Regalodge Hotel is a 3 celebrity rating hotel in Ipoh city which has its own strengths to contend with around 50 competition on the market. The services and facilities that are provided by the hotel are superior such that it can compete with the 4 legend and 5 legend score hotels. However, there's also several weaknesses that can be within Regalodge Hotel where several alternatives are recommended to reduce the weaknesses in order to supply the better services to the customers and be competitive. In hotel industry, Regalodge Hotel encounters a number of potential dangers which might impact the hotel performance but there are also opportunities on the market which supply the chances for it to expand the business. To be able to increase the capacity to compete in the hotel industry, Regalodge Hotel must analyze the exterior environment like PEST analysis and interior environment such as SWOT research and Portel Five Causes so that the hotel can understand the existed internal and exterior problems turn out with alternatives to solve those problems faced by Regalodge Hotel.
1. 1 Introduction
Regalodge Hotel is a 3 superstar hotel in Ipoh, at the same time it is famous known as Ipoh finest eating paradise. It strategically situated in the heart of Ipoh where in fact the location is accessible to many business centers within walking distance where the business and leisure travelers can also usage of the stores with the easily accessible travel from Regalodge Hotel. Regalodge Hotel has 86 guest rooms with a dining restaurant that is renovated with French nouveau style. For leisure, Regalodge Hotel has Regal Spa room for men and a reflexology middle as well. Therefore, Regalodge is not only a hotel, but it also provides services such as fine eating restaurant, spa and reflexology.
Anyhow, there are a great many other hotels around Ipoh which positioned from 1 superstar to 5 actors such as Abby Hotel, Tune Hotel, Sunlight Inn Hotel, Ritz Garden Hotel, Lost World Hotel, Syuen Hotel, Paragon Hotel etc. However, there only few that are competitive enough to Regalodge Hotel, they are Kinta Riverfront Hotel, DWJ Hotel, History Hotel and Impiana Hotel because facilities available in Regalodge Hotel also available in these hotels. Table below shows the assessment of facilities/services provided by these hotels:
Hotel
No. of room
Dining
restaurant
Meeting
Room
Ball room/
Banquet
Spa
Reflexology center
Gym
Swimming pool
Regalodge
86
Yes
Yes
Yes
DWJ
22
Yes
Impiana
200
Yes
Yes
Yes
Heritage
263
Yes
Yes
Yes
Yes
Yes
Kinta
Riverfront
410
Yes
Yes
Yes
2. 0 The Environment
2. 1 Talk about of economy
Malaysia is not successful in its overall economy because of the downturn of both global making and services in June. Anyhow, researcher states that major economical industries of Malaysia are anticipated to develop at slow pace in 2012. Malaysia service sector also got affected due to the downturn of global services. This can be proven by the info provided by JPMorgan Global Services Business Activity Index where the service output extension was the weakest in the recent three 12 months growth period ("Global Progress Remains Weak, " 2012). Nevertheless, service sector is likely to continue play a essential role in bringing up the overall economy of Malaysia (Suzy, 2012). Although, the current economic climate is not so encouraging but as stated, service sector such as hotel industry is likely to talk about the overall economy since travel and leisure industry has been producing. Travelers from other countries may still have the spending capacity to happen to be Malaysia since our money is lower and so more affordable for foreign tourists to spend inside our country.
Furthermore, Malaysian Federal government will subsidize those 4-5 legend rating hotel by giving them some benefits such as taxes exemption and allowances. It is because Malaysian Government wants to promote travel and leisure which in the end will improve visitor arrivals and traveler receipts especially running a business and medical tourism. For the reason that is that these tourists are largely high-yield visitors (Ng, 2012) and this will increase the businesses in the hotel industry.
2. 2 Current trends
Technology plays roles in various sectors which included travel and leisure. Internet connecting people about the world and improves the showing of information. Online travel sites are providing people more ways to analyze for upcoming trips. Online air-ticket booking proposed by various airlines such as Air Asia, Malaysia Airline, Firefly and so forth help travelers to reserve airline tickets 24/7. In addition, public networking sites like Facebook, Twitter and blogs allow visitors to share itineraries and outings information with family, friends and other travelers (Richard & Kelli, 2008).
Table 1: Tourist arrivals and receipts to Malaysia.
Source: Traveler arrivals and receipts to Malaysia. (n. d. ). Research. Retrieved from http://corporate. tourism. gov. my/research. asp?page=facts_figures
From the statistic above, we can easily see that Malaysia gets more and more tourist arrivals. It is a good signal where people across the world are receiving familiar with Malaysia.
In addition, study demonstrates Malaysia domestic tourism is mainly influenced by season such as college holidays, public holiday seasons, festivals celebrations and so forth. Therefore, end of the entire year is usually the top season for Malaysian to travel around. Enough time domestic visitor devote to a trip is average 2. 45 days because of the high costs ("Domestic Tourism Survey, " n. d. ). From the survey, we can easily see that visiting relatives and friends (75. 6%) are the primary purpose for the majority of the Malaysian to visit or happen to be a location ("Tourist Arrivals, " n. d. ).
2. 3 Current politics values and trends
Malaysia is a country that is involves different types of races such as Malays, Chinese, Indians as well as others which aroused the curiosity of foreigners to come and visit Malaysia to be able to understand the various cultures comes from different races ("Shades of 1Malaysia, " 2011). So, Ministry of Tourism has prepared a whole lot of occasions such as Fabulous Food 1Malaysia, Sport Travel and leisure, Colors of 1Malaysia, Pupil Tourism Programme etc. For example, Colorings of 1Malaysia that has been launched since yr 1999 and then for Colors of 1Malaysia 2012, this event is likely to draw in about 100, 000 spectators which include both local and foreigners ("Colours of 1Malaysia 2012, " 2012). This event has taken 293 travel agents to take part and the hostile development move for travel and leisure industry done by Ministry of Tourism will also influence the hotel industry as the introduction of travel and leisure industry can promote the related infrastructure like hotel and so increase the profits for hotel when there are a whole lot of tourists visiting Malaysia which means the quantity of customers for hotel companies increase also ("About MITE 2012, " n. d. ).
However, although attempts are being directed at attract more visitors, there's also events that happened in Malaysia which give a pause for travellers to go to Malaysia. For example, Bersih rally that happened in Malaysia since calendar year 2006 which getting the target to reform the electoral system in Malaysia as the political celebrations such as NGOs and civil culture teams accused the electoral system which is under Prime Minister Division to be unfair and so they presented the rally that creating a hope to have a clean and fair election. However, Bersih rally kept will have an impact on the tourism industry ("Rationally- Bersih 3. 0 is a Failure, " 2012) as travelers will frightened of their basic safety, so during Bersih rally, you will see less tourists visiting Malaysia. For example, on April 28, Bersih 3. 0 rally acquired created negative impact on tourism industry and this had resulted in a lot cancellation of tour plans. Furthermore, the tourism ministry also being informed that we now have about RM 200, 000 hotel reservations being cancelled last second ("Bersih Rally Jeopardises Tourism Industry, " 2012). This rally has seriously affected the travel and leisure industry in Malaysia and therefore causes a severe effect on hotel industry when there a significant decrease in the quantity of tourists.
On the other side, Malaysia is utilizing Lynas task where this rare refinery plant will be built-in a peat swamp area that is situated 3. 5 km south China Sea and this will seriously have an impact on the way to obtain seafood and the popular tourism area (Boyle, 2012). This project is expected to have negative impact on the tourism industry as this seed may cause Malaysian to be living in a radiation contamination country and cause the planet earth pollution. This disadvantage cause will critically affect the tourism industry as visitor will be afraid of rays in Malaysia and they'll not pay trip to country that pollute the earth and this may cause negative word-of-mouth for Malaysia and the travel and leisure industry will be negatively influenced. Therefore, the hotels in Malaysia will be adversely afflicted too.
2. 4 Potential Hazards and Opportunities
No doubt, solutions nowadays reduce people daily life. Business field definitely is one of the beneficial market sectors because some useful information that may help the business enterprise going well can be acquired easily through the World Wide Web free-of-charge. However, this is often a threat to ground breaking business ventures at the same time because copyist can merely imitate their innovative ideas (Hong, 2009). It'll be worse when more advance technology such as hacking system is developed. The reason being is the fact data will be simpler to get exposed to hacker in future by making use of move forward technology system (Baker, 2011).
Besides, economy influences the world greatly. The stability of the current economic climate is critical factor for outbound tourism as it will affect tourists' income (Becken, 2011). Unemployment rate definitely will increase and GDP will reduce due to economical crisis. Thus, economic problems is a menace to all businesses since it is sudden and leaves great negative impact in many sectors (Leymon, 2012). Furthermore, it triggers Malaysians overcome by poor purchasing electricity. It is because our currency gets weak as the side aftereffect of the monetary downturn (Lee, Yow & Chi, 2011).
Malaysia is a country that consists of numerous races people such as Malays, Chinese language, Indians, Kadazans, Ibans etc. This is the key reason why travellers visit our country because they wished to learn about our culture. So, Malaysia government spends millions ringgit to bring up the Malaysia travel and leisure industry. Programs helped bring by Tourism Malaysia such as Magic of Nighttime Fishing boat Parade Putrajaya 2012 had attracted many international tourists to visit Malaysia (David, 2012). The increasing arrival of traveler to Malaysia is an excellent indication for various businesses in Malaysia because holidaymakers' spending provides the locals with more businesses and incomes. This may promote entrepreneurial opportunities for Malaysia such as advertising local handicrafts as you kind of businesses that may be developed in the tourism industry. Besides, hotel industry also advantages from his because holidaymakers will have the need for accommodations. In short, travel and leisure industry stimulates the current economic climate of an country (Harcombe, 1999). This then becomes an possibility to a country's economy as well as businesses.
3. 0 The Industry
Regalodge Hotel is obviously involved in the hotel industry. With this industry, service is essential and not to state about the facilities and comfy condition of the rooms in the hotel itself. Cozy environment is mostly what customers look for when they want to find a place to stay especially during vacation trips. You can find few types of accommodations in this industry such budget hotels, hotel and apartments, hotels and resorts etc. The few types of them are Excelsior Hotel, History Hotel, DWJ Hotel, Impiana Hotels and Resorts, French Hotel, Tower Regency Hotel and Rentals and Kinta Riverfront Hotel and Suites. So, it is not an easy process for a hotel to compete and make it through since there are numerous strong rivals in this industry even though it is merely in a small city, Ipoh.
The competitors can be split into direct and indirect rivals. The direct competition will be the hotels offering similar type of accommodations and facilities as what Regalodge Hotel provides to its customers. The few immediate competition of Regalodge Hotel are French Hotel, Traditions Hotel and Lost World Hotel. On the other hand, the indirect competition may be those hotels that provide quite different types of accommodations and facilities such as budget hotels, hotels that contain flats and resorts and so forth. Few examples of indirect competition of Regalodge Hotel would be Tower Regency Hotel and Apartments, Impiana Hotels and Resorts and Kinta Riverfront Hotel and Suites.
Recently, there are very lots of new entrants or new competition in the hotel industry in Ipoh city itself. Because of the rising amount of tourists and occasions or occasions presented in Ipoh, there are a lot of new hotels built to meet the demand of the customers. Few new competitors of Regalodge Hotel are Mh Hotel, Tune Hotel and Kinta Riverfront Hotel and Suites.
4. 0 Porter's Five Forces
4. 1 Rivalry among existing firms
Number of competitors
The range of rivals in hotel industry is high because Malaysia is growing tourism industry and the scrumptious food in Ipoh are able to attract a great deal of tourists to visit Ipoh. The types of rivals are Tower Regency, Melody Hotel, D Eastern Hotel, Hotel Excelsior, Lost World Hotel and many more. Therefore, amount of competitors rises credited to accommodations demand which lead to the strong rivalry in hotel industry and the attractiveness of hotel industry will can also increase.
Fixed costs
Besides, hotel industry also has high resolved cost as producing a hotel business need a lot of capital in order to make it successful ("Operating Leverage, " n. d. ). Corresponding to Pavlatos and Paggios (2007) a hotel has around three quarters of total costs that is set and cannot be controlled. High set cost will reduce the appeal of a business ("Industry Elegance, " n. d. ). As the predetermined cost is high, this will cause the cost of exit barrier in the hotel industry to be high. The cost of exit obstacles is high just because a businessman or businessperson must give up the high investment invested into the hotel if they wanted to leave the industry (Enz, 2009). So, it is difficult for a hotel to withdraw from the industry because of the high resolved cost and a businessman won't want to endure with the losses caused by permanent cost when the hotel leave from the industry.
Therefore, we can conclude that massive amount competitors, high resolved costs and high cost of exiting hurdle cause a high amount of rivalry.
4. 2 Threat of new entrants
Capital requirement
Hotels need high fixed costs specifically for decor and restaurant income; whereas high varying costs are necessary for food and drinks (Pavlotos & Paggios, 2007). The high preset costs and varying costs will put a pause for new entrants to get into hotel industry, so Regalodge Hotel will be less threaten by new entrants.
Economies of scale
In addition, high economies of level are needed in this industry. To be able to go into the hotel industry, new entrants must ensure that they have high economies of size in order that they will have the ability to contend with those proven hotels. The brand new entrants have to compete with the major rivals in terms of quality and price. High economies of scales decrease the attractiveness of the industry and lower the risk of new entrants.
Product differentiation
If a fresh entrant hopes to enter into the industry, product differentiation is also another vital factor in order to compete with the set up company. For example, Regalodge Hotel has differentiated itself by having a good reputation and excellent service for the clients. As service can be an important criterion in the hotel industry, new entrant must make sure that they'll be able to provide good services to be competitive.
So, it could be seen that high capital need, high need of economies of range and need for product differentiation cause low risk of new entrants.
4. 3 Risk of substitute products
Number of substitutes available
There are a great deal of close substitute's products for hotel such as motel, homestay, homes of family, friends and acquaintances.
Substitute's price value
Besides, the price value of staying in hotel is much higher compare to staying in family' or friends' house. So, this will cause hotel to be always a less considered accommodation option.
Switching costs
The switching costs of buyer is also low since there are a great number of close substitutes which may have lower price compared to other replacement in the hotel industry. The substitute products have threatened hotel industry, thus, decrease the industry's appeal.
Based on the many substitutes that are available, cheap value of the substitutes and low switching costs of buyers, the threat of substitute is just a bit high.
4. 4 Bargaining electricity of suppliers
Number of suppliers
There are very numerous levels of suppliers for hotel industry. Hotel industry requires a whole lot of suppliers in terms of training services, food and beverages and many more. These suppliers can be easily found in the market especially for food and beverages. Thus, the bargaining electric power of supplier is lower.
Switching costs
In addition, the moving over cost in the hotel industry is low as the hotels may easily switch to the suppliers they need without incurring much costs, therefore the hotels will have higher bargaining ability than suppliers.
Based on the large numbers of suppliers and low provider moving over cost, the bargaining power of the suppliers is lower than the hotel's.
4. 5 Bargaining ability of buyers
Number of buyers
There are a lot of purchasers in hotel industry. Although, the clients are small in size, you will see a significant affect in case a hotel loses a customer because regular customers of hotel industry are usually small in size. So, the potential buyers would have a little higher bargaining power than the hotel.
Switching cost
Moreover, the switching cost of the potential buyers is low as there are a great number of competitors on the market and customers can transition to the competition quickly. So, the industry will be less attractive for for the reason that.
Contribution to quality
Additional facilities usually added in hotel industry in order to raise the quality of services provided to customers. For example, restaurant, spa, karaoke centre and reflexology centre are additional facilities provided for customers. Therefore, the contribution of quality becomes to be high with those added facilities. So, customers will tend not to change to competitor's hotel.
The less of clients, lower turning costs and high contribution to quality will cause the bargaining ability of buyers to be modest.
In the nutshell, it could be seen that through the Porter Five pushes research, there are high rivalry among existing firms and moderate risk of substitutes and bargaining of buyer but there are low risk of new entrants and also low bargaining vitality of suppliers. These made the hotel industry reasonably attractive.
5. 0 Organization
Regalodge Hotel is a 3 star ranking hotel which is quickly located in the heart and soul of the Ipoh city. It had been established since season 1996. The hotel has a total of 86 rooms which 8 of these are collection rooms. Below is the business structure of the hotel.
The hotel has around 35 employees like the management team. The target market of the hotel is entrepreneurs and visitors since most of the reason why people stay static in a hotel in Ipoh is either for the reason why of travelling or conducting business. The hotel in a position to gain a complete of RM100, 000 to RM120, 000 income per month.
The most significant reason the hotel is doing quite well as a 3 celebrity hotel is basically because the facilities and services that they provided with their customers. Regalodge Hotel is known as a 3 celebrity hotel with 5 legend services. With all the good services and friendly employees, customers feel that they are being valued and treasured.
The hotel has six types of rooms which include standard, superior, deluxe, professional, Regal collection and Regal family suite rooms. The rooms ranged from RM100 to RM300, which is the purchase price range of a 3 superstar hotel.
Besides, the hotel has a few attractive facilities like the Limestone fine eating out restaurant, Regal spa and reflexology centre. Overall, looking at to the same standard and star rating hotels in Ipoh city, Regalodge Hotel can be viewed as the best choice of an acceptable priced-hotel with high standard of service which comes together with excellent facilities.
6. 0 The Marketing Strategy
6. 1 Objective of Marketing Strategy
There are a few of marketing strategies that had been employed by Regalodge Hotel where in fact the two main strategies are to really have the right target market and implement suited promotions. The marketing strategy for Regalodge Hotel is to focus on on the right market. The aim of this online marketing strategy is to meet and gratify customers' needs and wants by using their strengths and capacities. The positioning of Regalodge Hotel reaches the heart and soul of Ipoh city, so, they declare that they will be the indulge heaven in a bougainvillea city by offering several varieties of products and services to meet different customer's needs and needs. Alternatively, the purpose of Regalodge Hotel executing a few campaign plans as their marketing strategy is to catch the attention of more customers, increase their brand name and also to stay survive in the highly competitive industry.
6. 2 Concentrate on Market
The marketplace for Regalodge Hotel is businessmen and leisure travelers. It is because Regalodge Hotel has a proper location which is close to numbers of business centre, shopping centre, and tourism locations. It really is more convenient for the entrepreneurs to reach the business enterprise centre as the leisure travelers can visit shopping centre and places with social attraction easily. The prospective market can even reach their desire vacation spot via general population transports that exist near to the hotel. Besides, fine dining restaurant, spa and reflexology centre are available in the hotel to provide better facilities to the prospective market. These additional facilities permit them to release their working stress and also have a comfortable environment while spending their amount of time in Regalodge Hotel.
6. 3 Competitive Advantage
The services provided by Regalodge Hotel are superior compare to other opponents. The staffs in the hotel give a good quality service to customers in order to delight and satisfy absolutely free themes to become more competitive in this highly competitive industry. For example, umbrellas will be provided to customers during rainy times and customers will be accompanied by particular staff to the automobile recreation area to get their automobiles. The management in Regalodge Hotel is convinced that good services and warmness that individuals feel in their family can be carried out by the hotel through the small details in lifestyle. Another example can be seen through the subsidy of parking coupon for the clients as they park their autos near to the hotel compound. The customers need not stress about the inadequate carpark problem and use their own money to pay for the car area.
Besides that, the goodies and refreshments such as normal water, coffee, can drinks, tidbits, cup noodles and chips are all free of charge for customers. Only Regalodge Hotel is offering these free snack foods and drinks to their customers and by just this little complimentary goods offered, it may be one of the reason why people prefer being this hotel evaluating to others.
6. 4 Products / Services
Hotel industry is the industry that delivers product and services. The product of Regalodge Hotel is their resort rooms which are divided into 6 types. There are standard rooms, superior rooms, deluxe rooms, exec suite, Regal suite, and Regal family suite. The hotel has a complete of 86 visitor rooms. Besides, in addition they provides added-value product such like French nouveau food fine eating restaurant, Regal Spa, and Rest Reflexology centre to catch the attention of more customer with more added services.
As mentioned earlier, hotel also provides services besides providing accommodation for customers. When customers step into the hotel, they will be welcomed warmly by the friendly front-line employees that will provide check-in services, answering questions and other services to them. Besides, cleaning rooms and satisfying customer's need in a short period is also kind of service a hotel should have to provide its customers right. Laundry service, room-service and other basic services also will be provided. Other than that, added-value services such as well-trained Chinese masseur is appointed to provide services for Chinese medical feet bath and healing therapy is also provided. For the fine dining restaurant in the hotel, Chef Erwin vande Ve gte, a qualified and professional Culinary Get better at Chef from European countries is appointed to provide customers with high quality food. Adding to the added-value services, hot Jacuzzi pool accompanied by a cool refreshing pool, fitness equipments, vapor and sauna, and many more are also designed for the hotel's customers.
6. 5 Campaign Mix
Regalodge Hotel experienced launched 3 types of special advertising which valid from 1st January 2012 to 31st December 2012 to appeal to more customers. These 3 special deals are Regal Sunday @ RM124. 00 nett, Regal Early Parrot Special, and Regal 3 Days and nights 2 Times Lost World of Tambun Package deal.
For Regal Sunday @ RM124. 00 nett promotion bundle, it is available on Sunday which is used to appeal to customer to invest their weekends staying in hotel to be able to solve the condition of fewer business or customer introduction on Sundays. It is because based on the information obtained from the interview done; the prospective market for Regalodge Hotel is businessmen. So, they face poor sales performance in weekends since salesmen do not work on weekends. This campaign program includes one evening accommodation in superior or standard room and one spa voucher, which may be used to enjoy the assistance in Regalodge Reflexology and Regal Spa.
Besides, Regalodge Hotel also offered Regal Early Bird Special campaign package to prize those customers who make early arranging for the resort rooms. As long as room booking is made one month beforehand, customer can enjoy further discount irrespective there is certainly weekends or open public holidays.
Next, Regal 3 days 2 evenings Lost World of Tambun offer is another advertising package made available from Regalodge Hotel. The hotel got cooperated with Lost World of Tambun, which is the most significant water theme recreation area in Ipoh to provide this valuable package deal for their target market which is leisure travelers. By purchasing this promotion program, customer can enjoy 2 evenings' accommodation in standard room, superior room, or Regal family suite, transport to and fro the hotel towards the Lost World of Tambun and this package also contains the entrance solution for The Lost World of Tambun. Regalodge Hotel has been using this advertising to focus on those family travelers in order to improve their sales.
6. 6 Costing Strategy
Regalodge Hotel is using products pricing as its rates strategy. There are several types of accommodation in the hotel such as Superior Room- RM139, Standard Room- RM139, Deluxe Room- RM186, Professional Suite- RM238, Regal Suite- RM276, Regal Family Collection- RM308. These different prices of accommodations allow Regalodge Hotel to focus on on different segments. Consumers can select the rooms predicated on their budget or requirement of accommodations.
7. 0 Problems and Alternatives to resolve Problems
Problem 1: Insufficient parking lots
- Alternatives:
1) Build more parking lots to provide convenience to customers
2) Provide subsidies for auto parking to customers
- Restriction:
1) High cost and time consuming
2) Bear with the auto parking coupon costs
- Best choice:
-Provide subsidies for parking
Problem 2: Reduced customers on Sunday
- Alternatives:
1) Give promotions
2) Collaborate with tourism agency
- Restriction:
1) Reduce profit margin
2) Give commissions for travel and leisure agency
- Best solution:
-Collaborate with tourism agency
Problem 3: Insufficient employees
- Alternatives:
1) Increase employee's benefits
2) Require overtime
3) Involve in socially responsible activities
- Restriction:
1) Reduce revenue
2) Overtime can be an disadvantage for long term
3) High cost
Problem 4: Weak brand name
- Alternatives:
1) Use advertising and text marketing
2) Provide good services and facilities
3) Involve in socially dependable activities
- Limitation:
1) Reduce earnings margin
2) Insufficient space to generate additional facilities
3) High cost
8. 0 SWOT Analysis
Strength
Superior customer services provided
Only hotel in Ipoh provide Reflexology centre facility
First hotel in Ipoh have fine dining- Limestone's fine dining
Soft drink, tidbits for hotel guests are free-of-charge
One of the effectiveness of Regalodge Hotel is that they always provide superior quality services to their customers. For the reason that they believe that, a service industry like hotel industry, services are essential to improve their business. These good services will be value-added, when it comes along with good product, such as resort rooms and facilities. Inside the hotel industry, they will be the first hotel that delivers reflexology centre services and fine eating out restaurants in Ipoh. So, it could be considered the power for Regalodge Hotel. Furthermore, it includes provided complimentary snacks and drinks because of their customers which their opponents aren't providing. Carbonated drinks and tidbits for friends are free-of-charge where these will be billed in other hotels. It will be one of the factors that boost the loyalty of the clients.
Weakness
Lack of car parking slots
Low brand awareness
Lack of employees
The space in Regalodge Hotel is much less big as other rivals in Ipoh, so, Regalodge Hotel has lack of place to serve as parking slot machine games for his or her customers, which may cause inconvenience to them. Besides, Regalodge Hotel has low brand recognition in Ipoh and not to state in other says or countries in comparison with other competition such as History hotel, Tower Regency Hotel and others. So, tourists might not find out about Regalodge Hotel as there are amounts of competitors which may cause the hotel to reduce their customers and have less opportunity. Lastly, the information from the interview explained that Regalodge Hotel has always encounters the condition about missing of employees.
Opportunities
Malaysia developing travel and leisure industry
Attractions in Malaysia
International events placed in Ipoh
Malaysia federal government has put a whole lot of effort in developing tourism industry in Malaysia to draw in more tourists to visit Malaysia. So, the development of travel and leisure industry will be an opportunity for Regalodge Hotel since Ipoh is consider as a state that has a lot of visitors attractions. For example, limestone, historical place, delicious local food etc has attracted lots of tourists to your country. In the mean time, Ipoh has also been the area for some international events each year. For example, in November 2012, you will see a World Beginner Inter Team Golfing Championship (WAITGC) performed in Ipoh. Hence, these will generate the opportunities for Regalodge Hotel.
Threats
Increasing number of competitors
Guest house replace hotel as an option
Tourists nowadays prefer to stay in guest house rather than hotel because it is less expensive. So, the numbers of visitor house in Ipoh are increasing enormously, while the numbers of competitors for Regalodge Hotel also increased. For instance, Tune Hotel which really is a budget hotel acquired moved into the Ipoh hotel industry during the end of time 2011. It has been a great risk to Regalodge Hotel as this hotel is new and costed at less rate. The increasing numbers of opponents is a menace for the hotel as it is shedding its customers.
9. 0 Conclusion
By interviewing the hotel's management, we discovered that Regalodge Hotel is facing problems that are quite common in hotel industry. The issues are included insufficient parking slot machines for customer, less customer on Weekend, lack of personnel and weak brand name. However, Regalodge Hotel should resolve the issues by working out a few alternatives for every single of the issues these are facing.
Generally, the main factor which limits Regalodge Hotel to achieve high sales level is the vulnerable brand recognition in hospitality industry that eventually diminish the energy of Word-of-mouth (WOM) in both internet and certainty world. Therefore, Regalodge Hotel should first focus on this problem.
On the other palm, Regalodge Hotel should take benefit of the external environment such as overall economy, current trends, politics values and technologies to overcome the problems they are facing. Besides, management of Regalodge Hotel should always be alert of environmentally friendly changes that could become threats to hotel industry.
Though Regalodge Hotel will depend on heavily on the grade of the hotel's facilities and services provided, improvement is required to strengthen its brand. It is because Regalodge Hotel has potential to contend with other opponents in Ipoh due to the various facilities provided. The decision process about improvement shouldn't be made merely based on cost, but it will consider the customers' reviews and ultimately the outcome gained from the decision.
Ipoh has become an important travel and leisure vacation spot because Malaysia federal is promoting the attraction of this city to travelers. The amounts of travelers is expected to increase in the future and this will create a whole lot of new business opportunities in this city, as well for the hotel industry. So, the number of hotels in Ipoh will can also increase due to the demand. Among the future issues for Regalodge Hotel is the increasing volume of competitors. Hence, to be able to contend with the current and potential opponents, Regalodge Hotel must build their brand name in order to survive and be competitive in this competitive industry.
Labor scarcity is also another problem for Regalodge Hotel. In the hotel industry, human resource is essential to serve the customers. Regalodge Hotel might fail to operate the business proficiently and effectively in the permanent because the labor has to do multitasking and improve long period. This will make the labors feel worn out and demotivated in permanent thus the quality of service provided might be poor. As Regalodge Hotel needs to compete with the increasing quantity of competitors, they need to hire highly certified employees so that competitive and progressive strategies can be integrated to be able to survive in the market.
