Hotel industry is one of the most important sectors of hospitality industry (Jobs 2017). There are many facilities provided by hotels which include conference facilities, swimming pools, social functions, business centres, child care, spas, food and beverages etc. These facilities provided by hotels depend upon the size, function as well as cost factors of the hotel. Boom in the tourism and travel industry is one of the reasons for the growth and boost in the hotel industry. Besides this, aggressive branding strategies which are adopted by the major players are also expected to determine the growth of this sector i.e. hotel industry. Classification of hotels are based on the services offered: 1 Star hotels (take account of tourist’s hotels), 2 Star hotels (standard hotel), 3 Star hotel (comfort hotels), 4 Star hotels (first class hotels), and 5 Star hotels (luxury hotels).
UK is the largest and the fastest rising market for the hotels worldwide (Banking 2017). This report embraces a research on Hotel Radisson Blue. This hotel is renown all over the world. An analysis is done in the report to analyse the internal and external factors of this business which would help me in deciding the employment opportunities provided by this sector. The report includes two parts; in first part analysis of the whole business of hotel is done. In the second part opportunities deliver by the hotel industry for the employment is discussed. To analyse the internal factors of business, SWOT Analysis is done; on the other hand, PESTEL Analysis is also done to analyse the external factors of the business i.e. political, social, legal, ethical, environmental and technological factors (Blais, 2011). SWOT analysis is vital to analyse the strengths of the business which are- higher income and profitability, reduced labour expenses, present distribution and sales network; as well as the opportunities such as- rising economy, venture capital, developing demand, advance rates and cost-effectiveness could be helpful to achieve the goals. Besides this the factors which are the weaknesses of business such as- future productivity, prospect of cost structure and some factors which can cause threat to the business such as- changes in price of raw materials or other resources and regulations made by government (like taxes) are also identified through the SWOT Analysis. Radisson blue has to make strategies which could help it to survive in this competition era. There are lot of competitors in this sector, some of the major competitors of Hotel Radisson Blue are- Hilton and Marriott; therefore, planning should be effective to survive or to compete with those competitors (Hammer, 2016).
The second part of the report includes the opportunities which would be helpful for me in getting employment. There is lot of scope in regards to employment in the hotel industry. There are mainly two types of jobs available in the hotel industries which are guest services and administrative services. In each and every hotel, all the same, similar positions are required to be filled (McKinney, 2012). At each hotel, generally, there are maintenance employees, staff members of housekeeping, management employees, kitchen staff, staff who perform accounting work, wait staff (if in case, hotel has restaurant in the premises), staff who buys supplies as well as provide related support. Therefore, a lot of jobs are available in this sector which can be chosen by people according to their interest.
Figure 1: Comparison with Industry
Source: The UK hotel industry survey report 2012 -13 (Abouhanian & Katsioloudes, 2016)
In the given figure, occupancy rate and average rate of the UK hotel industry are to be evaluated. It is analysed that there are many fluctuations from the year 2008 to 2013 in the both rates to be seen and it remains stable from the last year (Abouhanian & Katsioloudes, 2016).
Figure 2: Total revenue of The UK hotel industry which is based upon survey report.
Source: The UK hotel industry survey report 2012 -13 (State, 2016)
With the help of given figure, revenue source of the UK hotel industry has been analysed. It is seen that revenue came from the hotel room is higher than other sources in the year 2008 -2009 but further on it started decreasing and same with the other revenue sources (State, 2016).
Figure 3: Total revenue and net income of the UK hotel industry
Source: The UK hotel industry survey report 2012 -13
It is analysed that, in the first year growth rate which was expected 5% and on the next years the growth was declined to .25% from 5%. (Vingre, 2016)
Figure 4: Comparison of Radisson hotel with its competitors
Comparison of income between Radisson and its competitors globally (State, 2016)
It is concluded on the basis of above graph that generated income of Radisson Hotel is higher than the other hotels as it is considered one of the top hotel branches of the world. Income of Radisson is just double to its competitors.
This report is done to analyse the business of hotel industry and to identify the employment opportunities. In this report, concentration is done on the Hotel Radisson Blue. Hotel industry is one of the most important parts of hospitality sector. There are many types of hotels all over the world (LLC, 2010). These hotels are categorized in one- five stars and this categorization is done on the basis of luxury and services provided by these hotels. This report includes three main parts. In first part of the report, figures and charts concentrating on the hotel industry are discussed. This discussion states, idea about the income and profitability in the hotel industry. In addition to this, net income and comparison of hotel Radisson with other hotel is also discussed. Business analysis is done to analyse the internal and external environment of the business. This business analysis is important to identify the factors that can be strength of the business or the opportunities in the future which could be helpful to generate more revenue and profitability in the business (Yayici, 2015). This business analysis is done with the help of SWOT Analysis technique (SWOT Analysis in tabular form is attracted in the appendices). Discussion is done about the employment opportunities provided by the hotel industry (Shulver, Clark, & Johnston, 2012).
For an organization, it is important to evaluate its internal and external environmental factors that can affect business activities in future. In order to analyse the internal and external environmental factors some analytical methods are used like SWOT (strength, weakness, opportunity and threat) is used to evaluate the internal environment and PESTEL (political, economic, social, technological, economic and legal) is used for assessing external industrial environment. Through these methods, the present and future situation of the Hotel Radisson blue can be identified. (Byrd and Megginson 2013)
SWOT ANALYSIS
Strengths
Radisson’s presence exists globally like it has around 420 hotels in more than 75 countries in the world. Hotel Radisson provides admirable services to customers and it also has the uppermost notch service. It has higher goodwill from customers and employees because it provides services to the customers as they expect. For attracting new consumers, they come up with the exciting deals and promotional offers. For that basis, it has large customer base. It has a huge brand name as it expanded its business globally and its parent company “Carlson” adds more value to it.
Weeknesess
Customers think that it must be expensive because it has big brand name so do not prefer to come over here often. Some customers avoid getting contact with the high brand name company because it is their perception that they charge very high amount for providing services. Moreover, hotel is trying to expand its business in the rest countries. According to its current status, this industry takes a toll on power spending. But, apart from this fact, Hotel Radisson is still facing some problem regarding expansion of market (Ghapanchi et al. 2017, 277).
Opportunities
It uses the present economically situation to enhance the customers with the help of exciting packages. By following current market trends, industry get to know about the requirements of customers and provide them what they want accordingly. Expanding its market towards the global tourism leads to cover up the additional margin of profit. In present scenario, tourists look towards for unique destinations. So, that will be an opportunity for Radisson to grab the attention of customer by being unique and providing different services. (Hyder and Akmal 2016, 414).
Threats
Earlier, Radisson was considered as one of the 4 -5 star hotels but now it has been shifted to lower one because customers think that it is very expensive. There are also some other factors which impact the number of tourism like events of terrorism. It has huge competitors like Hotel Four season, Hotels by Starwood, etc.
Pestle analysis involves all the external factors that can affect the organizational activity. These factors are not in control of industry. Hotel industry should be known with the all external factors of the environment. As it is discussed above that Radisson is trying to expand its business to globally so, it is important for the Radisson to study about the entire external factor before setting up a new business to a new place. These factors keep changing continuously and that can get industry into trouble with it. Pestle factors are going to be discussed below: (Arabzad 2012, 610).
Political factors – These factors include problems that are created by the political issue, government, etc. In every country, new laws and regulations are tend to be developed frequently by which new industries that decided to set up a new business do not know about new updated rules and policy and further on they get to face problems. So, Radisson must know about all political rules and regulations of that county in which they are going to start new business. (Ghapanchi et al. 2017, 277).
By being a big brand name and providing luxurious services to the customers, government provides big amount for developing a new big project of hotel because a luxurious hotel is considered as the good source for increasing the GDP of country but on the other side Radisson needs to give big amount to the government in term of taxes for being luxurious in category.
Economic factors – Economical factors includes changes in the per capita income, deflation, inflation, interest rate and the unemployment rate. These factors impact the revenue and growth of the industry. According to the data, growing GDP in the central part of Europe made available the luxury of Radisson in the lower rate to the common people. As it is evaluation that in the year 2007 its revenue had been affected by the recession and another factors like inflation, exchange rate, tax rages made impact on the tourism sector also.
Social factors – Social factors include the society norms, behaviour, trends, belief, culture, values, etc. and they made a negative impact on the development of hotel industry. Lifestyle of people is also changing like there are many youth who prefer to do something like jobs, business, etc. and they do not have enough time to spend as holidays. This is the major issue by which the revenue of Radisson is affected. (Vingre, 2016)
Technological factors – In present scenario, technology is emerging so fast and it is essential for industries to get updated with the latest technology in order to get more profit. For example, customers can book their room and tickets through online by sitting at their home. So, Radisson must be updated with the latest technology to attract more customers because customers do not like to stand in queue for getting their room booked.
Environmental factors – Industries must follow all rules regarding the safety of environment like the activity of industry or functions should not affect daily life of human being and environment. On the other side there are also some environmental factors like floods, rains, etc. can affect the business and can also stuck the growth of it.
Legal factors – Legal factors are also interrelated with the political factors because politician makes law and regulation whereas legal factors include the court decision trends like compensation of liability. As being a big industry like Radisson, if health and safety laws and another rules and regulation are not followed by the industry then they have to face serious penalties for it. (Sawant and Sarika 2010, 38).
With the help of pestle analyse Radisson can be acquainted about the threats and opportunities lie into the external environment that can impact the industry operations. By this analysis Radisson can take advantage of opportunities and decrease the threats.
There are various competitors of Radisson hotel and these can be analysed with five forces of porters which was given by Michael porter. These five forces are used to evaluate the level of competition in the entire industry. These five forces are also used to develop the strategy for business. Intensity of competition can be evaluated with the help of these forces and these are explained as under:
Threats of new entrants – Trends of tourism have the greater impact on the hotel industry. It is known that Radisson is one of the most luxurious hotels in the world. In the present scenario, it is not a big task to enter into hotel industry as there are many new entrants that easily came into this industry and giving competition to the Radisson. For growing into this industry, hotels should have a prime strategy to operating its chain at another location as it also increases the opportunity to get revenue from another location and decline the dependency of customers at only one particular location. Real estate regulations are restrictive in some countries so that can create problem for the new entrants. Leasing, property management and purchasing can include financial and legal complications. In general, probability of new entrants into the hotel industry is adequate. (Arabzad 2012, 610).
Threats of substitute – Substitute is considered as the products or service that provides same features and functions. Substitute products are of fewer costs and provide better quality than original by using revolutionised technology. Hotel Radisson does not need to worry about the substitute because in this industry there are not much substitutes available who provide luxurious facilities to the customers. But in times of recession, this problem might rise because people will not go for luxury at that time but the comparative cost of hotel is very high. At convenient and popular location, hotel should lower its cost and attract more customers through providing attractive tour packages and offers in comparison with the other substitute. A new form of communication is also a threat for the hotel industry as people meet each other through video conferencing by which the possibility of travelling to other places and to staying into the hotel is eliminated. (Byrd and Megginson 2013)
Bargaining power of Suppliers – Hotel Radisson has low bargaining power of suppliers. Hotel Radisson purchases worldwide from around 5000 suppliers internationally. Among them, the bargaining power of most of the suppliers is not high because of deficiency of products and service’s uniqueness which are being supplied. The volume which is ordered by the Radisson from their suppliers is considered to be paramount as well as suppliers of Radisson do not switch their costs in most of the cases. Hotel industry mostly influenced by the quality of products and services provided to them. Fluctuations in the costs of products and services that are to be provided by the suppliers are the main reason that makes impact on the productivity and revenue generation of the industry. (Tebogo and Baitshepi 2015, 144).
Bargaining power of buyers – According to the porter’s theory it is concluded that the purchasers of services and goods are more influential as they can decrease the prices of goods and services as well as revenue of the industry. They are the only who can decrease or increases the prices of products and services by increasing or decreasing the demand. If hotel Radisson is not able to provide services according to the customers demand then they quickly switch over to the substitute products by which Radisson could not be able to make desired profit. Therefore, hotel needs to provide the services and luxuries according to customer’s budget in order to make profit. Repeat business is based on the innovation and brand recognition. Some customers book hotel room in a bulk while they apply their strong bargaining power which results to decrease the prices of the room.
Rivalry among existing firm – There are various competitors of Radisson like Hotels by Starwood, Four season Hotel, Hilton, Sheraton, Marriott, etc. many more luxurious hotel chains in all over the world. There is cut throat competition between them and rivalry between all of them is very ferocious. As Radisson provides variety of luxurious services to its customers from the last few years on which basis it can enjoy the large revenue as compare with the other hotel worldwide. As shown in the figure 4(in the figure section) the income of Radisson grows more as compare with the other competitors. For making more profit, Radisson needs to attract more customers by providing exciting offers and packages to the customers like free breakfast, free one night, special menu in the dinner or lunch, free parking etc. Radisson is very well segregated from impulsive behaviour of market by geographic diversification. On which basis it has a huge opportunity to generate more profit margins from the each chain of Radisson globally by maintaining its services properly. Though, other hotel chains are largely based only in one country. (Cordery et al. 2011, 363).
It is analysed that Radisson is one of the leading brand globally. There are various hotels and resort chain of the same in around 420 locations in more than 73 countries. To understand the current situation of Radisson here is some brief overview of Radisson current market trends.
|
Market Data Trend |
|
||
|
Today |
1 Month Ago |
1 Year Ago |
|
|
Median List Price |
$400,000 |
$400,000 |
$55,000 (+63%) |
|
Active Inventory |
2 |
2 |
2 |
|
Distressed Percentage |
0% |
0 |
0 |
|
Days on Movoto (Median Values) |
303 |
274+10% |
86 (+252%) |
|
House Size (Median Values) |
2,460 |
2,460 |
1,300 (+89%) |
|
$/Sqft (Median Values) |
163 |
163 |
42 (+288%) |
|
Market Statistics Chart |
|
||
|
Month |
Value |
||
|
Nov 2016 |
220000 |
||
|
Dec 2016 |
220000 |
||
|
Jan 2017 |
400000 |
||
|
Feb 2017 |
400000 |
||
|
Mar 2017 |
400000 |
||
|
Apr 2017 |
400000 |
||
|
All Values are shown in US Dollars (State, 2016) |
The above chart describes monthly median list prices of The Radisson Group of Hotels. The market trend has taken from November 2016 to April 2017 which is showing its median list prices are increasing from approximately USD 220 k to almost double to USD 400 k (State, 2016).
These market trends considered as very useful in order to understand the current market position of the Radisson group of hotel as it is seen that its position is very good by increasing its current market growth. As it is tried to show the Information as much accurate as we can regarding the current market trends of Hotel. (State, 2016)
Market Opportunities of Radisson
In the market, there is cut throat competition between the companies in all over the world and they compete with each other in order to maintain their position and achieve growth in the market as it is not an easy task according to the current market situation. The position of competition includes cost as well as differentiation. The differentiation between costs keeps switching from high range (luxurious hotels) to lower range (deluxe hotels). In hotel industry the competition is very huge in supply of the hotel rooms and demand is increasing during some big events occur like Olympics, world cup, etc. So, in order to maintain the sustainability of hotel industry into the market in this competitive scenario, hotels needs to keep focus on the costs and quality of the services and products they are providing to their customers (Vingre, 2016).
As it is analysed on the basis of above discussed paper, Hotel Radisson is growing industry which also has covered more than countries with its 450 hotel chain in all over the world and also its further objective is to expand its market in the remaining countries and capture mostly all convenient and well known places. So, there is vast opportunity for the Radisson to grow by expansion its business. Expansion also decreases the dependability on only one place as it can collect revenue from various chains. Tourists visit according to the season when most likely season to visit that place and in other seasons hotel industries are not able to make as much profit as they make in tourist season in that case Radisson make get profit from another chain of hotel as it has vast hotel chain. Accordingly in the upcoming period, on the basis of above described graphs the success of this hotel is very high and has big opportunity to grow in the market by opening or expanding its business into other countries. (Abouhanian & Katsioloudes, 2016)
Hotel industry is vast and provides wide scope for prospects of job. Working within the hotel industry can be exciting and fun which depends upon the position and job profile of your interest. There are plenty of jobs in the hotel industry and mainly they are categorized into two types of job- services for support and administration and guest services. There are some jobs in this industry which needs that people who want to recruit for that job profile shall possess a degree, experience of several years or training. As to provide better services to the customers is main aim of this sector; and this can be made possible by staff of the hotel who possess skills to work with different kind of guest. Skills such as- communication, managerial, leadership, decision making, problem solving are required in some jobs of hotel industry (Tanzi, Hospitality Career Opportunities: Learn Secrets to Get Jobs in Hotel, Restaurant & Cruise Industry, 2014). Through these skills, an employee can make better communication with the guests which would be helpful in lessening of mistakes, making guests or customers comfortable as well as the problems and queries arise by the customers can also be solved easily. Through decision making skills, employees can make quick decisions to handle the conflict or other situations. Therefore, skills are required to be possessed for doing job in the hotels industry. Some of the jobs in the hotel industry which can be chosen for employment are discussed below-
Guest Services- In this job type, there are several jobs which are generally known as entry level job. Some of the guest services jobs at entry level are-:
Front Desk Clerks- This type of job is entry level job in some hotels. In the Hotel Radisson Blue, it is must to possess years of experience or a degree to be eligible for the job. It is the duty of the employee at the front desk to check that the guest has done prior reservation for the room or not (Tewari, 2016). If the reservation is not done earlier than the front desk clerk will check the availability of room. In the check in process, employee has to take some information about credit card, pass card is given to the guests to get enter in the room, answers of the guest`s queries are also given.
Porters- They are also being called as ‘bellhops’. These employees generally wear uniform which make their recognition as hotel’s employee. When the guests check in to the reception then the porters assist the guest by taking their baggage into the room and make sure that room is acceptable to them (Dossor & Mullins, 2013).
Housekeeping- Untidiness in the hotel makes a bad image among the customers. Therefore, housekeeping job is also there in the hotels. Housekeeping staff of the hotel ensures that there should be cleanliness in the hotel as the sheets and towels in the rooms should be washed daily, used toiletries should be replaced.
Kitchen Staff- very well-known scope for the employment in the hotel is of kitchen staff. Job of kitchen staff is to plan for the menus, washing dishes, cooking, ordering supplies etc. Each staff member of the kitchen has duties and responsibilities depending upon their job profile.
Most advanced position in Guest Services
Front Desk Supervisor- Workers of the front desk are managed by the front desk supervisor. Supervisor ensures that the discipline should be made by the front desk workers as well as hiring or firings of the workers are also done by the front desk supervisor (Humler & Solomon, 2016).
Restaurant Manager- In this job profile, concentration is done on providing better services to the guests in the restaurant. The manager of restaurant has the responsibility to provide training to the restaurant’s staff, hiring of the staff and to handle the complaints of the guest.
Executive Chef- Menus are decided by the executive plans as per the guidelines and policies of hotel.
Administrative Services
Accounting- Members of accounting staff ensures that recording of all expenses, bills, income and taxes should be done properly in the hotel. To record the income and expense, it is important to make sure that all the bill should be classified in proper way and the accounting staff shall have all information of financial activities (Dossor & Mullins, 2013).
Advertising and Marketing- The advertising and marketing coordinator ensures that promotion of the hotel shall be done in effective way within the budget. Advertise manager can be full time or temporary. Therefore, stability in this job is not possible.
Event Planner- In hotels, there is job opportunity for the event planner also. In many hotels, there are dining halls, conference rooms available for the individuals and businesses for events like seminars, meetings and weddings (Seal, 2015). The event planner, plan for the whole occasion and take care of the services shall be up to the notifications. Stability in this job profile is temporary (Kaspar, Kaiser, & Beech, 2014).
Hotel Manager- Another job opportunity in the hotel is for hotel manager. The manager of the hotel is the in charge of all the running activities of hotel. It is the duty of the hotel manager to manage the whole staff of the hotel in proper way. Supervisors and managers of the different departments also reports to the hotel manager. This job opportunity in terms of stability is good for the carrier (Ninemeier & Hayes, 2016).
Assistant Hotel Manager- Administrative work for the manager is being performed by the assistant manager of the hotel. Operations are monitored by the assistant manager and then the report is submitted to the hotel manager.
Above, some of the job opportunities provided by the hotel industry are discussed. People can do job in this sector as per their interest or the degree or experience they possess for that job. I want to be the manager of Hotel Radisson Blue. As this is the main designation of the hotel. Managerial skills possessed by me would be helpful to get me this job in the hotel industry. Being hotel manager would bring huge responsibilities as manager of the hotel have to make proper management of the activities of different department. It is the responsibility of the hotel manager to take care that all the activities shall be carried out in proper way and a link should be there within different departments (Dossor & Mullins, 2013). This job opportunity would be helpful for carrier as there is stability in this job and it will also help in boosting my carrier.
In order to get job of my dreams i.e. post of hotel manager will demand for more hard work and qualification as well. To be hotel manager there are so many requirements such as- qualification in hotel management, experience, managerial skills etc. In order to develop the managerial skills, I would lay emphasis on better communication that will help me in communicating with different types of customers and the staff of hotel. Better communication skills are required by hotel manager to solve the queries of customers and this skill also help in managing conflicts as through establishing the sound communication situation of conflicts can be managed by the manager. Therefore, to get the post of hotel manager I would have to continue my studies to get degree as masters in hotel management program.
Conclusion
Hotel industry has wider scope in hospitality and tourism management. There are different types of hotels all over the world. People use to visit these hotels with different motives such as- holidays, meetings and some other occasions. It is concluded from the report that hotel industry provides opportunities for the job. It depends upon the people that what kind of job they want to choose from the available option that can be hotel administration services or hotel guest services. In the hotel industry, most of the jobs are service jobs; employees would have to come across the requirements of guests and should be able to work with people who are different in nature. As there are lots of jobs available in this industry, therefore people who have different nature come across and there is possibility of conflicts. So it is important to establish sound relationship with the employees. People can initiate their carrier in the hotel industry with little experience or education. But in some jobs like front desk workers, hotel manager, there is requirement of experience and degree. It has been also concluded from the report that it is important to analyse the environment of the business to identify various factors which can be positive or negative for the business. SWOT Analysis helps in identifying those factors of business which are strength and opportunities for the business. In addition to this, those factors which can be weakness of the business and can cause threat to the business can also be identified through this analysis. It is very crucial for the business to analyse the competitors which helps in surviving in this competitive era; as in present competition is so high and the business can only be survive if it have potentiality to compete with its competitors. Hotel industry is influenced more by the quality of service as well as products provided to the customers. Fluctuations in the prices of materials, products or services can make influence on the profitability and productivity of the hotel industry. It is also concluded from the report that to enter in the hotel industry is not big task. To establish a hotel, it is important to lay emphasis on delivery of better and quality services to the customers. As the customers visit the hotels to get relaxation and in order to make their stay pleasant and comfortable it is crucial to provide quality services.
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First, you will need to complete an order form. It's not difficult but, in case there is anything you find not to be clear, you may always call us so that we can guide you through it. On the order form, you will need to include some basic information concerning your order: subject, topic, number of pages, etc. We also encourage our clients to upload any relevant information or sources that will help.
Complete the order form
Once we have all the information and instructions that we need, we select the most suitable writer for your assignment. While everything seems to be clear, the writer, who has complete knowledge of the subject, may need clarification from you. It is at that point that you would receive a call or email from us.
Writer’s assignment
As soon as the writer has finished, it will be delivered both to the website and to your email address so that you will not miss it. If your deadline is close at hand, we will place a call to you to make sure that you receive the paper on time.
Completing the order and download