1. EXECUTIVE SUMMARY
This report serves as an exhaustive evaluation of Harmony Heights Hotel’s performance over the preceding five-year term, with the ultimate objective of fortifying our case for a contract renewal with the property owner for another five years. The evaluation takes a multifaceted approach, scrutinizing key operational domains, including marketing strategies, renovation timelines, staffing levels, and the overall quality of service provided to our guests. By employing critical analysis backed by empirical data, the report aims to assess how well the hotel has executed its plans and outline a robust strategy for future operations. Each facet of the hotel’s operations is examined for its strengths and weaknesses, offering a balanced view that aims to bolster the hotel’s growth while addressing areas of improvement. With a holistic view of the hotel’s past performance and an eye toward future potential, the report aims to present a compelling argument for renewing our contract with the property owner.
2. BUSINESS CASE
2.1 Introduction
Over the past half-decade, Harmony Heights Hotel has experienced a multifaceted journey that encompasses both triumphs and shortcomings across its various operational sectors. This report aims to meticulously scrutinize these aspects by delving into the strategic decisions and outcomes that have shaped the hotel’s market presence and profitability. Drawing upon theories of strategic management (Makadok et al., 2018), this analytical exercise will critically evaluate areas ranging from marketing and facility enhancements to staffing and service levels, seeking to provide a comprehensive understanding of the hotel’s current standing. By assessing the successful strategies that served as pillars of growth as well as pinpointing the weaknesses that hindered optimal performance, this section lays the groundwork for future recommendations that aim for an effective, sustainable business model.
2.2 Review of Marketing Campaigns
ROI from Various Marketing Channels
Our initial marketing strategy focused predominantly on digital advertising. Graph 1 showcases the ROI from various channels.
Graph 1
The analysis of marketing channel effectiveness for Harmony Heights Hotel paints a nuanced picture. Digital Advertising and Social Media have proven to be the linchpins in our marketing arsenal, yielding robust ROI figures of 75% and 60%, respectively. These numbers suggest that our investments in online platforms have resonated well with our target audience and successfully converted interest into revenue. This corroborates with broader industry trends highlighting the efficacy of digital outreach in customer engagement and conversion (Breuer et al., 2020).
Conversely, more traditional forms of marketing like Billboard and Print Advertising have lagged, with notably lower ROI figures of 15% and 20%, respectively. This raises questions about the efficacy and resource allocation in these channels. Even though TV Commercials fared better with a moderate ROI of 30%, there is a palpable gap compared to the returns from digital channels. This disparity suggests a need to reevaluate our marketing mix, considering the diminishing returns from traditional marketing avenues in contrast to digital platforms (Dumoulin & Willems, 2019).
2.3 Renovation Schedule
The renovation schedule set forth for Harmony Heights Hotel was decidedly ambitious, targeting a comprehensive upgrade of all guest rooms and public areas within a condensed timeframe of just two years. This aggressive agenda swiftly elevates the hotel’s market positioning and improves guest satisfaction. However, implementing such extensive renovations in a limited time posed logistical challenges and necessitated careful planning and resource allocation. The schedule aimed to strike a balance between minimizing disruptions to our guests and ensuring quality upgrades, a complex endeavor that tested the hotel’s operational mettle. Despite the complexity, this urgency was informed by market research, indicating that modernized facilities significantly impact customer choice and overall satisfaction (Henderson et al., 2017).
While the renovations successfully achieved their primary objective of elevating customer satisfaction scores, they came at a cost. Budget overruns and project delays plagued the ambitious two-year timeline, resulting in unforeseen challenges for the hotel’s financial and operational structure. Specifically, these overruns and delays decreased occupancy, most notably during the low-season months. This decline can be attributed to rooms needing to be made available for booking due to ongoing renovations and some potential guests choosing competitors due to the inconvenience caused by construction work. Consequently, while customer satisfaction soared in the newly renovated spaces, the hotel faced a dilemma where the actions aimed at improving the guest experience had unintended, adverse effects on occupancy and revenue during certain periods.
2.4 Extra Facilities Schedule
New facilities like a gym and spa were introduced in Year 3. Graph 2 shows their utilization rate.
Graph 2: Utilization of New Facilities
The data on facility utilization at Harmony Heights Hotel reveals various guest preferences and needs. Most notably, the “Gym” is the most frequently used amenity, accounting for 40% of total facility utilization. The “Conference Room” closely follows this, which clocks in at 30% utilization. These statistics indicate that our guests value both fitness and business-related amenities, suggesting a customer base comprising health-conscious leisure travelers and business professionals. High utilization rates for these facilities affirm that investments in quality gym equipment and state-of-the-art conference room technologies have been well-placed.
Conversely, the “Spa” and the “Rooftop Bar” have shown low utilization rates, recorded at 20% and 10%, respectively. This lower utilization poses questions about the initial market research that guided the investment into these facilities and raises concerns about their ongoing operational costs. The underperformance of the spa and rooftop bar suggests a disconnect between the services offered and the actual demands or interests of the guests. As such, these areas may warrant reevaluation to improve utilization through targeted marketing or consider repurposing the spaces for more in-demand services (Sørensen & Jensen, 2015).
The data on facility utilization raises critical questions about the alignment between investment decisions and actual customer preferences at Harmony Heights Hotel. If we assume that equal investments were made across all facilities, the disparate utilization rates underscore a concerning misalignment between resource allocation and customer demand. Specifically, the low utilization of the “Spa” and “Rooftop Bar,” at 20% and 10% respectively, suggests that these amenities might not offer a commensurate return on investment. This gap in utility relative to expenditure signals the importance of conducting more nuanced market research before making capital-intensive decisions. These findings underscore the need for a more tailored approach to facility development and investment, which relies not just on industry trends but also on concrete data regarding our guests’ preferences and behaviors (Ahani et al., 2019).
As observed in Graph 2, the utilization rates of Harmony Heights Hotel’s new facilities present a notable variance, with the gym registering a substantially higher rate than the spa and the rooftop bar. This disparity in utilization underscores the imperative for future investment decisions to be rooted in comprehensive market research, aligning closely with the specific demands and preferences of our discerning customer base. The stark contrast between the high-performing gym and the underutilized spa and rooftop bar highlights the need for a more nuanced approach to facility development. It emphasizes the importance of data-driven decision-making in the hospitality industry. These findings echo the wisdom that Schmidt et al. (2017) advocated regarding the significance of strategic alignment with customer needs, suggesting that our investments should be tailored to cater effectively to the dynamic demands of our target market.
2.5 Review of Staffing Levels
The assessment of staffing levels at Harmony Heights Hotel reveals a deliberate human resources strategy focused on maintaining a low staff-to-guest ratio. This strategy has been crafted to optimize operational efficiency while controlling labor costs. However, it is important to recognize that the successful execution of such a strategy necessitates a delicate balance, particularly in the context of the hospitality industry where service quality is paramount. The low staff-to-guest ratio contributed to cost savings but also resulted in service-related challenges during peak seasons. These challenges, including service delays, could impact overall guest satisfaction. Thus, while the low staff-to-guest ratio aligns with cost-conscious objectives, it may warrant a nuanced review to ensure that it does not compromise the quality of service and guest experience, which are pivotal factors in the competitive landscape of the hotel industry (Lam & Law, 2019). Further adjustments or seasonal staffing solutions may be required to strike the right equilibrium and maintain a consistently high level of service quality.
While the hotel’s human resources strategy effectively maintained a low staff-to-guest ratio, it is essential to recognize the dynamics of its success and challenges. The strategy demonstrated its efficiency during off-peak periods, where lower guest volumes allowed for cost savings without compromising service quality. However, during peak times, the limitations of this strategy became evident, resulting in service delays that adversely affected customer satisfaction. Although these service interruptions were caused by cost-effective staffing, they serve as a reminder of how crucial flexibility in staffing patterns is to meet the heightened needs of peak seasons. The secret to achieving continuous customer satisfaction may lie in a balanced approach that maximizes productivity during lean times and effortlessly ramps up employees during high-demand periods.
2.6 Staff Training
The Harmony Heights Hotel started a major push in Year 3 by modernizing its employee training materials. This tactical choice constituted a key investment in raising the general level of guest service excellence. The training program update was probably made in response to the constantly changing hotel industry, where client demands are consistently rising. By doing this, the hotel showed that it takes a proactive approach to staying current with best practices and trends in the business. The main objective of these updates was to provide staff with the most up-to-date abilities and information, enhancing their capacity to provide exceptional guest experiences and boosting levels of customer satisfaction and loyalty (Advances in Business, Hospitality, and Tourism Research: Volume 1, 2018).
The attempt to improve service quality through staff training updates ran into a significant roadblock in the form of initial employee opposition while effectively enhancing the overall client experience. While natural when introducing significant changes, this resistance had an unintended consequence: it resulted in a slower implementation process. The reluctance from some staff members to adapt to new training methodologies or content likely stemmed from a combination of factors, including familiarity with established practices and concerns about the learning curve. Nevertheless, it is crucial to acknowledge that such transitional challenges are common during change and innovation. Overcoming staff resistance through effective communication, training support, and gradual implementation can be pivotal in ensuring a smoother transition, ultimately leading to lasting improvements in service quality (Dominika Duziak, 2023).
2.7 Justification of Level of Service
Harmony Heights Hotel has been committed to maintaining a 4-star service rating, a decision firmly grounded in its brand positioning strategy. This consistent service quality aligns seamlessly with the hotel’s overarching brand identity, ensuring that guests receive a level of service that matches their expectations and perceptions of the establishment. By adhering to this 4-star standard, the hotel reinforces its promise to provide a superior guest experience, fostering loyalty and positive word-of-mouth referrals while reinforcing its competitive edge in the market.
The hotel’s unwavering commitment to delivering high-quality service has undoubtedly elevated the guest experience and contributed to the hotel’s positive service reputation. However, this relentless pursuit of excellence came at the cost of budget overruns, primarily due to the inadvertent neglect of rigorous cost-control measures. The zeal to maintain and exceed service quality standards sometimes led to loosening financial constraints, highlighting the intricate balance required between superior service delivery and prudent fiscal management. This phenomenon underscores the need for a strategic realignment that places service quality and financial prudence at the forefront of decision-making to ensure sustainable profitability (PORRAL & STANTON, 2017).
2.8 Menus and Suppliers
In pursuit of elevating the overall dining experience, Harmony Heights Hotel embarked on a transformative journey by redesigning its menu offerings and engaging with new suppliers. This strategic initiative aimed to refresh the culinary offerings and diversify the sourcing network, ensuring guests encounter various enticing options while maintaining the highest quality standards. By infusing innovation into the menu and forging partnerships with new suppliers, the hotel sought to align its gastronomic offerings with evolving guest preferences and elevate its culinary reputation in the competitive hospitality landscape.
While our efforts to diversify suppliers held promise, they also exposed the hotel to occasional disruptions in food service, subsequently affecting the overall customer experience. These disruptions, as evidenced by occasional supply chain hiccups, underscore the delicate balance between supplier diversity and operational stability. The hotel’s commitment to providing a seamless dining experience necessitates a strategic realignment in supplier management, emphasizing diversity and reliability to minimize service interruptions and ensure consistent customer satisfaction (Elshaer & Marzouk, 2019).
3. RECOMMENDATIONS
Rebalance marketing strategy to include traditional mediums.
Introduce contingency plans and budget controls for future renovations.
Conduct comprehensive market research before investing in new facilities.
Implement seasonal staffing solutions to handle peak seasons.
Diversify supplier contracts to avoid disruptions.
4. CONCLUSION
The retrospective analysis of the past five years of Harmony Heights Hotel’s operations has yielded invaluable insights that will serve as guiding beacons for the forthcoming half-decade. While it is undeniable that this period was not without its fair share of challenges and setbacks, the overarching trajectory of the hotel’s journey has been resoundingly positive. The investments in enhancing service quality, renovating facilities, updating staff training, and refreshing the menu underscore the commitment to delivering an exceptional guest experience. This commitment forms the bedrock of a compelling case for contract renewal with the property owner, as the hotel stands poised to build upon the lessons learned and continue its ascent in the competitive hospitality landscape. The blend of strategic advancements and adaptability showcased over the past five years positions Harmony Heights Hotel for a promising and prosperous future.
5. REFERENCES
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