Strategic Resort Hotel Management Assignment Sample

Introduction Of Strategic Resort Hotel Management

This report pertains to the strategic management of resorts and hotels at the Shangri-la Hotel in Sri Lanka. It encompasses significant aspects such as the Unique Selling Point, SWOT analysis, Customer Review, VRIN model, and CSR, as identified in Task 1. The report employs various models and concepts to ensure that strategic hotel management remains a consistently favored option among travelers. According to Pradini (2022), Task 2 entails the preparation of a report that involves conducting a strategic analysis of a hotel. The report should include the formulation of a new strategy, which may involve the development of a vision and objectives, utilization of the Ansoff matrix, identification of target segments, establishment of a unique selling proposition (USP), and the application of the experience model by Pine and Gilmore. Additionally, the report should provide recommendations for implementing corporate social responsibility (CSR) and innovation initiatives to effectively execute these strategies and achieve success in the highly competitive hospitality industry.

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The Hambantota region of Sri Lanka is home to a luxurious five-star establishment known as the Shangri-La Hotel and Resort. The resort boasts a total of 300 spacious accommodations, including suites, villas, and rooms, all of which offer stunning vistas of the Indian Ocean. The establishment boasts a wide array of facilities, including multiple drinking and dining establishments, a wellness center, a gymnasium, an open-air swimming pool, and various aquatic activities. Baxter and Srisaeng (2020) contend that the Anantara Peace Haven Resort, the Taj Samudra, and the Cinnamon Grand, among other high-end lodging options in Sri Lanka, are formidable rivals of the Shangri-La Hotel & Resort in the context of market share. Furthermore, the hospitality industry in Sri Lanka has been significantly affected by the COVID-19 pandemic, leading to a decline in the resort's revenue.

The present investigation will employ various strategic management techniques and models, including SWOT analysis and Ansoff's Matrix, to assess the existing condition of the Shangri-La Hotel & Resort. Furthermore, the report will evaluate the current methodology employed by the resort and identify any potential areas that may require enhancement. This report will encompass an evaluation of the hotel's target market, unique selling proposition, marketing and promotional strategies, operational procedures, and guest satisfaction. The report presents a set of strategic recommendations for the Shangri-La Hotel and Resort, which are based on the analysis conducted. These recommendations include the identification of new customer segments, the enhancement of the resort's spa and wellness services, the adoption of eco-tourism initiatives, and the improvement of operational efficiency. The primary aim of this report is to conduct a comprehensive analysis of the current situation of the Shangri-La Hotel and Resort and provide strategic recommendations for its future development and success in Sri Lanka's highly competitive hospitality industry.

Figure 1: Shangri la Hotel & Spa Hambantota | Sri Lanka | Travel Mind hotels

(Source: Travel Mind, 2020)

Strategic analysis of Hotel and Resort Facilities

2.1 Spa/Leisure Management

According to Kee, et.al, (2020), there are several wellnesses, sports, recreational, and gaming amenities available at the opulent Shangri-la Hotel & Resort in Sri Lanka. Ultimately, the spa and recreation staffs at the hotel do a fantastic job of making their clients feel comfortable and relaxed.

Spa Services

According to Koskinen, (2019), beginning with the spa facility, the hotel's CHI Ayurveda Spa provides customary Ayurvedic therapies to meet its visitors' well-being requirements. The spa provides a range of treatments, including traditional Ayurvedic therapies delivered by highly skilled therapists, as well as massages, body cleanses facials, and other beauty services. The spa's calm setting is ideal for relaxation, and the amenities are spotlessly clean.

Sports Facilities

The Sri Lankan Shangri-La Hotel & Resort provides a fantastic selection of amenities for sports. A contemporary fitness centre with all the necessary tools for both strength and cardio training is available at the hotel. A golf simulator, tennis courts, badminton courts, and a variety of water sports, including jet skiing and snorkelling, are all available at the hotel to keep visitors entertained.

Leisure Features

The hotel's infinity pool, which has a view of the Indian Ocean, is a highlight amenity. The pool is beautifully kept and has a great outlook, making it the perfect spot to chill. The hotel's lovely gardens and beachside location also give visitors a calm setting and lots of chances for enjoying the outdoors.

Gaming Facilities

In the hotel's casino, you can play a variety of games like baccarat, roulette, and blackjack. The casino is well-constructed and welcomes both inexperienced and seasoned players as cited by Lowe, & Maijanen, (2019).

2.2 Experience Management

With its stunning setting, opulent amenities, and accommodating personnel, the Shangri-la Resort and Hotel in Sri Lanka provide guests with an excellent experience. The Experience Management Model is made up of four components perceive, feel, think, and act can be used to assess the hotel's experience management.

Sense: Creating a Luxurious Environment

Beginning with the senses, the hotel offers its visitors a stunning and peaceful setting with views of the Indian Ocean and lush tropical gardens. Elegant and chic, the hotel's layout and design convey a feeling of exclusivity and luxury. Every part of the hotel is immaculately maintained and shows attention to detail.

Feel: Warm and Welcoming Staff

Moving on to the feel factor, the hotel's staffs are kind and hospitable, helping visitors feel at home at the time they arrive. The staffs go far and wide to meet the needs of the visitors and make sure they have a relaxing and enjoyable stay. The resort's CHI Ayurveda Spa, crystal pool, and other recreational facilities offer a feeling of relaxation and regeneration, which is important for a great visit.

Think: Seamless and Enjoyable Experience

To give visitors an effortless and enjoyable stay, the management of the hotel's team has given careful consideration to every little detail. The hotel's facilities, services, and amenities are all created to satisfy the requirements and preferences of its visitors. The hotel's web page and reservation process are simple to use and make it simple for customers to arrange their stay as cited by Becker, & Jaakkola, (2020).

Act: Proactive Approach to Guest Satisfaction

The hotel's concern for details and proactive dedication to visitor pleasure demonstrate the acting aspect. The hotel staff listens to customer feedback and responds quickly to any concerns or problems that may occur. There are many various cuisines and food options available at the hotel, catering to a wide range of preferences and tastes.

2.3 Performance Management

According to Armstrong, (2021), for every organization to be successful, particularly those in the hospitality sector, performance management is essential. No different, the Shangri-La Hotel and Resort in Sri Lanka uses several key performance indicators (KPIs) to gauge its success and pinpoint development opportunities. The hotel may employ the following KPIs as well as additional performance-related metrics:

• Occupancy rate- This KPI calculates the proportion of rooms that are always occupied by visitors. This indicator can be used by the hotel to assess how well its sales and marketing initiatives are working.
• RevPAR (Revenue per available room) - This statistic, which expresses the hotel's revenue per available room, is derived by dividing the total income from all rooms by the number of available rooms. This indicator can be used by the hotel to establish its pricing policy and spot revenue-boosting potential.
• Average daily rate (ADR) - This statistic calculates the typical cost per room sold and can be used to assess the hotel's pricing policy.
• Guest satisfaction score- This measure gauges how satisfied hotel visitors are, and it is derived from surveys and feedback from these visitors as cited by Moreno-Perdigon, (2021). This measure can be used by the hotel to pinpoint areas that need work and guarantee that visitors have a good time.
• Worker turnover rate- This statistic identifies the proportion of workers who quit their jobs within a specific time frame. A high rate of turnover may be a sign of organizational problems or unhappiness within the workforce.

New strategy

3.1 Why is there a new strategy needed – based on all your findings? Start with identifying your new Vision and Objectives for the next 3 years. Create a brief new Mission Statement.

According to our analysis of the Shangri-La Hotel and Resort in Sri Lanka, a fresh approach is required to propel the establishment's success and guarantee its long-term sustainability. The following represent a few of the main discoveries that necessitated the adoption of a new approach:

• Growing competition- With new competitors joining the market and incumbent hotels enhancing their offers, Sri Lanka's hospitality sector is becoming more and more competitive.
• Changing customer expectations- Customers are growing more discerning and demand high standards of individualized service and distinctive experiences.
• Changing technology- As new platforms and tools emerge to improve the visitor experience and optimize operations, technology is quickly altering the hospitality sector.
• Sustainable practices-The need for sustainable practicesin the hospitality sector is rising, and hotels that adopt sustainable practicesare more probable to draw eco-aware visitors as cited by Mercade Mele, (2019).

Vision- Being the premier luxury hotel in Sri Lanka by offering distinctive, individualized, environmentally friendly, and long-lasting experiences to visitors is their vision.

Objectives-

Increasing the rate of occupancy by 10% through strategic marketing and sales initiatives is one of the goals.

By using a dynamic pricing approach and revenue optimization, increase RevPAR by 15% as cited by Olimovich, & Khudoynazarovich, (2020).

Why By offering great, individualized service and distinctive experiences reach a guest's satisfaction rate of 90% or better.

By putting in place programs to increase employee engagement and happiness, you can cut the turnover rate by 25%.

Develop novel sources of income, such as event organizing and collaborations with neighbourhood companies, to boost the growth in revenue by 20%.

With these goals in mind, the novel mission report for Sri Lanka's Shangri-La Hotel and Resort might read:

• To provide guests with exceptional personalizedexperiences that are environmentally sustainable, inventive, and memorable, as making a supportive and stimulating working atmosphere for the staff, and operating long-term development for the stakeholders.

3.2 New strategy with Ansoff's Matrix.

The objective of this study is to propose a strategic plan for the upcoming triennium, grounded on the evaluation of the Shangri-La Hotel and Resort in Sri Lanka, with the aim of ensuring its sustained profitability and competitiveness in the highly competitive hospitality industry. An application of Ansoff's Matrix will be utilized to propose a novel strategy for the hotel.

Current Strategy

The resort's current marketing plan seems to place a strong emphasis on differentiating itself through upscale services and specializedexperiences as cited by Sudhagar, & Samuel, (2019). Although this strategy has built a reputation for excellence and exclusivity, it might not be enough to maintain long-term success and expansion in the more highly competitive industry.

New Strategy

According to Clarissia, (2020), Ansoff's Matrix, the Shangri-La Hotel, and Resort in Sri Lanka adopt a new strategy. Putting a priority on market penetration, market expansion, product development, and diversity are discussed below:

Ansoff's Matrix is a way for businesses to look at the growth prospects of their products and markets from a strategic point of view. The goal of market penetration is to sell more of a product in a market that already exists. If you want your market share to grow, you need to start selling your products in new places. The goal of coming up with new products is to fill gaps in current markets with new ones. To diversify means to see if there is promise in new consumer markets. Ansoff's Matrix can help the Shangri-La Hotel and Resort in Sri Lanka figure out which plans for growth will have the biggest effect. They could try to get a bigger part of the market by attracting more customers, focusing on tourists from other countries, offering new services like spa treatments, or moving into related fields like high-end vacation packages.

Figure 2: Ansoff Matrix: four growth strategies

(Source: Science theory, 2020)

Justification

The hotel should use digital technology to improve the visitor experience, improve operations, and boost income to implement these plans. For instance, to personalize visitor experiences and boost customer engagement, the hotel could deploy a customer relationship management (CRM) system as cited by Guerola-Navarro, et.al, (2021). Software for revenue management is another tool the hotel can use to improve pricing policies and boost profits. To reach more customers and raise brand awareness, the hotel can also make use of digital marketing channels.

The hotel may also implement sustainable practices throughout all aspects of its operations that not only complement its vision and aims but also draw eco-aware visitors. Energy-efficient heating and lighting systems can help the hotel use less energy, and adopting sustainable supply chain practices can help it use less food. By accomplishing this, the hotel may set itself apart from rivals and draw in a growing market of tourists who are concerned about the environment.

Describe the Pine and Gilmore experience model's four quadrants.

The four quadrants of the Pine and Gilmore experience model are entertainment, learning, escapism, and aesthetics. The “entertainment” sector concentrates on providing memorable experiences that are frequently connected to leisure and enjoyment. The “education” quadrant places a focus on learning and skill-development activities. Offering guests deep and transforming experiences that let them momentarily escape their daily life is what the “escapism” sector is all about. The “aesthetics” quadrant places an emphasis on tactile and visual stimuli that arouse emotions (Pine & Gilmore, 1998). According to Amoah and Marriott (2021) the Shangri-La Hotel and Resort in Sri Lanka is classified as falling into the "entertainment" quadrantthat is concerned with offering unique and immersive experiences.

3.3New strategic plan

New Segments to Target	The Shangri-La Hotel and Resort in Sri Lanka must focus on catering to families and eco-aware tourists to attract new sectors. The hotel can provide family-friendly packages with kid-friendly extras and family-friendly facilities. The hotel can use sustainable business practices across its operations and provide eco-friendly services and activities for environmentally conscious guests as cited by Dolnicar, (2020).
Unique Selling Proposition (USP)	The hotel's unique selling proposition ought to be its individualized, opulent experience, coupled with environmentally friendly procedures that reflect the ideals of eco-aware travellers.
Attracting Customers	The hotel may utilize social media channels and digital marketing tools to communicate with potential consumers and advertise its USP as cited by Park, et.al, (2020). To encourage clients to come back and recommend their friends and family, the hotel can also develop targeted incentives and loyalty programs.
Re-adjusting Operations	The hotel's operations should be modified to support the fresh strategy. This can entail making investments in environmentally friendly practices, putting a customer relationship management (CRM) framework in place to customize visitor experiences, and using revenue management software to optimize pricing policies and raise sales.
Implementing the Experience Model by Pine and Gilmore	To improve the visitor experience and establish its USP, the hotel can implement Pine and Gilmore's experience model. The hotel meets the model's "entertainment" quadrant, which is concerned with producing memorable and immersive experiences as cited by Amoah and Marriott, (2021).
Corporate Social Responsibility (CSR)	The hotel might concentrate on CSR projects that go along with its beliefs and goals to help its sustainability efforts. The hotel can collaborate with neighbourhood organizations to assist with environmental protection, advertise sustainable travel, and enhance the welfare of the neighbourhood. According to Latif, (2020), the hotel can also incorporate waste reduction and local business support practices in its supply chain.
Innovation	The hotel should prioritize innovation if it wants to maintain its competitiveness and keep up with consumer expectations. AI and virtual reality are two developing technologies that the hotel can use to improve guest experiences and optimize operations. The hotel can collaborate with nearby start-ups and business owners to find fresh, creative business prospects as cited by Romero, & Tejada, (2020).

Justification to the strategies with the help of Pine and Gilmore model

The Shangri-La Hotel and Resort in Sri Lanka can use the Pine and Gilmore experience model to enhance tourist experiences and develop its USP. The "entertainment" quadrant of the model can be used to provide immersive and unforgettable experiences for visitors by offering personalised encounters, family-friendly activities, and eco-friendly services. The hotel can also concentrate on CSR initiatives that support its values and objectives in order to interact with neighbourhood groups, assist local companies, and support sustainability initiatives. Additionally, to enhance visitor experiences and streamline operations, the hotel should place a priority on innovation, work with adjacent start-ups, and make use of new innovations such artificial intelligence and virtual reality. These tactics, together with the Gilmore and Pine model, will aid the hotel in differentiating itself from competitors and prospering in the competitive hospitality sector.

4. Recommendations

4.1 Further strategic recommendations

The hotel can implement mobile check-in and out, increase staffing during peak hours, and set up self-check-in devices to enhance the guest experience and decrease wait times. According to Bhatnagar and Dheeraj (2019), the hotel can establish a comprehensive checklist and training program, carry out frequent quality inspections and audits, and execute a reward and appreciation programfor housekeeping workers to guarantee consistent housekeeping standards. The hotel can create a thorough marketing and advertising plan, work with tour operators and travel agencies, and use social media platforms and online advertising techniques to reach a wider audience in order to boost brand recognition and draw in new consumers.

4.2 Recommendation on CSR

Based on the case study of the Shangri-La Hotel and Resort in Sri Lanka, few CSR suggestions include promoting regional customs and history, aiding the neighbourhood through partnerships and job development, enacting eco-friendly procedures, and assisting regional conservation initiatives. The hotel can also aim to lessen its carbon footprint, give staff member's opportunities for training and development, and guarantee ethical business practises across the supply chain. The hotel can enhance its brand and image as well as favourably impact the neighbourhood and environment by putting these CSR activities into practise.

Figure 3: CSR logo

(Source: Azeagaia Development Private Limited, 2019)

Conclusion

The report has concluded that there is a lot of room for development and success for the Shangri-La Hotel and Resort in Sri Lanka. Several important strategic recommendations were found after an extensive review of the present company procedures and competition. The report also recommended course of action for the following three years is to concentrate on growing the resort's clientele through a focused segmentation strategy. The Shangri-La Hotel & Resort can stand out from rivals and draw in a wider audience by highlighting the resort's special selling points of expense, relaxation, and sustainability. To do this, the resort should emphasize generating new ecotourism opportunities, improving its spa and well-being offerings, and utilizing digital marketing platforms to reach a larger audience. The resort should also concentrate on enhancing operational effectiveness by dealing with crucial operational issues like ineffective check-in and check-out procedures, insufficient levels of staffing, inconsistent maintenance standards, a lack of accessibility for visitors with disabilities, and insufficient marketing and promotion. The Shangri-La Hotel and Resort in Sri Lanka may establish itself as a premier luxury destination in the area, draw in a wider clientele, and succeed long-term in the cutthroat hospitality industry by putting this strategic advice into practice.

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