Critical Analysis Of Management Decisions For Stay Together Hotel Group

Management Decisions for Stay Together

In this report critical analysis is done on the decisions of management in the field of technology as well as systems for the hotel group Stay Together. Stay Together is a group having ten hotels in chains that decided in collaborating themselves for absorbing the pressure of the market. The market pressure is due to the demand increased for the low priced hotels. The new chain of hotels has more than thousand hotels for every category. The booking will be done from one website and therefore the Information technologies as well as Information System have to be equipped in a well manner for managing the flow of traffic within the website. The report will be highlighting the major problems that the hotel chains may face as well as critical evaluation of decisions of management can be done. It also enhances the four decisions of management as well as the effects on the choices of the customers, loyalty of brand, attracting new customers and continued patronage. Lastly recommendation is given on the method on improving the hotel chain services with the improvement in websites for assisting customers for successfully booking their own choices of hotels.

The managerial decisions taken by the management are been aimed on the business enlightenment. The four crucial decisions taken by the Stay Together chain of hotels management are as follows:

Loyalty schemes as well as the programs that are been formulated is for attracting maximum number of customers to a specified brand. Loyalty schemes helps in providing loyal customers with maximum benefits which yields in growth as well as retention of customers (Bilgihan & Bujisic, 2015). Stay Together hotel group’s management has taken the decision to provide loyal customers with loyalty schemes. Loyalty schemes include free pick and drop facility for the loyal customers at airports, free parking of cars as well as free facilities of night staying in the hotel. Management researchers have already given importance on the fact that loyalty programs will play a significant role for increasing customer’s retention and more customers are been attracted. Loyalty schemes helps in boosting the company’s growth as proven by researchers. As the cheap hotel’s demands are increasing for their minimal costs of accommodation therefore it is very much necessary in introducing loyalty schemes for retaining loyal customers as well as preventing them more competitors. Loyalty schemes are one of the effective decisions that will attract the customers.

Effectiveness of Management Decisions

The customers constantly welcome everything which is free. The decision taken by management is to incorporate buffet breakfast as well as dinner’s cost alongside the costs of rooms. Therefore, the clients are pulled in towards booking rooms of hotels from StayTogether. This plan of free breakfast and supper is a helpful one and influences the loyalty of customers. More clients are pulled in to take up hotel rooms since the breakfast and supper are provided free. This plan is probably going to pull in new clients, alongside client maintenance. This plan is additionally an additional favourable position to go ahead in rivalry with the other contemporary hotels. In this way, advantage of leadership position is likewise accomplished with the usage of the free breakfast and supper to the clients. This choice is a successful one and thus the lodgings will witness increment in the quantity of sightseers going by consistently. Numerous tourists, who might have picked some other hotel, will favour booking the StayTogether gathering, to profit the free smorgasbord supper and breakfast. Be that as it may, this plan won’t be material if the vacationers have their supper and breakfast from the selective eateries introduce on the site.

Another eminent decision taken by management of StayTogether chain of hotels is to give discounts/rebates to the clients, if a specified airline is selected. This decision of management is a vital one, as rebate will urge the clients to book with the specific aircrafts which are been considered for providing discount. The clients can acknowledge rebate as a free night stay or a free supper and breakfast. These rebates plays significant role in the pulling in new clients alongside holding the old clients. Consequently, the clients who have been reserving from alternate sites will now guarantee that they make their appointments from StayTogether site or portable application. Accordingly, the intention of drawing in more clients, alongside client maintenance is achieved. Additionally, the brand support is likewise influenced by the discounts given. The other hotels patronage may consider rethinking their choice of picking their favoured image when contrasted with the focal points given by StayTogether. Subsequently, the footfalls of the clients have remarkably expanded, and the hotel network will witness upgrade in the business.

The social obligations are fundamental and are taken up by the StayTogether hotel chains. The clients are also been incorporated for charity donation that the group of hotels is occupied with. The clients have the decision to make where they might donate 1% of the aggregate bill that they are paying (Murphy, Chen, & Cossutta, 2016). This move is a fundamental one as the clients can give cash to their preferred philanthropy by booking hotels among the StayTogether chain of inns. This choice by the administration guarantees the way that more clients are pulled in towards making their appointments from this specific site keeping in mind the end goal to take part in philanthropy donations in their preferred philanthropy home. In this manner, alongside upgrading the magnanimous exercises of the inns, the clients are additionally offered decision to give their cash to their preferred philanthropy (Murphy, Chen, & Cossutta, 2016). Along these lines, the administration choice is a compelling one and results in upgrade of the client maintenance and in addition fascination.

Information Technology and Information Systems Issues

Information Technology as well as Information systems are regularly viewed as synonymous. But, there is contrast between two terms. Information embeds the people, procedures and framework that are outlined towards creation, stockpiling and control of the hierarchical data. One of the principle reasons that individuals can’t recognize the IT or IS is that both are PC based framework and helps the smooth running of online frameworks. IT falls under the space of data frameworks. With the utilization of IT, the IS works.

Hotels combining  together, the IT and IS should be all around created and sufficiently perfect for supporting the additional load which is put upon the web based booking framework because of the booking done by every individuals (Murphy, Chen, & Cossutta, 2016). The IT issues that are confronted by the StayTogether are as per the following:

1. Loss of data: StayTogether chains of hotel are dependent on IT as well as are that are essential. The increase in dependency of IS as well as IT might yields in loss of significant information. The data loss may become detrimental for the hotel chain as customers data may be lost with system failure (Murphy, Chen, & Cossutta, 2016). This one of the significant problem that yields in loss of data those are sensitive for business and in turn the outcome is loss on business.
2. Lack of Expertise: Automated as well as online systems implementation should be done by people who are expertise in the field of Internet Technologies (Murphy, Chen, & Cossutta, 2016). If the employees are lacking in expertise it yields in inefficient and ineffective systems of online booking. The employees required to know the process of storing data, confirming booking through online systems as well as carrying out transactions through online systems. Therefore if the employees are lacking in expertise it may yields in to errors.
3. Managing of Information: Online managing of information is needed so that the customers can have the capabilities of selecting their own rooms in their choice of hotel (Wang, Xiang, Law, & Ki, 2016).  If lack of efficiency exists in the information management it yields in issues of online transactions, confusion in bookings and overlapping of books. When the customers will face these it will lead to customer dissatisfaction and therefore managing the information system is quite essential.
4. Security breaches: In online systems of booking used by customers for booking room in StayTogether hotel chains. The major problem lies in security breaching of the hotel chain. Lack of efficient security as well as lacking of firewalls provides easy access to intruders. It also leads to stealing of confidential data regarding customers (Guo, Ling, Yang, Li, & Liang, 2013).  Security issues are significant issues which yield in lacking of trust among customers.
5. Payment issues: Payment issue is another issue faced by the customers while trying for booking their rooms according to their selection. When many customers are booking their rooms simultaneously and the payment is been made by all the customers then problems regarding payment may be observed. The payment may not be credited in the account of the hotel successfully but the amount may be already debited form the account of the customer.
6. Traffic Congestion: One of the major problems is online traffic congestion. As the customers are booking their own choice of hotel room through a single website. As the booking is taking place through a single website there exists traffic congestion in online system online.

As there exists certain difference in Information technology and Information System issues there exists certain problems for the Information system. The problems are been understated:

1. Technological Compatibility: The technology which is been utilize for the website may be not compatible for all the hotels that exist the chain group of StayTogether. This may be due to the different geographical locations. The incompatibility existing due to technology yields in customer difficulty and dissatisfaction (Ozturk, Bilgihan, Nusair, & Okumus, 2016)
2. Sustainability Issue: This issue arises due to utilisation of technologies those are outdated in the hotel chain of StayTogether. The issues regarding sustainability yields in outdated website which further results in incompatible in the platforms of technology (Wang, Law, Guillet, Hung, & Fong, 2015).
3. Scalability problems: If the website is not scalable it might affect the customers when they are booking online. The troublesome faced by the customers in using the website yields in losing the patronage of the customer. This issue may affect the policy of employee retention (Ling, Guo, & Yang, 2014).
4. Employment issues: The extreme dependency on Information System as well as Information Technology results in replacement of manual work with the much efficient computerised and automated work. Due to this issue many employees may loss the job as computerised works are most effective and time efficient(Murphy, Chen, & Cossutta, 2016).
5. Data Conversion Problems: Various customers enter the formats of their responses in various ways which may not be converted in the local hotel system easily. This may lead to inconsistency as well as redundancy to the data entered by the customers and received by hotel (Li, Peng, Jiang, & Law, 2017).
6. User Interface problems: The interface of user for any website plays a significant role for customer attraction. The interface of the users requires being excellent and accessing the website should be easy. Loyal customer may also be dissatisfied and get deflect if there lacks usability of websites. If user interface is not that friendly with the users then the customers might opt for selecting other hotels for booking and they will not opt to book from StayTogether (Rus & Negru?a, 2014).  

Conclusion and Recommendation: 

Conclusively it can be said that the management decisions for the hotel group is effective as it yields in enhancing the hotel chain of Stay Together business. It will also provide the management the required capability for combating the pressure of increasing demand in cheap hotel providing low price for accommodation which is the major problem faced by the big hotels. This problem can be mitigated by recommending the strategic methods such as loyalty schemes for attracting and retention of customers. Offers like premium offer for booking early and extended stay can also be provided to the customers for retention of them. Therefore solving the Information Technology as well as Information System issues as discussed before will help in attraction and retention of customers in StayTogether.

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