Strategic Resort Hotel Management

Strategic Resort Hotel precautionCorporate Social ResponsibilityMcWilliams et.al. (2006, pg. 4) defined CSR as situations where the firm goes beyond respect and engages in actions that appear to further some social good, beyond the interests of the firm and that which is required by law and state that CSR should be use as an shargon of corporate scheme. match to Fombrun and Shanley (1990) socially responsible behaviour bear lead to improve firms theatrical role and reputation and therefore append visitants number. However, Friedman (1970) argued that the motivation is to serve the plentyful daub and as Trexler (2008) stated ethics and moral ranks have no place in the business world considering that CSR and parkland programmes can be strategic responses to grocery realities, such as the rising of fossil fuel. Nevertheless, this does not change the fact that some activities that are motivated by the bottom line may have social take ins.Sani green programme has 3 main ob jectives with a well-defined plan and measurable targets Sustainable hotel operation, protection and enhancement of topical anaesthetic biodiversity, local community support and human capital development. The green programme so far has excellent outcomes in all 3 objectives (Resort,2016) and as homogeneous promoting and demonstrating CSR results can be very beneficial for the image and reputation of the resort. CSR can be advertised through numerous channels such as internet, sustainability reports and media (Danuta de Grosbois,2011). notwithstanding image, measuring the economic benefits of this objectives is crucial for resorts financial sustainability. Energy and water consumptions can be easily calculated and so calculate the ROI. McWilliams and Siegel (2001) suggested a model base on RBV to deal optimal investment in CSR and stated that managers can determine the appropriate level of investment in CSR by conducting cost benefit analysis in the same way that they analyse early(a) investments. In terms of CSR towards the employees, benefits or loyal bonuses can mitigate the effect of staff turn over, grave the expenses for training new staff and provide a standardised customer service. Sani is already affiliated with some NGOs (Appendix) simply it would be advisable to increase their number.In summary, Sani resort must set achievable goals for CSR and display them to the public in ramble to boost its reputation and attract much(prenominal) green costumers. The financial beat of the outcomes in all CSR programmes must be calculated and measured.Life cycleUnderstanding the life cycle of a product,here sani resort, is an important principle in order to make more profit and stay in business (Day, 1981). It can also be applied in forecasting and developing appropriate selling strategies, depending on what arrange the product is.In order to identify the stage of a product in the life cycle Day (1981) suggested feutures and patterns at each stage. IdentifyingfeaturesStagesIntroductionGrowthMaturityDeclineSalesLow toweringHighLowInvestment costVery highHigh (lower than insertion stage)LowLowCompetitionLow or no competitionHighVery highVery HighProfitLowHighHighLowTable.1According to the balance shits ( Appendix ) profit had a step increase in 2015 clutching most 26mil (up from 5mil in 2011) and the total tax income reached 131,69mil (up from 2011 89,42mil). The competition is still on high levels and the resort keep investing money on their facilities. From these facts, an assumption that the resort is on the growth stage can be make (Product Life Cycle Stages, n.d.).Box (1983) claimed that there are 2 courses of action to extend the lifetime of a product the technological which implies physical exercise of modern engineering to improve the product and consumer-orientated option, which lies in motivating the consumer for further usage of the product. Adjusting Boxs theory in the resort, it is recommended further usage of modern technology to address problems such as the restaurant engagement app (look at TOWS), and eco technology to improve and make more efficient the CSR programme of the resort. In terms of the consumer-orientation actions, sani resort unendingly invests money to its facilities, both new and existing ones, creating new features and adding value. Since the revenues are increasing and the be are dropping it would be wise if not reduce the expenditure of dwells to keep it steady to be more competitive. Furthermore, keep the same marketing strategy for the niche markets, i.e. Russia and green market, but further advertising in the regional market and in social media would be suggested.According to MarketLines (2016) report for tourism in Greece, tourism shown an increase of 1.8% in 2015 to reach a value of 33.4 billion (table.1) and by 2020 is expected to be 37.1billion (11.4% up from 2015)(table.2). table.1 table.2Accomodation providers accounting 38.8% of the total revenue g enerated by tourism (table.3).Table.3According to sani resorts balance shits (appendix), sani increased its total revenues from almost 90mil in 2011to 131mil (47%) and its profits more than 5 times (5mil in 2011 26mil in 2015). Furthermore, the average daily price increased by 3%.Statistics from tripadvisor.com All 4 hotels of Sani resort are rated with 5 stars(table.4). The majority of comments are good and based on the staff willingness to help while providing excellent service, the location of the hotel beautiful beaches, sun and close to nature, and the amenities provided spas, activities and relaxation (Appendix)Name of hotel Total reviews 1*2*3*4*5*1 Sani asterias513079344632 Porto Sani7711410775713 Sani niner1306210261058854 Sani Beach2625816743152212Sum521511371195314517Table.4Bad reviews were based on the prices, which they claimed the hotel rooms restaurants were too expensive (table.5), lack of privacy, noise by the children and not modify pools. Some of the customers were also unhappy with the smoking policy and the speed of their transportation, which in Greece this is considered as normal behaviour. (Appendix)Name of hotelRooms totalLowest price roomHighest price roomSani Beach361104454Sani Club212110392Sani Dunes136164342Porto Sani109148520Sani Asterias57234867Sum825(According to the month prices may change)Table.5SPASani BeachMySpaPorto SaniThe Spa SuiteSani ClubThe Club SpaSani AsteriasSpa RetreatSani DunesD-SpaIn the primordial 1980s some resorts added spa facilities in order to attract more visitors (Monteson P.A., Singer J., 2004). Initially spas used as support facilities and if they didnt cause revenue loss, their ability to attract costumers was enough to justify their existence (Anderson, 2001). However, nowadays spas are considered profit centers and they are autonomous departments of hotels (Madanoglu M., Brezina S., 2008).In sani resort every hotel is equipped with its own spa, which is open for all guest. All spas include hairsa llons, gyms, saunas, pools and the basic spa treatments. What differentiate them from other spas is that their supererogatory treatments where design by Anne Semonin, a French firm specialised in creating bespoke skincare treatments using natural ingredients. Even though some of the basic treatments are the same in all of them Anne also designed signature treatments for each one of these 5 spas. Furthermore, what also differs in each spa is the area of their specialism. MySpa is specialized in facial treatments, while the Spa Suite offers a wide range of massages. The Club Spa, which is the biggest of all, is inspired by thermal Roman baths and its equipped with Turkish Hammam, Bio sauna, set in motion pool and heated recliners. Spa retreat is designed for couples and the modern D-Spa, which will open in July, is characterised as a state-of-art spa, supplied with Technogym, Hammam and new-age spa facilities.Sanis spas can offer more than 40 different treatments in each spa and the ir prices differ depending the duration of them and the ingredients used, providing genuine and life-enriching experiences (Zimmer R, Clarke A., 2006).They start from as little as 50 and they can reach to 255, which are normal prices for such treatments. Spa reservation is an option and they offer galore(postnominal) discounts such as couples discounts, early booking discounts and multi treatment packages in which a customer can select many treatments and get a discount for them.Furthermore, many packages related to spa trends are available (Spafinder, 2016), like the junior spa, where children over 12 geezerhood old can enjoy their spa treatments and their parents can also enjoy a relaxing treatment without worrying about them, or the enjoy with mum spa.As in CSR, here measuring the outcomes is also of the utmost importance in order to evaluate and design next years strategies. As Madanoglu (2008) stated, spa benefits to resorts revenue can be classified as direct, revenue genera ting, and indirect, as a marketing tool. Direct benefits can be measured using the spa revenue per occupied room (SPOR) or the per available room (SPAR) figures. Moreover, keeping records of the results of dividing SPAR with RevPAR for a long time can be very useful tool to examine whether spa revenue is on the same level with the room revenue (Madanoglu M., Brezina S., 2008).In conclusion, sani should press more the Greek culture in spa using treatments such as the thalassotherapy, which is also a trend (Greece spa guide, n.d.), and offer more packages utilizing the surrounding environment (The epinephrine Spa, n.d.). Emphasise on the pre-arrival process and separate spa reservations can also be a useful tool to increase profits (Madanoglu M., Brezina S., 2008), and it should be interpreted under consideration. Finally focusing more on the experience customers get, can increase their satisfaction and so the revenues (Singer, 2000).Generic strategiesSTRATEGIES Current PositionSugg estionsMarketing strategy based on the 4Ps PriseProductPlacePromotionFocus StrategyNiche market (Russia)green marketExpanding StrategiesAffiliated with IKOS resorts (Oaktree Capital) Goldman Sachs Asset Management fund and Hermes GPECost Leadership StrategyIncrease profits by increasing prices and lowering costsExamine occupancy ratios to decide whether further increase in price should be wiseMarketing strategiesBased on the VRIN and TOWS frameworks it is possible to create and implement a successful marketing strategy utilizing McCarthys (1964) marketing mix. 4Ps framework refers to 4 broad concepts of marketing decision i.e. price, product, place and promotion. The suggestions in each field, except place in which sani invest a lot by renovations and building new attractions ( Sani Dunes) and we strongly suggest to keep the existing strategy, are the followingPRICEIntroduce new offer packages, such as early booking discounts to increase occupancy, offers for offseason stays and con ventions to mitigate the effects of seasonality and special offers for special occasion events i.e. valentines day and womans dayReduce or keep current prices (3% up from 2015) to increase costumers satisfaction, decrease bad reviews in sites (tripadvisor.com, booking.com) and be more competitivePRODUCTEscaping from the routine and leisure are the 2 main reasons for a visitor to go to resort (Faizan Alia, Kashif Hussainb, Neethiahnanthan Ari Ragavanb , 2014). All hotels provide the same basic products the difference is how they provide it and with what role (Bouncken, 2002). Product is the field that can differentiate sani resort from its competitors. According to Dunning (1981) there are 3 sectors to differ the product supplied the on premises services which is the services received upon staying, the provision sector which is before the arrival stage and the deliver on the ground sector. Sani does an excellent job in their provision and delivering on the ground strategy and sugges tion can be only made for the on premises services.For buildings and surrounding areas, since sani continuously invest in them (new hotel Sani Dunes) the suggestion is renovations where needed, so the resort will look more appealingCreate more eco-activities to attract new customersProviding benefits, training and enhancing employees knowledge about customers preferences can offset the effects of staff turnover and lead to better and standardized service quality (Bouncken, 2002).PROMOTION incite sani resort more in the local community as a weekend escape option.Use social media to promote special events and offers ( facebook, twiter, Instagram)Promote sanis CSR and green programme even moreRespond to criticisms in booking sitesFocus StrategyAs Mr Andreadis, chief executive of the Sani, stated in FT they turn into the Russian market after the economic crisis in Greece and the worries that international tourism will decrease, as it did (Apendice) (Hope, 2015). The recommendation is to keep this strategy but also expand in the green (look at CSR) and purple (Appendice) market also.Expanding strategiesIn 2016 Sani and Ikos resorts announced a merge, aiming in an investment plan worth 200mil(Akrivou, 2016)for buying new properties. Furthermore, funds from Oaktree Capital Management L.P., Goldman Sachs Asset Management and Hermes GPE, will also be involved it this investment plan (Kousounis, 2016).Cost Leadership StrategiesSince the costs are decreasing examine if a further increase in prices should be wise. Furthermore, investment in eco programmes can lead to an additional cost decline and empower CSR programme.TOWS MATRIXA TOWS matrix is used by organisations in order to develop and implement their strategic plans, by matching its internal strengths and remote opportunities (SO) to find its competitive advantages, as well as to identify and convert threats and weaknesses into opportunities and strengths (oxford college of marketing, 2016).SANI RESORT TOWS ANALY SIS External OpportunitiesExternal Threats Increase in tourism meter in GreeceRussian niche marketLack of competition in the areaThe green movementExperience over material trendtechnology and social medias takeoverEconomic crisis in Greece and unstable taxation modelInstability in Turkey and refugee issue virgin competition in other municipalities in GreeceInternal Strengths SOST delicate but transparent serviceNumerous amenities and activitiesGood reputation in social media and tourism websitesExcellent environmental development and protection performanceLocation and geographic advantagesGood relationship with local community and strong partnershipsHigh tech convention facilitiesNew hotel, Sani Dunesoverflow budgetCombine natural and cultural aspects with activities at the resortUse resorts good reputation to advertise sani in social mediaDue to eco-friendly image of resort, sani can promote it and attract more concern for environment visitors and introduce more eco-activitiesCons idering the lack of competition in the area and the niche market, sani can promote its location advantages sunny hot beaches, marina and walking trails, to attract more visitorsProviding a peaceful and luxurious environment can mitigate the bad impression of Greece to visitorsPromote the location of the resort to make it more competitive over other places in GreeceInternal WeaknessesWOWTSeasonalityHigh maintenance costsStaff turnovereatery bookingsUtilize green programs to reduce maintenance cost and increase revenueContinuous development of programs and apps can contribute a lot in online booking and increasing revenuesAim in new markets for conventions to offset the effects of seasonalityProvide training for staff and bonuses can mitigate staff turnover and hence amend service will increase relieving and decrease the worries of customers about political or social situations.SO StrategiesIt is the desire of every firm to exploit the potential market opportunities by utilizing its resources. Sani should focus in 2 niche markets. The first one is the Russian market, worth mentioning that is a very rich market, which in the last 2 years Greece has become more popular as a destination for them. Sani has already turned to this market by opening a Branch office in Moscow and added Russian as an optional language in their site. Affiliations with big Russian tourism offices, creating packages especially for this market and hiring staff able to let the cat out of the bag Russian are suggestions to be considered. The second is the green market, which consist of visitors who in order to choose their next destination they have the CSR programme of the firm as a criterion. Sani can use its surplus to create new eco-activities, develop and promote the Sani Green programme and invest in eco-tourismW StrategiesWhen an organisation accentuate to overcome its weaknesses, utilizing the external opportunities can become a very useful tool (Business Study Notes, 2016). Convent ions from new markets can offset the effects of seasonality and by utilizing the sani green programme the maintenance costs can be reduced.ST StrategiesThe unstable economy in Greece and the immigration problem have created a negative image of Greece to the visitors. Sani can overcome this issue by promoting its blessed location and its peaceful and relaxing environment by itself or take common action with the Greek field Tourism Organisation (visitGreece) to mitigate the effects of this image and promote a beautiful and attracting Greece.WT StrategiesThis strategys goal is to remove sanis weaknesses which will overcome the external threats (Business Study Notes, 2016). By providing benefits and training to staff members the staff turnover can be mitigated and hence the service quality will be standardized and improved. As a result, customers can enjoy better service of pleased staff in a pleasant ambience away from Greek financial and political troubles.VRIN manakin According to Barney (1991), in a business environment that the resources are heterogeneous in nature and not amendly mobile, a resource can be characterised as sustainable competitive advantage if it fulfills the following 4 attributesIt must be valuable, in the sense that it can exploit opportunitiesIt must be rare among firms current and potential competitionIt must be imperfectly imitableAnd it cannot be substitutedThe core competitive advantages for Sani resort, as mentioned and explained in the presentation, are the following. Sani ResortValuable idealisticInimitableNon- Substitutable SizeYESYESYESYES MarinaYESYESYESYES SANI FestivalYESYESYESYESPase Dr. Blythe (2016,6th ed, pn.250), USP is the one feature of the product that most stands out as different from the competition, and is usually a feature that conveys quaint benefits to the consumer. Even though the size and the marina are hard for competitive firms to imitate due to lack of resources in the area, SANI Festival is inimitable and therefore it can be characterised as a Unique Selling Point (USP) for the following reasons. For 25 years now SANI festival is connecting people from different cultures through music and art, attracting many international visitor and locals providing high quality entertainment to its attenders and generates significant revenue for the resort. It is characterised as a USP for sani resort not only because of these 25 years of perfect organise, implementation and innovation, but also because there is no other art festival with the similar size, variety, glamour and reputation as SANI festival in Greece which are the factors that makes it inimitable, and not the cost of creating such an event. It is sure that there is room for more advertising in the social media, but since it is promoted and recognised as a refined art festival, there is a fine line between being an art festival and being a faceless attraction for many more visitors.