Methodology
Discuss about the Property Asset Management.
The property asset management is the system that monitors as well as maintain the things of value to a group (Mahmood, Dhakal, Wiewiora, Keast, and Brown, 2015). The property asset management is vital for the firm as it helps to keep track of all the assets, then manage the assets, and also they maintain the amortization rate to be accurate for the firm. This process also helps the firm to bring efficient operations and also remove the ghost assets (Chae, 2015). The assignment is regarding the organization that has 3 commercial building in the central area of Singapore. The primary issue that the business is facing in the market is that their occupancy rate is much lower than the market expectation. The project is to provide a solution for the improvement of the occupancy rate of the firm.
The method of standard operating procedure that is SOP is being utilized to analyze the situation of the company within the market. This process helps to understand the issues and also help to prepare the roadmap to overcome the issues. SOP is the policy, standard as well as the procedure that is required for the company to perform their operation. SOP is the guidance for the business to perform their service and also improve the occupancy rate within the market for the commercial buildings.
The primary strength of the commercial buildings is that they are in the central area of Singapore. The organization is also having the high brand recognition along with that they also have good employee retention. The organization is present in the area for almost half a century, and they are providing their best to the customers. The organization is also having the technical innovations that help them to improve their customer’s experiences along with that it supports the continuous up-gradation of the business process (Viglia, Minazzi, and Buhalis, 2016). The company is also having a good reputation within the market. The company has 3 commercial building in three central regions and they are Orchard, the Downtown core, and the River Valley. All the three position provide valuable customers to the hotel and resort with advanced technology and facilities within the market. These are all 5-star hotels that provide a luxurious service to the customers.
The primary weakness of the firm is that their occupancy rate does not meet the market expectation. The single hotel of the company has 275 rooms and out of which they provide 167 one night and for that their occupancy rate within the market is 60% within the market (Hung, Shang, and Wang, 2015). With this rate, they are unable to meet the expectation of the customers and their need in the market. In the three central area, the occupancy rate of the commercial building is 60%, 65%, and 66%. This is the primary reason that the organization is having a limited market share though they have a good brand recall. The operation of the commercial buildings in the three central area is affected heavily due to the local political parties and the customers of the local areas. The organization also face issue with the tourist due to their lower occupancy rate within the market.
Analysis: Strengths
The organization has the high potential within the emerging market. They are having 3 hotels in three different central location which provides compelling benefits for the firm to attract their customers and also increase their sales within the market. They have brought innovation in their customer services and even advanced technology to provide luxurious service to the customers (Oses, Gerrikagoitia, and Alzua, 2016). They have maintained all the three commercial buildings with highly advanced technology and provided digitalization for all the buildings. The business has also improved their interiors and provided better renovation for all the three buildings. In the way to develop their business with an effective strategy like increasing the room for the night to the customers and also provide a valuable discount deal to the customers to increase the occupancy rate.
The organization is facing massive competition within the market regarding the room rent and also the occupancy rate within the market. This is the biggest threat for the firm in Singapore to develop their business in the market. Due to the lower occupancy rate and high rent for the room the organization is also facing low growth rate within the market. The economic turbulence along with the political turbulence of the country create a problem for the business. The organization is also facing problem to meet the market need in the country.
The SWOT analysis provides the view that the organization has the potential to improve their market condition. Their major strength is that the three commercial buildings are located in three area of central Singapore. This is one of the most valuable things for the business to attract their customers. The organization also has the opportunity to involve various technology and strategy for increasing the occupancy rate of the firm. As the competition level is high the most suitable thing for the firm is to reduce their room rent or provide extra facilities like children play area, gaming zone within the hotel to maintain the sustainability of the firm. From the SWOT analysis, it is clear that the organization has a low market share which is also creating a huge impact on the business of the firm. The analysis provides the view that the business needs to be improved for the benefits of the firm and also it needs to attract the customers to maintain their position within the market.
The organization can improve their business and their occupancy rate within the business with the help of technology and service management system. ISO/IEC 20000-1:2011 is the service management standard that allows the hotel to maintain their service with proper planning, improvement in the service and also to deliver the best to the customers (Chen, Lin, Chi, and Wu, 2016). This will effectively improve the occupancy rate of the firm within the market. In the long run, the value-added service, as well as the creation of a special package to attract the guest and the customers, allow the firm to boost up their occupancy rate. The usage of a various discount deal for the customers along with the guest will also enable the firm to maintain their business within the market. The process of customer loyalty program also has the chance to increase their occupancy rate where they can build a stronger relationship with the old customers (Abrate, and Viglia, 2016). With the help of this program, the discount is provided to the frequent customers and sometimes the special discounts to the customers. The organization can quickly improve their occupancy rate by promoting the hotel to the local companies for their events (Chawla, 2014). They can also provide some quiz game in the social media where the lucky winner will get some voucher to stay at the hotel which is also applicable for increasing the occupancy rate.
Conclusion
The paper concludes that the organization in the recent time is facing problem in their occupancy rate in-spite of being in the most suitable position within the country. The paper also concludes the facts that the organization is facing huge competition within the market and also their market share is low. The best way to improve the occupancy rate along with the market share and maintain sustainability the organization needs to develop strategies like providing a discount, then customer loyalty program and also the implementation of ISO/IEC 20000-1:2011 within the business. The firm needs to promote their business to the local companies for attracting customers and to spread the brand awareness within the market.
References
Abrate, G. and Viglia, G., 2016. Strategic and tactical price decisions in hotel revenue management. Tourism Management, 55, pp.123-132.
Chae, M.J., 2015. Infrastructure asset management for different types of facilities using a normalized level of service. In Proceedings of the 7th World Congress on Engineering Asset Management (WCEAM 2012) (pp. 155-159). Springer, Cham.
Chawla, N., 2014, June. Online information monitoring for utilizing hotel occupancy rate analysis. In Evolving and Adaptive Intelligent Systems (EAIS), 2014 IEEE Conference on (pp. 1-5). IEEE.
Chen, C.M., Lin, Y.C., Chi, Y.P. and Wu, S.C., 2016. Do competitive strategy effects vary across hotel industry cycles?. International Journal of Hospitality Management, 54, pp.104-106.
Hung, W.T., Shang, J.K. and Wang, F.C., 2015. Exploring the Determinants of Hotel Occupancy Rate: A Dynamic Panel Data Approach. Abstract of Economic, Finance and Management Outlook, 3, pp.1-4.
Mahmood, M.N., Dhakal, S.P., Wiewiora, A., Keast, R. and Brown, K., 2015. Towards an integrated maturity model of asset management capabilities. In Proceedings of the 7th World Congress on Engineering Asset Management (WCEAM 2012) (pp. 431-441). Springer, Cham.
Oses, N., Gerrikagoitia, J.K. and Alzua, A., 2016. Modeling and prediction of a destination’s monthly average daily rate and occupancy rate based on hotel room prices offered online. Tourism Economics, 22(6), pp.1380-1403.
Viglia, G., Minazzi, R., and Buhalis, D., 2016. The influence of e-word-of-mouth on hotel occupancy rate. International Journal of Contemporary Hospitality Management, 28(9), pp.2035-2051.
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