Custom research paper and BUSINESS PLAN FOR A NEW HOLIDAY HOTEL IN UK
BUSINESS ANALYSIS
An important part of the business plan is a review and analysis of the market and competitors. First, it is necessary to make a description of the industry.
The market of hotel services in UK can be characterized as developed and mature, as well as highly competitive. This means the presence of many competitors who already have a firm position in the market. When entering the market a new company can face the following challenges:
– difficulty of entering the market
– difficulty of wining the market share
– difficulty of attracting a sufficient flow of customers.
The market of hotel services in the UK is mature and saturated, because there are many both the British and international companies and hotel chains that fight for customers. Glasgow is one of the largest cities in Scotland and third most populous in the United Kingdom, which is It is located in the west central part of Scotland on the River Clyde. The city is one of the major administrative, industrial and business centers in the UK, so every year it is visited by many business people. Glasgow is also a cultural center, which in 1990 was named “City of European Culture” for the development of art and architecture, as well as the entertainment industry. Glasgow is one of Britain’s largest and most interesting cities, there are many art galleries and museums, fine restaurants and traditional pubs, so the city attracts many tourists and travelers who are potential customers for the hotel.
So Glasgow attracts travelers from all over the world, that is why the city has large Glasgow International Airport. All Glasgow visitors are potential customers of the hotel, namely: tourists and travelers who come to see the city, its architecture and culture; and business people, who come to town on business, on the negotiations, business meetings, etc. That is, there are two segments of potential customers: tourists and travelers and business people.
The city is famous for its architecture, it is possible to find a building of Venetian style, classical style, as well as neoclassical and neo-Gothic style. That is, the Britannia hotel must be located in a building that represents the architectural value.
Positioning of the Britannia Hotel Glasgow: the hotel will be located in a picturesque part of town in an old restored building, which has its own history. Nearby are major tourist attractions, the park. It offers the most comfortable accommodations in the best location and beautiful rooms at affordable prices. The hotel staff speaks foreign languages and can provide information services for tourists, as well as help in organizing excursions around the city. Thus Britannia Hotel Glasgow is the ideal place for tourists and visitors.
Next it is necessary to make SWOT analysis, that is to evaluate strengths and weaknesses, to determine opportunities which exist in the market, as well as threats.
SWOT analysis
Strength:
– Great location of the hotel – Britannia Hotel is located in the picturesque part of the city that creates a comfortable atmosphere visitors
– Recognizable brand of Britannia Hotels ensures a favorable image in the market has a good reputation and loyal customer.
– Highly qualified staff
– Britannia Hotel is located in the beautiful building which has architectural significance.
– Britannia Hotel offers exclusive services to customers, which are not available in other hotels (entertainment program , informational services and tourist services)
– Britannia Hotel offers restaurant with fine traditional food.
– Britannia Hotel offers convenient parking and free Wi-Fi Internet access.
Weaknesses:
– Heavy traffic near the hotel may produce mush noise
– Small size of rooms
– Inability to accommodate large groups of people
– No sports or spa centers in the hotel
Opportunities:
– A large number of tourists in the city
– Cultural events in the city attracts tourists interested in staying at such hotel
Threats:
– High competition from other hotels
– Lack of tourists in the winter and fall seasons
– The unfavorable demographic situation
– Fluctuations in exchange rates, prices and reduced income
Based on the SWOT analysis it can be concluded that the industry is attractive and the hotel has enough strong points to the successful positioning in the market, but it is necessary to take into account the strong competition from other hotels in Glasgow.
PEST analysis
PEST analysis is important to determine environmental conditions:
Political factors:
1. The stability of the government – in this period, the UK is characterized by relative political stability, resulting in a stable public policy.
2. Development of tourism infrastructure – the Government is making significant efforts to improve the infrastructure of the city and the region, and special attention is paid to the development of transport and communication infrastructure.
3. Policies to attract tourists to the country – the government is interested in attracting tourists and take appropriate steps to stimulate their inflow.
4. The influence of the legal framework – introduction of the tourist and hospitality industry standards and deliberate government policy to bring them into line with international standards is beneficial to the industry.
Economic factors:
1. The demand for hotel services – it falls and varies according to the economic situation.
2. Economic crisis – has direct impact on prices and costs in the industry, reducing the profitability.
3. Trends in the market of hotel services – a trend to lower prices for hotel services, which is associated with a reduction of number of tourist, a significant amount of supply compared to previous years and increased competition. In addition, in times of crisis some hotels have started dumping policy to attract new customers.
Socio-cultural factors:
1. Unfavorable demographic situation – slowdown in population growth
2. Changes in the social values
Technological factors:
1. Rapid development of technologies in the field of communications – on-line booking system and free Internet access in the rooms are obligatory services in all hotels
2. Development of technologies for information storing – developments in the field of data storage have made it possible to create a database to collect information about customers, and to store information necessary to company’s management. These achievements are of particular importance for the hotel business, because they help organize information about customer, and to ensure that services of the hotel satisfy individual preferences of customers. In turn, individual approach to customers increases their loyalty to the hotel or brand.
Next, it is necessary to consider the competitive position: the city has a lot of small and large hotels, both Uk-based and international.
Competitors analysis
Speaking about the hotel business, it should be noted that the major role is played by industry standards, which lead to the gradual disappearance of the visible differences between competitors. Most of the hotels offer the same set of services with minimal differences. Therefore, an increasing role is played by intangible factors such as quality of service and the atmosphere in the hotel, which mainly serve as criteria for differentiation of the hotels.
For a more precise analysis of the competition, it is necessary to consider main competitors in the same segment with Britannia Hotel Glasgow. The main competitors are large hotels in the city center, as well as hotels in historic buildings that are targeted at tourists. The main competitors in this sector are:
– Radisson Blu Hotel, which is a modern hotel located opposite the main Glasgow railway station.
– Ibis Glasgow Centre, which is located in the center of Glasgow, just in 2 minutes from the famous Soshiholl Street. The hotel offers day-and-night registration, modern bar and restaurant.
– Fraser Suites Hotel is located in a renovated bank building of the 19th century, just 500 meters from the streets of Argyll, one of the main shopping streets of the city.
– Marks Hotel – a boutique hotel located right in the bustling center of Glasgow. It offers free Wi-Fi and a stylish bar.
– Five-star Hilton Glasgow Hotel, which is located in the heart of financial district in the center of Glasgow, near the Scottish Exhibition and Conference Centre (SECC).
– Victorian House is a townhouse in a traditional Victorian style just 500 meters from the Theatre Royal Glasgow and the railway station Charing Cross.
– Hotel Holiday Inn Express Glasgow Theatreland, which is located in the center of the city.
– Devoncove Hotel Glasgow – boutique hotel is located near the Scottish Exhibition and Congress Centre and Kelvingrove Park, 5 minutes from the center of Glasgow and the West End.
– Grand Central Hotel is located in a historic building from Glasgow Central Station in the city shopping district, offers a restaurant and champagne bar.
– 4-star Hotel Crown Plaza Glasgow, overlooking the River Clyde
– Glasgow Centrale Hotel.
– Best Western Glasgow city hotel – a renovated hotel in the center of Glasgow, offering stylish accommodation with free wireless internet access.
These are the largest and the most popular hotels in Glasgow. Also, the city has hundreds of smaller hotels and small hotels in different parts of the city. That is, it can be concluded about the very strong competition, because the city has a large number of modern hotels, hotels in historic buildings in the city center, as well as small hotels in other areas. In order to compete it is necessary to create a unique and strong positioning and offering to customers, to show exclusive benefits that Britannica hotel provide to customers.
Almost all hotels offer a restaurant, bar, parking and free internet. That is, these services are standard, and to attract customers it is necessary to offer unique services that can’t be found in other hotels. These exclusive benefits are:
– Entertainment program: every night in the hotel will be held live performances (piano concerts, jazz music, etc.)
– The hotel will offer excursions for tourists, that is, tourists can book a guided tour just at the hotel.
– The hotel will offer all kinds of information services for tourists, which come to the city for the first time.
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