Enhancing Hospitality: Home Concept Analysis at Park Royal Hotel

This report analyzes the implementation of the "home" concept within the hospitality industry, using the Park Royal hotel in Australia as a case study. It explores the social and economic approaches to hospitality, highlighting the shift from merely providing accommodation to creating a home-like experience for guests. The report identifies key elements of the home concept, including food, service, accommodation, entertaining activities, and interior design. It further recommends specific steps for Park Royal to enhance customer satisfaction by providing personalized complementary services, free internet access, tailored loyalty programs, and effective relationship marketing. The analysis emphasizes balancing social responsibility with economic considerations to improve customer retention and competitive advantage.

Running head: ANALYSIS OF THE HOSPITALITY INDUSTRY
Analysis of the hospitality industry
Name of the student
Name of the university
Author note

1ANALYSIS OF THE HOSPITALITY INDUSTRY
Executive summary
The aim of this report is to discuss about the initiation of the home concept in the hotel industry.
The Park Royal hotel of Australia is being chosen for the analyzing the importance of the home
concept. Moreover, this report also discussed about the various elements of initiating the home
concept. In accordance to the discussed elements, this report concludes with some recommended
steps, which will help the Park Royal hotel to enhance the level of customer satisfaction in their
operation.

2ANALYSIS OF THE HOSPITALITY INDUSTRY
Table of Contents
Introduction......................................................................................................................................3
Company profile..........................................................................................................................4
Home – concept...............................................................................................................................4
Social approach of the hotel industries............................................................................................5
Economical approach of the hotel industry.....................................................................................5
Elements of home concept...............................................................................................................6
Food.............................................................................................................................................6
Service.........................................................................................................................................6
Accommodation...........................................................................................................................7
Entertaining activities..................................................................................................................7
Interiors and ambience.................................................................................................................8
Recommended steps........................................................................................................................8
Conclusion.....................................................................................................................................10
Reference.......................................................................................................................................11

3ANALYSIS OF THE HOSPITALITY INDUSTRY
Introduction
Contemporary business organizations initiate various innovative strategies in order to
attract more customers towards their services or products. This is due to the reason that, the
current business scenario is more competitive than it was a decade ago. Moreover, with the
recent boom in the hospitality and service sectors, strategies to enhance the customer satisfaction
are more being implemented by the service providers (Chen 2014). One of the most competitive
service sectors is the hotel industry. In the Australian scenario, huge numbers of players are
operating in the hotel industry catering to different sets of customers across different price
segments.
However, there are various opinions being provided by different authors and scholars
regarding the probable approach of the hospitality industry. On the other hand, with the change
in the business scenario, the core concept of the hospitality industry is also changing along with
the change in the perception of the customers (Kandampully, Zhang and Bilgihan 2015). The
basic rule being maintained by the contemporary players in the hospitality industry is the
providence of the top notch customer service in order to attract new customers and retain the
existing ones.
This report will discuss about the initiation of the “HOME” concept by the hoteliers in
the recent time along with finding the ways to initiate it. Moreover, this report will recommended
various ways for the Park Royal hotel, Australia in utilizing the home concept in their business
operation.

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Company profile
Park royal hotels are one of the leading hoteliers in the Asian and Australian regions with
having 15 hotels in different locations. They are also known for their effective and positive
customer services along with providing holistic experiences for their visitors
(Parkroyalhotels.com 2018). However, in the recent time, the popularity of the home concept in
the hotel business is encouraging them to find out ways to implement in their own business.
However, implementation of the home concept will require determination of different
approaches along with identifying different dimensions of the hotel business. Moreover, it is also
important to identify the different perspectives of the hospitality in order to find ways for home
concept.
Home – concept
As discussed earlier, business organizations in the current service industry is facing the
threat of increased competition in the market. Thus, it is important for them to initiate strategies
to enhance the customer satisfaction (Prud’homme and Raymond 2013). In the case of the hotel
industry, the more customers will feel the vive of their home, the more will be their satisfaction
for the particular hotel brand. Previously, the approach of the hotel industry is to provide the
accommodation for their visitors.
However, in the current business scenario, customers are expecting home like services
and feels during the hotel stay. In accordance to that, major hoteliers initiated the concept of the
home. With this approach, the primary consideration of them is not only to provide
accommodation but also providing added facilities in enhancing the value for their visitors
(Durna, Dedeoglu and Balikcioglu 2015). The marketing and service is being designed in such

5ANALYSIS OF THE HOSPITALITY INDUSTRY
way that, the customers will have the home like feelings during their hotel stay. In the current
business scenario, one of the major portions of the hotel visitors is the working professionals
who have to travel in different places. Thus, they feel more comfortable if they are being
provided homely feeing during their hotel stay. Thus, in accordance to this market trend and
requirement, major hoteliers designed their service offerings to create the homely feelings.
Social approach of the hotel industries
According to some of the authors, hotel industries can be considered as social approach
due to the reason that, hotel industry is being directly related to the hospitality. According to
these authors, the basic objective of the hotel industries is to provide accommodation to the
travelers, which can be termed as social cause. Moreover, the added facilities being provided by
the hotels in enhancing the user experience of the visitors can also be termed as social approach
(Benavides-Velasco, Quintana-Garcia and Marchante-Lara 2014).
However, this concept of social approach of the hotel industries is also being countered
by various critics. According to the various critics, quality of the hospitality is being determined
the prices being charged. Major hoteliers charge good sum of money from the visitors and thus,
their services cannot be considered as social (Niewiadomski 2014). According to the critics, the
key objective of the hotel businesses is to earn and maximize profits rather than just providing
accommodation to the visitors.
Economical approach of the hotel industry
Authors backing the concept that hotel industry is actually concentrating on the
maximization of the profits rather than just doing social service are having the opinion that, in

6ANALYSIS OF THE HOSPITALITY INDUSTRY
order to stay ahead in the competition, it is important for the contemporary hoteliers to initiate
the added services for their customers. Thus, the more homely environment can be provided and
offered by the hoteliers to their visitors, the more will be the rate of satisfaction of them, which
will in turn increase the retention ratio of the customers (Abbott, Mary and Meyer 2016).
Thus, it is important for the hoteliers to have both the social and economic considerations
in initiating the marketing strategy. This is the key reason behind the initiation of the home
concept. Initiation of the home concept will help them to enhance the social approach by
providing added services, along with meeting the economic criterion with maximizing the profit.
Elements of home concept
There are various ways being available for the Park Royal to initiate the home concept.
The following sections will discuss about the various available elements.
Food
The current generation of the global travelers is diverse in nature and is belonging from
different social backgrounds. Thus, in accordance to their difference in the social backgrounds
the food habit of them is also different in nature (Giritlioglu, Jones and Avcikurt 2014). Offering
of diverse cuisines and delicacies to the customers helps to cater to different social segments.
This will also lead to the fact that, customers from different social backgrounds will have their
ethnic food available. This will enhance their home feeling.
Service
Customization or personalization is one of the key strategies being implemented by the
contemporary service providers in offering services according to the requirement of the

7ANALYSIS OF THE HOSPITALITY INDUSTRY
individual customer. With the initiation of the personalization, the customer service is being
provided according to their culture and social background (Amin et al. 2013). For instance, if
Japanese visitors are being welcomed in the authentic Japanese manner with maintaining the
Japanese culture in providing the customer service, then the feelings of them will be more
positive (Torres and Kline 2013). They will feel like they are in their home. Thus, the customer
service should be made flexible enough in order to adapt according to different cultures.
Accommodation
As discussed earlier, one of the key objectives of the hotel industry is to provide
accommodation for their visitors. Thus, the extent of the homely feeling for the visitors is
depending on the ambience, amenities and the design of the room (Kim and Perdue 2013). It is
important for the hotels to the design the rooms, which will meet all the basic criteria of the
visitors. Determination of the basic facilities than the visitors expect from their hotel stay should
be met by the hoteliers (Masiero, Heo and Pan 2015). The more effective will be the fulfillment
of the basic facilities for the visitors, the more will be the homely feeling for them.
Entertaining activities
It is one of the prime responsibilities of the hotel industry to engage their visitors to as
much as possible during their hotel stay (Wei, Miao and Huang 2013). The more holistic will be
the entertainment for the visitors, the less they will feel alone during the hotel stay. The engaged
visitors will have homely feelings and will less get bored. Providing entertainment to the visitors
also helps to ensure the connectivity between the visitors and the hotels.

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Interiors and ambience
Majority of the services industries is thriving on the interior design and ambience.
Minimal features such as the color of the wall are also having influence on the perception of the
visitors. Thus, hoteliers should design their interiors in such a way that, it will create homely
atmosphere for the visitors (Radovic 2015). In the Australian market, there are various higher
end hotels, which are being perceived more as corporate offices rather than hotel. This will
reduce the level of satisfaction of the customers. The decoration in the lobby and other public
areas in the hotel create the homely environment for the visitors.
Recommended steps
Thus, from the above discussion, various elements of home concept are being discussed.
However, the approach of the implementation of these elements will be different in different
hotels. The following sections will discuss about the recommended steps to be followed by the
Park Royal in accordance to the social and economic perspective of their business operation.
 One of the key recommended steps to be implemented is the complementary services.
However, the complementary services should not be universal for all the visitors rather it
should be provided according to the social background of them. The complementary
services should be provided in accordance to the basic facilities expected by the different
customers. For instance, customers from the African regions should be provided
complementary services in accordance to basic elements of their culture. This will further
enhance the homely feeling for the visitors. On the other hand, one of the key factors to
be considered during the providence of the complementary facilities is the commercial

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aspect. The complementary services should be basic in true sense and should not involve
much cost for the hotels.
 In terms of the customer service, free internet should be provided to the customers. In the
current state of affairs, internet is one of the basic amenities for the visitors. Moreover,
providing of the free internet services will also enhance the customer engagement.
Having the internet facility will maintain the connectivity of the visitor with the outer
world. Thus, the customer engagement will be more.
 The Park Royal hotel is having customer loyalty programs for their existing customers.
However, it is being recommended that, loyalty program for the customers should be
provided in terms of the personalized services. For instance, the loyal customers can be
given the complementary service of ethnic dinner for single night. This will create
positive impression among the existing customers along with increasing the competitive
advantages of them.
 Relationship marketing is one of the key aspects to be maintained in the service sector.
This is due to the reason that, the effective relationship with the customers will determine
the level of the satisfaction and loyalty. In addition, the more effective will be the
relationship with the customers, the more will be the homely feeling for them. This is due
to the reason that, if the customers will have effective relationship with the hoteliers, their
requirements will be more efficiently met. This will in turn enhance the homely feeling
for the visitors.
 It is also being recommended for the Park Royal hotel, that they should design their
entertainment activities in more diverse manner. For instance, they can have a weekly
roster of having different cultural activities from around the world in each day. This will

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have dual benefits for them. One of the key benefits will be the homely feeling of the
visitors whose home culture is being portrayed. Another advantage will be the
engagement of the visitors from different cultures.
Conclusion
Thus, from the above discussion, it can be concluded that, home concept is one of the
most effective and popular strategies being initiated by the hoteliers. It helps them to enhance the
homely feeling of the visitors and implement the phenomenon of “a home away from home”.
This report discussed about the various elements of the home concept, which will help the hotels
to implement it in their operation. In addition, this report also discussed about the recommended
steps that should be implemented by Park Royal hotel in order to implement the home concept in
their business operation. Effective implementation of the recommended steps will not only
initiate the home concept, but also increase the level of the engagement of the visitors.

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Reference
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industry. Services Marketing Quarterly, 34(2), pp.115-125.
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management, corporate social responsibility and performance in the hotel industry. International
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Contemporary Hospitality Management, 27(7), pp.1728-1748.
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Management, 26(2), pp.183-204.
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