Sydney is all geared up for expanding its hospitality industry in the newly developed sites when the specific sector is growing. The upcoming projects will allow Sydney to develop more with the rising demand for hotel and hospitality services. It can be assumed that the country’s growth in the hotel scenario will continue for another two years. These growths are significant specifically in Melbourne and Sydney who are facing an unparalleled arrangement of optimistic basic indicators (Kandampully, Zhang, & Bilgihan, 2015). The reason behind this growth involves the high occupancy rates, a benevolent supply attitude and a rising air capacity from the prominent markets such as China and India. These key markets are the reason behind the hotels being profitable. The planning strategy aimed at the development of hospitality industry let the developers and marketers control bigger floor space ratio and height. With strong support for marketing and investment in demand, it needs to be ensured that the local markets do not get over stimulated. It can be said that the government is responsible for making the type of environment which will encourage investment. The environment will be created in such a way that the hospitality services will be provided with consistent and sustainable increase as per the experience of other market.
Fraser- Bolling hotel in Sydney is the prime attraction of nightlife and luxurious facilities of the place. It is located centrally at a popular location with major places surrounding it. It is located in the Kent house which takes pride in its rich history, culture and beauty (Jones, et al., 2016). Its gallant simulation with dissection signaling the Chicagoesque style is a proof of its artistic significance in the mid of Liverpool street. Its historical importance became strong with the trading house which was once neglected. The building possesses social significance because of its distinguished location where the Spaniards come for gathering. This place is famous for the spreading of Spanish culture in a large community.
The hotel service management is responsible for the rating system. The ratings vary from one star to five stars. The hotel department also gains revenue from the categories of marketing, engineering, accounting, human resources and security. The major functional areas in the hotel industry include room division, food and beverage division, staff and support department. To meet the expectations and the demands of the customers the hotel industry might have to face a lot of problems (Kim, Vogt, & Knutson, 2015). The customer preferences are listed as follows- showing the rooms; solving customer problems; responding to the customers at one go; making proper bills and reports; providing the customers with instant services; the knowledge of the particular individual and his interest in responding to the customers; a friendly approach towards the customers; keeping the environment safe, rapid reservation and settlement; satisfying the special needs of the customers; the individual must be properly dressed; cleaning the untidy rooms, arrangement of entertainments; praying room and providing with quality food. The hotel service managers have total responsibility to run their hotel services in a smooth way. They have a team of members who are responsible for carrying out the domestic services (Mok, Sparks, & Kadampully, 2013).
As it is demonstrated in the case, the hotel has got a huge amount for upgrading itself in the heritage location of Sydney’s royal business district. It is an ideal business spot for its prime position (Gaol, 2014). They follow an innovative technique of operation by utilizing the contemporary technology to impress similar kinds of travelers. These services that are provided by the hotel are considered as the unique service management strategy which will keep them ahead of the competitors. The hotel also succeeds in keeping the visitors happy by providing entertainment services in the form of bar and restaurant including jazz music to provide an aura of tranquility. They are also equipped with a restaurant which is open for 24 hours and serves the customer with Australian menu inspired from the Asian delicacy. This hotel has managed to get 5 star rating by offering full services in their 200 rooms of various patterns and fifteen suites. They also provide the services of a 24- hr café dining having lip- smacking delicious palates and a wellness spa for the refreshment and rejuvenation of the visitors (Liat, Mansori, & Huei, 2014). The hotel also has accommodation for a well- equipped business centre which attracts the businessmen and executives from all over. They can not only visit the place for a peaceful family vacation but also can serve the purpose of an urgent business conference.
The hotel has never failed to provide the guests with a premium quality service which has made the customers satisfied always. Their service quality is the unique selling proposition which undergoes constant monitoring and supervision for making it the leader in the Australian hotel and hospitality sector. The service quality provided by the hotels has a direct impact on the customer satisfaction which if damaged once, can bring a fatal consequence on the hospitality sector. Therefore customer service is the main variable in the operation of customer satisfaction. Customer satisfaction is a result of the overall perception of the services offered to them. It is very important for the hotel to realize the perception and evaluation of their service quality by the customers (Wu & Ko, 2013). The service quality model is used for analyzing the connection between cause and effect which are present in the variables in the principle of service quality. The dimensions of service quality include reliability, tangibility, responsiveness, assurance and empathy. These five dimensions then form the perceived and expected service which produces perceived service quality. From the perspective of the customers the three important factors are physical product, service experience and premium quality food and beverage and the dimensions of the service quality is dependent on style, comfort, room quality, add-ons, personalization, rapid services and excellent staffs. The customers assess the services by using product attributes such as search, experience and credence (Presbury & Richardson, 2014).
To manage effective customer services it is necessary to make proper plans so that the processes involved in hospitality business can be conducted successfully. The strategies help in creating the brand, increasing the customer value which in turn helps in achieving excellence in operational activities by being a good corporate citizen. The management strategies of hospitality industry have been altered with the development in hospitality industry. Although there are various factors such as availability of labor, new technologies, financial crisis, globalization, terrorism and security have a major impact on the management strategies but still the focus is constant on the availability of revenue per customer and earnings per share. The strategies for service management have always been dynamic. The strategies help in the identification of major sectors in the hospitality industry which will provide an understanding of the dynamics and progress of the industry (Scerri, Jenkins, & Lovell, 2017). With the discussion of the management strategies which has helped in the development of hotel industry, it becomes easy for the managers to determine the chosen focal points.
The primary strategy in the service management of hospitality industry includes positioning of the service organization in the marketplace. It is a unique formula for offering services by taking into consideration the best benefits which are valued by the customers. This helps in providing a good competitive position to the hotel. Care should be taken that the strategies serve the organizing principle which will allow marketing their efforts and explaining the offered value. Service management strategy also takes care of the corporate philosophy in the form of choice and commitment (Hawken, 2015).
There are many theories pertaining to hotel service management such as service differentiating theory, service theater theory and service value theory. The prominent model that can be used in this particular aspect is service quality model. This popular model helps in measuring the customer satisfaction on the basis of customers’ assessment of service quality.
Service management has an important part to play in the strategic positioning of hotels. It focuses on the combined services of customer information, knowledge for seeking and retaining the customers by increasing the lifetime value (Manhas & Tukamushaba, 2015). The managers should keep a check on the reason of leaving customers and find new ways to keep them. So the strategies are used for analyzing the necessity of service management by realizing its importance. When the system of service management was evolved, it was kind of similar to the Customer Information System or CIS. The PESTLE analysis can be used for the given situation of Fraser- Bolling hotel in Sydney.
Political factors have a direct impact on the hospitality industry. It might change the global government policies or terrorism; there will be a huge impact. The hospital industry is also responsible for earning most of the foreign currency. The hospitality industry in Sydney has developed as the region is free from terrorist activities (Gibson, 2016).
Economic factors were always in demand in terms of hospitality worldwide. Not only has the labor market continued to grow stronger but also the spending by the customers. The personal income of the people has also increased on an average hourly basis. These economical prospects are a forecast of the flourishing of this industry in the future. The benefit in this particular industry will help in the improvement of the associated sectors.
Social factors are responsible for outlining the hospitality sector. The influence is also deep and huge similar to the other factors. The preference of accommodation has changed on the parts of the customers along with the rise in using shared rides. It totally depends on the customer sentiment whether the hotel will retain or perish (Gummesson, 2014).
Technological factors are considered to enhance demands for the hotel and hospitality sector. Technology has made communication easy and information can travel smoothly all over the world. The visitors can find out every detail about the hotel and the places before stepping there with the help of technology.
Legal factors are considered to be complex in the hotel and hospitality sector this is due to the fact that both labor and public security are important points of concern. Although there is other laws which can influence this particular sector but in the case of Fraser- Bolling hotels public safety and labor laws are the most important (Pizam, et al., 2016).
Environmental factors are directly related to sustainability which is a prime concern in hotels and hospitality sector. The recent trend is the focus on ecotourism. These factors are important which include transport operators and the brands of hotels and restaurants. The hotel management has to take care of ecological impact as well as waste management.
For the given case scenario, the Fraser- Bolling hotel can be recommended three strategies for improving their customer experience- by using service as a product, by considering the customers as boss and striving for reliability. Most of the customers lack technical knowledge which is required for making the best selections in case of purchasing. Therefore they want assurance for post purchase servicing which is regarded as another deliverable offer. By considering the customers as boss the hotel industry will be able to meet up to their expectation and fulfill their demands. Reliability is synonymous with dependability where the constant services provided by the hotel meet up to the customer expectations.
Conclusion
So as a conclusion of this business report it can be said that as the hotel industry is already on the rise so the Fraser- Bolling hotel has to take the responsibility of keeping the graph high. They will have to pay attention in finding more profitable customers. They will need to keep and maintain all the necessary information about the customers by gathering data. This will help them to increase the sales efficiency and the customers will be satisfied too. With sufficient knowledge about the customers and visitors the hotel will be able to modify their services accordingly.
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