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Primula Park Hotel Case Essay

Introduction

The Primula Parkroyal is a four star hotel in Kuala Terengganu, was going through a strategic change after a new Management took over in 1996. Rodney Hawker, PPR’s General Manager was working on the new market strategy for the hotel in 1998. Some of the key areas to look into are the segment of markets to target, and how he should position the hotel to compete with other hotel in Kuala Terrengganu and hotels n other destination in the background of unfolding Asian financial crisis. The hotel is located in the South China Sea in Kuala Terengganu in North eastern state of peninsular Malaysia, an oil-rich state with a population of over 850,000 comprising mostly Malay Muslims.

PPR was the first four star hotel to be build along the Eastern Coast of Peninsular Malaysia n the eighties. In1996, the Southern Pacific Hotel Corporation took over PPR’s management from the state agency for ‘twelve plus five year’s contract’ to manage the hotel. In managing strategic change of the hotel, the management focused upgrading the physical facilities of the hotel, re-marketing and positioning of the hotel, staff training and changing work culture. To re-market and position the hotel, the management has to look at the segment to target and the internal renovation has to be undertaken.

SWOT

Strength

1. Has government support. 2. Only hotel which has a beach location and has both tourist and business image being close to town. 3. Unspoiled beaches, water fall, lakes which are untapped as far as tourism is considered. 4. The hotel that has the largest no of facilities that entertain all the segments of the customers coming in. 5. Being a water sport crazy nation, events like snorkel can be used to attract masses.

Weaknesses
* Vulnerable to seasonal fluctuation of demands because of the location. (Facing South China Sea) * No unified operation ( Front office & Food &Beverage Department) * No Formal front office training conducted since 1992

* Low staff motivation and high turnover & absenteeism in the department
* Inefficient room management
* Waiters and waitresses reluctant to interact with foreign guests because of lack of confidence in English language proficiency
* Islamic law against profiteering from liquor
* Attitude of the staff remain imperative
* Serving Liquor, difficulty in recruiting staffs

Opportunities
* Conference segment projected to increase by 30 percent
* New management who are experienced in hotel management. Hence we can have best practices implemented in this company.

Threats
* Limited contract 12 + 5 years
* No full ownership. Thus long term capital intensive strategies can’t be made.
* Looming Asian Financial Crisis
* Intense competition from many new hotels and resorts
* PPR’s service levels & staff morale low. Hence poaching chances are more
* Employees are reluctant to change/learn new culture
* Fear of Tsunami/ Natural Calamity
* Less skilled workforce available in market
Target Segmentation
We aim at targeting the following segments:

* Commercial Segment comprising of Corporate and Corporate Conferences which would also help us to penetrate the growing ‘Conference’ Segment also. We targeted this because of following reason: * Currently 30.1 percent of our occupancy is from this segment. This is the largest contributor and we see further growth * This segment can be easily targeted without spending much on advertisement through corporate tie-ups * By providing value for money we can attract existing customers of our competitors as we are the only 4 star hotel in the vicinity * This segment is not dependant on seasons

* Individual Traveler segment comprising of Individuals and Families. We targeted this because of following reason:
* Currently 29 percent of our occupancy is from this segment. This is the second largest contributor and we see further growth * By providing value for money we can attract existing customers of our competitors as we are the only 4 star hotel in the vicinity * It is in line with our aim of making the private segment the biggest

Commercial Guest
These mainly comprises of corporate delegate. Hence we have further segmented it into two: Corporate Promotion Strategy
Once you avail a corporate package, our trained and experienced staff will work with you to ensure to make you stay comfortable and unforgettable. All rooms can be hired on daily or weekly basis. Charges and corporate packages are flexible depending on the type of corporate package selected, room availability and individual client requirements. Park Hotel delegate package includes:

* Car parking
* Welcome drinks on arrival
* 24*7 Coffee and Tea
* Newspaper
* Mineral water and mints
* Pens and paper
* Morning tea, coffee and pastry
* Airport picks up and Drop
* 24*7 In-room Internet connection
* Fully equipped gym with trainer
* Complimentary shuttle van service to nearest MRT/BTS
* Preferential booking for frequent travelers
* Last minute Booking (on availability)
Daily Stays Promotions
* Complimentary breakfast
* Successive discount on next day’s booking
* Evening Snacks
Weekly Stays Promotions
* Take your pick from our five Nights and seven Nights promotions at discounted rates
* Sea Facing rooms
* Complimentary breakfast and dinner
* Free Massage
* Free Arrangement for Site seeing
* Free Laundry

Corporate Conference Segment Packages
Once you book a corporate packaged, conference or meeting, our trained and experienced staff will work with you to ensure the success of your event. All meeting rooms can be hired for full or half day use. Room hire charges and corporate packages are flexible depending on the type of corporate package selected, room availability and individual client requirements. Park Hotel delegate package includes:

* Car parking
* Coffee and tea upon arrival
* Room hire
* Mineral water and mints
* Pens and paper
* Morning tea, coffee and pastry break
* Buffet lunch
* Afternoon tea, coffee and pastry break
* Accommodation & Dining options

Figure 1: Conference Room Interior

Figure 2: Meeting Room Layout

Full Day Meeting Package

• Full Day Executive Meeting Room
• 2 Coffee Breaks
• 1 International Lunch Buffet
• Audio Visual Equipment
• Customized seat configuration
• High speed internet (optional)
• Ice water, mints, writing pads and pencils
• Floral Arrangement
• Free Parking

Half Day Meeting Package
• Half Day Executive Meeting Room
• 1 Coffee Break
• 1 International Lunch Buffet
• Audio Visual Equipment
• Customized seat configuration
• High speed internet (optional)
• Ice water, mints, writing pads and pencils
• Floral Arrangement
• Free Parking
Individual Traveler

Figure 3: Individual Traveler
Here customers are people who pay from their pocket. We have segmented it further into two categories:
Individual
Here we have the following facilities:
Restaurant
The Flower Pot, our 24-hour coffee shop, with its scenic surroundings overlooking the lush lagoon, serves breakfast as well as fusion cuisine in a cheerful setting… Suite with different themes

Our nine suites in five different styles, have each been individually designed with different flowers in mind – Sunflower, lily of the Valley, Rose, Waterlilies & Lotus in keeping with the nature theme. The luxurious suites are an eclectic mix of the traditional and modern which gives them a unique feel. The balcony overlooking the breathtaking lagoon is the perfect place to relax and unwind. The rooms are designed in five different nature themes (Marine | Rainforest | Fire | Mountain | Glacier). All aspects of comfort and convenience are subtly balanced with the contemporary and chic decor of each room.

Figure [ 4 ]: Room’s interior
Business Center

Our Business Centre has two work places available for our guests including a work station with a printer, a scanner and fax machine. Our Business Centre offers secretarial services along with high speed access for note books, connecting cables to printer and USB ports and direct dial phone access. Travel Desk

All travel arrangements in and out of the city by train, plane and automobile including city tours are provided by our Travel Desk. Once you avail a corporate package, our trained and experienced staff will work with you to ensure to make you stay comfortable and unforgettable. All rooms can be hired on daily or weekly basis. Packages are flexible depending on the type of package selected, room availability and individual client requirements. Park Hotel delegate package includes:

* Cars can be arranged for airport pick up or personal use throughout your stay.
* SIM cards are also available at our Desk.
* Buffet Meals (Indian, Continental, Oriental, International Cuisines) as per Plan
* Courtesy Transfers to & from Airport / Railway Station on a minimum stay of 3 Nights / 4 Days
* 20% Discount on Treatment & Massages at “The Spa”.
* Two bottles of Mineral Water replenished daily in the room
* Complimentary use of Swimming Pool (with proper swim wear) & Gymnasium and Jacuzzi (by prior appointment)
* Complimentary use of Tea/Coffee maker in the room

* Complimentary use of WiFi Internet Services
* Happy Hours by the poolside between 6 pm to 8 pm.
* Daily evening Entertainment like Live Bands, Folk Dances & other cultural dances
* A la carte services

Family

Family packages will be customized to cater to your needs and desires once you reach our beach resort. Special offers for 5-nights and 7-nights stays, even during the festive season! All your demands will be fulfilled at the tip of your fingers. Enjoy the hustling-bustling activities of shopping, city tours arranged by us etc. and then rejuvenate yourselves at our beachfront spa kiosks and recreational facilities. We would offer you:

* Complimentary breakfast
* Complimentary welcome cookie basket and morning newspapers
* Tea and coffee-making facilities in rooms
* Iron and Ironing Board provisions
* Beachfront Massage Kiosks
* Discounted Rejuvenating Spa treatments
* Special city-visit packages
* 24-hr Room Service
* Multi-cuisine Buffet Lunch on weekends
* Taste of Malaysia and barbeques by the beachfront
* Panoramic view of the beach from hotel rooms
* Airport to and fro transportation
* 24*7 Wi-Fi Availability in the hotel
* Club houses for children’s fun time
* Special Arrangements of trainers and guides for water-sports activities and land excursions
* Complimentary fully equipped gym with trainers
* Recreational Facilities – Health Centre, Swimming Pool, Tennis and Volleyball
* Last minute Booking
* Special Offers for 5-Nights and 7-Nights Stays
* Souvenir and Shopping Arcade proximity
* Valet Parking available
* Privilege Membership Cards and special offers
HR strategy
High rate of absenteeism

Motivate employees, Give employee’s perks like putting their pictures on walls as “WALL OF FAME “,Maintain a system where any employee who gets the best feedback from the customers gets to have increase in pay for the next month and also gets to lead the other employees of his /her grade on a particular floor. We can focus on employee’s happiness rather than just motivating them. For example, when your employees accomplish something or achieved something, give them on-the-spot praising.

English language Training

In the begin of every working day 15 min session will done which will have the basics of English language , the employees will be taught some conversation starters in English and basic things about the hotel which can be told in English to the customers. The employees will be Judged based on the feedback received form their customers and managers. Job rotation and Employee relations

Middle level employee will given Training exercise as to how to manage the Lower level employees interest , motivate them and also Manage their issue in case that may lead to unrest in the hotel , for that every month they will be told to attend sessions of Leading IR specialist . On the job training will be giving to employees by rotating their roles and let them learn and have a holistic development for their careers.


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