The document compares and analyzes two hotels: Hotel Continental in Penang, Malaysia and The 5 Elements Hotel in Kuala Lumpur, Malaysia. Both hotels operate in a monopolistically competitive market and face strong competition. While Hotel Continental has more rooms, employees, and facilities, The 5 Elements Hotel has fewer rooms and a lower occupancy rate. The document provides recommendations for each hotel to improve marketing, facilities, services, and competitiveness.
2. Group Members(From left to right): Nabila, Nadhirah, Nur Azreen, Wong
Qin Kai, Mr.Frankie(Hotel Manager), Lau Mao Hua(Group Leader), Chin
Khang Wei, Lim Ting Lee, Lee Jia Kiam
5. Early culture of hospitality
- Evolved in Greek in the 40th
BC.
- Symbol of social and religious purposes
After World War 2
- Travelling began to be a trend among the civilization
- Hotel industry bloom around the world.
6. - Temporary house for travellers
- Can be found everywhere in any region, area, town,
city
- Classified into different categories (budget & star
rating)
- Pricing may differ depends on rating, season, location,
services and facilities
Hotel
7. Hotel Industry in Malaysia
- Practiced monopolistic competition
- Experienced an encouraging growth rate since 1994
- Tourism become more popular since Visit Malaysia
Year introduced.
14. Recent Development
- Classified as a 3-star hotel by Malaysian
Association of Hotels (MAH)
- Coffee House qualified as a halal restaurant
- Upgrade standard room to superior room
- Upgrade the amenities inside the room (LCD
television, minibar, in-room movie channels)
16. Chinatown, KL
Founded: 1973 by Malaysian
Chinese Businessman
Brief Bio:The 5 Elements Hotel
Motive: Property Development
No. of employees: 30 people
Capacity:-
i)Peak season: 60%-70%
ii)Off-peak season: 30%
2008: taken by new management
23. 3 main competitors:
● Hotel Malaysia
● Cititel Hotel
● Bayview Hotel
Competitors
- 250 to 300
competitors
24. Bayview Hotel
- 4-Star Hotel
- 333 rooms (standard
rooms, superior
rooms, deluxe &
grand deluxe rooms,
family rooms, junior
suites and premier
floor rooms.
26. Cititel Hotel
- 4-Star Hotel
- 451 rooms
(standard rooms,
superior rooms,
deluxe rooms and
executive suites)
27. Strategy Used
Provides good services Better in-room facilities
Promotion via
online from
hotel’s website
Receive suggestion and
recommendation from the
customers
28. Challenges
- Too many potential competitors
- Fierce competition
- Risk taker
- Need to conduct market survey to fulfill market needs
29. Nature of Business
- Large number of competitors
- Weak barriers to entry
- Weak pricing power
- Fierce Competition in term of pricing, advertising,
services provided
Monopolistic competition
32. Geo Hotel
- 3-Star Hotel
- 180 rooms (standard
rooms, deluxe rooms,
family rooms & premier
suites)
33. Swiss Inn Hotel
- 3-Star Hotel
- Operating under Swiss-
Garden International
- 151 rooms (superior rooms,
deluxe rooms & family
rooms)
34. Ancasa Hotel
- 3-Star Hotel
- 294 rooms (standard rooms,
superior rooms, deluxe
rooms, family suites, junior
suites and Ancasa floor
rooms)
- Provide spa services
35. Strategy Used
- Online
Promotion: buy 3
free 1 night
- Early bird
promotion
- Promotion on
flexible date(June)
- Provide good
service
36. Challenges
- Too many potential competitors
- Risk taker (may not generate profit)
- Small market (suppliers more, demand less)
- Number of tourists drop rapidly
37. Nature of Business
- Large number of competitors
- Weak barriers to entry
- Weak pricing power
- Sell differentiated products (themed suite)
- Constantly advertising in the market
Monopolistic competition
39. SIMILARITIES
- Classified as 3-Star Hotel
- Same rating on TripAdvisor
- Only have one branch which is the headquarter office
40. SIMILARITIES
- Monopolistic competitive firm
- Weak pricing power-cannot set the price as they like
- Only have one branch which is the headquarter office
- Facing strong competition in the market
- Insist on providing good service to the customers
43. DIFFERENCES
No. of
employee80 30
No. of room
&
room types
231 104
superior room, deluxe
room, super deluxe room
& executive suite room
standard single room,
superior twin room, deluxe
queen room & themed suite
44. DIFFERENCES
No. of
competitors250-300 200-250
Hotel Capacity
during peak season
90%-100% 60%-70%
Facilities
provided
Restaurant, meeting room,
free wifi on every floor
Restaurant, conference
room, laundry service, car
park, swimming pool, free
wifi at lobby area
45. Summary
Commercially successful :
Reason:
- More yearly revenue
- Hotel capacity during peak season
- Fierce competition in Penang
- Provide more facilities and service
Hotel Continental
48. Recommendation
Publicity:
- Social media and partnership (TripAdvisor,Agoda)
- Mutual agreement with Tourism Malaysia:
promoting hotel in tourism guidebook
Facilities:
-Gym, better air conditioners, more tv channels
-Free Wifi in the room
-More parking bays
49. Recommendation
Upgrade services & catering
- Improvise their room services, ushering, and front
desk registration
- Food served must be clean, hygienic and tasty
Provide clean environment & better view
- Small renovation
52. Recommendation
Marketing
- Online marketing
- Increase the website’s quality content
- Network with other businesses (museums, parks,
restaurants) - discount
Promotion
- Discount on staying extra night
- Package deals- Girl’s weekend
53. Recommendation
Pet-friendly rooms
- to avoid the stress and expenses of kenneling a dog or
finding a babysitter
- charge for higher rates
Reimbursement (Loews Hotels)
- reimburse fees that guests pay airlines for their
checked bags
- can set a limit on the number of bags and the timing
55. References
History of the hospitality industry. (n.d.). Retrieved June 2, 2015, from http://www.
slideshare.net/27101985/history-of-the-hospitality-industry
Hotel Continental | Penang, Malaysia (n.d.). Retrieved May 21, 2015, from http:
//hotelcontinental.com.my/hotelc/hotelc/
Hotel Industry in Malaysia. (n.d.). Retrieved June 2, 2015, from http://www.regit.
com/malaysia/industry/industry.htm
Puri, M., & Chand, G. (2009). Tourism and hotel industry. [electronic resource].
Chandni Chowk, Delhi : Global Media, 2009.
The 5 Elements Hotel KL (n.d.). Retrieved May 22, 2015, from http://www.
the5elementshotel.com.my/