Business Strategy in The Hotel Industry
Business Strategy in The Hotel Industry
Background of Oman as a country
Oman, formally known as the Sultanate of Oman, is an Arab country located in the southeastern coast of the Arabian Peninsula. The country has a population of about 5 million people, and it is known for its fresh sea air, robust tourism, and its traditional foods that have been adopted by many societies across the globe. The main objective of this paper will be to develop and viable business model that will be set up in Oman. This model will discuss and elaborate on several issues that should be implemented in order for the business to be realized and made a reality.
To start any business venture, one has to come up with a business model that will encompass all the essential aspects of the business. This is very important as it would ensure that all the essential aspects of a business such as the business strategy, business premises, and how the organization will be run and financed are thought through. This enables the business owners to come up with concrete plans that can lead to a successful opening and running of the business entity (Collins, 2012, p. 32). For this business model, it will seek to develop a luxurious tourist hotel that will be located in the tourist town of Muscat. Muscat is the capital city of Oman, and it is historical. There are many historical sites and building in Muscat, and the city attracts millions of internal and external tourists who come to enjoy the cities historical sites and different meals that showcase the culture of the people of Oman (Collins, 2012, p. 21). The tourist hotel will be a four-star hotel that will offer its customers high-quality hospitality services at a very affordable price. The hotel will be based on the strategy of offering excellent services that tourists or visitors from the western countries crave and at the same time, ensure that the touch of Oman is visible or tangible in what is being offered to these visitors. It is essential for these visitors to feel comfortable while enjoying all the cultural things that Oman as a country can offer them (Collins, 2012, p. 05). This will be the basis of this Four-Star hotel.
The strategy of running the Business
Business strategy can be defined as the strategy or plan used by a business organization to help it attain specific pre-determined goals and objectives. Business strategy succeeds when am organization realize business growth, strong financial, and a strong competitive position (Iqbal, 2011, p. 47). When strategies fail to attain the set objectives, then the management team is sent back to the drawing board, where they are required to come up with new strategies that aim at bringing success to the organization. The business strategy for this new hotel would be to offer high-quality prices at competitive prices with the primary objective of attracting many clients both within the country and from international markets. The strategy will be based on the fact that high volume occupancy rates in the hotels will lead to increased sales revenue, and if the expenses are kept to the minimum, then the organization will start positing high profits. The organization will also seek to employ highly qualified employees who will be charged with the responsibility of running all the different aspects of the hotel (Collins, 2012, p. 65). The hotel menu will be made of both kinds of seafood and non-seafoods. This will make the menu of the hotel expansive and thereby attract different types of customers to the hotel.
To have a good marketing strategy will be the key to the success of the hotel business venture that is about to be undertaken. There are different strategies for developing a good marketing strategy, but the best would be the use of the Marketing Mix tool that advocates for the analysis and the implementation of the Four Ps of marketing (Hussey & Sharon, 2016, p. 32). These four Ps are Product, Place, Price, and promotion.
The product is one of the most critical aspects of marketing as it forms the actual thing that an organization seeks to sell to its customers to gain revenue. For this reason, an organization should ensure that the products they produce are of the highest quality. In this case scenario, the organization will ensure that they have the best hotel services in the area in order to be able to compete with other players in the industry (Iqbal, 2011, p. 48). The hotel rooms, the bed, the bedding, and the room décor should be appealing to the clients. The menu should also be very diverse to ensure that customers get what they want at all times. It is also essential to ensure that all meals are made using fresh ingredients at all times, as this will help in guaranteeing the food is delicious and is of the highest quality.
The Hotel should be located in the safest region in Muscat City. The location should also be served with roads, airports, and rail as this will ensure that customers can come and go as they please (Hussey & Sharon, 2016, p. 57). They should also be able to access the tourist attractions sites of the city from the Hotel.
Price is one of the most sensitive elements of the marketing mix. An organization should not charge too high prices as this will make them lose customers to their competitors, and charging too low prices would make it hard for the hotel to break even. For this business, the pricing model will follow the penetration pricing strategy, where the prices of the products will be set relatively lower than the average market prices of their products and services. However, the prices will gradually increase after a certain amount of time, which is known as the promotion period.
Promotion in the marketing mix means the deliberate action taken by the organization to promote its products and services. In this case scenario, the strategy will use the conventional advertisement methods that include placing advertisement messages about the hotel on radio and television as well as in print media such as newspapers, magazines, and billboards. The business entity should also use contemporary advertisement strategies such as the use of social media website pages to promote their goods and services. Billions of people are active on social media sites such as WhatsApp, Instagram, Facebook, and Twitter, and it would be prudent for the business owners to open these pages for their hotel and start promoting its services and products in the pages (Crane & Matten, 2016., p. 58).
Employees are the most critical resources any business venture can have as they are the people that use or utilize other resources to ensure that the set goals and objectives of business ventures are attained. This is why this hotel model needs to have a segment that talks about employee recruitment (Crane & Matten, 2016, p. 47). This business plan will have to have a comprehensive recruitment policy that would ensure that only highly and skilled employees are recruited to work for the organization. This can only be attained if a Competent Human Resource Manager leads the process with the technical knowledge interviewing prospective employees.
For every business plan or model to be implemented properly, there must be a concrete financial plan that stipulates how the shareholders of the hotel will raise money that will be used to implement the plan and model proposed (Crane & Matten, 2016, p. 47). Different ways can be used to raise finances, and they include owners’ contributions towards the required capital, getting financing from financial institutions such as banks, or getting viable people who can partner with the owners in building the hotel and financing other aspects of the project. The shareholders have to determine the best way they can raise the capital required for the completion or implementation of the project. It will also be necessary for the shareholders to engage a legal professional who will ensure that they obtain all the necessary paperwork and that they observe all the laws and regulations of the country (Hussey & Sharon, 2016, p. 98). This is very important as it helps in making sure that they do not commit any illegality that might put the project in jeopardy.
If the above measures are taken and implemented as expected, then the hotel would be a success. In Oman, the tourism industry has been booming over the last decade, and the government and private players need to start coming up with infrastructural investments that can help in matching this tourism sector boom that has been experienced.
Crane, A., & Matten, D. (2016). Business management in the Hotel Industry. Oxford University
Collins, D. (2012). Oman as a tourism destination country. Hoboken, NJ: Wiley.
Iqbal, T. (2011). The Impact of Leadership Styles on Organizational Effectiveness. New
York, NY: GRIN Verlag.
Hussey, D., & Sharon, K. (2016). Strategic Management: From Theory to
Implementation. New York, NY: Routledge.