tradition and culture of the country so that people
can emotionally feel connected with the hotel and R.V.D Crown plaza can develop a place
among its target audience.
The ignorance to these social attributes can also affect the performance of organisation
adversely. Like in certain markets it is possible that some people may prefer nutritional food or
some groups may not prefer non vegetarian food from health or religious perspective (Chan and
Hsu, 2016). Thus, in such cases Crown Plaza hotel must ensure that these parameters can lead to
both positive and negative effect on its sales.
Technological: These factors affect the approaches in which Crown Plaza hotel can
perform its operational activities and delivery of services. In emerging markets which are
seeking for sustainable practices Crown Plaza hotel can bring technical advancements. For

example organisation can use data management systems and online record management system
to reduce the use of papers. It will be cost effective as well as favourable to environment. When
government and people perceives Crown Plaza hotel as supporter of the environment it becomes
easy for organisation to create its impact on consumers. Similarly, Crown Plaza hotel also
ensures that in all markets its brand value and quality of services is not compromised. Thus, it
uses certain techniques such as security, smart rooms and mobile applications. If any economy
does not have the necessary technique to support these services then it is not possible for the
organisation to plan for development in such markets (King, 2017).
Legal: The legal considerations are necessary to ensure that hospitality organisations are
performing without compromising the safety and quality of its consumers. The legal regulations
also includes the strategies and regulations related to working conditions for employees, health
and safety regulations, employment and minimum wages conditions as well as the process
related to taxation and other formation aspects of company within an economy. If organisation
does not comply with these legal regulations then Crown Plaza hotel may fall into financial and
legal penalties. If Hospitality Company fails to ensure the safety of its consumers and other legal
standards then it can lead to legal conflicts which can affect the brand image of the hotel and
consumers may feel hesitation in joining or connecting with such organisations.
Environmental factors: With changing trends in the preference of consumers as well as
regulatory agency hospitality organisations are shifting towards sustainable practices (J.
Harrington and et.al., 2014). Crown Plaza hotel is using various practices such as data
management systems and digital marketing techniques to contribute towards environment. It
makes organisation more popular brand among consumers. Before entering into any emerging
market Crown Plaza must also analyse these environment factors must be considered so that it
make effective strategies to control its functional activities, resources and operational cost.
Thus, it can be concluded that for achieving growth objectives in international market R.V.D
Crown plaza hotel must bring innovations into its practices so that it can deal with the emerging
threats of substitution and competitors. It is also analysed that legal and political factors must be
followed strictly so that organisation can enter into new emerging markets with ease.

C. Porters generic growth strategies
In order to achieve success goals in international market Crown Plaza hotel must
implement suitable growth strategies which can help organisation to sustain its position in the
competitive market. To adopt these growth strategies various concepts can be used by the
organizations. Some of the most popular and widely used growth strategies which can be used by
Crown Plaza hotel are as follows:
Porter’s generic strategies: These strategies are mainly employed by the organisation to
achieve competitive advantage so that hospitality institutes can sustain their growth for long
term. This strategy evaluates following attributes or concepts:
Cost leadership: As per the cost leadership growth strategy Crown Plaza hotel can use
cost factors as the key attribute to achieve its growth related goals. The company can make
efforts so that its cost is lowest as compare to other service providers in hospitality industry
(Singal, 2014). Crown Plaza can use various efforts to reduce its operational cost such as
improved technology, recruitment of more skilled human resources, innovation and more
appropriate selection of raw materials which are used within hotel. The cost leadership will help
Crown Plaza hotel to influence customers for whom price is an essential consideration in making
purchasing decisions. However it is very challenging to control the prices in an international
market various economies have different financial stability and thus the operational cost also
varies greatly. This factor affects the overall pricing strategy followed by the Crown Plaza hotel.
Differentiation: The uniqueness is one of the features which creates a long lasting
impression in the minds of customers and forces them to choose organisation over others. For
example the brand name of Crown Plaza hotel ensures that in all countries the service quality of
the organisation is of same quality so that its brand effectiveness can be maintained. In
hospitality organisations food and beverage quality is considered as one of the most important
attribute thus Crown Plaza hotel can make innovations in these attributes which make
organisation unique from others and can force consumers to pay even extra for it. This growth
technique is effective and can be considered as efficient for long term growth of organisation
(Ruetzler and et.al., 2014).

Cost Focus strategy: R.V.D Crown plaza hospitality organisation can also implement
focus strategy for its growth objectives. With this approach organisation can focus on specific
niche market. Suitable market research is conducted so that niche market can be analysed and
needs of consumers in that specific market can be fulfilled.
Differentiation focus strategy: The hotel can choose a market which has low competition and
can deliver unique services and products. Thus, with this strategy uniqueness of the products is
used to address the niche market. For instance hotel can launch services in developing country
with voice recognition services in rooms. It will attract consumers and lead to growth.
Ansoff matrix: With this growth matrix R.V.D Crown plaza hotel can ensure its growth by
exploring its new/ existing products into new/existing markets. The attributes of ansoff matrix
are discussed as below:
Market development: To explore the international market benefits R.V.D Crown plaza
hotel can sell its products to new markets. The new emerging markets can be a good choice for
hospitality organisation to enhance its growth. This strategy involves greater risk of failure thus
it is essential that before adopting this approach organisation hotel must conduct suitable market
research. R.V.D Crown plaza can launch its new hotels to new geographical segments or via new
distribution channels such as delivery of food and beverages of R.V.D Crown plaza hotel via
online booking to home delivery. The hospitality organisation can also use different prices to
different market segments as per the market trends (Ansoff Matrix, 2018).
Market penetration: R.V.D Crown plaza hotel can develop strategies so that it can
increase the sales of its products and services into existing market. To achieve this organisation
can give attractive discounts and can focus on customized selling. To overshadow its
competitor’s organisation must use strong promotional strategies such as social media campaign,
pricing adjustments as per the situation and customer loyalty programs. For instance during
festival season or off season hotel can also give large discount or additional services in free or at
lower cost so that more people can be gathered. With these market penetration strategies Crown
Plaza hotel will be able to increase its sales records and growth in existing market with its
existing services and product.

Product development: Crown Plaza hotel is well aware brand name in hospitality. Thus,
it can be very convenient for the organisation to develop new services and product. For instance
organisation can introduce its own food chain so that people who appreciate its food and
beverages can access these services easily (Using the Ansoff Matrix to identify growth
opportunities, 2018). Similarly, to meet the expectations and needs of travellers Crown Plaza
hotel can launch their special budget hotel rooms so that it can achieve its growth targets among
new audiences as well.
Diversification: This can be one of the most risky growth strategies so R.V.D Crown
plaza hotel must avoid this approach until it has detailed analysis of the market. With this
approach hospitality organisation can introduce new products or services into entirely new
market segments. It involves a great risk as organisation will not have any experience of neither
product nor target market.
Nykiel’s fourteen strategic growth options: With the following set of fourteen strategies
proposed by Nykiel hospitality organisations can achieve their growth opportunities.
1. Crown Plaza hotel can expand its services horizontally like from one product of
hospitality organisation to other. For example to ensure business growth organisation can
expand its services from hotels to fast food restaurant chains or theme parks.
2. There are geographical regions which are rich in heritage and consist of large scope in
travel and tourism sector. In such regions or other geographical parts Crown Plaza hotel
can launch its hotels. The existing brand value and quality services can help hotel to gain
the trust of the consumers (Redding and Chen, 2017).
3. Apart from horizontal and geographical expansion hospitality organisation can also grow
its services into completely different and diverse range of services. It will help
organisation to use its existing strength for growth in new market. For instance Crown
Plaza hotel can launch its packed food items or retail stores.
4. Crown Plaza hotel in Victoria dock currently focus on upscale development in price and
quality of services. To grow further it can also shift towards budget centred hospitality
organisation.

5. The hospitality group can also develop a complementary product with same or different
brand name to respond to specific target group or geographical regions.
6. If Crown Plaza hotel feel that in some regions it is not able to achieve its growth
objectives then, organisation can also use product re-branding strategy. With this growth
approach Crown Plaza will be able to define the quality, price, location and services of its
products with new terms and specifications.
7. As per this strategy if hospitality group wants to have complete control over its services
in international market then it can avoid franchising approach so that it can grow with its
own directed specifications (Ryan, 2015).
8. In certain foreign markets it is difficult for the Crown Plaza hotel to manage its
operations. In such country's hotel can use the franchising strategy so that it can establish
its roots in the local market through local business groups.
9. The brand collection approach is one of the effective ways to expand the business growth
in international market. Crown Plaza hotel is part of InterContinental hotel group and also
offers franchising in different countries to explore the growth options.
10. Crown Plaza hotel can use management contracts which can help organisation to improve
its services in any of the functional area. For instance if hotel believes that its marketing
strategies are not effective enough then management contracts from other firms can help
Crown Plaza to improve its marketing functions.
11. There is another growth approach such as vertical and horizontal growth in which
hospitality organisation can own different segments of hospitality. However, this growth
approach is not suitable and used by Crown Plaza hotel because currently the hotel is
dealing in only hotel and accommodation services.
12. Organisations can also focus on a single product or services but being a hotel it is not
possible for Crown Plaza hotel to focus on single product. It is essential that organisation
focus on all services such as restaurants, room services and bars.

13. To sustain the growth in market Crown Plaza hotel can launch new services and products
which can meet the growing needs of its consumers so that they can be retained for long
term.
14. The higher focus on exploring services to global market is one of the most effective
strategies to accomplish growth in the business activities (Robinson, Solnet and Breakey,
2014).
R.V.D Crown plaza hotel can adopt strategy two so that it can also become leading hospitality in
international context. The growth strategies such as franchising and new product development
will be beneficial for the hotel in coming years. The franchising will help organisation to gain the
local support from communities while making appraoches for international hospitality services.
The innovation in products is also essential for the hotel to retain its customers and to lead other
organisations.
CONCLUSION
From the report it can be concluded that to achieve the success goals at international level
hospitality industries must explore and implement the international marketing and management
strategies instead of applying only domestic or national marketing approaches. The report has
described the SWOT analysis of Crown Plaza hotel. This analysis is very helpful and discusses
the strength and weakness of the organisation. It helps hotel to have detailed information
regarding its resources which can be used to achieve business objectives. The SWOT analysis is
also essential for the company to identify the possible risk which can affect the success of the
hotel.
The study has also discussed the PESTLE analysis of the various emerging markets for
the hospitality industry in international market. It has evaluated the range of attributes which not
only affect the decision making but also influences the execution methods of operational and
marketing activities of the hotel. The report has also explained the significance and
implementation of Porter’s generic growth strategy and how these strategies can be used as an
integral part of the international hospitality trends and business objectives.

REFERENCES
Books and Journals
Brown, E.A., Arendt, S.W. and Bosselman, R.H., 2014. Hospitality management graduates’
perceptions of career factor importance and career factor experience. International
Journal of Hospitality Management. 37. pp.58-67.
Chan, E.S. and Hsu, C.H., 2016. Environmental management research in
hospitality. International Journal of Contemporary Hospitality Management. 28(5).
pp.886-923.
Denizci Guillet, B. and Mohammed, I., 2015. Revenue management research in hospitality and
tourism: A critical review of current literature and suggestions for future
research. International Journal of Contemporary Hospitality Management. 27(4). pp.526-
560.
García-Lillo, F., Úbeda-García, M. and Marco-Lajara, B., 2016. The intellectual structure of
research in hospitality management: A literature review using bibliometric methods of
the journal International Journal of Hospitality Management. International Journal of
Hospitality Management, 52, pp.121-130.
J. Harrington, R., K. Chathoth, P., and et.al., 2014. Strategic management research in hospitality
and tourism: past, present and future. International Journal of Contemporary Hospitality
Management. 26(5). pp.778-808.
King, C., 2017. Brand management–standing out from the crowd: A review and research agenda
for hospitality management. International Journal of Contemporary Hospitality
Management. 29(1). pp.115-140.
Manoharan, A. and Singal, M., 2017. A systematic literature review of research on diversity and
diversity management in the hospitality literature. International Journal of Hospitality
Management. 66. pp.77-91.

Raj, R. and Griffin, K.A. eds., 2015. Religious tourism and pilgrimage management: An
international perspective. Cabi.
Redding, T. and Chen, P.J., 2017. Out of Soup: Resolving Customer Complaints in Hospitality
Management. In Trade Tales: Decoding Customers' Stories (pp. 127-131). Emerald
Publishing Limited.
Robinson, R.N., Solnet, D.J. and Breakey, N., 2014. A phenomenological approach to hospitality
management research: Chefs’ occupational commitment. International Journal of
Hospitality Management. 43. pp.65-75.
Ruetzler, T., Baker, W., and et.al., 2014. Perceptions of technical skills required for successful
management in the hospitality industry—An exploratory study using conjoint
analysis. International Journal of Hospitality Management. 39. pp.157-164.
Ryan, C., 2015. Trends in hospitality management research: a personal reflection. International
Journal of Contemporary Hospitality Management. 27(3). pp.340-361.
Sigala, M., 2017. Social customer relationship management: Approaches, applications and
implications in tourism and hospitality. International Journal of Contemporary
Hospitality Management.
Sigala, M., 2018. Implementing social customer relationship management: A process framework
and implications in tourism and hospitality. International Journal of Contemporary
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Singal, M., 2014. The business case for diversity management in the hospitality
industry. International Journal of Hospitality Management. 40. pp.10-19.
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Online

Ansoff Matrix, 2018 [Online] Access through < https://www.smartdraw.com/ansoff-matrix/ >
Using The Ansoff Matrix to identify growth opportunities, 2018 [Online] Access through
https://www.smartinsights.com/marketing-planning/create-a-marketing-plan/ansoff-
model/

APPENDIX
SWOT ANALYSIS OF CROWN PLAZA HOTEL
Strength  Large size
 High brand value
 Customer loyalty
 High quality of services
Weakness  Lack of innovations
 Use of outdated technology and service patterns
 Poor advertising and promotion strategies
 High turnover on staffing
Opportunities  Product and market diversification
 Expansion to global market by improved technology
 Reduced operational cost through innovations
Threats  Tough competition from other emerging hospitality organisations
 Product substitution
 Substitution threats from local competitors
PESTLE analysis
Factors Impact
Political  Government policies can affect taxation and regulation.
 Legal support is also influenced by this factor.
Economic  Economic stability affects pricing and operational cost.

 Taxation system can change the financial policies and marketing
strategies.
Social  Leads to changes in advertising and promotional concepts.
 Product specifications are based upon social and cultural aspects.
Technological  Can make process more accurate and effective.
 Innovations are dependent upon technical parameters.
Legal  Legal conflicts can create adverse impact on the brand image of the
organisation.
 Legal compliance is necessary for the hotel to ensure the health and
safety and other organisational regulations.
Environmental  Sustainable practices can improve the profits of organisation.
 Environment instability can prohibit the successful execution of the
functional activities.