Crown Prince Hotel analysis

The purpose of this report is to develop and create a business plan and marketing plan for the hotel industry organization Crown Prince which involves technology to improve the operations of the organization and improve the personal experience of the guest. The suggestions for the report are provided from the perspective of the General Manager of the hotel which mainly targets international travelers. In suggesting the business plan for the organization this report will provide a brief introduction of the organization and its value propositions by suggesting the strategies for the organization and revenue strategies. Thus, it will develop a marketing mix for the organization by highlighting the technological strategies for the hotel where it will provide suggestions for the hotel on which area has to be improved and how the organization will monitor and control the activities for effective strategic management of the organization.

Crown Prince is an international hotel in Singapore that has been located in Orchard Road, Singapore it is a luxury hotel located nearby the international airport of Singapore where the hotel is established in the year 1983 (Travellermade, 2022). Crown Prince Hotel is a luxurious hotel on the airport road of Changi international airport in Singapore which is a competitive advantage for the hotel because it targets the visitors coming from the international airport which provides a competitive advantage to the organization. The primary services of the hotel are luxurious rooms, pools, food services, gym, spa, and many more for the targeted customers apart from this hotel also provide services for the organizations to organize their functions and events on a luxurious theme concept (Ihg, 2022).

The Crown Prince hotel is one of the most famous hotels in Singapore and across the world where it is mainly famous for the quality service provided for its guests and visitors which attracts customers to the hotel from across the world. The hotel is ready to provide 24/7 services with premium accommodation, business-ready services, and spaces where the hotel is one of the largest upscale brands with the strategy to locate the hotel chain in global places such as urban centers, gateway cities, and many more. Crown Prince Hotel is an IHG group portfolio hotel that also provides resort services for the guests and the hotel is categorized as an upscale hotel brand (Ihgplc, 2022). The business objectives of the hotel are based on providing quality services to the clients for their satisfaction where the hotel facility offers full of luxurious amenities and facilities with full service of accommodations in personalized services. The hotel also provides luxurious on-site restaurant services which provide unique consumer satisfaction to the guests and visitors of the hotel. The hotel chain provides premium services to the guests so the hotel chain only targets people from the premium category where the targeted customers of the hotel are as follows-

• Business people who visit for their professional work where the hotel targets the businessman from Australia, Europe, Japan, the USA, and Southeast Asia.
• The hotel chain also targets celebrities and famous people as their customers.
• They target the affluent experience traveler for the first time who comes to explore the local place(Ihgplc, 2017).

Business strategies with key objectives

For targeting the customer hotel has embarked on a three-year campaign targeting customers from across the world. Most of the targeted customers of hotels are from travel purposes for business activities or tourist activities targeting the people who come from the airport. The value proposition of a hotel is related to the service style of the hotel is based on the strategy of daring to connect which distinguish service experience that is intuitive of unscripted service style apart from the services of the hotel from the industry. Dare to connect is mainly based on different types of skills such as belief, anticipation, perseverance and vulnerability (Caswell, 2018). The dare to connect the value proposition of the hotel is related to the commitment of modern business travelers through the promise to “Build guest love, drive performance and deliver high-quality growth” in the industry (Smartmeetings, 2017). Covid-19 creates a negative impact on the business of the hotel because of the travel ban imposed by the countries on each other where the business strategy of the hotel is based on attracting travelers as their customers so the pandemic decreases the growing performance of hotels and deal with this issue the hotel management make several positive changes in their hospitality approach which is as follows-

• Providing guest safety and flexibility.
• Taking care of the staff of the hotel.
• Providing true hospitality to the local communities.

The biggest issue of the hotel is to improve the efficiency of the hotel after the negative impact of Covid-19 for improving the revenue of the company (Aharon et al., 2021). The key objective of a general manager of the hotel is to retain the performance of the hotel by improving customer satisfaction and operations or services of the hotel by managing the employees more effectively through training, planning, and marketing coordination for the accommodation facilities. As a manager of the hotel, the primary objective is to eliminate the risk factors of the hotel by improving the revenue of the hotel and its services in different segment services.

The key objectives are combined with improving the performance of the hotel which has been affected by the impact of Covid-19 on the hotel where the strategy of the hotel is based on focusing on the value creation from the customers through developing itself as a preferred brand with delivering the superior owner proposition and generating revenue through minimizing the cost and maximize the revenue of the organization from the maximum utilization of direct channels (Ihgplc, 2022).

• The strategic approach is related to targeting customers from different segments directly and via a third-party approach. because it improves the interaction with the customers of the hotel. Before the Covid-19 period, Crown Prince only promote itself with its resource but for improving the business of the hotel(Siteminder, 2022).
• Crown Prince’s marketing strategy is based on the theme of consumer satisfaction by providing a great experience for the customers through promotional activities from different sources.
• The new business strategy for the hotel is based on improving the digital promotion and advertisement on different platforms of social media through the implication of Search engine optimization (SEO) which improves the position of the hotel in the search result (Parvez et al., 2018).
• After the impact of Covid-19 on the revenue and business of the hotel has been improved by developing an effective business strategy where the strategy is mainly based on improving the sales strategies which combine several activities such as group bookings, destination marketing, revenue management strategy, and many more where it includes the upselling, cross-selling and local partnership of the hotel.

This business strategy is mainly focused on to promotional activities of the hotel which has been to identify and evaluate the different types of events which has been organized in the local region where the promotional activities are related to providing rewards for the customers, promotional campaigns, and many more (Leonidou et al., 2013).

Cross promotional sales strategy

The group scale activities have been improved with the sales approach where the revenue has been increased through selling the rooms to the corporate groups whether it is important to offer the deal for both where it is an internal part of the innovation strategy of the organization (Siteminder, 2022).

The revenue of the organization has been improved with the expansion in the new area development where the hotel has adopted the greenfield strategy to develop a new area for the hotels (Yu, Byun & Lee, 2014). In the Greenfield strategy, the hotel establishes a new operating facility in its existing facility in the industry. Another way of improving the revenue of the hotel is to attract customers with the implication of technology where the hotel management can use artificial intelligence through robotics services which is a unique experience for their customers.

Increasing the sales in the market is an important factor to improve the skills of the employees and staff of the hotel because the success of the business is only depending on the type of quality services provided by its employees for satisfying the customers. The business strategy is to improve the social skills of the employees by constantly conducting different types of workshops and seminars which helps in improving their communication skills to interact with customers through improving their technical skills.

Revenue strategy is a pre-defined plan which has been used to improve the total revenue of an organization where the revenue strategies of hotel Crown Prince aims at the strategy of reducing the operational cost activities of day-to-day activities and increases the revenue of the organization by aligning the marketing and sales activities (Vives, Jacob & Payeras, 2018).

The occupancy rate defines how much minimum customers are living as a guest in the hotel so it will not create a negative impact on the operational cost of the hotel where the ideal occupancy rate for the hotel is 55.77% which improves the revenue of the company (Hirschmann, 2021).

The forecasting strategy is related to addressing the future growth of the business in the industry is improved with an average rate of 12%.

The cost is related to the operational running cost which is related to the cost of food and beverages, asset maintenance, commission, and utility cost where the cost of the hotel for increasing the revenue is 10% of the total revenue of the hotel.

The resources required for improving the revenue of the organization is human resources and finance where the primary resources are required for technological advancement and the expansion of the business into a new field of areas (Wigraisakda & Visadsoontornsakul, 2013). It is mainly related with presenting the properties of hotel through the selection of best possible option for improving the productivity.

Hotel group sales strategy

The members take the key decisions of the hotels where their role is related to the allocation of the resources for improving the revenue of the hotel. The local management takes permission from the higher management for the formulation of the activities.

Member	Post
Keith Barr	CEO
Paul Edgecliffe Johnson	CFO & Group head of strategy
Claire Bennett	Global Chief customer officer
Yasin Diamond	Executive Vice President, Global corporate affairs
Rajit Sukumaran	MD, South East Asia
Nicolette Henfrey	Executive VP, General Counsel
Wayne Hoare	Chief Human resource officer
Kenneth Macpherson	CEO (Asia, Europe, Middle East, and Africa) (Ihgplc, 2022).

(Executive committee) 

 

Source: (Merofuture, 2022)

The revenue target of the hotel has been achieved through the effective formulation of the revenue strategies of the organization the implication of a strategic approach process-

• Setting monthly sales targets.
• Establish transitional goals.
• Arranging the goals in order.
• Establishing the activity goals.
• Monitoring the performance of the goals.

REVPAR is analyzed to identify the performance measure used in the hospitality sector through the revenue per available room (Siteminder, 2022). The REVPAR performance of the Crown Prince Hotel is analyzed through the-

Room rate- $275

Occupancy rate- 55.77%

REVPAR = Room rate/ Occupancy rate

275/ 55.77=$4.930

Product

The primary products of the hotel are the types of room facilities provided for the customers such as rooms, suites, executive rooms where the service facility of the hotel are parking, gym, spa, TV entertainment, pool services, bar, room safe and many more. The hotel has more than 562 rooms with world class luxury and features at different price of range (Hrs, 2022).

Price

The pricing strategy of the hotel is based on the high price category where the price is a secondary factor and providing quality services to the customers is a primary factor. The average price of a room is $275.

Place

The place strategy of the hotel is based on targeting public places such as urban centers, gateway cities where the hotel is located nearby with an international airport and attracts a wide range of customers.

Promotion

The promotional strategy of the hotel is a mix of standardization and customization where the promotional activities rely on the intercontinental brand through direct contact with customers, travel agencies, and social media marketing (Siteminder, 2022).

People

People and employees of Crown Prince hotel are the key factors of the organization because the hotel is mainly famous for the quality services provided by its customers which provides a competitive advantage to the hotel.

Process

The process strategy is related to that how the management deals with its customers where the strategy of the company is mainly based on the concept of daring to connect.

Physical evidence

The physical evidence is related to the overall internal and external layout of the hotel which attracts a wide range of customers (Ihgplc, 2022).

Strategies for providing better services

• The effective strategy for better customer service is to make training an everyday priority, not just a one-time event that provides a personalized customer experience.
• The services have been improved by constantly monitoring the operational activities of the hotel which reduces the direct and indirect costs.  
• The strategy is related to recognizing the importance of preventive maintenance for improving the operations of the hotel.

The hotel business is affected badly by the impact of Covid-19 because the people are threatened about their health and they refuse to come to hotels where the primary recommendation for the hotel is to take preventive action on the health and safety issues related to customers and make digitization a priority (Mauguin, 2021). The primary recommendation for the hotel is to increase the digital strategy of the organization through SEO marketing and suggestion from the customers where the cost has been reduced with the implication of total quality management in the organization.

Expansion strategy

Another recommendation for the hotel is to keep up its eyes on changes in hospitality needs and to incorporate with the local business for targeting a wide range of customers. Hotel Crown Prince has to host live events that will help in generating buzz for the company.

The monitoring and controlling process is handled by the general manager by effectively managing the team by establishing an effective communication process between each other. If the employee has been faced any type of issue, then it will be improved through communicating with each other where if the employees have done positive and effective work in the field then they are rewarded with financial and non-financial promotions. The team activities have been monitored with the individual auditing department where the primary work of the department is to ensure that the strategies are achieved more effectively without any disruption.

The customer journey experience for Crown Prince hotel is based on improving the experience of the customers so the revenue of the company has been increased where the primary factors are divided into five stages which is as follows-

• Inspiration and research.
• Availability of pre-arrival and check-in.
• Improving the in-house experience.
• Quality services in check out and stay for the customers.
• Implication of big data for maintaining the records of the customers with various services such as remote check in, mobile room keys and smart room service.

These services of Crown Prince hotel are related with improving the customer experience which attracts the wide range of customers for the hotel.

Conclusion

Based on the above study it is concluded that Crown Prince hotel is an international chain of IHG group which is mainly known for luxurious services for the prime customers. The target customers of the hotel are businessmen, travelers, and celebrities in the high price category with the prime location of an international airport. The performance and revenue of the hotel are affected by the impact of Covid-19 where the business strategies are expansion strategy, Cross promotional sales strategy, and Employee skills strategy. The revenue strategies of hotels reduce the cost and increase the revenue of hotels where the average REVPAR of the hotel is $275.  The marketing mix of the hotel provides a competitive advantage in the industry through providing quality services for the consumers where the primary strategies are better customer service, constantly monitoring, and recognizing the importance of preventive maintenance. The recommendations for Crown Prince hotel are to keep up with the operational activities of the organization and incorporate the local business in the organization where the hotel has to promote itself with digital marketing through SEO techniques. The monitoring and controlling process are managed through developing effective communication between the employees themselves and managers where the auditing team has the right to analyze whether strategies are organized in a pre-defined manner or not.

References

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Hirschmann, R. (2021). Standard average occupancy rate (AOR) in Singapore 2011-2020. https://www.statista.com/statistics/961778/standard-average-occupancy-rate-singapore/

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