Paradise Hotel Business Plan: Second Year SWOT and Strategies

This report presents a business plan analysis for a hotel, focusing on the second year of operation. It begins with a SWOT analysis, identifying the hotel's strengths, weaknesses, opportunities, and threats. The report then outlines financial objectives, aiming for a 15% revenue increase and strategies to reduce staff turnover. Marketing objectives are also discussed, emphasizing promotional campaigns and targeted incentives. Strategies include room rate adjustments, employee training, and enhanced customer service. The report references various academic sources to support its analysis and recommendations, offering a comprehensive overview of the hotel's business plan and strategic initiatives for growth and improved performance. This report is a valuable resource for students studying business management and hotel operations, providing insights into strategic planning, financial management, and marketing strategies within the hospitality industry.

Running head: BUSINESS PLAN OF HOTEL
Business Plan of Hotel
Name of the Student
Name of the University
Author’s Note

Running head: BUSINESS PLAN OF HOTEL
3. 2nd Year of the Business Plan
In the hotel business plan, this second part of the report discusses the upcoming years,
which is prepared based on the first part of the data report. Therefore, the data report of the
business plan will be considered with the first part.
3.1 SWOT Analysis of the business plan
A SWOT analysis is the first stage of business planning and based on the analysis
marketers can focus on the key issues, which will be helpful in growing the business. Person,
place, product or industry can accomplish SWOT analysis. In this report, SWOT analysis is done
for the Hotel industry (Dogancili & Tarakçioğlu, 2017). It will identify the strength and
weakness, which are the internal factors involved with the plan. The Opportunities and the
Threats are the external factor of the business plan and both the factors used as a strategic
planning and parts of the process that are favorable or unfavorable in achieving the objectives.
SWOT or TOWS both is an acronym to analyze the Strength, the Weakness, the Opportunities
and the Threats (Kryvinska et al., 2014). Below are the points that show the SWOT analysis:
The Strength of the Hotel:
The high level of Staff Relation (Mohsin, Lengler & Aguzzoli, 2015)
 The better the team makes a decision the higher will be the profit. Better teamwork and
the employee performance help in increasing the revenue of the hotel.
 Excellent renovation of the interiors of the hotel is a guest attraction.
 The quality or the standard of the Hotel should be high as compared to the competitors
Hotel.
The Weakness of the Hotel:
 The occupancy has some target. Sometime the target could not be achieved.
 Even though the relation of the staff is high, still the turnover of the staff is higher
(Guilding, Lamminmaki & McManus 2014).
 The Debts are high and due to this reason, the hotel might have a possibility of running at
a loss. This considered to be as one of the biggest weaknesses of the hotel.
 The decision making of the hotel booking depends on the season.
The Opportunities for the Hotel:
 To make a strategic decision is a new concept by which the occupancy will be increased.
With the increase in occupancy, the revenue will automatically be increased (Lei & Lam,
2015).
 To make use of those potential that has not yet exploited.

Running head: BUSINESS PLAN OF HOTEL
 The business growth of the hotel is with the Tourism. The more the tourist visit the hotel
the better the growth will be there in tourism (Bianchi, Pike & Lings, 2014).
The Threats of the Hotel:
 Due to the increase in turnover of the staff, there is a shortage of the availability of staff.
 With increase in the business, the numbers of the competitors are also high.
3.2 Objectives
Below are the lists of objective, which have been taken by observing the data that are
present in the 1st year:
3.2.1. Financial Objective of the Hotel:
In the 1st year, it was observed that $3,872,831 was the total revenue of the hotel room
(Masiero, Heo & Pan 2015). In this revenue, the percentage of the occupancy was 71.92% and
that of the F&B was $1,924,324. At the same time, $175,063 was the revenue of the meeting hire
or the functions attend.
It is necessary the revenue be increased by 15% (Bontis, Janošević & Dženopoljac, 2015).
 Whenever there is a chance to take a contract, the rate of the contracts should be higher.
 It is always better to achieve the revenue target from the budget that has provided.
 The staff turnover should be reduced.
3.2.2. Marketing Objectives of the Hotel:
In the 2nd year, the Paradise Hotel provides the following marketing objectives:
 The higher the promotional campaign the better the marketing objective.
 Give more priority to the events that are followed.
 Give incentive to all the market that is targeted. Giving more incentives will attract this
market.
3.3 Strategies
Strategies are the new concept for the strategic management. For strategic planning, it is
better to determine the goal, complete the activities to achieve the goal and perform an action
with the available resources. It is better to recognize the strategic planning of an organization to
make it profitable (Bontis, Janošević & Dženopoljac, 2015). In this case, to fulfill the objectives
of the hotel, there should be some strategies to be followed so that the hotel can meet those
objectives. There are short-term and long-term strategies to achieve the financial and the
marketing objectives:

Running head: BUSINESS PLAN OF HOTEL
3.3.1 Financial Strategies of the Hotel:
To meet the financial objectives, the below marketing strategies have followed:
 To increase the revenue of the room, it is better to decide the rate of the room during the
season as more tourists will be coming and the department of the rooms must look into
the revenue that is targeted.
 A strategy has applied by the hotel to come up with a solution to the problem of staff
turnover. They decided to provide training to the employee and increase the wage
(Guilding, Lamminmaki & McManus 2014).
 An idea is set to the employee’s mind to meet the value of the money. This idea is met by
giving the guest a better service or quality service during the time they stay.
3.3.2. Marketing Strategies of the Hotel:
To meet the marketing objectives, marketing strategy have stated below:
 The promotional campaign has to be increased with the help of different local
newspaper and different site of social media.
 Keep follow up with the events that are present in that year so that promotional
campaign can be increased.
 A package should be created so that the targeted market can be attracted.
 Build a close relationship with the suppliers and the customers with their work, have
a better communication with the brand value, and effectively evaluate the guest’s
needs.
 Communicate through the promotional campaign to offer the guest with the unique
services.

Running head: BUSINESS PLAN OF HOTEL
References
Bianchi, C., Pike, S., & Lings, I. (2014). Investigating attitudes towards three South American
destinations in an emerging long haul market using a model of consumer-based brand
equity (CBBE). Tourism Management, 42, 215-223.
Bontis, N., Janošević, S., & Dženopoljac, V. (2015). Intellectual capital in Serbia’s hotel
industry. International Journal of Contemporary Hospitality Management, 27(6), 1365-
1384.
Dogancili, O. S., & Tarakçioğlu, S. (2017). A Study on Examining Turkey and Australia by
Swot Analysis in terms of Ecotourism. Journal of Tourism and Gastronomy Studies, 32,
42.
Guilding, C., Lamminmaki, D., & McManus, L. (2014). Staff turnover costs: In search of
accountability. International Journal of Hospitality Management, 36, 231-243.
Kryvinska, N., Bauer, C., Strauss, C., & Gregus, M. (2014). A SWOT Analysis of the Soft-
Computing Paradigms SOA/SoC/Cloud Combination (C-SOA) in Software
Development. In MCIS (p. 27).
Lei, W. S. C., & Lam, C. C. C. (2015). Determinants of hotel occupancy rate in a Chinese
gaming destination. Journal of Hospitality and Tourism Management, 22, 1-9.
Masiero, L., Heo, C. Y., & Pan, B. (2015). Determining guests’ willingness to pay for hotel room
attributes with a discrete choice model. International Journal of Hospitality
Management, 49, 117-124.
Mohsin, A., Lengler, J., & Aguzzoli, R. (2015). Staff turnover in hotels: Exploring the quadratic
and linear relationships. Tourism Management, 51, 35-48.