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ENGLISH 2 & EPC Presentation
3-Star Hotel
Group Members(From left to right): Nabila, Nadhirah, Nur Azreen, Wong Qin Kai, Mr.Frankie(Hotel Manager), Lau Mao Hua(Group Leader), Chin Khang Wei, Lim Ting Lee, Lee Jia Kiam
HOTEL INDUSTRY
Introduction Hospitality -
M.Boulanger (French Chef)➢ Father of modern hospitality
during French Revolution
Hospice (French word)
= provide weary and taking good care for travellers
Early culture of hospitality- Evolved in Greek in the 40th BC.- Symbol of social and religious purposes
After World War 2- Travelling began to be a trend among the civilization- Hotel industry bloom around the world.
- Temporary house for travellers- Can be found everywhere in any region, area, town,
city- Classified into different categories (budget & star
rating)- Pricing may differ depends on rating, season, location,
services and facilities
Hotel
Hotel Industry in Malaysia
- Practiced monopolistic competition
- Experienced an encouraging growth rate since 1994
- Tourism become more popular since Visit Malaysia Year introduced.
Hotel Selected
BRIEF BIO OF THE BUSINESS
Hotel Continental, Penang
Penang Road, Penang
Founded: 1969 by Loh’s Family
Brief Bio:Hotel Continental
Motive: Strategic locationNo. of employees: 80 peopleCapacity:- i)Peak season: Fully occupied ii)Off-peak season: 60%-70%
Accommodation
Superior room Deluxe room
Super deluxe room Executive suite
Facilities
Coffee house Conference room
Swimming pool Laundry service
Car park area
Recent Development
- Classified as a 3-star hotel by Malaysian Association of Hotels (MAH)
- Coffee House qualified as a halal restaurant- Upgrade standard room to superior room- Upgrade the amenities inside the room (LCD
television, minibar, in-room movie channels)
The 5 Elements Hotel, KL
Chinatown, KL
Founded: 1973 by Malaysian Chinese Businessman
Brief Bio:The 5 Elements Hotel
Motive: Property Development
No. of employees: 30 peopleCapacity:- i)Peak season: 60%-70% ii)Off-peak season: 30%
2008: taken by new management
Accommodation
Standard Single Superior Twin
Deluxe Queen
Metal Suite Water Suite
Earth Suite Fire Suite
Wood Suite
Themed Suite
Facilities
Restaurant
24 Hours Reception Services
Waiting Area
Free Wi-Fi
Recent Development
- Last renovation: 2013- Upgrade hotel’s facilities and amenities
- Modern marketing(online)-Agoda, official website
COMPARATIVE ANALYSIS
COMPARATIVE ANALYSIS
Hotel Continental, Penang
3 main competitors:
● Hotel Malaysia● Cititel Hotel● Bayview Hotel
Competitors- 250 to 300
competitors
Bayview Hotel
- 4-Star Hotel - 333 rooms (standard
rooms, superior rooms, deluxe & grand deluxe rooms, family rooms, junior suites and premier floor rooms.
Hotel Malaysia
- 2-Star Hotel- 126 rooms
(standard rooms, superior rooms and deluxe rooms.
Cititel Hotel - 4-Star Hotel- 451 rooms
(standard rooms, superior rooms, deluxe rooms and executive suites)
Strategy Used
Provides good services Better in-room facilities
Promotion via online from hotel’s website
Receive suggestion and recommendation from the customers
Challenges
- Too many potential competitors
- Fierce competition
- Risk taker
- Need to conduct market survey to fulfill market needs
Nature of Business
- Large number of competitors
- Weak barriers to entry
- Weak pricing power- Fierce Competition in term of pricing, advertising,
services provided
Monopolistic competition
The 5 Elements Hotel, KL
COMPARATIVE ANALYSIS
Competitors
3 main competitors:● Geo Hotel● Swiss Inn Hotel● Ancasa Hotel
- Around 200 competitors
Geo Hotel - 3-Star Hotel
- 180 rooms (standard rooms, deluxe rooms, family rooms & premier suites)
Swiss Inn Hotel - 3-Star Hotel
- Operating under Swiss-Garden International
- 151 rooms (superior rooms, deluxe rooms & family rooms)
Ancasa Hotel- 3-Star Hotel
- 294 rooms (standard rooms, superior rooms, deluxe rooms, family suites, junior suites and Ancasa floor rooms)
- Provide spa services
Strategy Used- Online
Promotion: buy 3 free 1 night
- Early bird promotion
- Promotion on flexible date(June)
- Provide good service
Challenges
- Too many potential competitors
- Risk taker (may not generate profit)
- Small market (suppliers more, demand less)
- Number of tourists drop rapidly
Nature of Business
- Large number of competitors- Weak barriers to entry- Weak pricing power- Sell differentiated products (themed suite)- Constantly advertising in the market
Monopolistic competition
SIMILARITIES
SIMILARITIES- Classified as 3-Star Hotel
- Same rating on TripAdvisor
- Only have one branch which is the headquarter office
SIMILARITIES- Monopolistic competitive firm
- Weak pricing power-cannot set the price as they like
- Only have one branch which is the headquarter office- Facing strong competition in the market
- Insist on providing good service to the customers
DIFFERENCES
VS.
DIFFERENCES
Founded year1969 1973
Motive to start this businessStrategic Location Property Development
DIFFERENCES
No. of employee80 30
No. of room &
room types
231 104
superior room, deluxe room, super deluxe room & executive suite room
standard single room, superior twin room, deluxe queen room & themed suite
DIFFERENCES
No. of competitors250-300 200-250
Hotel Capacity during peak season
90%-100% 60%-70%
Facilities provided
Restaurant, meeting room, free wifi on every floor,
Restaurant, conference room, laundry service, car park, swimming pool, free wifi at lobby area
SummaryCommercially successful :
Reason:- More yearly revenue - Hotel capacity during peak season- Fierce competition in Penang- Provide more facilities and service
Hotel Continental
RECOMMENDATION
Hotel Continental, Penang
RECOMMENDATION
RecommendationPublicity: - Social media and partnership (TripAdvisor, Agoda) - Mutual agreement with Tourism Malaysia: promoting hotel in tourism guidebook
Facilities: -Gym, better air conditioners, more tv channels-Free Wifi in the room-More parking bays
RecommendationUpgrade services & catering- Improvise their room services, ushering, and front desk
registration- Food served must be clean, hygienic and tasty- Tour guiding
Provide clean environment & better view- Small renovation
RecommendationProfessionality- Remove excess workers to cut down cost- Hire professionals- Organize workshop to improve workers’ performance
The 5 Elements Hotel, KL
RECOMMENDATION
RecommendationMarketing- Online marketing - Increase the website’s quality content- Network with other businesses (museums, parks,
restaurants) - discountPromotion- Discount on staying extra night- Package deals- Girl’s weekend
Recommendation
Pet-friendly rooms- to avoid the stress and expenses of kenneling a dog or
finding a babysitter- charge for higher rates
Reimbursement (Loews Hotels)- reimburse fees that guests pay airlines for their
checked bags- can set a limit on the number of bags and the timing
RecommendationEntertainment- Provide free or inexpensive entertainment- Local musician, Bingo
References History of the hospitality industry. (n.d.). Retrieved June 2, 2015, from http://www.slideshare.net/27101985/history-of-the-hospitality-industry
Hotel Continental | Penang, Malaysia (n.d.). Retrieved May 21, 2015, from http://hotelcontinental.com.my/hotelc/hotelc/
Hotel Industry in Malaysia. (n.d.). Retrieved June 2, 2015, from http://www.regit.com/malaysia/industry/industry.htm
Puri, M., & Chand, G. (2009). Tourism and hotel industry. [electronic resource]. Chandni Chowk, Delhi : Global Media, 2009.
The 5 Elements Hotel KL (n.d.). Retrieved May 22, 2015, from http://www.the5elementshotel.com.my/
THANK YOU!