MKT110: Detailed Report on Hotel Business Plan in Sydney, Australia

This detailed report outlines a comprehensive business plan for a five-star luxury hotel in Sydney, Australia. The report begins with an executive summary and an introduction to the thriving Australian hotel industry, emphasizing Sydney's appeal to both domestic and international tourists. It then delves into the importance of servicescape, the physical environment impacting customer perception, and the 7Ps of the service marketing mix (product, price, promotion, place, people, physical evidence, and process). The report explores market segmentation, targeting, and positioning strategies, including demographic, geographic, psychographic, and behavioral segmentation. It provides recommendations for the hotel's marketing strategy, covering product offerings, pricing, promotion, and placement. Furthermore, the report discusses the design of the hotel, including reception areas and bedrooms. The objective of this business plan is to secure a loan from a bank to open the hotel. The report concludes with a reference list. The report is a solution for a MKT110 assignment on Desklib.

Running Head: DETAILED REPORT ON HOTEL 0
Detailed Report on Hotel
(Student’s Details)

DETAILED REPORT ON HOTEL 1
Executive Summary
The detailed report describes about the business plan of hotel which will be open in Sydney.
Sydney is a vibrant city where events are held throughout the year and this is a great location to
open a hotel. Servicescape of hotel is important because it can impact the customer’s point of
view about the hotel. Servicescape is a term which refers to the physical environment where
services are performed, delivered and consumed.
Report also included 7Ps of service marketing mix which are product, price, promotion, place,
people, physical evidence and process. The report has described the condition of market to start a
hotel business in Australia. The main objectives of this detailed report are:
 To describe the tourist area
 To explain about the servicescape of hotel
 Importance of Segmentation, Targeting and Positioning in hotel
 To explain service marketing mix and marketing strategy of hotel

DETAILED REPORT ON HOTEL 2
Contents
Executive Summary.........................................................................................................................1
Introduction......................................................................................................................................3
Brief description of the tourist area.................................................................................................4
Theory service marketing servicescape...........................................................................................4
Physical Evidence........................................................................................................................4
Processes......................................................................................................................................5
People...........................................................................................................................................6
Hotel design and Marketing strategy...............................................................................................6
Design of Hotel............................................................................................................................6
Segmentation, Targeting and Positioning........................................................................................8
Market Segmentation...................................................................................................................8
Demographic segmentation......................................................................................................9
Geographic Segmentation........................................................................................................9
Psychographic Segmentation...................................................................................................9
Behavioral Segmentation.........................................................................................................9
Target Market...............................................................................................................................9
Positioning...................................................................................................................................9
Marketing strategy recommendations............................................................................................10
Product.......................................................................................................................................10
Price...........................................................................................................................................10
Promotion and positioning statement.........................................................................................10
Place...........................................................................................................................................10
Conclusion.....................................................................................................................................11
Reference List................................................................................................................................12

DETAILED REPORT ON HOTEL 3
Introduction
Hotel industry of Australia is developing by increasing numbers of international and
domestic visitors. Sydney is the best location in Australia to open a hotel. Sydney is the biggest
tourist point of Australia for international as well as domestic tourists (Australia, 2019). The
hotel will be the five-star luxury hotel which will provides great dining area, beautiful,
comfortable and luxurious rooms, tasty breakfast, great location, free parking and many more.
For a successful hotel business, it is very important to analyze the market in which the hotel will
be operating. Segmentation target market is a way to analyze the target market, customers, and
competition.
Design of servicescape is an important element for a hotel because it can impact the
customer. It is said that first impression is the last impression, servicescape creates the first
impression. Décor and service quality mainly impact the customer. Hotel designs have numerous
types which are hotel-spa resorts, boutique hotels, designer and art hotels, hotel-casino resorts
and many more.
Service marketing mix includes 7Ps which are product, price, promotion, place, people,
physical evidence and process. The report analyzes all these points to provide a best strategy for
hotel. To develop the hotel business, it is important to provide services with best quality because
these services cannot be tasted, seen or touched, customers can only feel this quality and if they
feel good then it will be very help for successful hotel business.
The following detailed report describes the business plan of the hotel including the design
of the hotel, services, and products, servicescape design, target market for hotel and marketing
strategy. The objective of create this business plan is to raise a loan from bank to open a hotel.

DETAILED REPORT ON HOTEL 4
Brief description of the tourist area
Sydney is the most beautiful Australian city which has so many attraction points. This is
a city where events are held throughout the year, due to which people like to come here a lot.
This is the vibrant city which shines with a different type of events such as blockbuster musical
nights, sports matches and Vivid Sydney’s festival of light. Sydney’s New Year eve is the world-
famous which attract tourists (Sydney, 2019a).
This is the place where tourist can enjoy every type of fun such as beach lifestyle, arts
and culture, nightlife, nature and parks, food and wine, shopping, sport and many more. Sydney's
wine is world-famous for which people especially come here. Sydney Opera House, Bondi
Beach, Taronga Zoo, Manly Beach, Australian Museum, SEA LIFE Sydney Aquarium, Wild
Life Sydney Zoo, Queen Victoria Building, Captain Cook Cruises are the main attraction points
of Sydney (Sydney, 2019b).
Theory service marketing servicescape
Servicescape is the term which refers to the environment in which customer interacts
with the hotel faculty. In other words, servicescape is the physical environment where services
are performed, delivered and consumed. The impact of physical design, atmosphere, décor, on
customers, is known as the servicescape. Servicescape has many types but the hotel provides
interpersonal services. It is an important aspect of a hotel because it can impact the consumer.
Main elements of hotel servicescape are exterior design, parking, landscape, hotel layout, air
quality, music, and equipment. The design of physical appearance can differentiate the facilities
from the competitors. Way of interaction is also part of servicescape. How hotel faculty interacts
with the customer, it also impacts customers.
Physical Evidence
The physical evidence inside the services marketing leads to an atmosphere where a
service occurs from a communication among an employee and a client which is joined with a
tangible product. The physical evidence incorporates a portrayal of a service for example
leaflets, organization stationery, reports, organization site, business cards, and so on. In the
context of hotel, the design, layout, furniture, furnishings, décor and lighting as well as the

DETAILED REPORT ON HOTEL 5
appearance and the frames of mind of the employees impact the services quality and client
experience (Nel, et al., 2011).
There are three types of physical environment included in the servicescape that signify
the relation among environment and services which are environmental situations, space and
function, Signs, symbols and artifacts.
 Environmental situations include sound, smell, and temperature.
 Space and functions involve decoration, equipment and layout.
 Signs, symbols and artifacts consider signature, style of decoration and personal touch.
If any customer wishes to visit the hotel first time then photos of the hotel, facilities,
customer reviews are the physical evidence for them. Since services are intangible in nature, but
some organizations endeavor to consolidate certain substantial components into their offering to
upgrade client experience. The physical evidence aids as visual illustration of what the
organization represents what type of services it provides, and the relations among employees and
customers.
Processes
The component ‘process’ within the service marketing mix refers the procedures,
activities, protocols and so on by which services delivered to the patron. Steps and activities
which are included in deliver the service, called process. It is an important element of the service
marketing mix that involves chain of activities, it is essential to wait for some time between
considers the activities.
Process includes many steps and because of this, organization take special care of
communication in all over the process to reduce the confusion and create effectiveness in the
work. Managing the factors of process is mostly because of perished- aptitude of services that
means the services cannot be created and store for returned or reuse.
The process of book a hotel room is much trigged for customers. The check-in and check-
out process is trigged for clients and all these procedures need to be very controlled to confirm
the consistent customer experience.

DETAILED REPORT ON HOTEL 6
System of deliver the services and flexibility of the employees are two main aspects to deliver a
service successfully. Services are very experiential and dynamic; because of this reason
companies likewise use a facility of blue print technique which termed “Service Blue Printing”.
This method is based on process which provides management in better way for services of
internal and external interaction.
People
The term ‘people’ in service marketing mix include people who involved in sale of
products or services directly or indirectly. These are mostly customers, representatives or
employees, account managers and management. It is mostly when a customer contacts employee
who represent the organization and add quality into a service. In hotel, receptionist is the face of
hotel that contact with client, fulfill their requirement and give the service but if receptionist do
not interact with patron in good way then it will affect the goodwill of hotel. They are basically
people who provide ‘service’ on account of their organization. Services provider companies and
organizations such as hotels are thoroughly aware that they have to manage customer contact
employees very effectively in order to monitor the service quality with respect to behaviors and
attitudes.
To provide better services, hotel will hire high skilled staff and customer service that can
provide customer satisfaction because customer satisfaction is very important for a successful
hotel business. Satisfied customers are best way of publicity of hotel. The marketing strategy of
hotel must be operative in which the satisfied customers can be sharing their experience with
potential customers. In this context, social marketing is very useful. It is intangible but provides
physical evidence.
Hotel design and Marketing strategy
Design of Hotel
The hotel design includes the planning, drafting, design and development of hotels. The
good design of hotel is very essential to make a good impact on customers. Hotel is a place
where every type of person comes and live, because of this, hotel design must be very
sophisticated and functional. Design of hotel includes planning about the projected patron
requirements for the facility along with the vision of designer. The hotel building will have

DETAILED REPORT ON HOTEL 7
several functions including dining restaurant, separate bar, roof top swimming pool, outdoor
facilities, fitness centers, gym and spa.
Reception Design (Garrell, 2019)
The hotel decoration will be very royal, unique and peaceful. The reception area of hotel
will be very sleek, simple and sophisticated.
Waiting Area of hotel (rgpowerdesign, 2019)
Furniture is an essential part of hotel design. Hotel furniture will be very different which
look unique but comfortable.

DETAILED REPORT ON HOTEL 8
Comfortable and Spacious Bedroom (hospitalityandcateringnews, 2017)
Hotel rooms will be very comfortable and spacious. Open balconies in room attract
customers and hotel will provide small balcony in every room, thus customers can be enjoy the
outdoor view from room.
Segmentation, Targeting and Positioning
A market segment is groups, organizations or group of person who have similar interest
and customer segment have their similar requirements, wants and demands. Thus, businesses
must inquire themselves what type of segment they want to serve. When the business decides
their segment, then they should customize their services to satisfy the customers (Lynn, 2011).
Market Segmentation
The process of identify the segments of market is known as market segmentation. It also
includes the process of divide the customer base. With the help of market segmentation, it is very
easy to target the most suitable market effectively and efficiently.
Market segmentation has four different parts which are demographic, geographic, and
psychographic and behavioral.

DETAILED REPORT ON HOTEL 9
Demographic segmentation
It involves the distribution of market in groups which are recognizable in terms of factual and
physical data. Demographic segmentation includes gender, age, income, marital status,
occupation and religion. The demographic segment of hotel will be represent the every age of
people with high level of income going with upper to social class people. The hotel will target
people that follow luxury lifestyle and according to this hotel will charge high prices for the
servicing with high quality (Kotler, Bowen, Makens, & Baloglu, 2017).
Geographic Segmentation
Geographic segmentation comprises of targeting precise clients groups according to their
geographic locations in national and international levels. Geographic segmentation strategy of
hotel mainly focuses on location popular with the target customer segment. Sydney is a city
where every type of fun available for tourists and people love to explore Sydney which is a
positive factor for hotel (Larsen, 2010).
Psychographic Segmentation
Psychographic segmentation refers to the feelings, behavior and thoughts of customer. The
hotel will target customer who would like to show their high position and accomplishment by
staying in luxurious and five star rooms offered by the hotel at high and premium prices.
Behavioral Segmentation
Behavioral segmentation is described as the segmentation of the market as per the purchase
behavior of the individual. The hotel will target clients whose behavior will be classy.
Target Market
After the market segmentation, company must be aware of the requirement and want of
selected market segment. It is important to identify the very profitable segments for the business.
Hotel select high class people then hotel will arrange every type of service at high quality to
satisfy the customer (Fuchs & Diamantopoulos, 2010).
Positioning
This is the last stage of segmentation, targeting and positioning. The hotel will positing as the
luxurious, high class hotel which provide every type of facility includes roof top swimming pool,
24x7 restaurant facility and many more.

DETAILED REPORT ON HOTEL 10
Every customer has their different perception about services of hotel. Therefore, hotel should
underline their services’ unique qualities, features and value propositions to make themselves
different from other competitors in same industry.
Marketing strategy recommendations
Product
In hotel services, products are intangible and consumable. In services sector, there is
possibility of customization in offering as per clients’ requirements. But if any client demands
too much customization, it would impact the standard and quality of service offering. For hotel,
provide room is a product and if customer customizes that, it can impact the space and quality of
amenities of room. The hotel will provide every type of service with limited customization
(Punjaisri & Wilson, 2017).
Price
As the name suggests, this is the price that client pays for hotel services or products. The hotel
will provide high class facilities at very reasonable price. Price is an important element of
marketing because it can affect the choice of customer. Sometimes, clients choose hotel
according to the price. The hotel price is depending on time and market development. In the peak
season, the price of hotel will be high.
Promotion and positioning statement
The element ‘promotion’ includes efforts which make by hotel to stimulate the popularity for
their services for example, promotional programs and advertising. Hotel will provide special
discount to that customers who will stay for more than three days. This is very effective
marketing strategy (Lovelock & Patterson, 2015).
Place
The element ‘place’ represents the location of hotel, where the hotel is located; it is very
important factor to include in the marketing strategy. Every customer has their special preference
of location for hotel. Place leads to the ease of access for customer.

DETAILED REPORT ON HOTEL 11
Conclusion
It can be concluded from this detailed report is that hotel business is very developing in these
days and open a hotel is a great option for business. To operate and manage a hotel in great
location such as Sydney, it is very important that hotel have special skilled and trained staff. The
base of strong customer base is satisfied service.
Hotel should provide high class service to their customers which can impress the client. The
hotel should provide such services that the customers return back and recommend the hotel to
others which will be very helpful for the publicity. Market segmentation, Targeting and
Positioning is a useful tool to create marketing strategy. The STP model is a great way to
position the hotel in market with highly priced competition. The design of hotel is an essential
part for successful hotel business.
From the above discussion, it also concluded that invest in hotel business is a good decision
because Sydney is very beautiful city of Australia where tourists come throughout the year and
many of the tourists love to stay in luxurious hotels.