Managerial Skills Research: Luxury Hotel Management
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The document discusses trends that will impact the hotel and tourism industries in Shanghai over the next 5-10 years. In the social category, it identifies increasing online discussions and growing business traveler markets as certain trends. In technology, it predicts outdated hotels and a focus on technology when booking as certain trends. The economic section sees an increasingly competitive market and new Disney hotels as certain trends. Environmentally, it sees a focus on sustainability and green hotel standards as certain trends.
Managerial Skills Research: Luxury Hotel Management
- 1. SH-MIB2 Managerial Skills Research Assignment: Luxury Hotel Loca%ons: BOSTON Management in Shanghai DUBAI LONDON SHANGHAI SÃO PAULO By Brandon T. Luong & Yoan Peyrottes SEOUL TORONTO 2012 © 2012 IXL Center Inc. All Rights Reserved
- 2. Forces of the Future List of Trends Identify two certain and two uncertain trends per category (e.g. Social, Technological) that will significantly impact businesses in the next 5-10 years COMPETITION TOURISM GROWTH • World Expo brought new hotels • 70% growth in tourism revenues • Shortage of quality workers • Tourist arrival up 3% (8.25M tourists in 2012) Social • Online forums used as driving force • Influence of online discussions • Business Travelers market increasing • Heavy local demand (domestic tourism) • Some hotels being outdated • 75% hotel reservation on internet • Microsoft Office 365 • Technological focus when booking Technological • Hi-Tech construction • Chinese Social Media increase tourism • Use of Weibo and social media for recruiting • Tourism APP for smartphones • 6,000 new hotels in 2010 • Big investment in tourism publicity worldwide • Market turning increasingly competitive • Numerous famous events and competitions Economic • Disneyland Hotels coming in 2015 • Disney Land coming in 2015 • More hotels in China than USA (oversupply problem?) • Increase in revenue • Label for eco-friendly hotel • Regional focus on sustainability • NDRC will draft standards for green hotel • World Expo (eco-friendly construction) • Re-use of the products • Eco-Friendly Customers Environmental • Eco-Construction (vegetal building) • Eco-Friendly Attraction • Not abiding to rules and regulations • Government investment in tourism: Y40 billions • Helpful policies for foreigners investment • Political influence on domestic tourism Political • Craft budget hotel regulations • More freedom given by the government to travel • Regulatory transparency decrease • Visa application complicated © 2012 IXL Center Inc. All Rights Reserved 2
- 3. Get Out! Trend 1 Description Based on your selected Mega Forces, identify trend with the shop-owner, businessperson or store manager: ENVIRONMENTALLY FRIENDLY Description : Nowadays in Shanghai there is only two recognized hotel to be eco-friendly. Efforts towards the environment. Due to a very competitive market and increasing demand with the customer, Chinese hotels are willing to invest more in environmental products. Which industries will be impacted and how? Because of the eco-friendly thinking hotels have to adapt their management to protect the environment. The international hotels brands are increasing their CSR. What is the data to support the force? Nowadays the hotel already reduce the waste by decreasing the use of products (change shampoo only when necessary, offer to keep the towel). It also switch to emergency lights on the floors from 11:00PM to 06:00AM. Fast How likely is it that it will happen? The trend is happening right now and will keep on. It is really necessary to take care about it. Uncertain Certain How quickly will it happen and why? It will happen quite quickly due to the change happening step by step in the Slow way of thinking. © 2012 IXL Center Inc. All Rights Reserved 3
- 4. Get Out! Trend 2 Description Based on your selected Mega Forces, identify trend with the shop-owner, businessperson or store manager: SOCIAL MEDIA INFLUENCE Description : All over the world many hotels like the Sofitel promote their brand on social networks. It has been a great way to attract customers and increase their brand awareness. In China the brand is using social networks only for recruiting. Not going on Social networks would be a threat to lose customer. Which industries will be impacted and how? The hospitality management mainly. It won’t be a big financial lose but the hotel will miss the chance to reach those consumers. The social medias are becoming great sources of information. Lots of clients are looking on them. What is the data to support the force? Today the hotel is already using those sources outside China. Work is already done. Once the Chinese market will be interested in the offer the hotel would react. Fast How likely is it that it will happen? The hotel would use its social marketing from overseas and adapt it to China. Uncertain Certain How quickly will it happen and why? It may take a year maybe more. Nowadays the reputation is based on the word Slow of mouth. But RenRen and Weibo are increasing very quickly, becoming important companies. 4 © 2012 IXL Center Inc. All Rights Reserved
- 5. Pair/Team “Aha” We interviewed Jacky Chen, Manager at SOFITEL Shanghai What did he say? He seemed really concerned about the environment and enthusiast towards the social media. He mentioned the fact that the hotel was organizing once a month a meeting with the employee. This meeting has for purpose to collect eco-friendly ideas. Web feedbacks are very important for the hotel. It receives many of them through its website and some popular websites like Booking.com. Your assessment to his readiness to the opportunity or the threat? The manager seemed concerned but not really aware. He had to check the information. Nevertheless he is participating in the eco participation of the hotel. It will take time for people to adapt themselves but the influence of the big associations in the world will help. Chinese market is booming and companies wants to keep on going that is why they tend to adapt. What was your “Aha”? The hotel was installing some new LED lights when we were doing the interview. It was really in phase with our subject. The manager had a real interest for the subject but was sometimes lost. Sofitel Hotel is one of the most sustainable hotel in the world. © 2012 IXL Center Inc. All Rights Reserved 5