What Makes Como Hotels And Resort Different Tourism Essay

What Makes Como Resorts And Resort Several Tourism Essay

An Asian lady-Mrs Ong, who owns the COMO group, committed and curious business woman who traveled a lot around the world was not really satisfied with the London’s most famous hotels. By 1991 Mrs Ong had already had well established fashion business because of which she traveled frequently to London. In 1991, in one of her appointments to London she discovers a construction in Central London with perfect location is on sale. Immediately she decides to buy this building and turns into fantastic hotel which Halkin Hotel therefore becomes an access for the COMO resorts and Resorts (Group Handbook, 2009 find equation of tangent line calculator). Thus starting her business to gratify her expectations on her visits to London she builds a fresh business which fulfils the needs of higher expectations.

According to COMO figures of 2010 COMO hotels and resorts includes three hotels (and 18 aprtments in Metropolitan Resort), two resorts, two umas and one shambala estate. Two of the hotels are found in London and one in Bangkok. Parrot Cay (Turks&Caicos) and Coco Irelands (The Maldives) are extremely exclusive resorts of COMO. But the primary differentiator of COMO from any other hotels and resorts is normally its Umas(Uma Ubud(Bali) and Uma Paro(Bhutan)) and COMO Shambala Estate at Bagawan Giri(Bali) (Market share statistics 2010). With its distinguishing business way COMO resort &resorts has been able to attain uniqueness among its competitors over the past couple of years.

Three hotels which are situated in busy metropolitan areas are developed to entice guest who travel to big metropolitan areas for businesses. For that reason Sales and Marketing department of COMO accommodations and resorts is found in London and correspondent workplace in Bangkok. These three 5 star hotels which are located in hart of the busy cities is the approach how COMO draws in its customers. The main strategy of COMO is certainly to build Resorts in the most rural, wild and uncommon places of the globe (COMO resorts and resorts, 2010).

Focused differentiation tactics in Hotel sector seeks to supply high perceived service benefits justifying a substantial price premium product and usually are heavily branded and offer benefits different from those of its competitors and that are widely valued by clients (Gerry et al, 2006). Implying this fact, as a result of its unique strategy and approach to its customers COMO can be known as as a differentiator in Hotel and resort industry.

Each COMO hotel and resort is quite different, but it is not difficult to identify the most typical aspect. As an owner of the group Mrs Ong will pay a huge focus on the good being and health, and style. For instance in Vital statistics of COMO resorts and resorts (2010), Shambhala described as a health concept that is built as centers of wellbeing at all estates. Included in these are COMO’s city hotel spas, known as COMO Shambhala Urban Escapes, along with COMO Shambhala Retreats at the company’s individual islands and Uma resorts. Shambhala Yoga Center in Singapore trains yoga teachers and therapists as a way to create personalized, holistic alternatives for the specific needs of different friends. This is a consultative instead of prescriptive way, allowing consultants to react to customers on a one-by-one, day-by-time basis. They demonstrate the best of historic Asian traditions and, where it really is appropriate, older methods are combined with Western enhancements. Bodywork is also another essential factor of the COMO Shambhala knowledge. At all properties, yoga facilities are available. In addition, COMO Shambhala maintains on-going relationships with key element health professionals, incorporating nutritionists. COMO Shambhala cuisine, available at nearly all properties, focuses on energizing and organic and natural products. The difference of the products may be the emphasis paid on natural ingredients (more easily digested together with richer in vitamins and sea minerals) is coupled with outdated Asian influences. COMO Shambhala also generates a variety of skin and physique care products, which is manufactured out of all-natural ingredients (available in-space at every property), together with an Active Living clothes collection (COMO hotels and resorts Vital figures, 2010).

COMO Accommodations and Resorts is developed by a unique Asian spirit: a peaceful commitment to servicing consumers in order to be sure their break with pleasure. In contrary to many accommodations COMO tries never to make a hotel like their home, instead it strives to carry the culture, along with all the aspects of the united states to ensure that guests will bear in mind the lodge as unforgettable. This factor, passion and reliability makes each stay exceptional by defining not simply the service norms however the hart of each property. All of this referred to by the essence of the destination which can be found in food, architecture, and just how COMO helps guests to explore and go through the sightseeing’s of the place. Because of these facts be it a private island in the sea or a hotel in the centre of UK, COMO Accommodations and Resorts – an award winning, a private company – knows how to make memories of the guests last forever (COMO resorts and resorts, 2010).

Internal and External analysis

Chart 1:

Source: Gerry J, Kevan S, Richard W, “Exploring Corporate Strategy”, texts and cases, (2006), pp. 64.

The Chart 1 provides clear viewpoint of frameworks for understanding the surroundings of COMO hotels and resorts with the purpose of assisting to identify the key issues and ways of overcoming the challengers and issues. There are a great number of factors which influence COMO hotels and resorts, but mainly for the proper assumptions and good evaluation it is necessary to analyze those factors by dividing them into internal and external factors. Exterior- quite simply environmental and competitive analysis-aim to identify prospects and threats which influences the company. On the other hand internal analyses seek to identify strengths and weaknesses a COMO is normally facing in current competitive and challenging business environment.

Environmental (PESTEL) Analysis.

COMO Resorts and Resorts is competing in the hospitality market, which includes been effected enormously by the impact of war, terrorism episodes, political instability and visa rules as well as economic crisis like 2009th credit crunch. It is also afflicted by technological innovations and globalization and also environment.

By employing PESTEL framework COMO Accommodations and Resorts can categorize environmental influences into six key forms: political, economical, public, technical, environmental and legal. PESTEL offers a comprehensive list of influences on the practical success or failing of the technique of COMO Hotels and resorts. Many of these factors are linked jointly which is why it is crucial to recognize the main element drivers for transformation. And these key motorists for change will be the high-impact factors more likely to affect drastically the success or failure of strategy(Gerry et al, 2006).

COMO Hotels and Resorts methodology considers the impact on the economies, cultures, environment and communities of each destination in which it operates. Guarantee to sustainability is definitely embedded in the fundamental COMO commitment to enthusiasm, creativity and style. Creating unforgettable journey experiences for guests go together with rewarding employees to maximize their prospective, targeted stewardship and contributing to the local economy (COMO resorts and resorts, 2010).

Political/Legal Factors

As a Global Sector COMO is hugely influenced by political factors of the country where it operates. It is comprehensible that visa restrictions effect considerably on COMO’s sales. For example it is more challenging to acquire visa to Bali making Uma less attractive for its guests. Nowadays people usually do not really want to load extra paperwork and await results. All of the Resorts and Umas and estate is located either in higher mountains or in islands which narrows its consumer segmentation to a luxury getaway and leisure seeking guests. For example to travel Coco Irelands where one of the famous resorts is situated a guest will have to look extra paperwork proposed by the governments which influences the guest decision to visit the vacation resort. As COMO operates in various countries it is crucial to invest into the governmentally stable nation. Another reason behind that is the expense of closure of the business enterprise; this is because of costly possessions. Taxation is another facet of consideration for just about any global company. Based on the experiences of some guests, some complaint that these were charged higher tax on the third go to to Uma Ubud, buy viagra australia. but this is because of the governmental taxation guidelines which does not necessarily affect COMO but discourages the trust of the clients (Trip Advisor, 2009).

Economical

Last yr has been especially problematic for the tourism, hospitality and travel and leisure industry. Battle in Iraq, the climb of oil prices, the outbreak of distinct flu viruses as a result of which journeying was limited or harmful to some destinations has had a devastating effect on the global hospitality industry. Those factors combined with domestic situation in the UK, such as market meltdown, a declination in client spending, the weak work and closure of several businesses made the this past year very demanding for businesses.

As the economical downturn is slightly picking right up, the hospitality and travel around industry benefits from increased organization travels. And targets for a far more favorable hospitality and travel and leisure industries are around the corner and so are proclaimed by various resources for the 2010.

According to the Revenue and Loss affirmation of COMO Hotels and Resorts for 2009 RevPAR features generally declined for 2.3% but predicted Profit and Damage statement for 2010 2010 looks much healthier than last year with 1,2% increase in RevPAR.

Merrill Lynch analysts (10/30/2009) assume that the hotel industry has hit the cheapest statistics of present lodging routine and is definitely disillusioned for an enormous rebound due to increasing demand, as a result of a strengthen market, together with very low supply growth over the next a few years. These results therefore should translate into strong RevPAR. And accompanied by the improvement of RevPAR, RC(return on capital), ROCE and overall hotel evaluation can often be followed.

According to the Ghassan Aidi, President of International Resorts & Cafe Association, notes on U.N. World Tourism Corporation Resilience Committee conference in Berlin on September 2008, practically in parallel with currency markets turmoil, occupancy at luxury hotels start to go down 6% afterward 14% in October. Furthermore he mentioned RevPAR in ’09 2009 fell by 17% for luxury marketplace while as it was mentioned previously COMO Hotels and Resorts could keep its organization in -2.3%.

Moreover Mr Ghassan Aidi (2009) concludes his speech mentioning that generally 2009 and early component of 2010 will become challenging for hotel market, but he as well believes that hospitality market as a whole needs to become positive and explore unlimited opportunities. “Please understand that our industry may be the largest employer in the history and employ a lot more than 950 million of personnel and we are the previous barrier and the key fighter against global poverty” says Mr Ghassan Aidi on his statement.

Social and Environmental

COMO has been trading and paying huge attention to the environmental factors such as for example global warming, poverty and discrimination.

For example COMO foundation is exclusively designed program to support nonprofit corporations that tries to boost lives of women of all ages and girls. Without the geographical limitations to the building blocks portfolio COMO could grant projects such as healthcare,

skill development and education (COMO hotels and resorts, 2010).

COMO has implemented distinct recycling assignments in its accommodations and resorts. Metropolitan Resort in London was awarded as the best environmental caring hotel of 2009 (Employee handbook, 2010).

Technological Factors

To obtain bigger market share and also to increase customer satisfaction, hotels and resorts are continually trying to offer high-tech technology. Before few years have demonstrated huge effects on telephone revenues and an elevated demand for high quickness Internet access throughout accommodations and resorts (Phillip et.al, 20/11/2003).

The overall change in customer booking patterns was affected incidentally customers are searching, reviewing and choosing accommodations and resorts. Travel companies such as Travelodge have heightened their large market share and are continuing to change the existing status of the market. It isn’t difficult to see how travel agents who offer vocational plans which include accommodation, airfare and transport are growing over the past few years, but as well this influenced negatively on revenues in the hospitality. Moreover Internet review web-sites such as interdependent hotel review webpages like www.cntraveller.com has impacted on customer’s decision and decisions. Online booking can be rapidly increasing due to the customers behavioral changes.

Moreover economical alterations persuaded Accommodations and Resorts to put into action cost cutting techniques. On the second part of this report technological alterations which happen to be effecting COMO resorts and resorts will end up being discussed more briefly.

SWOT analysis

The key ‘strategic messages’ from organization environment and strategic capability can be summarized in the sort of SWOT examination. According to Mintzberg (1998, p.406) SWOT examination summarizes the key issues from the business environment and the strategic capacity for an organization that are most likely to effect on strategy development. The aim of these analyses is to identify the extent to that your current strengths and weaknesses are applicable to, and capable of, simultaneously dealing with the threats and taking advantage of the options in the hospitality market. COMO business composition and expansion as SWOT analysis crucial strengths and weaknesses within the industry and illustrates valuable chances and threats the hotel is facing currently:

Strengths

COMO has gain a good standing from its existing customers

There is regular upgrading of COMO management

Perfect and unique resort locations

Differentiating facilities

Great hotel service and high customer value

Cultural staff/employees relations with guests

Very popular restaurants located in each hotels and resorts

COMO shambala health treatments

Small chain which means better and easier management

COMO Foundation

Weaknesses

Lack of earnings maximization from other resources such as, conferences and wedding venues revenues

Low employment overhead revenue

Lack of differentiation of reception from other hotels

Difficulties to reach target customers

Tough visa regulations in some places of the resorts

Lack of self owned online sales channels

Opportunities

The occurrence of enough basic conveniences to improve quality

Technological innovation

Refresh of hotel operators

The upsurge in sales due to customer loyalty

The capability to be successful as knowledge curve is usually changing

Customer Growth

Enhancement of Brand Name

Threats

Presence of better industry positioning by hotel rivals

Constantly raising and rough competition because all of the Hotels are situated in big cities

Economic slowdown that may obstruct resort development

Implementation of newer technology tools by other hotels

Unsuitable environment for keeping devoted customers

Change in Technology

Changes happen all over the world, each and every minute there is definitely something invented or improved which lead to the actual fact that nowadays life can’t be imagined without technology. Some firms use technology in some section of the production procedure, while some consist whole from technology and hugely rely upon it. One of the hugely dependant on technology and changes within technological sector is hospitality industry. Starting from reaching and producing reservations for guests, all the way till making the customers loyal requires technology. The next paragraphs of the report highlight most significant innovations and installations of technology in the COMO accommodations and resorts.

Technological influences on policies and decision making

Starting from 1980s, strategy management scholars began to recognize technology as a significant element of business classification and competitive technique. (Robert Burgelman, 2004). For example Porter observes that technology has become the prominent factors that determine the rules of competition. But relating to 1 prescriptive school of approach is that general managers do not need to have backgrounds in science or IT, but they do need to invest significant work in learning to understand the technologies vital that you their business. But the most important simple fact for CEOs in todays continuously changing technological community is their capability to frame the main element strategic questions with regards to technology (Robert Burgelman, 2004). The link between generic competitive tactics and technological approaches is described in specifics below in Chart 1.

Chart 1

Technological Policies and Generic Competitive Strategy

Generic Strategy

Product technological change

Overall cost leadership

Overall

differentiation

Focus segment

Cost leadership

Focus segment

differentiation

Technological Policies

COMO’s new product present to reduce product/service price by lowering materials articles.

COMO’s product development to enhance product quality

COMO’s product development to create enough functionality for the segment’s needs

COMO’s new product offer to meet specifically the needs of this business segment application.

Process technological

change

COMO’s process development to enhance economies of scale

COMO’s process development to aid greater top quality control, faster response

COMO’s process creation to tune creation to segment needs to be able to lower cost

COMO’s process development to tune the creation to segment needs to be able to improve performance.

Source: Burgelman R., Christensen C., Wheelwright S., 2004, “Strategic operations of technology and innovation”

Being global means a whole lot of communication and rapid respond to the changes. Having real estate in different elements of the world is quite difficult to manage without standardized property os’s. The finance department in every of the properties of COMO uses the same system which in its switch enables head office to raised control the financing of the business. All COMO hotels and resort’s lender transactions exceeding 10.000 pounds are being prepared by hq in UK. Due to technology this procedure is reached great outcomes, as a result of the option of the internet any resorts or Umas anytime can scan the copy of the invoice and give to the top office. After this head office analyses the invoice and procedures payment to the beneficiary with respect to the resort or hotel.

Effectiveness of COMO’s response to change in technology

COMO is continually striving to be the first of new technological advances in the market. According to Mr Orchard-regional basic manager-a company’s strength and competitive edge is its ability to constantly update and keep up with technology. Mr orchared says: “We could actually differentiate ourselves as a result of our passion, imagination and style. However the major behind this theory is usually our capability to be primary in introducing new technological changes to your guests”.

COMO hotels and resorts have implemented different technological advances and those are being explored to increase its conveniences within the lodge. For example, Metropolitan was the initial resort in London who provided free wireless internet within the hotel. In addition it’s the first hotel in London who installed 42″ and 32″ toned screen TV in all its bedrooms. Also it offers vary products such as for example iPod docking station, electronic do not disturb button in all its bedrooms. Due to transform in technology COMO can offers more services to its customers than previously, for example:

IT Butler

Limousines

Foreign exchange

Business Centre with great speed broadband internet service

Secretarial service

Laundry, dry cleaning and pressing services

Express check-out

Mobile phone rental

Flat screen Tv set with 67 channels

Extensive on demand music jukebox and video selection

WiFi and high speed internet access

iPod docking station (in Studios and Suites)

CD and DVD player

Dual line, immediate dial telephone with tone of voice mail

Air conditioning

Electronic ‘do not really disturb’ sign

Private fax equipment with designated number

UK and US modem points

Video recorders, mobile phones and printers (on request)

Sony widescreen TV

Wall mounted plasma screen

DVD player

Hairdryer

Iron and ironing board

Mini bar

In modern times the emerging of the internet as a new channel of distribution possesses presented some issues to the lodging market. In react to this COMO partnered with e-commerce business which enabled better on the net reservation systems. With installing these new devices COMO was able to offer international customers use the local language to generate a reservation.

Of course internet is a good tool to reach customers globally but goal of the COMO is usually to tailor that distribution solution to match to each guest. Which recently developed e-commerce has got and can further enable COMO to lessen the distribution costs, while advertising the brand around the world. The primary objective behind this is to make COMO’s internet site and online sales stations to attain more customers and promote the brand name (Employee handbook, 2009).

Areas for improvement as a response to the modification in technology

COMO is constantly searching and investigating for different technological improvements and developments to satisfy the demands of its guests. But as it might be observed in any business due to the rapid transformation in technology it is too difficult to keep up with improvements in technology continuously. There is always a gap or neglected section of the business which may be improved to carefully turn weaknesses and threats in possibilities and strengths.

For example to improve the distribution and increase client loyalty COMO uses on the net sales channels. But in order to better compete, to have an improved and stronger brand COMO needs to have its online sales channels.

COMO Resorts and Resorts must insure all its customers to get the very best value by accessing the various distribution channels available.

As an advertiser of COMO hotels and resorts it co-operates with Design Hotels Inc, this kind of companies advertise hundreds accommodations and resorts. As some of its competitors already are aware and became in advance COMO by developing their own advertising web browser, COMO needs to keep up with this aswell.

Biometric clock in and time clock out system allowed companies to automate payroll processing, eradicate unauthorized overtime and accurately reports employee time/ attendance to HR. Right now COMO is implementing a time card which must be swiped to record the attendance. But biometric attendance recorder can help eliminate early on punch ins and time of payroll calculation. It helps and eliminates your time and effort and time required by the HR to screen the time-clock activity and minimizes the manual involvement of payroll therefore leading to a cost benefits and improved productivity.

COMO resorts and resorts is quite narrowly targeted to an extremely rich guests, but is not COMO distancing itself from additional guest demographics? Your time and effort to keep up with changing technology is working, but can COMO stay static in line with further improvements of technology and competition?

Conclusion

COMO hotels and resorts seems to be perfectly positioned and has built significant achievements and could expend very quickly by integrating of its brand name by accomplishing its strategic pattern in such turbulent economical situation. Its culture, manufacturer and global strategy will be the key component of their success. While you may still find huge opportunities, such as technological innovation, reinvigoration of hotel operators, the increase in sales due to customer loyalty, customer development and enhancement of brand these opportunities are as well accessible over the time period.

Nevertheless, COMO has had the opportunity example of a summary to perform huge success in less than twenty years by nurturing a traditions and reputation based on style, creativity and love to navigate though demanding markets and prosperous times. As a result the effectiveness of COMO became a synonym of high class.

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