Beruflich Dokumente
Kultur Dokumente
Jochen Wirtz is Associate Professor of Marketing, NUS Business School, National University of
Singapore; and. Aliah Hanim M. Salleh is Associate Professor of Marketing, Faculty of Business Management,
Universiti Kebangsaan Malaysia.
The authors acknowledge the generous support in terms of time, information and feedback on earlier
drafts of this case provided by Mr Mok Pin Chuan, General Manager of Primula Parkroyal Hotel. The authors
also thank Jasmine Ow Min Cheng for her research assistance in gathering much of the data and in the case
write-up.
The exchange rate at the time the case was written (April 2001) was US$1 = RM$3.80.
PPR is the only hotel that is both close to the town centre as well as has
a beachfront.
While the other hotels have either chalets or regular hotel rooms, PPR
has not only suites, but also deluxe and family rooms, the latter being
directly accessible to the beach.
A comparison of physical facilities and services provided among the six
hotels would show that PPR provides the widest and most
comprehensive range of services and facilities at the most competitive
rates among the six.
Based on the above analysis, it is apparent that PPR could easily establish itself
as a hotel where one could relax and have fun, but at the same time, deal with
business matters when the need arises. This is what none of the other six
competitors could promise. While Sutra Beach Resort may be able to match PPR
in terms of luxury, it is located far (38km to be exact) from the town centre.
Although Glenmarie Kenyir boosts just as much facilities and services as PPR
does, its room rates are the most expensive among all the hotels and it is also
situated furthest away from the town area. As for the other four competing hotels,
though situated in/close to town, they could not provide the luxury and the
facilities sought by the business class. PPR is thus the only hotel in Terengganu
that allows customers the best of both worlds, proximity to town and the luxury of
a business class hotel, as well as the fun of a beach resort. PPR should thus
capitalise on this and promote itself as the only holiday resort cum business hotel
in the region, selling itself on the promise of both business and leisure. Even for
leisure travellers, the proximity to the town could be exploited, allowing guests to
go for shopping, sightseeing and eating-out trips.
2. What should be its target markets for the coming year(s)? Should they
be the same for peak and off-peak seasons?
Given Terengganus main attractions of unspoilt natural landscape (beaches,
virgin tropical jungle, waterfalls) and fishing villages, which may have little
competition regionally but not internationally, it may be easier to attract regional
tourists than international tourists. This is because tourists may not be willing to
travel too far for Terengganus non-unique attractions, which may also be
available nearer to such tourists homes, and/or may be more easily accessible
than Terengganu. Moreover, the location is rather inaccessible, the local airport
being off the routes covered by major international airlines. Hence, PPR should
concentrate on attracting regional tourists instead of spending precious
To increase the number of visitors to Terengganu, PPR would have to work with
the local government to promote the place as a tourist attraction. As low tourist
arrival rates could be attributed mainly to inaccessibility and a lack of tourist
attractions, PPR should work on these two areas. For example, PPR could
arrange tour buses to pick up visitors from the international airport in Kuala
Lumpur to Terengganu, and to PPR directly. To cater to local visitors, PPR could
similarly arrange tour buses to pick them up at various points in town. PPR could
also target their marketing efforts at Singaporeans, whose stressful lifestyles
would make them welcome frequent short breaks. The hotel could either work
with travel agents or plan their own free and easy tour packages, and market
them to Singaporeans. Tour buses could be arranged to ferry visitors to and from
Terengganu directly from Singapore.
More promotion could be done to promote Terengganus myriad back to nature
wonders in terms of its tranquil inland lake (Tasik Kenyir), waterfalls, pristine
beaches and islands, river-side communities, fruit orchards, ethnic culture and
other unique attractions that would warrant tourists from afar to make a special
stop at the state. Marang Resort and Safaris, located off the main coastal road
between Kemaman and Marang village, is a case in point that manages to do
just this, in carving its own market niche. This resort managed to be ranked
among the worlds top three most unique resorts. With both beachfront and
riverine chalets, this unique resort offers custom-tailored packages for specialist
groups and vacationers seeking activity, rest and relaxation among tropical
nature.
In general, to attract tourists to stay at PPR year round, the hotel should plan
promotional activities corresponding to the various festive occasions around the
year. They could organise food and cultural festivals, day/night tours around the
state to fishing villages, etc., and offer these free of charge to tourists who stay
over at PPR for over a certain number of nights. Discounts on room rates should
be given only in off peak seasons, when there are unfilled rooms to minimise
opportunity costs. During the off peak seasons, PPR could also organise trade
shows, exhibitions, Family Days or Dinner & Dance functions for corporations or
the government departments.
PPR could also hold periodical Internet promotions to appeal to Internet users
who surf the Web to look for bargain getaways or link PPRs website to local
tourism boards web pages to generate wider publicity and exposure. In addition,
PPR could tie in with the tourism board and set up tourists information booths at
airports or ferry terminals that heavily promote PPR as the hotel to stay in when
travelling to Kuala Terengganu. PPR could also participate actively in
government-sponsored tourism campaigns such as the Visit Malaysia campaign
to further attract tourists to stay.
4. What are PPRs key challenges to achieve its target positioning and
improve room revenues?
To achieve its target positioning, PPRs key challenge lies in the training of its
staff to provide world-class quality services. Before the management take-over in
1996, the hotels service standards were poor despite having the facilities and
amenities appropriate of a four-star hotel. This was mostly due to the work
culture inherited from the previous management, which gave rise to poor staff
attitudes, low morale and a lack of motivation to serve. PPRs less than ideal
service standards in the past could also be attributed to its inefficient recruitment
process that resulted in high turnover rates. However, it should be recognised
that the mainly Muslim labour supply makes it difficult to recruit appropriate
servers, who may have to serve alcohol and other foods, which is against the
Muslim religion.
However this has changed with the increased emphasis on educating and
training the staffs to provide top-notch services. Due in part to the need to reduce
operating costs to boost hotel revenue; PPR faced the issue of freezing of all
new employments unless absolutely necessary. In order to balance up the
existing workforce, PPR has to face the challenge of constantly cross training its
staffs and carrying out job rotations.
Besides having to design a proper recruitment and training system, PPR too
needs to encourage and instil a customer-oriented culture among the staffs. This
is in line with its aim to provide world-class service delivery to all its guests.
Problems with room revenues is the direct result of highly fluctuating and
generally low demand for rooms, which leaves PPR with huge excess room
capacity, especially during off peak seasons. Low demand for rooms is probably
caused by Terengganu being highly inaccessible to tourists, and a generally low
awareness of Terengganus tourist attractions and unspoilt nature among
international travellers. This low demand is further worsened by seasonal
variations in weather, which exaggerated demand fluctuations between peak and
off peak periods. PPR would have to work out plans to reduce accessibility
problems, and increase promotional efforts and plan more activities during off
peak seasons to encourage tourist arrivals.
5. What actions would you recommend PPR to take over the next 12
months?
PPR should continue to stress on quality service delivery from its staff. This can
be achieved by first, being more selective in the recruitment process by hiring
applicants with a passion to serve, and who are service-oriented and ideally
already proficient in English. Employees should then be equipped with the
necessary skills for their positions by putting them on the relevant courses. To
further increase their confidence, all frontline employees should be sent for
English proficiency courses and etiquette classes. All employees should also be
inculcated an orientation towards achieving the high service standards.
incentives to stay with PPR, organising of Family Days and Dinner & Dance for
corporations, etc. Yield management can also be applied, especially during
school holidays when the hotel always enjoys high occupancy.
Lastly, revenues could also be increased through the hotels various F&B outlets.
These restaurants/coffee houses could offer daily buffets such as Seafood
Extravaganza, Sunset BBQ, etc., to attract both locals and tourists. These
meals could also double up as freebies that PPR can offer to its guests for
prolonging their stay, or for repeat stays. The regular distribution of flyers,
displaying of banners and maintaining attractive billboards can be used to
promote food and beverage specials to the local market.
In line with increasing the profitability of PPR, the management should also adopt
cost savings measures such as freezing all new appointments or replacements.
Staff from redundant positions can be transferred to the lean departments in
order to balance up the workforce. As the hotels total salary, wages and staff
related benefits made up of 39.2% of total hotel revenue, every effort must be
made to bring down this cost. Management should also continue to find ways on
saving electricity, fuel and general maintenance.
Special Occasions
End of Ramadan
Hulu Terengganu
Cultural Fest
May
Cultural Fest
Sports Extravaganza
Family Packages Special
Turtle Viewing Season
Terengganu Theatre
Festival
Dungun Cultural Fest
National Taekwondo
Championship
Beach carnival
Attracting families on
vacation
Jun
Sports Extravaganza
Family Packages Special
Cultural Fest
Fishing Competitions
Turtle Viewing Season
Terengganu Beach
Games
Kemaman Cultural
Fest
Jul
Sports Extravaganza
Cultural Fest
Turtle Viewing Season
Sep
Sports Extravaganza
Cultural Fest
Lantern Festival
Turtle Viewing Season
Beach Festival 98
Terengganu Gathering
of Performing Arts
Mid Autumn Festival
Oct
Sports Extravaganza
Cultural Gathering
Terengganu Open
Traditional Dance
Competition
Nov
Dec
Magic Show
Convention Packages Special
Family Packages Special
Christmas Promotion
Legend:
Monsoon season
School holidays
Peak periods
10
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of over RM 0.9 million in gross operating profits. However, with changes in the
hotels senior management in 1999, followed by a change in government
spending policy in April of the same year, the hotel managed to turn around and
post a gain of more than RM 28,000 in gross operating profits by the year-end.
Compared to 1998, this figure represented a turn around of almost RM 1 million.
For the next twelve months, PPRs current management would be focusing its
efforts to increase sales presence in Kuala Lumpur, Kota Bharu and Kuantan.
PPR would be targeting its marketing efforts on increasing the government
residential conference packages in these areas. Though low in yield, this market
is still able to produce volume and contribute almost 28.5% of total room nights in
year 2000. PPRs management anticipates that the government related
residential conferences would maintain or even surpass the target set for this
segment in 2001, despite the imminent slowdown in the world economy.
The management too aims to continue its efforts to penetrate into competitors
target segment while maintaining its own high levels of customer relations with
PPRs existing regular clients. This would be achieved through the aggressive
promotions of room packages to local colleges and leisure market of the East
Coast.