SHM608 Strategic Hotel Management Report Sample

Political

• A “constitutional monarchy with Elizabeth II” is the specialty of the Australian politics  
• Existence of political stability in the country (Khaile, Roman, & Davids, 2021)

Political stability and less political tension in Australia help the businesses to grow at a fast pace. The hospitality industry will be able to continue its operations without any government interference. 

Economical 

●          In 2022, the country has earned a GDP of 1450.00 USD Billion (Tradingeconomics.com, 2022)

●          The inflation rate in 2022 is 3.94% which previously was 2.82% (Statista.com, 2022)

• High employment rate in the country 

The economic condition of the country is strong which will help the hotel industry to implement more advanced services in the business and set wise pricing strategies. 

Social

• The cost of living in Australia is high
• The country is rich in educational and healthcare properties (Song, Wang, & Zhu, 2019)

As the standard of living in Australia is high, the hotel industry needs to introduce better services and facilities in their business to ensure the customers are treated the best. 

Technological

• Existence of technical expertise’
• Australia is one of the leading countries in terms of digital innovations (Curwen, Whalley,  & Vialle, 2019)

The country is rich in technology and science. The digital expertise of the country will in a way help the hotel industry to manage its business operations with more ease. 

Legal

Legal 

• The following need to be maintained by the Australian businesses: “fair trading”, “Australian consumer law”, the “code of conduct”, and so on (Business.gov.au, 2022)

The hotels of the country will be able to manage the business without engaging in any type of controversies by following the legal aspects introduced by the Australian government. Also, a great work environment, healthy employee-labor relationship will be maintained by the hotel industry. 

Environmental

• The corporate sector of Australia needs to take care of certain environmental factors such as “climate change”, “waste reduction”, “resource protection” and so on (Song, Wang, & Zhu, 2018).

By being sensitive to the world environment, the Australian tourism industry will be able to build a sustainable business in the country. 

Porter's Five Forces

Level

Comments

Competitive Rivalry

 High 

The competitive rivalry in the Australian tourism market is very high as the market size of the Australian hotel industry is  $8.3bn in 2022 (Ibisworld.com, 2022).

Bargaining Power of Buyers

 Medium

The bargaining power of the customers of the Australian hotel industry is medium. Because, to avail the facilities of the luxury hotels, they will have to lowe their negotiating power. 

Bargaining Power of Suppliers

 High 

The power of suppliers is of course high in this case, Because, suppliers of hotels have a wide range to choose from  their business partners in the industry. 

The threat of New Entrants

 High 

Seeing the growth of the industry, the threat of new entrants is high.

The threat of Substitutes

 High 

The market size of the Australian hotel industry is sufficient to understand the high threat of substitute services in the industry. 

Primary Customer Segment                        (Leisure)

Marketing Mix (S1)

Demographic 

Price: It has been identified that Duncan's Plaza has an affordable price range to sustain in the competitive market Australia.

Place: The targeted place of the hotel in Australia. 

Psychographic

Product: Key products of Duncan’s Plaza are as follows: all rooms, restaurants, bars, and parking areas.

Promotion:  The local customers are attracted through several events in the country.

Geographic

Packaging: packaging refers to the presentation of the hotel (interior and facilities) that eventually attracts the customers.

People: key people such as "human resource department", "food department", "sales and marketing department", "finance and cost department" take care of the business.

Behavioural

Physical Evidence: The hotel appear elegant and beautifully decorated with soothing colours, space, and lights to attract the customers.

Partnership: Any travel agencies in the country are the business partners of Duncan's Plaza.

Primary Customer Segment                        (Leisure)

Marketing Mix (S2)

Demographic 

Price: The price of the hotel may be different to some extent if checked online. 

Place: Social media platforms and websites are the secondary marketplaces of the hotel. 

Psychographic

Product: For the secondary customers also, the products and services offered by the hotel are the same. 

Promotion: unlike the local customers, the secondary customers get attracted to the hotel by the digital marketing strategies. They also get online deals and discounts. 

Geographic

Packaging: the same quality of services are offered to the secondary customers as well. 

People: key people associated with the business that have been mentioned in the above table are also responsible for taking care of the secondary customers. 

Behavioural

Physical Evidence: The hotel looks equally beautiful, elegant, and peaceful in the eyes of the secondary customers also. 

Partnership: in this case, international travel agents are the partners of the business. 

Hotel

ADR

Quality Index

Market Share

Rough Water

$296.59

33.75

21.2%

Duncan’ Plaza

$263.54

27.45

21.1%

Ant Hotel

$323.11

34.63

21.8%

Aqua Hotel

$365.11

32.38

22.4%

La Excellence

$202.34

18.30

13.4%