Managing The Hospitality Asset Hospitality Sector

Question: Describe about the Managing The Hospitality Asset of Hospitality Sector? Answer: Brief history of the site Royal Pines Resort is a five- Star rated resort and hotel located in Gold Coast, Queensland. The location site of the resort is appropriate for drawing the attention of majority of the tourists visiting Gold Coast for surfing. Every year the management at the resort focuses on redesigning and refurbishment of the hotel spaces like guest rooms, swimming pools, golf course and executive rooms. As a part of enhancing the aesthetic presence of the hotel, space the hotel had undergone major renovations in designing a new lobby, reception desk and an expansive walkway linking the lobby to the resort pool. The hotel that is situated at a very short distance from the sandy beaches of Gold Coast is one of the most preferable accommodations for the surfing tourists (Resort, 2015). Current use of the site Presently management at Royal Pines Resort is planning a further renovation of the guest accommodations. Currently Royal Pines offers 331 stylish guest accommodation rooms that provides open and aesthetic views of the pool, garden, golf course and the sandy beaches. The current price ranges of guest rooms in Royal Pines are around $230 to 350. The resort at present provides three types of guest accommodations namely the coastal room view, the pool view rooms and the beach view room. The management at Royal Pines is considering renovation of all the guest rooms in order to enhance the accommodation settings in accordance to the changing preferences of the tourists. Moreover, the management of the resort considers transforming 100 beach view rooms into exclusive luxury suits in order to increase revenue (Connolly and McGing, 2007). Target market evaluation As per tourism survey of 2014, around $ 4.7 billion was contributed to the tourism segment of Australia from the sole revenue earnings of the Gold Coast segment. The mixture of sun, surfing and sand along with golf facilities, spas, theme parks and abundance of natural attractions has been able to successfully attract 80% of tourist visitors every year. Keeping the facts in mind, it can be analyzed that the major target market of Royal Pines resort are as follows: Types of visitors Percentages Domestic overnight visitors 48% Interstate overnight visitors 22% Day trip visitors 10% International visitors (UK,USA, China) long holiday plans 20% Further, the tourism surveys reveal that the average spending of the overnight visitors in a holiday trip to Gold Coast is ranging from $ 3500 to $ 7000. Thus, Royal Pine can successfully focus on renovating the guest rooms and changing them into luxury suits focusing on the spending capacity of the target market (Sharma and Schmidgall, 2008). The rooms need to be redecorated keeping the preferences of the target markets and preference can be judged from the following segmentation. Target market Characteristics Individual surfers Aged between 18 years and 25 years Both male and female visitors Income range between $ 10000 - $ 25000 Family travelers Aged between 26 years and 50 years Both male and female including children Income range between $ 30000 and above Thus to meet the expectation of the target market, Royal Pine is considering the renovation of the guest accommodations which includes addition of extra space, addition of 3D enabled home theater systems, changing layouts and introducing wifi facilities and complete replacement of furniture and fittings. Analysis of renovation Hotel renovation is a significant part of asset management and asset maintenance of the hospitality sector. According to Matelji (2010) frequent renovation and reinvention of the hotel assets and spaces makes it possible for the hospitality industry to enhance the life cycle of the hotel assets. Hassanien et al. (2010) further commented that hotels and other hospitality sectors that innovates and renovate in accordance to the changing consumer preferences are able to achieve high growth and high occupancies and are able to satisfy the concerned stakeholders. Analysis of stakeholders benefits The major stakeholders affected by the renovation plan are the shareholders and management of Royal Pine resorts, the employees, construction companies, employees and the tourists of Gold Coast. The management and the owners of Royal Pine are the major parties who will be affected by the renovation project (Kapiki, 2012). They are the concerned stakeholders who will have to bear the renovation expenses and will be benefited from the revenue earnings after the renovation is completed. Further, the renovation process will also affect the hotel employees like receptionist, lobby staffs, and room service staffs. If a significant portion of the hotel is under construction for the purpose of renovation then the services of the staffs will be dismissed temporarily. Further the renovation is planned in order to satisfy and enhance the quality of stay of the tourists hence they are also one of the major stakeholders affected by this decision. Reference list Connolly, P. and McGing, G. (2007). High performance work practices and competitive advantage in the Irish hospitality sector.Int J Contemp Hospitality Mngt, 19(3), pp.201-210. Hassanien, A., Dale, C. and Clarke, A. (2010).Hospitality business development. Amsterdam: Butterworth-Heinemann/Elsevier. Kapiki, S. T. (2012). Quality Management in Tourism and Hospitality: an Exploratory Study among Tourism Stakeholders.International Journal of Economic Practices and Theories,2(2). Matelji, S. R. (2010). Promotion and design in the hotel industry.Tourism Hospitality Management. Resort, R. (2015).Royal Pines Resort - Surfers Paradise - RACV Resorts. [online] Racv.com.au. Available at: https://www.racv.com.au/wps/wcm/connect/resorts/racv+resorts/racv+royal+pines+resort [Accessed 21 Mar. 2015]. Sharma, A. and Schmidgall, R. (2008). Financing Renovations In Clubhouses.The Journal of Hospitality Financial Management, 16(2), pp.17-32.