Supply Chain Management

Jasmin Lacandalo

Laura Palomeras

Greta Rattini

Camilo Ruiz
Index

1. Description of the Hotel .......................................................... ........ page 3

2. Strategic Value Map........................................................................ page 3
 Target market ....................................................................... page 3
 Value proposal ..................................................................... page 5
 Operations strategy .............................................................. page 5
 Operations system ............................................................... page 6
3. Customer journey............................................................................ page 8
4. Process mapping ............................................................................ page 9
5. Key Performance Indicators ............................................................ page 11
6. Project Charter ................................................................................ page 13

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1. DESCRIPTION OF THE HOTEL

This project will be based on EKO Hotel.

EKO Hotel is a music themed boutique

hotel that seeks to provide a refined,
memorable experience for their guests
traveling to Barcelona.

It aim to provide an inspiring place for

guests to not only meet and rest, but
also immerse themselves in an
informally elegant atmosphere that is
more than just a typical hotel stay.

The hotel is comprised of 10 rooms all with different musical themes, from décor to
musical memorabilia available in each room to create a sense of uniqueness to each
guest. The room themes are: The Jazz Room, The Classical Room, The Flamenco
Room, The Hip Hop Room, The Techno Room, etc.

Another aspect of the concept itself, is hosting events that include local and
international artists of different medias in a way that is comfortable for guests and
cohesive with the business concept.

2. STRATEGIC VALUE MAP

Target market - WHO

SEGMENTS:

a) Socio-demography:

- Between the ages of 25 and 45.

- Music enthusiasts, artists or casual travelers.

- Couples, families, individuals or groups.

- Events for music industry companies and private events: weddings and
family celebrations.

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 b) Geographically:

- Locals: from Catalonia region and Spain.

- Travelers from around the world: mostly from United States, United
Kingdom and the rest of Europe.

- To introduce EKO Hotel in the Market by 2020 in the Barcelona area.

The hotel will serve both domestic and international guests.

- Besides providing accommodation, the property will serve as optional

space for events, music and arts. It is projected to host 2 events per
month on a bi-weekly basis.

- Marketing will be supplemented by creating close business

relationships/agreements with local music/art organizations and
businesses, including festivals, where marketing will be mutually
beneficial.

MAIN NEEDS AND MOTIVATIONS:

 Privacy. Freedom to participate in the culture nurtured by the hotel and it’s
artistic concept

 Guests are lured in by the musical/artistic experience and unique theme of the
hotel.

 Location and aesthetic charm are additional incentives for guests who want a
unique stay in Barcelona area.

 Innovation and relevance of product provided is paramount.

 Weekly/monthly events held at the hotel are major driving points.

 Refined, clean and safe atmosphere, not often found in the alternative world
of contemporary arts.

DISTRIBUTION:

o Direct contact / information: Hotel website and social media’s profiles

(Facebook, Instagram and Twitter).

o Promotion through local music and art venues.

o Online travel agencies (OTA): Booking and Expedia.

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Value proposal - WHAT

The general idea is to build a comfortable, unique experience for guests from about
25-45 years old who are either artists, art enthusiasts or are simply looking to stay at
a hotel that is a bit outside the ordinary without compromising quality service and
comfort. Average room prices are foreseen to range between 125€ - 345€ per night.

As a music theme hotel, it hosts events for music industry companies as well as
private events such as weddings and family celebrations. Guests have the
opportunity to participate in those events and live music provided throughout the
year. These events are organized by the hotel management itself, third party
promoters, record labels, local artists, etc.

A few examples would include art gallery events, live music during the day (at the
pool/terrace), events specifically planned for a given weekend where all guests are
there to enjoy a specific type of music/art for the duration of their stay, total hotel
”buyouts” where record labels/artist collectives can host their own events for an
entire week/weekend.

Another selling point is the availability of record players, dj equipment and vinyl
records to check out at the front desk for guests to enjoy in their rooms as well as a
classical piano in the lobby.

Highly personalized and quality service.

Food choices are a selection of fresh, mainly local dishes and ingredients that guests
are able to enjoy for breakfast, lunch and dinner. Cocktails are also available at a bar
located in the lobby/pool area throughout the day and night.

Considering the rural location of the property, guests enjoy a peaceful, private setting
for their stay. Mountain views and the outdoor pool and gardens will add
enchantment to the ambiance in the hotel.

Cultural information will be provided to guests, including local music festivals, shows
and ticket sales to such events as well. Partnerships with event hosting agencies will
be considered.

Operations strategy - HOW

Every aspect of EKO Hotel is geared towards serving guests who expect excellence
and value individuality.

The hotel boutique offers not just accommodation, but also additional services as
holding public and private events.

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The hotel will invest in its team’s talent, training and education to maintain a high
level of management expertise and a strong internal culture.

The optimum operational performance is driven by innovation in every area of the

business.

By providing exceptional service, we understand that value can be created with

every encounter and this is reflected in our superior standard and delivery of service.

Automatic news/event updates will serve as notifications to our guests regarding

upcoming events happening in our hotel. Careful consideration of OTAs and
marketing platforms will take place in order to remain ahead of the competition.

Create a Buyer Persona/Audience Persona Demographic for EKO Hotel by using

market penetration strategy. Identifying the target audience EKO Hotel services or
products is an exercise that affects and benefits all areas of business building
process, particularly marketing efforts.

Apply a low cost policy in an industry for a given level of quality. Sells its products
either at average industry prices to earn a profit higher than that of rivals, or below
the average industry prices to gain market share by targeting the “broad” market.

Cultural information is provided to guests, including local music festivals, shows and
ticket sales to such events, after booking is confirmed. Promote special offers like
champagne on arrival or lunch/dinner, or simply nurture a positive perception by
asking if the guest has any special preferences

To build up customer loyalty, EKO Hotel will make sure to “always make the tight first
impression” by adding a personal touch, offer incentives like complimentary drinks,
toiletries, pick-up service etc. and develop a sound loyalty program.

Operations system - WHERE WHEN

There are 3 key factors regarding the operations systems of the EKO Hotel.

ORGANIZATION AND FLEXIBILITY:

- The operation process must develop an organized workflow. Schedules,

duties and bookkeeping all must follow a plan that allows for smooth
transitions between shifts and that easily accommodates unexpected
demands.

- Flexibility is an important aspect of hotel workflow planning. The hospitality

industry is an ever-changing environment, so workflow organizations must be
adaptable.

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 - Employees in a hotel must adhere to deadlines that coincide with guest flow.
Deadlines must be flexible; review them daily or weekly.

- Communication in every plan procedures workflow changes and distribute

these procedures to all employees on a regular basis.

INNOVATION AND NEW TECHNOLOGIES:

- Due to the large amount of competitors in Barcelona, it is necessary to take

advantage of technologies and use it as a way of innovation towards the other
companies of the market.

- All staff must be knowledgeable regarding the Hotel’s POS System,

Reputation Management and other technologies.

PROPERTY:

- The hotel is located in Barcelona. This location is a strength for the hotel.

- It is similar to a countryside house right next to a big City.

- It consists of 10 themed room.

- In addition there are several shared spaces to increase the value of the
guests stay. Some of the public areas are: a restaurant, meeting rooms /
events hall, outside space (garden and swimming pool).

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 3. Customer journey: HOTEL – OPERATION MANAGEMENT CUSTOMER JOURNEY
HOTEL INFORMATION BOOKING
- Visit the Hotel Website - Inquiry/Checking room
- OTA Channels availability
- Travel Agencies - Filling up a request form
- Sign up programs - Request execution thru
- Hotel Social Media Page OTA and Hotel
Website/Booking Engine
- Payment and Booking
confirmation received
- Hotel Central RSVN
System
- Collect guests details and
other proof of identification
via email/provide filling form
in advance
- Offer pick-up service
ARRIVAL
- Arrival at the Hotel (speed
up check-in process)
- Free cocktail drinks while
waiting at the lounge area
- Offer to enroll in our
Loyalty Program.
- Offer a tourist handbook
- Customize in room service
- Large vinyl selection to
listen/check into customer's
room
MEALS
- Proactively recommend
guest to download the Hotel
Restaurant Application to
view the offerings and
activities to the guests.
- Breakfast/Lunch/ Dinner
delivery/room service.
- At the restaurant, welcome
the customers and look for
available table and seat for
the customer.
- Offer customer drinks,
present an entrée specials
and leave so that the
customer can make
decision.
- Payment at the restaurant
or during check out.
- Share the experience with
others.
- Rate the Menu
CITY INFORMATION
- Check the tourist handbook
- Touristy activities
- City Bus, Taxi and Tour
Bus
- Sell tickets for a large
range of events and
attractions in the city.
CHECK-OUT / LEAVING
- Settled payment/bills
- Offer transfer /
transportation.
- For guests who are
satisfied, offer Loyalty
Program
- Recommend the Hotel and
review
- Shared post and pages on
social media
- Inform customer of room
availability next year (same
dates). Seeking for re-
booking, or simply installing
an idea of desire to return.
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4. PROCSS MAPPING

SYSTEM
Hotel's PMS

SYSTEM
Hotel's PMS

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SYSTEM
Hotel's website

SYSTEM
Internet browser
Online shop

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5. KEY PERFORMANC INDICATORS

1. Process: Check-in: Duration of check-in

Description: When we talk about operations a key concept it's efficiency. A good way
to see the efficiency of a process is by measuring the time we need from beginning
to end in order to complete it properly. Establishing an average duration and clear
directions for the process can help to improve our team performance.

How to measure it: Having an average time for the check- in, we can compare the
duration of every single check-in made in the hotel with the one established in our
standards. There are programs or software to control the time we spend with every
guest. For example: A check-in should be between 4-6 minutes maximum. Knowing
that the hotel has only 10 rooms, it is pretty easy to check the time spent in each
check-in. So, after having all the times, we should focus on the ones that are under
or over the range of 4-6 minutes and evaluate what has happened in each situation
in order to fix these deviation in future performances.

2. Sub-process: Loyalty program enrollment: Number of members

Description: In the services industry, one of the most important element for the
business success is our customers, or in the hospitality world: the guests. Having a
loyalty program could be essential to promote an engagement to our hotel. A
relevant sub-process within the check-in is to incentivize guest to become members
of our loyalty program.

How to measure it: We should set a goal regarding the new members we want to
achieve in an specific period of time. Maybe, first, we should have a fully
understanding of our demand in order to establish an accurate number of new
enrollments per month or year. At the end of each period (month/year), we should
check the exact number of members that are part of our loyalty program. It is
important to pay attention not only to the new enrollments but also to any member
that could have left the program. Comparing the ideal number of members we would
like to have to the real amount, would let us picture if the loyalty program is helping
or not to obtain a higher engagement of our guests. If we don't reach the expected
number, we will have to review the enrollment process and see how we can turn it
more appealing and effective.

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3. Sub-process: Make a reservation: Repeated guests

Description: As mentioned above, promoting an engagement between the hotel and

the guests could help to have better results in our business activity. Other than the
loyalty program members, we can also see how committed our guest are to the hotel
by observing their level of return or repetitiveness.

How to measure it: The small amount of guest we welcome daily in the hotel, let us
make a deep analysis on their profile. We should have an ideal percentage or ratio of
repeated guest we would like to receive in a certain period of time. For example, it
could be a 40%. At the end of said period of time we should calculate which has
been the number of repetitions. Another way of studying and measuring the
repetitions, could be observing the influence of our loyalty program on the returning
customers. How many guests that choose to come back to the hotel are enrolled to
our loyalty program? If we don't reach the expected level of repeated guests, that
would have an impact not just in the check-in process but also in the whole hotel
experience as well as the hotel operations. As we need to identify the factors that are
making a low repetitiveness.

4. Sub-process: Provide information: Number of purchased tickets

Description: At the end of the day, the most important part of a business is its
profitability. In the hotels sector, it is really common to use up-selling or cross-selling
techniques in order to increase our total revenues. During the check-in process we
provide to our guests all the information they need to make to most of their stay in
Barcelona as well as offering the opportunity to purchased a large variety of tickets
from events hosted in the hotel, but also to visit and take part in other activities in the
city. Selling these tickets we earn money through commissions that will make our
profits higher.

How to measure it: That KPI it is really easy to evaluate it. We just need the Profit
and Lost Statement elaborated at the end of an specific period of time. In the P&L
we can observe detailed which are the different source of income that the hotel have.
Therefore, we would have the exact number of revenues that we got through
commissions and selling of tickets. Having that information, we would be able to
calculate the percentage that it represents according the Net Profit that we have
generated. We should previously have set a goal for the period we are analyzing.
That way, we could consider if our performance is being as effective as we had
planned.

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6. PROJECT CHARTER

After evaluating the results of new enrollments we obtain monthly in our loyalty
program, we observe that the number is below our expectations. Therefore, we
decided to promote a project in order to have more guests wanting to become part of
the hotel's loyal members.

PROJECT NAME: EKO APP + EKO RECORDING STUDIO

PROJECT TYPE: IMPROVEMENT OF THE LOYALTY PROGRAM

PROJECT START DATE: January, 2020

PROJECT EST. END DATE: April, 2020

PROJECT DESCRIPTION SUMMARY:

In order to improve the existing loyalty program the EKO team want to offer its clients
two additional services:

- EKO APP: the creation of an app to facilitate the process of signing up to our
loyalty program for our guests. Furthermore, guests would be able to do the
following:
 To keep up to date with earn points
 To keep up to date with the dates of upcoming events
 To pull up check- in documents
 To reserve recording studio sessions
 To purchase merchandise

- EKO RECORDING STUDIO: the built of a recording studio where artist can
create their own music and collaborate with other artists.

PROBLEM STATEMENT ISSUE:

For guests, the existing loyalty program was not so easy and fast to stay updated.
Our goal, with the creation of the app is to create a space where all the necessary
information can be found by our guest in an efficient and effective way.

Also, by creating a recording studio we will now be able to provide a place where our
loyal customers, especially artists, can find an incentive to be part of our loyalty
program.

PROJECT GOALS:

After implementing our new services we want to achieve these goals:

 2000 new loyalty members through our up in a year.
 High number of people attending events.
 5 recording studio bookings per month.

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PROJECT MILESTONES:

 January:
o Consult an Application Developer.
o Make a design for the App.
 February:
o Create the pilot project of the App.
o Contact an expert to draw a plan for the recording studio.
 March:
o Launch the new App through a marketing campaign.
o Start building the studio.
 April:
o Open the recording studio to guests.

COSTS ESTIMATES:

It is estimated the total cost for the project to be between 70.000 and 90.000€.

APP – 10.000 Euros

RECORDING STUDIO – 6.000/80.000 Euros

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