Key changes
Most of the business fail in today’s world in different aspects due to its irrelevant location. Either customers or end users are unable to physically locate them or the places where they are located are geographically unsuitable for the users to access. Therefore, it is of utmost importance that the enterprise buildings such as schools, offices, hotel etc., are built in strategic locations and also they comply with the different governmental guidelines at the same time (Berezina et al., 2016). The different market components should be carefully analyzed (Lloyd, Warhurst & Dutton, 2013) before construction such properties by taking into consideration the future expected outcomes from those lines of business.
In this report, the different aspects of a hotel called the transit hotel will be studied in details. The differ market conditions will be studied in details by carrying out SWOT analysis of the transit hotel (Suh, 2014). Different changes need to be incorporated within the working operations of the hotel, which will be understood in details, the cost factors wand the threats associated to the changes will also be explained in details in the following paragraphs. By the end of this report, the reader will be to clearly understand the role of the stakeholders as well as the financial aspect of implementing the changes within the hotel and improving its overall business outcomes.
Before understanding the key changes that need to be incorporated in the system first, it is important to understand the benefits and features that need to be incorporated within the 101 hotel. They are explained below in the following points:
- Business name: The hotel name is 101 Hotel.
- Location:The location is proposed to be just behind the last check in counter after the black of passport control.
- Target market: This hotel is meant for people someone who has a very long layover or delayed flights.
- Hours of operation: It is open 27*7.
- Type of licenses required: Commercial hotel license, Liquor license, Hotel, Tavern, and Small Bars Liquor License, License to Play Music in a Hotel, Pub, Tavern or Bar, Personal probity (short) form category 1 gaming licensees (hotels & taverns), Authorization to Keep Approved Gaming Machines, License to Operate a PostShop.
- Competitive advantage: The competitive advantage can be achieved by incorporating certain features within the 101 hotel. The hotel proposes to offer small deluxe cabins that shall have smart technology and will be exclusively available for the first class airline travelers. It shall be open 24*7 (“What Does It Mean to Stay at an “Airport Hotel”?”, 2018) and the traveler shall have access to the hotel at any given time unlike other hotels that might not be open at lite nights(“Sydney Airport Accommodation | Rydges Sydney Airport Hotel”, 2018). This can be one of the most important success factor and a reason behind the competitive advantage of the 101 hotel.
- Management / competent employee skill set requirements: The managers at the hotel as well as the staff should be well trained and extremely friendly and courteous towards the travelers who travel for long distances before checking into the hotel. The hotel should look forward to appoint only highly experienced professionals from the hospitality industry (Boella & Goss-Turner, 2013). Having prior experience of working in tourism industry as well as experience in handling different kinds of customers can be an added advantage for the efficient management of the 101 hotel.
- Innovative Venue layout and design implications: The venue for constructing the hotel is in the airport.
In order to understand the changes and the features even better that need to be incorporated in the 101 hotel the external as well as internal analysis of the 101 hotel needs to be carried out. The SWOT and PEST analysis are done below:
- The hotel is proposed to be constructed right in the airport so that is will be extremely easy and convenient for the traveler to instantly book the suites in case of transits during their journeys or long flights (Kaynak & Kucukemiroglu, 2015). They do not have to search for hotels for long times and can save a lot of their time and energy since the hotel is available in a strategic location for the passengers.
- They get premium services from the hotel staff since they are the first class airlines travelers, which is even respected by the 101 hotel managers, and staff since the hotel itself is in the airport. The travelers cannot expect to receive such a treatment from other hotels outside.
- The hotel has only 101 rooms, which is good enough for off seasons. However, in peak seasons the hotel might face difficulty (Zervas, Proserpio & Byers, 2017) in accommodating large number of travelers.
- The hotel has the same kinds of rooftop bars and restaurants as is present in other hotels. This can be a reason for companies and dissatisfaction for the passengers.
- The 101 hotel can look forward to design and plan the architecture of the hotel as such to increase the number of rooms in the hotel. It can also look forward to coming up with a more advanced system of communication (Hasan, Hossain & Niyato, 2013) of important information to the passengers in transit.
- More innovative bars with more varieties of food as well as drinks should be introduced in the roof top bars and restaurants in order to ensure that the travelers coming from different parts of the world (Devesa & Peñalver, 2013) with different food habits find no issues in selecting from the vast range of dishes in the restaurant.
- Stiff competition from other hotels in and around the airport.
The 101-hotel owner has given different constructive feedbacks regarding the success of the hotel based on the features that the hotels aims to have. The owner advised that since airport is a place, which remain busy 24/7, it would be extremely beneficial for the travelers who travel for long distances to have a best in class premium hotel immediately after they enter the airport (Peiró-Signes et al., 2015). This will just not eliminate their need to go about searching for hotels after long tiresome flights but also at the am time ensure improved customer satisfaction. The owner also pointed out that additionally it can be an extremely efficient added source of income for the airport too (Su, Hall & Ozanne, 2013). He pointed out the construction of the airport to be a “strategic move”. He also explained the importance of having class apart multi cuisine restaurants and roof top bars in order to win the customers trust and preference since travelers with different food habits and preferences will turn up in the hotel.
The stakeholders who are associated to the construction of the 101 hotel are the third party raw material suppliers who are also associated to construction works in other part of the airport in different kinds of repairs all-round the year. The different airline companies are also the stakeholders and according to their advice, even during off season’s business travelers still keep travelling and there is no season for corporate travelling. The airlines have claimed that most of their travelers especially in the off seasons are corporate travelers and businesspersons who travel to different places to attend business meetings and international conferences and they are mostly first class travelers. They have also advised that having a best in class in house hotel within the airport premises can be a major advantage for such corporate travelers how do not have much time in their hand to go about searching for hotels during their short business trips. They suggested that most of the people are international travelers and their immediate tasks after boarding off from the planes is heading towards to passport control room to get their travel verified. Therefore the owner as well as the other stakeholders including the airline managers suggested to construct the 1010 hotel near the last check-in counter juts by the side of the passport control room so that it is easily visible as well as accessible for the travelers.
SWOT analysis
The concept of the airport hotel is very much good in the sense of both relevancy and the feasibility in the marketplace. The concept of the airport hotel is relevant in the sense that it is a very good place for the meeting of the travelers of various locations. As this hotel is located in the airport it is very much easy for the travelers to arrange the a meeting in a tight schedule of them as they do not need to go outside of the airport premises which will take valuable time of them (Ashford, Coutu & Beasley, 2013). Another reason for its relevancy is the brand familiarity of the hotel. As this hotel is developed in the area of airport it generally tends to be more costly than the other hotels of same reputation. Though it is more costly, this hotel is in very much convenient place for the travelers and the travelers will not hesitate to pay some extra for a convenient place for them. As the hotel 101 is on the airport premises the travelers will get some extra time for their personal before the flight departs. This extra times are extremely valuable for the travelers. Thus the hotel 101 is fulfilling its organizational goals by providing convenient services to the travelers and by generating enough profit from a limited customer access.
While conducting the feasibility study of the hotel it is assessed that this 101 airport hotel is very good solution for the travelers. This hotel remains open 24*7 for the travelers as the airports stays always operative. Many flights does not goes directly to the destination point from the departure point. Instead of that, this flights uses via route in which there are one or more than one airports. In such of the cases the travelers can take rest in this intermediary airport hotels like the hotel 101. Also, in many cases the flight delays, rescheduled and take emergency landings. In those cases the airport hotels are very much effective as this provides an easy shelter to the travelers which is also convenient for them (“What Are the Benefits of Using an Airport Hotel – Essential Travel”, 2018). Though the airport hotels are costly than the other hotels, still it is saving a large amount of transportation cost. Taxies can be costly in many cities. From this perspective the effective cost for bearing both the hotels are almost similar. In this sense, travelers will opt to choose the airport hotels like the hotel 101 over the others (“Anon”, 2018). One main problem with this airport hotels is that it is totally useless for the travelers other than the flights. Standard travelers cannot enter in the airport for using its facilities. Also, this are costly than the other same category hotels. So the business area of the hotel 101 is limited within the passengers of the flights. Another problems that the airport hotels faces is the noise issues. It is known to all that how much noise is generated from those massive airplane engines. Even the best soundproof rooms cannot resist the noise of those engines (McSherry, 2018). Situation can be worst for the hotel 101 as the Sydney airport is one of the busiest airport. For this reason many travelers may not opt to stay on this type of airport hotels.
Conclusion:
From the above discussion it can be concluded that the concept of the hotel 101 is totally justified from the business prospective. This type of transit hotels are extremely helpful for the travelers with busy schedules. Basically, this type of airport hotels costs some extra when compared to another hotel of same category of it but it provides several of advantages to the travelers which also same for the hotel 101. This advantages are assessed from the SWOT analysis which has been done in this paper. From the SWOT analysis it has been also learned that the hotel 101 has various disadvantage also. The main disadvantage of this hotel is that the business of this hotel is limited in specific type of consumers. Still this type of airport hotel is capable to generate enough profit from this limited business domain which are sufficient for running the business properly. So, from the organizational goal view the concept of the hotel is absolutely correct without any major issues.
References:
Anon. (2018). Retrieved from https://www.bisnow.com/chicago/news/hotel/the-continued-allure-of-airport-hotel-markets-54774
Ashford, N., Coutu, P., & Beasley, J. (2013). Airport operations.
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Zervas, G., Proserpio, D., & Byers, J. W. (2017). The rise of the sharing economy: Estimating the impact of Airbnb on the hotel industry. Journal of Marketing Research, 54(5), 687-705.
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