Primula Park Hotel Case

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  • Topic: Hotel, Rooms, Star
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  • Published : January 12, 2013
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Primula Parkroyal Hotel: Positioning and managing for turnaround Table of Contents
Introduction1
SWOT2
Strength2
Weaknesses3
Opportunities3
Threats3
Target Segmentation4
Commercial Guest4
Corporate Promotion Strategy4
Daily Stays Promotions5
Weekly Stays Promotions5
Corporate Conference Segment Packages5
Full Day Meeting Package6
Half Day Meeting Package7
Individual Traveler8
Individual8
Family10
HR strategy11
High rate of absenteeism11
English language Training11
Job rotation and Employee relations11

Figure 1: Conference Room Interior6
Figure 2: Meeting Room Layout6
Figure 3: Individual Traveler8
Figure 4: Room's interior9

Introduction
The Primula Parkroyal is a four star hotel in Kuala Terengganu, was going through a strategic change after a new Management took over in 1996. Rodney Hawker, PPR’s General Manager was working on the new market strategy for the hotel in 1998. Some of the key areas to look into are the segment of markets to target, and how he should position the hotel to compete with other hotel in Kuala Terrengganu and hotels n other destination in the background of unfolding Asian financial crisis. The hotel is located in the South China Sea in Kuala Terengganu in North eastern state of peninsular Malaysia, an oil-rich state with a population of over 850,000 comprising mostly Malay Muslims. PPR was the first four star hotel to be build along the Eastern Coast of Peninsular Malaysia n the eighties. In1996, the Southern Pacific Hotel Corporation took over PPR’s management from the state agency for ‘twelve plus five year’s contract’ to manage the hotel. In managing strategic change of the hotel, the management focused upgrading the physical facilities of the hotel, re-marketing and positioning of the hotel, staff training and changing work culture. To re-market and position the hotel, the management has to look at the segment to target and the internal renovation has to be undertaken.

SWOT

Strength

1. Has government support.
2. Only hotel which has a beach location and has both tourist and business image being close to town. 3. Unspoiled beaches, water fall, lakes which are untapped as far as tourism is considered. 4. The hotel that has the largest no of facilities that entertain all the segments of the customers coming in. 5. Being a water sport crazy nation, events like snorkel can be used to attract masses.

Weaknesses
* Vulnerable to seasonal fluctuation of demands because of the location. (Facing South China Sea) * No unified operation ( Front office & Food &Beverage Department) * No Formal front office training conducted since 1992

* Low staff motivation and high turnover & absenteeism in the department * Inefficient room management
* Waiters and waitresses reluctant to interact with foreign guests because of lack of confidence in English language proficiency * Islamic law against profiteering from liquor
* Attitude of the staff remain imperative
* Serving Liquor, difficulty in recruiting staffs

Opportunities
* Conference segment projected to increase by 30 percent
* New management who are experienced in hotel management. Hence we can have best practices implemented in this company.

Threats
* Limited contract 12 + 5 years
* No full ownership. Thus long term capital intensive strategies can’t be made. * Looming Asian Financial Crisis
* Intense competition from many new hotels and resorts
* PPR’s service levels & staff morale low. Hence poaching chances are more * Employees are reluctant to change/learn new culture
* Fear of Tsunami/ Natural Calamity
* Less skilled workforce available in market
Target Segmentation
We aim at targeting the following segments:
* Commercial Segment comprising of Corporate and Corporate Conferences which would also help us to penetrate the growing ‘Conference’ Segment...
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