Strategic Management: Hotel and Resort Leadership and Change Analysis

This report examines strategic management, change, and leadership within the hotel and resort industry, focusing on the competitive landscape and emerging trends. It analyzes the strategic approaches of Airbnb and Hotel Indigo, particularly in the context of sustainable tourism and the unique environments of Phillip Island and San Remo. The report explores the importance of strategic development processes, including macro and micro environmental analysis, objective setting, and implementation. It emphasizes the roles of innovation, transition cost economics, and agency theory in achieving competitive advantage. The study highlights the importance of adapting to market demands, managing stakeholders, and implementing effective strategies for long-term success in the dynamic hospitality sector. The study concludes with a call to adhere to the basic principles of strategic management. The report uses the following references: airbnb.com.au, forbes.com, Guttentag et al., 2018, Hill, C. W., Jones, G. R., & Schilling, M. A. (2014), ihgplc.com, Shogren, K. A., Wehmeyer, M. L., & Palmer, S. B. (2017), Steiber, A. (2018), tourisminvestment.com.au.

Running head: STRATEGY, CHANGE AND LEADERSHIP HOTEL AND RESORT
STRATEGY, CHANGE AND LEADERSHIP HOTEL AND RESORT MANAGEMENT
Name of the Student
Name of the University
Author Note

1
STRATEGY, CHANGE AND LEADERSHIP HOTEL AND RESORT
Hotel and resort management companies struggle to stay at the topmost position because of
increased complexity and uncertainty in the marketing business. The increased changes are due
to cutthroat competition, ever changing market demand, technological up gradations,
globalization, and shifting customer demands. Therefore, in this part of the study, two companies
namely Airbnb and Hotel Indigo, will be launched at Phillip Island and San Remo islands. As
both of these islands are situated in Victoria, and has become the main attraction center of
sustainable island tourism communities. Airbnb and Hotel Indigo always have many branches
scattered throughout Australia as according to the global sustainable tourism criteria Phillip
Island and San Remo will be able to create a new benchmark for sustainable business in hotel
and resort management as well as tourism businesses. Both the companies should open branches
in these islands to boost strategic growth and attract more consumers (Ayoubi, Mehrabanfar &
Banaitis, 2018).
Sustainable organizations mainly focus on creating value by producing quality products
and services that meet the demands of the market and customers. Therefore, implementing a
strategy is necessary for the company to acquire a competitive advantage. In short, strategic
management can be referred to as the company’s creation of sustainable value (forbes.com,
2020). In this context, the study will exemplify the values of a conceptual framework in the
strategic development of a company aligning to the present market demands and emerging trends
and patterns of hotel and resort management. According to research, the reports were submitted
in State of Australian cities conference in Perth, estimated that Airbnb utilizes 4 percent of
Australian housing stock (airbnb.com.au, 2020). Airbnb uses the value proposition and customer
business model, to attract customers. Although it is a community-based two-sided online
platform for booking personal living houses, they also provide room-booking services for

2
STRATEGY, CHANGE AND LEADERSHIP HOTEL AND RESORT
travelers. Airbnb also give provisions to house owners to provide advertisements on their online
platform attracting travelers providing ways earning good money.
Locating the Airbnb business in Phillip Island will help them attract more customers as this
region has become a top destination in Victoria, which attracts experience and nature lover
oriented travelers. Providing personal booking rooms in such a extravagant island will give
customers and travelers remarkable experience of their travelling which will eventually increase
the customer base of Airbnb as well as ensuring their loyalty.
Hotel indigo group have already a target opening for the market in Australia by the year
2020 in partnership with prime field property Private Limited. This can be a opportunistic
situation for hotel indigo open a plant in San Remo, as it is always a captivating scenic beauty,
filled up with small cafes and restaurants, using the regions fresh produce serious hotel indigo
strive in that target to open their food division in a much better way. San Remo Island provides a
family friendly atmosphere which will help then in attracting more customers. Airbnb and Hotel
Indigo, can easily capture the market in those islands, as there are minimal experienced
businesses which can act as potential threat to the companies.
However opening a new branch in a completely different place can be a challenging
factor for both the companies. Companies must modify the mission vision goals and objectives
as per the market trends and patterns aligning the strategic ways to obtain competitive advantage.
Therefore, both the companies must implement strategic development processes that include
various factors to be catered. The factors that both the companies should keep in mind is
analyzing the macro and micro environmental factors that they can face in the new market,
chalking out objectives, aligning strategies to objectives, implementation, evaluation, making
further adjustment to plans and strategies to fight forthcoming disadvantages.

3
STRATEGY, CHANGE AND LEADERSHIP HOTEL AND RESORT
According to Henry Mintzberg and Gary Hamel innovation is considered a core element
to make strategies effective for earning more competitive advantage in a hotel and resort
management business. Innovation as a strategy in attracting customers and acquiring competitive
advantage has become quite prevalent from 1990. A conceptual framework presented by
Guttentag et al., 2018)., Provides two basic attributes for strategic management, that is analyzing
the operations of internal processes, and understanding the micro and macro factors that can
affect the family. Two theories that can be best implemented by the company is Transition Cost
economics, and Agency theory. Transition cost economics is referred to the investment
difficulties that is related to market transactions; in this technique, the companies must adapt the
market trends and patterns, as a main economic governance structure. Agency theory is a
tremendously effective theory that must be applied by to maintain relationship with agents,
stakeholders. In hotel and resort management businesses, managing the stakeholders is important
to thrive through various challenges.
Airbnb specifically uses transformative innovation and the proliferation of their tourism
businesses. It has more about 100 million guests and users that uses their online accommodation
services. It has acquired service of 2 million global listings. Opening in islands like Philip island
will boost up their business.
In case of hotel indigo, they have adapted the product and service model to create value
based product and services for the customers (tourisminvestment.com.au, 2020). The most
effective theory that must be implemented in hotel indigo is disruptive innovation. This will help
the company to get new ideas while launching their food business among the other businesses.
The benefit the company will acquire, as there is ample resources available in San Remo Island,

4
STRATEGY, CHANGE AND LEADERSHIP HOTEL AND RESORT
which includes fruits and vegetables, this will provide fresh products to prepare food and
attracting more customers.
Therefore, to conclude both the companies must adhere to the basic principles of strategic
management, as it helps in analyzing the macro and micro environmental factor, providing
chances for the company to alter their goals and objectives. The strategic implementation will
provide an insight to the company about forthcoming issues, which will hamper the company
legacy and value proposition.
References
airbnb.com.au (2020). Retrieved 5 April 2020, from https://www.airbnb.com.au/
forbes.com (2020). What Does Strategy Really Mean?. Retrieved 5 April 2020, from
https://www.forbes.com/sites/jeroenkraaijenbrink/2019/06/04/what-does-strategy-really-
mean/#7bea37c462e2
Guttentag, D., Smith, S., Potwarka, L., & Havitz, M. (2018). Why tourists choose Airbnb: A
motivation-based segmentation study. Journal of Travel Research, 57(3), 342-359.
Hill, C. W., Jones, G. R., & Schilling, M. A. (2014). Strategic management: theory: an
integrated approach. Cengage Learning.
ihgplc.com (2020). Retrieved 5 April 2020, from
https://www.ihgplc.com/news-and-media/news-releases/2018/ihgs-newest-hotel-indigo-
to-bring-the-neighbourhood-story-of-adelaides-markets-to-life
Shogren, K. A., Wehmeyer, M. L., & Palmer, S. B. (2017). Causal agency theory.
In Development of self-determination through the life-course (pp. 55-67). Springer,
Dordrecht.

5
STRATEGY, CHANGE AND LEADERSHIP HOTEL AND RESORT
Steiber, A. (2018). A New Model for a New World: Why It’s Needed and What It Consists of.
In Management in the Digital Age (pp. 7-14). Springer, Cham.
tourisminvestment.com.au (2020). Retrieved 5 April 2020, from
https://www.tourisminvestment.com.au/en/research-insights/news/Hotel-Indigo-
Adelaide-Markets-Opening-in-2020.html