Analysis of Hayman Resort: International Resort Management Issues

This report provides an in-depth analysis of international resort management, using Hayman Resort as a case study. It begins by defining international resorts and identifying key drivers in the leisure sector's expansion. The report then delves into the managerial challenges faced by Hayman Resort, including employee retention issues, competition, service quality concerns, and the impact of rising energy costs. The analysis highlights the importance of understanding customer needs, adapting to market changes, and developing strategies to maintain a competitive edge. The report emphasizes the need for effective workforce management, innovative service offerings, and sustainable practices to ensure the resort's long-term success. It covers various aspects of resort operations, from customer service to marketing and environmental considerations, offering insights into the complexities of managing a successful international resort in a competitive environment. Finally, the report offers some recommendations to address the challenges faced by the resort.

International Resort
Management
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TABLE OF CONTENTS
Introduction......................................................................................................................................3
Lo1 Nature of international resorts and key driving shapers.......................................................3
Lo2 Key managerial issues faced by international resort ...........................................................5
Recommendation...........................................................................................................................10
Conclusion.....................................................................................................................................12
References......................................................................................................................................13
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INTRODUCTION
In the present scenario, need and demand of international resorts is increasing with the
rise in number of tourist. Further it can be stated that management of resorts is one of the
important and most complicated task for managers (Ransley and Ingram, 2012). They are
required to deal with various kind of functions such as dealing with customers, providing them
with facilities such as accommodation and food, making arrangements for their travel etc.
Nowadays, travellers are available with various kind of international resorts such as beach
resorts, jungle resorts, island resorts etc. Mangers of these businesses are required to understand
need and demand of international travellers in order to satisfy them (Wood and Brotherton,
2008). The leisure sector can be considered as one of the most potential and growing sector. The
present report is based on Hayman resort which is an international resort located in northernmost
point of Australia Whitsunday archipelago. The main purpose of beach is provide the best range
of products and services to all visitors. This report explains the nature of international resorts and
key drivers shaping the expansion of leisure sector. Along with this, the report also covers key
management issues related to Hayman resort. The resort operates at international level and it is
providing wide range of services to its customers. It has not become difficult for the resort to
retain its employees and attract adequate number of customers. Various recommendations are
provided in this report using which the management can overcome from all issues and
challenges.
Lo1 Nature of international resorts and key driving shapers
International resorts can be defined as a chain of resorts which carry out its operations in
more than one country. Further, these are the businesses which provides travellers with wide
range of services such as food, accommodation, massage, beverages, spa, games etc. At the time
of providing services, international resorts are also required to take care of cultural values and
belief of its visitors (Wood and Brotherton, 2008). It can be also stated that the objective behind
using the services of international resorts is to have fun and relaxation. People in resorts
generally stay for much longer time period as compared to their stay in hotels. In addition to this,
variety of food is offered by international resorts which is merely based on the taste and
preferences of visitors.
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Hayman island resort is one of the most popular and renowned international resorts in the
entire world. It has also gained reputation of being Australia's best honeymoon destination and
foremost place for leisure (About us, 2016). Along with all these, it has also gained international
recognition for being the best international resort. Wide range of amenities are provided by
Hayman island resort to all its guest and visitor. Further, they are being provided with the chance
to explore Greet Barrier Reef from both above and below. Guest are being offered with services
such as diving, helicopter, fishing adventures etc. All these things help in attracting people from
different locations of the world. They also get amazed by using and experiencing all these
services. In addition to this, services such as one and only Hayman spa is also offered and
provided to customers (Tutenges, 2012). The resort has also developed skin messages and facial
especially for men. People usually visit Hayman island resort with the motive to stay for more
than 4 to 5 days. Therefore, facilities related to fitness and well being are also provided by the
resort. These all factors contributes in achieving high degree of customer satisfaction and loyalty.
Hayman island resort is developed on area of more than 726 acres.
The island is completely surrounded by lush green tropical garden which amaze all the
visitors. It has also developed various kinds of botanical gardens that currently consists of 550
different species and variety of plants (One and only Hayman Island, 2016). There are only few
international resorts in the entire world which are providing visitors and travellers with such kind
of experience what Hayman island resort is offering. On the other side, people are provided with
facilities such as beach vila with a separate pool inside the room only (Stringam, 2008). These
rooms are located on beach-front and they offer amazing view of the entire coral sea. Another
interesting fact is that a private butler is also offered along with welcome amenity and gift on
departure. Hayman beach resort promote its products and services with the help of both online
and offline platform. The organization has developed its official page from where it provides
customers with all the required information. This includes information related to products and
services offered, contact number, unique services, types of food and accommodation facilities
etc. Along with this, advertisement and promotion is carried out on social media sites such as
Facebook and twitter (Ransley and Ingram, 2012). All the products and services provided by
Hayman beach resort are on the basis of need and demand of people in market. Rather than
focusing only on accommodation and food, the international resort try to provide relaxation and
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recreation to all its customers. This means along with the services of hotel, Hayman beach resort
also offers various kind of recreational to its guest. The main attraction which is provided by the
resort is beach and different types of activities offered to customers (Prideaux, 2009). All the
above stated factors has contributed in the growth and development of Hayman beach resort.
High degree of customer satisfaction has become very important for the success of an
international resort. Various tools and techniques are being used by businesses to satisfy the need
and demand of guest in the best possible manner. Manager of Hayman beach resort is also
required to carry out effective planning and management of the entire resort. Further, manager
needs to define its target market and develop strategies to attract people from the same
(Pickering, Castley and Burtt, 2010). The target market of Hayman beach resort includes
individuals which belong to age group of above 25 years. All the marketing activities and
strategies are developed in order to target these people's. At the time of operating in international
environment, the resort is required to focus on environment and social aspect. Hayman beach
resort respects local culture and also try to lower down the negative impact of its operations on
environment. More and more emphasis has been provided to safety and security of all guests.
Lo2 Key managerial issues faced by international resort
At the time of operation with an international resorts, managers face lots of issues and
challenges. Furthermore, they are required to overcome those challenges to sustain in long run.
As per the view of Noone, McGuire and Rohlfs, (2011) at the time of offering services, the need
to identify need and demand of customers. On the basis of those identified needs, best services
are required to be provided to all the guest (Noone, McGuire and Rohlfs, 2011). It can be also
explained that taste and preferences of people in market changes with a great speed. Now the
issues is that the resort is required to make modifications in existing plan or services on the basis
of those changes. Therefore, changes at frequent intervals are required to satisfy the need and
demand of guest. On the other hand Neck and Manz, (2010) argued that Hayman beach resort is
also facing issues which are associated with employees. Nowadays, it has become almost very
difficult for the resort to hire skilled and more productive workforce (Neck and Manz, 2010).
The entire leisure sector is facing the problem related to shortage of workers and high rate of
employee turnover.
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Nadiri and Tanova, (2010) has explained that low pay and inadequate work timings are
the main reason behind high rate of employee turnover. It has become very difficult for Hayman
beach resort to retain its existing workforce and higher new employees. In addition to this,
workers in this sector are considered as most valuable assets because they are the one which are
in direct touch with resort's guest (Nadiri and Tanova, 2010). Skilled and knowledgeable people
are not available in market and theretofore the organization is required to invest huge amount of
human and financial resources in providing training to existing ones. This has increased the
overall cost and emerged as another big issue the management of Hayman beach resort.
Changing labour market has become one of the major challenge which has been faced by the
international resorts (Namkung and Jang, 2008). Union issues and shrinking labour forces has
made its very difficult for the management of Hayman beach resort to operate smoothly and
effectively. Slow rate of population growth, changing demographics etc. are considered as some
reason behind the same.
Another key managerial issues which has been faced by Hayman beach resort is related
to competition. As per the view of Meng and Uysal (2008) along with high growth rate, the
entire leisure sector is facing high degree of competition. There are various kind of large and
small resorts which offers variety of services to customers (Meng and Uysal 2008). Being an
international resort, Hayman is required to attract adequate number of people all throughout the
year. Furthermore, if it becomes unable in doing so than the resort wont be able to survive in
long run. Attracting customer in high degree of competition has become very challenging for the
management of Hayman. The resort is also required to offer unique and creative services to all
its customers which is not an easy task to perform. However, Maskus, Neumann and Seidel,
(2012) argued that There are two common ways of getting competitive advantage over other
market players. The first one is by lowering down the cost and offering services at low prices
(Maskus, Neumann and Seidel, 2012). On the other hand, it can use the strategy of product or
service differentiation where it can offer customers with services which no other market player is
offering. These two strategies encourages people in market to use services of one particular
organization over others. Now the issues with management is that it is not able to find out the
ways to reduce cost or provide innovative services. Hayman beach resort management
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encourages its employees to provide their views and suggestions but this has also not provided
with desired results.
Service quality is the key and most important aspect for businesses such as Hayman
beach resort. Has asserted that Litvin, Goldsmith and Pan, (2008) at the time of buying services
of the resorts, customers or guest wants that fast, accurate, satisfactory and quality services are
being delivered to them. This creates satisfaction among the service users and also encourages
them to use the services for the next time (Litvin, Goldsmith and Pan, 2008). Now the problem
with management is that it is not able to maintain the quality of services without effective
workforce. Along with this, rising cost of energy on consumer travel and demand of Hayman
beach resort has also become issue for the management of resort. The resort has observed a
drastic fall in sales and number of customers due to increasing cost of energy. Nowadays, people
are required to pay more amount of money in order to use the services offered by Hayman beach
resort. This has resulted in drop in entire demand of services, sales and profitability of the
organization.
Furthermore, increasing cost of energy has also forces the resort to become more creative
or conservative to save energy (Lin and Juan, 2010). Hayman beach resort has been also forced
to offer those services which are green and sustainable. As per the view of Gössling, Hall and
Weaver, (2009) government and other regulatory bodies have developed various kinds of laws
and regulations. According to these regulations, Hayman beach resort is required to lower down
negative impact of its practises and operations in on environment. Going green has emerged as
latest and one of the most important issues in front of the management of Hayman beach resort.
Now the resort is required to make changes in its existing plans, strategies and process to stay
competitive in market (Gössling, Hall and Weaver, 2009). This will result in increasing cost and
efforts of the entire organisation.
Now Hayman beach resort wants a management which can respond back quickly to
changing customer taste and preferences, technological issues, competition along with challenges
related to safety and security of resort's guest and employees. It can be also explained that the
relation between staff members and customers has become more complex. According to Gill,
and Williams, (2011) Nowadays customers are well educated and have sufficient information
related to the place where they are going to stay. They want hotel staff to have adequate
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knowledge about all the products and services which are being offered by Hayman beach resort.
This means employees are required to be provided with more sessions related to training and
development (Gill and Williams, 2011). The resort carry out training sessions but not frequently
as it creates dissatisfaction among workers and they also start feeling bored and exhausted. It can
be also stated that continuous training can lower down the morale and motivations level of all
staff member of Hayman beach resort.
The management of resort is also facing problems related to offering of its products and
services. It can be also stated that now the time has changed which means resorts cannot survive
only on the basis providing services such as food and accommodation. They are required to offer
wide range of unique and innovative services to achieve high degree of satisfaction among all its
guest. Hayman beach resort is required to carry out intensive market research in order top
understand the need and demand of people in market. Along with this, customers surveys are
also carried regarding the same. On the basis of these surveys and research, the resorts is
required to make modifications or changes in its services. Other than this, it can be also
explained that the market of international resorts can feel pressure because of contracting
economies (Bellou and Andronikidis, 2009). During situations such as global recession, Hayman
beach resort is required to lower down its cost which is issues for management. This means that
the organization is required to focus on the improving its efficiencies and use effective processes
to lower down the cost. There are various issues related to operations and development which are
required to be taken care by Hayman beach resort. Ineffective decision making has also emerged
as one of the major challenge for management of resort. The decisions related to growth and
expansion has negatively affected the entire profitability of the business. It can be stated that
being an international resort, Hayman is required to take various kind of decision related to its
products, services, human resources, finances etc. Effective decision help the business to get
desired and best possible outcomes.
On the other hand, ineffective decision making results in creating problem for the entire
organization. Hayman beach resort is not able to decided ways through which it can retain its
workers and attract more customers. In addition to this, lack of strategic plans is another
operational issues which has been faced by management of Hayman beach resort. According to
Brida and Zapata, (2009) in present scenario, strategic planning has become very important and
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critical for every businesses. The reason why such kind of plans are essential is that they are
based on vision, mission and strategic thinking of a business enterprise (Brida and Zapata, 2009).
Objective behind carrying out such planning is to determine where the organization wants to go
in the future.
Hayman beach resort, lacks strategic plan which can provide the beach with proper
directions. In order to achieve higher sales and profits in long run, every business requires to
have specific directions related to its functional areas such as marketing, finance, human
resources etc. Strategic plans also take care and guide other plans developed by an organization.
Hayman beach resort is lacks strategic planning and it has resulted in rise of various
consequences. The resort is not able to gain competitive advantage over other market players due
to lack of strategic plan. In addition to this, it is also finding it difficult to prioritise all its
financial need and requirements. Another issues which has been faced by Hayman beach resort's
management is related to communication. It can be stated that process of communication is not
effective. The resort is not able to communicate its vision, mission, goals and objectives to all its
staff members. This has resulted in lowering down the entire performance and productivity of the
international resort. As per the view of Biqing and et.al., (2011) the success of an organization
also depends on the kind of communication process it has implemented. Even if the vision and
mission of Hayman beach resort is clear, it is not able to have proper direction due of lack of
communication. It has not able to utilize various kind of benefits associated with having effective
process of communication within workplace (Biqing and et.al., 2011). Issues and conflicts
between staff members occurs at regular intervals. This results in development of negative
environment in the entire workplace. Along with this, it also results in lowering down the
productivity and efficiency level of employees. Management of Hayman beach resorts required
to develop suitable plans to overcome this problem. Employees of the organizations do not feel
comfortable in providing their suggestions, share ideas and complains with management.
The chain of command is also very long and poor in context of Hayman beach resort.
This is another managerial issues which the organization is facing and it is related to operations.
Nowadays, chain of command has become essential for every business enterprise irrespective of
its size and nature. In simpler terms, chain of command can be explained as line of authority
which performs the function of delegating orders and responsibility (Chadee and Raman, 2009).
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Long chain of command has resulted in making the entire process of decision making very slow.
The flow of information passes from various layers and then it ultimately researches to the final
decision maker. Further, slow decision making has also provided the international resort with
slow decision making. All the staff members which are working in lower level management
takes very low or limited initiatives. Long and poor chain of command has provided lower level
workers with less authority and responsibility (Agarwal, 2012). People working at this level are
always required to take prior permission from top level of Hayman beach resort before doing any
work. The results of this is that employees do not initiate and also lacks creativity.
On the other side of this, has argued that Brida and Zapata, (2009) the resort is also
facing issues related to development which includes lack of planning and market knowledge.
Planning has become very crucial aspect of international resorts in order to achieve long term
growth. Hayman beach resort is now facing difficulties in managing and utilization of all its
human technological and financial resources (Brida, and Zapata, 2009). The issues related to
development has created barriers in long term growth and success of the resort. Along with this,
it has also made negative impact on the operations and activities of Hayman beach resort. The
management of resort is required to overcome all these issues and challenges as early as possible.
Further, effective strategies need to be developed so that it can satisfy all customers as well as
employees. In addition to this, a well managed resort will provide Hayman beach resort with
opportunities to gain competitive advantage over other international resorts. In order to make
business successful, the management needs to develop smart goals and objectives. Further, these
goals should be communicated clearly and effective to all the staff members.
RECOMMENDATION
In order to overcome from all the managerial issues which has been faced by Hayman
beach resort some recommendations are provided below as:
 Empowering staff members- It can be recommended that Hayman beach resort is
required to empower all its staff member in order to deal with managerial issues related.
The issues are mostly related to areas such as operations and development which needs to
be taken care. Empowering workers will help the international resort to motivate workers
and also increase their morale. It is also going to support Hayman beach resort in
lowering down its rate of employee turnover. Providing staff members with adequate
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amount of authority and responsibility will make them feel satisfied and they will be also
able to deliver best services to guests of resorts.
 Market research- It can be also recommended that Hayman beach resort can form a team
of workers which will supports in carrying out market research. Customer survey and
market research at regular intervals will help in identifying changing need and demand of
people in market. Furthermore, the resort will also able to respond quickly to meet those
needs. Hayman beach resort will get competitive advantage over other market players
with the help of this.
 Expansion of top management- It can be also recommended that Hayman beach resort
should expand its top level management. From the above report, it has been observed that
resort is facing issues such as effective decision making and strategic plans. Therefore,
hiring experienced personnels which are capable of developing action plans and taking
decision will result in overcoming the above stated issues. This will also help Hayman
beach resort in getting competitive advantage over other market players.
 Improving chain of command- It is also recommended that Hayman beach resort needs to
improve and shorten its chain of command. This will also result in encouraging staff
members of the international resort to take initiatives. It means that they will come
forward to put their views and suggestions which can benefit the resort.
 Use of advanced technology- It can be recommended that Hayman beach resort can make
use of high end technology in order lower the overall cost of opetations. For instance,
with the help of using electrical dishwasher for cleaning the dishes and utensils it an
effective option that would reduces the manpower in the cleaning department.
 Developing process of communication- Hayman beach resort is required to develop
effective process of communication. This will help in developing better relation among
staff members and management. Further, the employees will be also become clear about
the vision, mission and objectives of Hayman beach resort. This will improve
coordination among all employees and will result in enhancing their performance.
 Rewards and recognition- In order to deal with issues related to employee dissatisfaction
and turnover, it is recommended that the resorts needs to adopt practise of rewards and
recognition. The management needs to make sure that it recognise efforts and
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contribution made by workers. Further, it is suggested that monetary and non-monetary
rewards should be provided to developed sense of satisfaction among them.
It can be stated that all these recommendations will support the management of Hayman
beach resort to overcome from major issues and operate smoothly.
CONCLUSION
From the above study, it can be concluded that Hayman beach resort is one of famous
international resort all across the world. Furthermore, it always takes care of the need and
demand of its guests and then provide services on the basis of the same. It can be also concluded
that variety of services are being offered by Hayman beach resort to all its customers. One of the
main motive of people behind using services of resort is to have fun and relaxation. Therefore,
services are provided on the basis of the above stated motive only. Along with this it can be also
concluded that there are various kind of managerial issues related to operations and development
which Hayman beach resort is currently facing. The resort is required to overcome these issues in
order to survive in long run and attract customers. It can be also concluded that the above
mentioned recommendations will help Hayman beach resort to deal with challenges it is facing.
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