TLH314 International Hospitality Management Assessment

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TLH314 International Hospitality Management Assessment

Executive Summary
Hospitality management is taken as a serious business generating occupation that generates
large income. Therefore, it is important to look after the matters that this industry may take as
advantages to keep it s footings in a new emerging market. These analyses are helpful and
beneficial for any brand to keep their head high and make a good profit. There are several
proposed strategies to work with to gain the business and give the best experience to the
guests of national and international repute.
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Table of Contents
Introduction................................................................................................................................3
Background to Hotel Company..................................................................................................4
SWOT analysis of selected hotel company................................................................................5
Background to Emerging markets..............................................................................................8
PEST of the selected emerging market......................................................................................9
Analysis of SWOT and PEST..................................................................................................12
Hotel strategy to be adopted and to be implemented (using strategic model and frameworks)
within the entering market........................................................................................................13
Justification of strategy and practical implementation– 5 and 10 years ahead........................15
Conclusion................................................................................................................................17
References................................................................................................................................18
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Introduction
People travel for different purposes and aims and needed to take halts and find a place to stay.
This generated the idea for hotels. It requires a comfortable staying along with good behavior
of the host. In this new age of hotel industry, the definition, meaning and approaches of hotel
and hospitality have changed a lot and is a profitable industry (Fang et al., 2016). Therefore,
it is important for the hotel owners to plan to get the maximum benefits from this raising
industry by providing good hospitality to the guests in various ways so that they come back to
them. In the present study, the strategies for Crowne Plaza hotel to develop its business in
emerging country like Thailand have been discussed.
Background to International Hotel Industry (and tourism)
Investment in hospitality makes a scope of good profit earning, as in recent times, people
choose to travel a lot to get rid of the boredom of mundane life. Many corporate issues also
engage in many travelling, bringing a lot of people to serve with the best experience by the
hotels of national and international repute. Therefore, it is a golden opportunity for the hotel
industry to grow and make their profit and spread their brand name globally. Understanding
this by potential investors, this sector is becoming competitive day by day. For every hotel
brand, irrespective of local or global, tight challenges are seen. Globalization has therefore
changed the whole concept of hospitality. This whole business is dependent on the quality of
services provided by a hotel to its customer. This present work has been done on Crowne
Plaza who wants to expand their business in Thailand. The possible strategies, steps taken for
it are discussed here.
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Background to Hotel Company
The Crowne Plaza Hotel is a multinational hotel chain which has its roots in Royal Victoria
Dock, Denham, United Kingdom. The hotel offers 4-star living experiences while located in
the heart of the city that is closer to the airport, rail station, many tourists’ attractions etc.
Globally that serves through 410 hotels which are situated in 52 countries. They are also
planning to expand their business, by inaugurating more 81 hotels. The hotel is sharing a part
of the InterContinental Hotels Group and represents their brand. They welcome private
bookings as well as corporate requirements. They give a wonderful experience of living and
giving the best view of the city to ensure customers satisfaction. Their well efficient C&E
operations team and sales team work continuously to remain their high position in the global
hotel industry.
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SWOT analysis of selected hotel company
Detailed SWOT analysis for The Crowne Plaza Hotel is done aiming to examine the strengths
and weaknesses, opportunities and threats of The Crowne Plaza Hotel.
Strengths
 The hotel has many branches all
over the world to pull business and
fame
 They focus on customers
experience and try to give them the
best
 According to the season or
occasion, they have their own
unique strategy to draw customers’
attention.
 They act with modern technologies
to get the best possible business
from all over the world
 They have good employees who
work for the organizational goal
 Have a strong financial
Weaknesses
 It is not an economic hotel, making it only
for a selected group of customers.
 They have a poor structure of
informational security of the staff and
customers (have a record of credit card
stealing case)
 Loyalty programs such as Holiday Inn
Priority Club and IGH Rewards Club have
been negatively reviewed by the
customers.
 International ranking decreased
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background and cash flow
Opportunities
 New emerging markets are good
sectors to invest and generate a
new customer base
 Increased international tourist
activity can bring more customers
to the hotel
 The online booking system can
bring international customers
Threats
 The high number of competitors, both
nationally and globally cuts down the
profit margin
 There are many unpredictable incidents
that suddenly bring less income to the
hotel
 Involvement of the third party for
bringing customers takes a percentage of
profit.
Table 1: SWOT analysis of the selected company
Source: (Created by the author)
This SWOT analysis shows that Crowne Plaza Hotel will eventually generate profit for them
(Bohari et al., 2017). The credit goes to the planning and members of the company and the
big brand value of Crowne Plaza. With the implementation of some changes, the existing
problems could be solved easily (Kuo et al., 2016).
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Background to Global Hotel and Tourism Industry – developed and emerging
During recent times, the tourism sector has seen much growth and diversification in many
aspects. It is surprising to know that the business volume of the tourism industry is nearly
equal to automobile, food or oil industry. Therefore it is quite understandable that this
industry is generating work for the unemployed youth in many countries while developing
many talents regarding the new idea and delivering the best feeling to the customers. For
developing countries, this approach is really beneficial (Köseoglu et al., 2019).
Developed markets: In a developed market, there are certain services that the industry has to
offer to get the customers final satisfaction nod. They have to set standards as per the
international customer’s expectation. These are associated with innovative technologies,
reputation management, marketing trend and trends associated with wellness issues.
Customer Service: With the help of technology, during the stay of guests and even after that,
these customer services are important to give the customer a priority feeling, which makes
them happy and satisfied about the hotel. This brings more customers to the hotel.
Innovative technology: Application of innovative technologies like online booking system
through mobile apps have generated more business for the industry, as the customers can
search for more options and choose the best-fitted hotel for them. This way the hotels can
evaluate their position in the market and can upgrade accordingly.
Real-time Marketing: This is a dynamic process to understand the demand of customers of
different age or community, and serve them accordingly. Guests may have a different
expectation or beliefs. To generate the most profit margin, the hotels have to sell their policy
to the customers, so that they can be assured easily for their comfort level.
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Healthy trends: To meet with this expectation of the customers, the hotels arrange wellness
centres or gym within the hotel, so that the guests can enjoy the benefit, while on a business
trip or vacation. Also, they make customize food option for customers.
Background to developed and emerging markets
There are many countries of the world’s that are under the tag of developing countries, such
as Pacific Asia. But due to the modern age technologies, many unidentified natural jewels are
coming into limelight. Also, many corporate sectors are scheduling their meetings or
conferences in these countries for various reasons and purposes. This has led a global
expansion to travel and tourism along with the hotel industry. In these countries, good
accommodation facilities are not up to the mark as per the universal standard, and therefore a
great need for building a business there is of high profit. Investing time and money there can
be of risky but profitable. Also, this creates huge employment in that country, which helps the
economy of that country. Good understanding of the local landscape, it’s resources,
traditions, cultural can efficiently add feathers to the crown of the hotel (Waehama et al.,
2018). For Asian countries, rich natural, cultural and traditional heritage has always been
alluring for and so tourists from all over the world visit different countries of this continent.
Asian market therefore has been considered as a potential market for the investors. The
countries which have stable governments, stable and uprising economy, educated human
resources have the highest possibilities of such investments. In such locations, the existence
of a hotel with modern amnesties such as spa service, world class cuisine, shopping facilities,
comfortable and updated room services and accommodation plans are of great interests for
any traveler (Wongtada and Krairit, 2017).
Due to the increase and ease of connectivity and technology, the global expansion in the
travelling sector has been noticed, and people are trying to reach the most unusual places of
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natural beauty. These places are generally located at remote areas with no minimum modern
day amenities. So, the great scope is there to build a business to generate the highest value for
the brand.
Emerging markets are volatile in nature. Therefore there is a risk but the assurance of high-
profit-margin if successes. Therefore, it is important to invest much time and money on this
aspect to understand it in a better way.
The Asia Pacific is considered as the most promising emerging markets of the world due to
its rich cultural, natural and spiritual values. Countries like Thailan, therefore,Maldives,
Indonesia, Cambodia, and Malaysia are drawing a huge number of international tourists and
generating huge business for the hoteliers due to their stable government, economic
condition, and resource of educated local people (Leonidou et al., 2015). The natural beauty
of these areas also draws many international corporate meetings and events, which requires
world-class hospitality for their clients. Therefore investments are surely assuring for the
interested hotel brand.
Based on the current situation of political, social, economic and technological progress,
Thailand is a good choice to invest, as it has all the above criteria for being a good destination
for investors as well as for travelers.
PEST of the selected emerging market
Political Factors
It is an important factor to consider for any
industry which is aiming towards its business
expansion for any new country. Every
Economic Factors
Economic factors for any emerging country
are in a continuous motion of ups and downs.
Thailand has also seen its days of struggle.
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country has its own backdrop of working
culture, political movement, corruption
levels, immigration problem, terrorist
activities, and laws and regulations to follow
and abide by all. The government of Thailand
has a rule for the hotel industry that any new
hotelier who wants to open a branch in their
country should have experience and financial
support to run the business properly and pay
the taxes at regular time interval. There are
provision of license and permits for the
construction, annual maintenance, license for
entertainment activities and food and drinks
served within the hotel premises. Thailand
has a cheap labour source and laws of
payment is not that much higher than the
other countries, making it a choice of
destination for the investors (Lee et al.,
2017).
These struggles bring economic uncertainties
and bear big loss in investments. In recent
times, The domestic companies were
bankrupt making an impression on the global
market, but various improvements have been
made since then to give it stability (Arasli et
al., 2017). It has been estimated that there is
nearly 8-9% of economic growth per year
creating a great influence on its GDP. These
factors make Thailand financially stable and
attractive investors. This is also affecting the
poverty issue of the country, giving it an
economic boost.
Social Factors
Any social change that has an effect on
relationship, lifestyle and health are
important of this factor. Also, the age and per
Technological Factors
Use of modern day technology is an
important factor to grow in the recent market.
It influences the improvement of that
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capital income and population growth are
important factors. In recent times, a great
consciousness has been seen in case of food
intake, living style and trends by youths,
which should be kept in mind by any hotelier.
The hoteliers have to be updated about the
recent trends and act accordingly (Zervas et
al., 2017). This may include the offering of
organic food, gym activities, hut style
accommodation, etc. according to the recent
statistics, and government reports, the
population of Thailand is 70 million, with a
per capita income of $ 3322. Based on this
information, Thailand is a good destination
for the hoteliers to have a good and cheap
human resource.
particular country by implementing different
time-solving upgrade tools. Thailand along
with other Asia Pacific countries has shown
their interest in modern technologies to
improve in different business and education
which are beneficial for the overall growth of
tourism business (Sheresheva and Kopiski,
2016). The countries most hotels and other
lodging houses are now depending on online
booking, card payments to draw global
business for them which are helping to build
the economy. Therefore the emerging market
of Thailand will be beneficial to invest by the
investors to have these facilities to use for
their business (Geetha et al., 2017).
Table 2: PEST analysis of selected emerging market
Source (created by the author)
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