Omni Hotels & Resorts|
Managerial Economics 5315|
Omni Hotels and Resorts
Industry Analysis, Structure and Corporate Culture
Omni Hotels and Resorts is a member of the hospitality industry. For the remainder of this report, it will be referenced, compared and analyzed on how best it fits into the hospitality industry in the United States economy. Omni Hotels and Resorts is a relatively small player in the hospitality industry when compared to Marriot, Hilton, Radisson or Best Western, but none the less has recognized suitable returns for its respective market share. To better classify and study Omni’s performance it is necessary to tighten the focus of what its specific industry really is. The hospitality industry and more exclusively, the hotel industry, is structured with the following classifications: Luxury, Upper Upscale, Upscale, Midscale with F&B (Food and Beverage), Midscale without F&B, and Economy. Omni Hotels falls into the upper-upscale market alongside competitors such as Hyatt, Hilton Hotels, Sandals Resorts, Doubletree, Sheraton Hotels and Resorts and many others. Omni Hotels best fits, or caters to, the target market of a traveling business person within the upper-upscale level of hotels. This specific market seeks to provide services and amenities needed to perform and conduct business in a timely and fashionable manner, while away from the home office. Market structure within the hotel industry has a few unique characteristics. All firms in the hotel industry operate with the same parameters and restrictions such that they operate within a fixed capacity, services are perishable and non-recoverable once the opportunity has passed, and an extremely labor intensive structure. Unlike manufacturing or production industries, hotels operate a fixed number of rooms, and without new construction or expansion of an existing hotel, they cannot increase capacity to capture a fluctuating market in case of very high demand. The reverse effect is that hotels are faced with high fixed costs if occupancy is not maximized. Unoccupied rooms cannot be put on the shelf for later use. Once the opportunity to receive rent from a room has passed, it is a sunk cost and is no longer financially recoverable. Finally, hotels operate a highly flexible, labor intensive service that by definition should cater to each and every need of the customer. With that being said, each customer is different and expects a different level or style of service. Omni Hotels along with other industry members therefore spend a lot of money to provide top of the line customer service to meet their customers’ preferences. Omni Hotels and Resorts operate with a unique corporate culture. They cite their culture with the phrase “Power of One” (Omnihotels.com). Through this, Omni has created nineteen points for all employees to work towards and strive for as listed below. 1. Think! Use our common sense.
2. Know and satisfy our customers' expectations.
3. Greet customers immediately with our undivided attention. 4. Smile and make eye contact.
5. Make the first and last 30 seconds count. Ask our external customers about their stay and invite them back. 6. Be natural and appropriately friendly.
7. Use our customers' names whenever possible.
8. Promptly answer telephones with a "smile" in our voice. 9. Determine the needs and wishes of our customers and make decisions that benefit them. Bend the rules sometimes. 10. Take ownership of our customers' needs and wishes and personally follow through on their complaints. 11. Escort customers whenever possible.
12. Stay up! Be energetic! Take good care of ourselves!
13. Wear our uniforms and name tags in an immaculate manner. 14. Take personal responsibility for cleanliness and safety. 15. Be ambassadors for our hotel and promote it enthusiastically. 16. Be a team player....