Harlington Hotel Business Plan Tourism Essay

Harlington Hotel line of credit Plan Tourism EssayCritically review the hotel industry, apply strategies, to inquiry and listen to consumers needs and wants. This would admit a specific concentre on retaining consumers, and providing a strategy of overcoming predicted challenges and to develop realistic financial assumptions and financial plans.The pedigree is to be a new medium size hotel of modern military services and facilities. The design of the hotel is to brace 60 rooms, reception, waiting lounge, one restaurant, two function rooms, two give in of the art conference rooms, one bar, and an interior swimming pool with a gym.The other side of the c satisfactory is also having links with the local theatres and as a promotion, those of which detain with us can scram tickets to see distinct shows at half price.The hotel industry is worth just over $30 billion inside the UK and has been on the up since 2003. Majority of the people who point within the hotels is domest ic tourists. match to Data Monitor (2007) The UK hotels and motels industry generated total revenues of $34.1 in 2007, this representing a compound annual growth rate (CAGR) of 5.7% for the time period spanning 2003-2007.Under the merchandise research conducted 54% of the people asked would stay at a hotel with the offer of 50% per cent discount on theatre tickets, , this shows in that location is a market and a need for this kind of communication channel as being innovating and new.Two types of research leave behind be conducted. A qualitative and numerical approach. This leave behind build a foundation and gain an in-depth study of consumers needs and wants for the wrinkle. According to Gummesson (2000) an organisation acts in the reality and consists of people. This suggests when gaining a study of consumers needs and wants the business needs to see that people ar not just statistics but also they ar the ones whose breeding, can c ar change the operation of the busi ness in real-time. The two leaps of research is Interviews and questionnaires. Research facilitates to give a variable, and smorgasbord of sources to analyse, helping the decision routine. Research is the systematic and objective process of gathering, recording and analysing info for serve in making business decisions (Zekmund, 1991).It is essential to have a clear understanding of the philosophical basis for the research strategy selected and this helps to provide the researcher with clarification, sharpen and consistency of research design. this will be dependent on the research design and the types of evidence we collect (Hines, 2000).Questionnaires and interviews atomic number 18 effective beca substance abuse Studies depended on interviews and questionnaires for their data .. apply questionnaires and interviews obtained statements about opinions and feelings.. Interview behaviour is a form of social interaction and should be analysed accordingly. Verbal data has been m ade the keystone of contemporary social lore (Foddy, 1996)Interviews and questionnaires are highly relevant because it will help identify, if the business will be viable and this type of research is non-expensive. Small firms can benefit from miserable cost qualitative market research techniques to de bournine achievable advantageous trade strategies (Goodman, 1999).Confidentiality of data is important ensuring persons taking part are aware of what the frame is. Researchers have a moral obligation to maintain the confidentiality of the data. In this respect the anonymity of the respondent is crucial and should be respected, by the researchers prior to the collection of the data (McKenna, 2006).4.0 Industry Analysis merchandise sizeThe market the business is entering is extremely large as the business is not only going have to compete with hotels, but also other venues of adaptation. This would include campsites, B Bs, holiday centres i.e. Centre Parks and theme parks accommoda tion e.g. Alton Towers. The data provided by trim Britain (see appendix 1) there is still a variable market for the hotel industry, as it is present 23% per cent of tourists staying in hotels within the UK compared to the other forms of accommodation. This percent shows hotels are second choice as 48% would prefer to stay at a friends or relatives house. The business needs to reach out and to be disparate in order to boost the percentage for the hotel market and lower the FR (friends and relatives) percentage, by providing a high spirit train of service and amenities which will outperform the comfort of FRs.Trends within the marketThe trends of the consumers staying within the UK, the largest amount was mainly for a holiday. According to Visit Britain (2009) it was the largest since 2000 with a 33% increase in 2007. barely there has been a decline as in 1995 the numbers of visitors has dropped from 44% to 33%. For VFR there has been an increase since 1995 from 20% to 30% (Visi t Britain, 2009). VFR is the only one showing growth within the market, since 1999 it has had an increase of 30% in total but they are not contributing to the accommodation sector (Visit Britain, 2009).Visit Britain (2009) states Business visitors are generally a lucrative target- spending on average 126 per night, 514 per visit, and staying largely in paid accommodation (68% in hotels/Guesthouses)Market compendiumSWOT analysisThis technique provides a framework that enables an organization to assess their position within a market in relation to the contender (Page and Connell, 2006).Strengths of the business is having a variety of rooms, several conference rooms, which are hi-tec, high quality service, training programmes for staff and effective strategies in place. This will help to retain consumers and with research on consumers and competitors, the business will be able to enhance pays. Firms that generate disseminate and meaningfully respond to market intelligence and plann ing inputs are likely to enjoy compound financial performance. (Jaworski and Kohli, 1993).Weakness of the business is mainly signage, as it is not cheap and processes though the council can take time. Other weaknesses are finance. The business will be seeking finance from banks and investors, to help start the business. Such firms, which generate valuable kat onceledge about both use of goods and serviceser preferences and competitor intents by integrating planning and intelligence inputs/views, can optimize the fit between their capabilities and external opportunities and thus achieve superior performance (Novicevic et al, 2004)Opportunities for the business is developing links with other attractions, to help out in further projects within the town especially with the lead up of the 2012 Olympics as this will help to bring in more custom an dalso benefit the local attractions. The Euro is becoming stronger against the Pound forming an era of an affordable England for internation alist tourists, which helps to have the opportunity of develop a good financial stance within the market. According to Day and Nedungadi (1994) the opportunities are intended to provide options for the firms to exercise in order to maximize the fit between its capabilities and future opportunities.Threats for the business are the competition as they will up their game to ensure that a new business does not succeed, especially within a recession. The local authority will be a threat via planning permission may not be given for certain development plans. The idea of these threats is to acknowledge them until resources allows them to be minimised. According to Liedtke (2000) synthesizing process creates value, not only in aligning components, but also in creatively re-arranging them.PEST analysisPolitical issues for the business is ensuring all licences mandatory are put into place, this includes selling of alcohol, health and safety fire exits, supervision of swimming pool, CBR check s, hygiene certificates, different licences for opening and closing times of facilities. Grants and supporting is also an issue as government have made several expressive styles to get a hold of funding for businesses, via the banks. For example, executives evaluating potential mergers or acquisitions essential consider antitrust suits and other legal matters, and political issues in addition to financial aspects (Keeney, 1982).Economical issues for the business getting a hold of loans from the banks, but a main concern would be interest and inflation rates, after the current economic climate of the recession, causing unnecessary leakages within the finance budgets of the business. rising implications of alter- natives now being considered should be accounted for in the decision-making process (Keeney, 1982).Sociological issues for the business is more people are staying at FRs more and cheaper holidays are making it harder, so gathering and analysing data is imperative to suc cess, for the business. In any case, the process of obtaining and combining the available information is a difficult task that requires balancing all the pros and cons (Keeney, 1982). scientific issues for the business are costly when technology cast asides are made, and systems have to be updated. This involves changing all computer systems, reprogramming, and retraining of staff. Different individuals, however, have expertise in disciplines such as economics, engineering, and other professions which should be incorporated (Keeney, 1982).This can be offered by having use of the net, and having a website for bookings, and information about the company and what the business is about, and use information systems within the business.5.0 Presentation of findings5.1 Interview overview(To view full analysis see appendix 6)Both of the hotels use different strategies, the Royal hotel uses Revenue focus and the Walton park hotel uses a Blue ocean strategy. This is defined as untapped mark et space, demand, creation and the opportunity for highly profitable growth (Kim and Mauborgne, 2005).The hotels agree, the hotel market has changed, as consumers are becoming lazy and are booking rooms later and later. Customer loyalty is no longer a priority for the market, but the internet has also made this change as it is easier to compare prices, and regulations. The Royal hotel has large functions and weddings occurring they have to be able to plan about three months in advance especially with the strategy of RM.Both of the management from the hotels attend conferences to help with new suggestions and the running of the business.For gathering information they use questionnaires which helps to have target market information updated and services can be improved, but Royal hotel says if even though they use questionnaires they are very short answered, and some will give exceptional(a) on very thing which does not help the improvement of the business as they need to have const ructive criticism.(Royal Hotel and Walton Park Hotel, 2009)6.0 Consumer analysis6.1 Target market identificationThe research conduct uncovered the target market being C1, C2 and Ds using demographic profiling.The reason for this is because they are more incline to stay in a non-expensive hotel, with a variety of facilities offered, and also due to Weston-super-mare being central, via the motorway and different institutionalize systems available. We are well-served by the M5, mainline railway and Bristol foreign Airport (BIA) and have an efficient and comprehensive public transport network (North Somerset, 2009).6.2 Consumer needs assessmentWithin the business the consumer continuously needs to have the highest direct of service. For service organisations the interaction between front-line personnel and the client is crucial as they aim to create high quality service encounters (Nickson et al, 2005).When providing a high level service for the target market, everyone is different t herefore the needs are not going to be the same, for each person, delivering superior customer value and satisfaction are crucial to the competitive edge of a firm (Kotler and Armstrong, 2000 Weitz and Jap, 1995). For example certain aspects will need to be in place within the business for those who have disabilities, young families with baby changing facilities, those who are diabetic. Many different concepts need to be taken into consideration, for different consumers, the more efficient of establishing customers needs then a good reputation can be established very quickly for the business. Deng (2008) states Customer satisfaction increases customer loyalty, reduces price sensitivity, increases cross-buying and increases positive word of mouth.7.0 Strategic murder7.1 Blue Ocean and Focus strategyA Blue ocean strategy is a way of breaking away from the industry boundaries, going beyond the known and entering the unknown. Kim and Mauborgne (2005) state Blue oceans, in contrast, ar e defined by untapped market space, demand creation, and the opportunities for highly profitable growth . virtually are created from within red oceans by expanding existing industry boundaries.This is applied to the business as having a link with the local theatres is a new and innervating idea, as no other hotel provides this type of service. The business is going into an area which has not been explored before. With this strategy in place for the business, profitability will be more inclined, as the research conducted showed there is a market for it. Companies that create blue oceans usually reap the benefits without credible challenges for ten to 15 years, as was the case with, Southwest Airlines and CNN. Creators straight off attract customers in large volumes (Kim and Mauborgne, 2004).Using Porter generics strategies of a focus strategy this interlinks as the blue ocean strategy for the business needs to focus on its consumers and adapt the products and services to meet the t arget markets requirements. Using the focus strategy not all consumers are going to want to go to the theatre, therefore using the focus strategy, and opportunities available the business will be able to develop further links with other attractions. An organisations knowledge capabilities determine its effectiveness. As the vestigial knowledge processes are highly dynamic, the capabilities used in performing those processes must also be dynamic (Dawson, 2000).8.0 Management and frameworks8.1 ManagementWithin the business there will be three sets of management and one general manager. (See appendix 8 for structure). Each manager is to an effect to manage, delegate and organise the department they are in charge of. Meetings will take place every morning for a, debrief followed by an official monthly one.8.2 TQM framework appliedTQM is not an blowsy process to be applied to an organisation as it can be quite complex. Most business organizations start the implementation TQM programmes with lots of vigour, enthusiasm and peradventure even excitement. The more they move forward with their attempts to change the culture of business thought TQM, the more they realize that it is a hard and very painful process (Zairi, 1994). TQM is a philosophy, as consumers demand it in different ways. This includes the following Quality of products/services speed and reliability of delivery price innovation and differentiation and professionalism (Zairi, 1994).For TQM to work, the business is going to ensure all staff having training sessions, and three month appraisals to ensure the service being provided by the staff are to high quality standards. Ensuring there is always a member of staff available for information about the hotel and the surrounding areas, and the reliability to speak to management to sort any issues quickly, in effect and efficiently. Having the opportunity to develop connections with other attractions, as returning consumers may get bored of the same thing, t herefore a variety of connections is required to be able to retain custom.Finally all staff members are to act in a professional manner at all times, when dealing with consumers, if any hassle occurs, management will be involved and if serious then disciplinarians and taking part in skill develop programs. Customers focus as a underlying principle at the heat of and underlying TQM is among the most generally accepted precepts in the work of all quality management (Soltani et al, 2004).9.0 Financial SourcesWithin the finance sector there are several ways to be able to set up a business and to gain capital, which can result in long term and short term funding. This involves the following capital and venture capital profit retention borrowing leasing, hiring and factoring government assistance overdraft and craftiness credit (Needham and Dransfield, 1992)There are a variety of ways to gain capital most organisations will use banks where you can gain up to 60% per cent of value and i nvestment plans, depending on how much money and profit available, this is depending on evidence given of the business plan, and proven it is worth investing (Owen, 2009)For the business there will be quaternion types of financial sources to be used, this will be investment from investors, borrowing from the bank, these are going to be long term financing for the business. The short term financing will be a private equity loan, which will be paid back within the set-back year and also a business overdraft, which is for emergency use only.From appendix 9 of the balance sheets, the profit made will be divided into four sectors this will be reinvestment back into the business itself, separate loan account so the borrowed money gets paid back, payments to investors and finally Inland Revenue corporation tax. This way the business is able to run smoothly and efficiently and have also analysed the finance from 100% full down to 25% per cent full.For buying the hotel itself excluding r enovation estimation of about 2.5M 3M with design and size of the hotel as this is on a basis of the Royal hotel and Walton Park hotel.If feelinging at buying the Royal Hotel or Walton park hotel then you will be looking at about 2.5M 3M without anything done to it, this is an estimation with the current economic climate (Owen,2009)BibliographyConnexions (2009) Job descriptions and salarie. online purchasable from universal resource locatorhttp//www.connexions-direct.com accessed 01.05.209.Datamonitor. (2007) Hotels and motels in the United Kingdom. online Available from URLhttp//www.datamonitor.com accessed 20.04.2009Dawson, R. (2000) Knowledge capabilities as the focus of organisational development and strategy. Journal of Knowledge management, 4 (4) pp.320-327.Day, G.S. and Nedungadi, P. 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Orlando The Dryden press.AppendicesAmount of visitors staying in different types of accommodation within the U.K.Trends purpose of visit and length of stayQuestionnaireQuestionnaire resultsInterview questionsFull analysis of interviewSWOT and PEST AnalysisManagement and staffing structure cash in hand and forecasting concomitant 1% of Nights Spent by Visitors from all countries by Type of Accommodation, 200 7(Visitbritian, 2009)Appendix 2Purpose of visit(Visit Britain, 2009)Length of stay(Visit Britain, 2009)Harlington HotelsAppendix 3Questionnaire for development plans of a new hotel in Weston-super-mareHarlington HotelsThe information about to be given is confidential and will remain anonymous the questionnaire is designed to help research into a hotel business and to find out about consumer needs and wants to help it become a more realistic approach within customer satisfaction.Male female ( please tick the appropriate answer)How old are you? (please tick the appropriate answer)18 2526 3031 4041 5051 +What is your occupation? (If unemployed please go to question 4)Please state If student and employed please state..How often do you go to W-S-M? (please tick the appropriate answer)Every dayTwice a weekOnce a monthOnce a yearIf other please state How do you get to W-S-M? (please tick the appropriate answer)By carBy busBy trainBy airline via other transportIf other please state .Tha nk you for your timeWhat sources do you use when looking for a hotel? (please tick the appropriate answer)The internetMediaGuide booksNational/international travel agentsGo by word of mouthIf other please state ..(Please tick the appropriate answer)How long do you normally stay at a hotel within the UK for?One nightWeekend Fri Sun or Sat Sun (please circle )5 10 days11 15 daysOne monthIf longer please state ..What would your main reason be for visiting? (Please tick the appropriate answers)Rest and relaxationVFR (friends and relatives)BusinessEducation (conference, congress, seminar, study, other)CultureFunHealthReligious reasonsIf other please state Thank you for your timeBelow is listed some elements which may be considered when choosing a hotel. Please indicate the IMPORTANCE of each element it is to you when choosing a hotel. Please rate them on a scale 1 being unimportant and 5 being very important.ELEMENTS WHEN CHOOSING A HOTELHow Important is This ElementUnimportant very ImportantI Dont KnowClean and tidy hotel (reception, restaurant etc.)12345Clean and tidy rooms12345Information accessibility12345Information clear and concise12345Catering facilities offered12345Knowledge from staff12345The willingness of staff to help12345Trusted staff12345Friendliness of staff12345The understanding of guests needs12345Additional activities offered by the hotel (sports facilities, entertainment etc.)12345Activities offered within the local area i.e. excursions, trips, theatre shows etc.12345Please rate the general quality when choosing a hotel 1 being low quality and 5 being high quality?Low quality High qualityI Dont Know world-wide quality of the hotel and service provided12345Thank you for your time(Please tick the appropriate answer)What services/ facilities would you want/ require from a hotel?Staff who can help and sit down with you if any problems or queriesKnowledge of area / other areasActivities to do outside the complexActivities sports, walks, excursi ons etcVariety of restaurants with different foodsLinks with local transport operationsPoolGymVariety of evening activitiesIf other please state .What type of room would you prefer standard or luxury?Please state What facilities would you expect to have in the room? (Please tick the appropriate answers)En-suiteKitchenLoungeBalcony / terraceIf other please state .How much would you spend per night at a hotel? (Please tick the appropriate answer)2021 4041 - 6061- 8080 +Would you stay at a hotel which offered half price theatre tickets?YesThank you for your timeNoMaybeAppendix 4Questionnaire resultsAppendix 5Interview questionsWhat form of custom do you receive?What is the main strategy used for this business i.e. focus, cost leadership, or differentiation?For the hotel industry and for your business do you think loyalty has decreased or increased?What benefits do your loyal consumers receive if any?Has the hotel market changed in recent years? Why?What do you think consumers look for when booking a hotel?The consumers you receive are majority of them returning consumers or different all the time?How important is your target market to the business? W