Analysing The Hotel Industry Of Singapore Tourism Essay

Analysing The Hotel Indus distort Of Singapore Tourism evidenceIntroductionthe hotel exertion of Singapore is suitable and adoptable for kind of customers having rectify from the minimum budget to star lay outd. The challenges exists in the Sing htl ind is purely found on the monetary value, location and convenience be sheath all the facilities argon mostly provided by all the hotels so it is very difficult for the customers to oppositeiate the service provided by the hotels.Since it is tough to differentiate the service rendered by the hotels, many hotels atomic number 18 tangled in creating a niche merchandise, like providing unique facilities to the customers for example holiday packages, specialists holidays, etc.The Singapore hotel perseverance experiences a very high offshoot send in luxury set off merchandise, high -end travelers market and family travel market in the past months.The recent economy reveals the restaurant sector has market Growth rate of sixte en percentage because of the increase in the consumer spending on sit down meals. The eating stunned role has become a life style for the youth and even for the midpoint aged married couples with their children and these aspects stresses on the importance of healthy sustenance. Nowadays, the consumers are expecting different styles of food and drink from the various parts of the world and all these shows if the hotel provides a variety and healthy food and drink, it will be able to cajole to a greater extent than(prenominal) customers in the future.The Singapore travel and tourism market shows a high ripening by having the line rate of 90% in the past superstar year. The Singapore governments effort in providing upset live service airlines and its efforts to triple the holidaymakers to Singapore in the overture up years. The 30% increase in the trade conferences and exhibitions conducted in Singapore has likewise revealed that the hotel industry in Singapore has ve ry just business opportunities in the coming up years and if proper, good development strategies are adopted by the hotels, they will be able to crystallize a large market share in originate more(prenominal) than profit.Backgrounds. The MHCCH is located in lead acres of prestigious land in Singapore. The hotel is very near to the tourist runions like a theme park, a museum, etc. The management has do many changes in the infrastructure facilities of the hotel by adding luxury bed directions, a bistro a beauty salon .The hotel has also purchased a land near to that for involution and modernized the hotel for creating cutting business opportunities. In rank to give a luxurious appearance for the hotel, the management has created a new spacious pressure group and the hotel has also started a beauty salon to offer beauty treatments to its customers. paradox of the caseBy analyzing the scenario of hotel industry, i undertake uprise analysis of the hotel MHCCH and dish up th e newly joined partner of MHCCH to select the best strategy out of the below mentioned strategies to wit sell the cash daunt, undertake no unplayful steps or undergo diversification in business so that he will be in a position to exchange the former(a) partners of MHCCH.In this case , the challenges in the external and intragroup surround industry and the analysis regarding the Strengths, Weaknesses, Opportunities and Threats of the MHCCH is to be done.In the second part of the take, with the facilitate of utilizing Ansoff matrix and Porters Grid, how the management female genital organ improve the profit in the following two years and for that what strategic determinations it has to take are discussed.Challenges in the micro and macro environmentBusiness environment is classified into three environments namely Internal environment, food market environment and External environment.Many variables which are coiffureive in the internal and external environment affects the c ompany (MHCCH) either positively or negatively. So before taking strategic decisions, it is measurable to analyze these environments to bring out out the factor which highly influences the customers of the hotel industry.The following table focuses on the disclose factors of the three environments.Micro milieuMarket EnvironmentMacroEnvironmentVision, Mission, Objectives of the HotelClimateAssetsCapability of the managementConsumersSuppliersCompetitorsIntermediariesSocialTechnologicalLegal policy-makingEconomicPhysicalThe main challenges which need to be assessed in the internal and external environment are that hotel has to concentrate on different grapheme customers like merged guests and other kind of guests like nature lovers, family orient and managing the hotel to disport these customers becomes a challenging work in the field of marketing. So in give to delight these consumers, the hotel should monitor the changing expectations of these customers and should try to del ight them.The employees of a hotel play a major(ip)(ip) role in attracting the customers. The hotel should try to recruit skilled persons because the quality of service rendered by the employees acts as an important factor in delighting the customers. So getting skilled and qualified employees is some other challenge in the hotel business environment.The hotel should try to have good suppliers (Electricity, woolly drinks carbonated water, Perfumes, cosmetics other toilet preparations, different kinds of liquors, Soap and detergents, etc) who provide products/ service with good quality and good intermediaries who are in direct come across with the customers before they enter into the hotel.Apart from these challenges, the hotel should also focus on the socio- cultural changes (changes in the preferences of the customers), political changes (changes in the law), and technological changes (providing variety food, appearance of the hotel, introducing packages, etc,).SWOT AnalysisB efore selecting a strategic election for the marketing image of MHCCH, the hotel should do SWOT analysis to find out its strengths, weaknesses, opportunities and threats.Strength deals with the hotels amount competencies and the weaknesses of the hotel deals with the present drawback which has to be rectified in order to set about the customers in the future. Strengths and Weaknesses mainly focus on the factors which are fully under the delay of management hardly the opportunities and threats focuses on the business environment. Opportunity deals with the market which confesss more profit to the hotel that is the area to be covered by the hotel to earn more customers in turn more profit. Threat deals with the factors which are to be considered gravely before taking any business decision. SWOT analysis of MHCCH is discussed below.Strengths of MHCCHThe employees of the hotel are having good experience in customer care in order to provide quality service the MHCCH has induceed a split in changing the appearance of the hotel and in providing different styles of food and also already the MHCCH is having meet customers ( revealed in the table non-business guests occupancy rate). The hotel is situated very close to other entertainment locations.The credit worthiness of the hotel is high that we can take the pedigree from bank in order to do the successful performance of the hotel.Weaknesses of MHCCH bodied and family non business guests occupancy rate is low and so the company has to invest a lot in adding facilities to the hotel.Opportunities of MHCCHNowadays consumers like to eat out-of-door in restaurants rather than before and they dont hesitate in spending more money tasting different varieties of food. Eating out style of the youngsters and spirit aged married people has become very common. Singapore governments decision to triple the investment in the tourism industry shows that there are large opportunities for MHCCH to set about more customer s and in turn to improve profit.Threats of MHCCHCompetitors are the major threat of MHCCH. Due to the lack of differentiation in the hotel industry, the contestation is fully based on the price, location and convenience. The hotel has to face competition from the hotels of similar infrastructure and also from motels. The hotels which are dealing with niche markets will also acts as a good competitor for MHCCH. In order to attract the customers of different age group, the hotel has to focus on changing the appearance of the hotel, providing food of different countries, etc costs more but still the hotel has to invest and at the same time the hotel cannot fix a high price for its go because the competition mainly focuses on the price. The hotel has to focus on the packages too because the scurvy hotels may capture the market by providing specialized facilities in one area alone like for example honeymoon packages alone.Conclusion hence the challenges in the micro, market, macro en vironments of hotel industry are discussed. The SWOT analysis revealed that the MHCCH has more strengths and opportunities when compared to weaknesses and threats. Since the opportunities are high, revealed by increase in the market growth rate and the capacity of the MHCCH to raise fund from the banks and the availability of space for further blowup activities to be carried out by the MHCCH is good and with this strength, the MHCCH has more motive to capture the market share. The MHCCH need not worry about the threats posed by the competitors if MHCCH have an eye on competitors price and variety of operate provided by them. So with the help of its strengths, the MHCCH can move forward to attract more customers.b) Ansoffs MatrixThe Ansoff matrix is a technique that aids people in the business field to take decisions regarding product development and market growth strategy.Ansoff matrix focuses on the new products and the product already in the market in order to increase the prof it of the business.The Ansoffs 3* 3 loge grid or matrixMarketsMarket ontogenyPartial diversificationvariegationMarket ExpansionLimited variegationPartial DiversificationMarket PenetrationProduct ExpansionProduct DevelopmentProductsThe major four boxes are Market Development, Market Penetration, Product Development and Diversification.Market PenetrationIt suggests the business people to focus on existing customers and on their own products what they are producing currently. If the business person adopts this strategy then his major objectives will beImprove the market share of current products by fixing note prices when compared to the competitors, advertising and sales promotion, etc. There are many advantages in introducing low prices , they are capturing more market and the low profit earned by the existing players makes the new entrants to have idolise in starting the business in that sector. The MHCCH can go for introducing lower prices for the services but it should not in cur any loss. The price diminution strategy to be adopted by MHCCH will not yield any benefit because already the hotel is having good occupancy rate in the case non business guests. And also the hotel is planning to invest a lot in the improvement of the hotel, so all these costs will be reflected in the price of the services rendered by the MHCCH. Even though the price war exists among the players of the hotel industry, for MHCCH, since it is having loyal customers, it is better to go for introducing new packages for the customers, rather than step-down the price.Market DevelopmentIt suggests the business people to focus on new customers and the existing products. Finding out new customers for the product. The MHCCH can also go for identifying the new customers like honey moon packages, etc.Product DevelopmentIt suggests the business people to focus on the existing customers and new ripe products.(MHCCH) can focus on this aspect. it can select the outlive option specified in t he case, expand the business by investing in buying an external belongings that means the expansion of a immobilise or restaurant to capture the customers. By providing healthier, tasty and variety food style and drinks to the different country people, the MHCCH will be able to capture more customers (corporate guests) fromdifferent countries .And also the table revealed that the corporate guests occupancy rate is very low and so by implementing the above mentioned facilities, it will be able to capture more corporate guests and if they are satisfied ,the corporate guests will come and stay with their family, profit will be improved.DiversificationIt suggests the business person to focus on the new customers and the new products that is entry into an entirely different field. Business people will take up this strategy when they want to diversify the risk of loss in the existing business. This case revealed that the competition is more and there are more prospects to earn a very h igh profit.Selling a cash cow and entering into diversification is not good because this hotel business itself has lot of prospects which is revealed by the Singapore governments decision to spend more than $4 billion in order to attract more and more number of tourists to singapore. So its good for the MHCCH to be in the business rather than diversification.Porters GridThreats of New Entrants more than number of business conferences and meetings are being held in Singapore. the occupancy of hotel room rate being as high as in the past few months, Government of Singapore effort to improve the tourism industry attracts more players into this field. Infrastructure facilities, scale of economies and differentiation of product may act as entry barriers and so the MHCCH has to focus on these aspects.Bargaining proponent of BuyersPresence of more competitors in the Singapore hotel industry makes the consumers to demand more from the hotels regarding price, quality and innovative (variety of food, other facilities, etc) products. From the case, it is revealed that a tough competition occurs in the Singapore hotel industry, price plays a major role and its root cause is the customers expectation regarding quality and price and this strengthens the buyers power.Bargaining Power of SuppliersThe hotel industry is having a very high relationship with the other industries and so the supplier negotiate power is high in the hotel sector but if the competition is more in the other industries too then the supplier bargaining power can be reduced in the hotel industry and it is essential to study still more regarding the prevalence of competition in the suppliers industries.Threat of substitutes products / servicesThe economic hotels and motels may be the threat for the product of the substitute to MHCCH but concentrating on factors like fast food establishments which includes the surrounding environment, services provided by the catering department at the affordable price.Co nclusionSince the corporate guests occupancy rate is very low, the MHCCH can focus on the area of creature comforts and services provided in order to capture more customers and in turn to improve profit.The MHCCH can go for providing different styles of food in order to attract the customers from foreign countries.According to my views , I suggest the MHCCH to select the last option expand by investing in external property and after getting some returns it can slowly move on to the third option -expand by investing in the site. The MHCCH can broaden out the survey in order to search new facilities evaluate by the customers and also what the MHCCH s competitors are doing to attract the customers and based on the results the MHCCH can decide the strategy to be adopted by the hotel in future.Since there are a lot opportunities in the hotel industry, the MHCCH can go for making investments in order to earn profit in future. The MHCCH can convince the other partners by explaining the payback period of the investments to be make by it.