At present, the work of humanity and its impact on the environment are discussed worldwide, in particular with regard to business activities. The issue of the correlation between business and environment generates many discussions, and analytical studies on whether humans are able to manage business or its impact on the environment. Thus, the recent topic is considered very modern and important in terms of its actual use and significance to other similarities and/ or companies.
This paper will focus on two sectors, hospitality and tourism as one. The main focus will be on how to develop a hotel and marketing in relation to the bad results of business in the hotel, and suggesting possible ways to solve existing problems because the hotel should take all concerns and environmental issues into consideration when planning its operations.
The Mountain Park Protection Association (2015) reported that there is increasing number of tourists in the mountainous region; some argued that it is very good for the economy of the province and the country, while others are interested not only in the number of visitors, but also the effect of the environment.
In addition, there are ongoing discussions about traffic management in the region to reduce the negative impact of the high number of visitors and to improve the experience and enjoyment of visitor, in particular with regard to hotels and their services.
The Mount Rundle Hotel is close to Banff National Park. It is therefore very important to understand how to find the reasons for the significant decline in hotel income especially in times of competition in hospitality and tourism when they are monitored and directed by all stakeholders.
Thus, for the purpose of reaching the desired goal, the management of the hotel should analyze the followings:
1. Does the truth match what is promoted?
2. What are the threats the hotel faces, which have the effect on the hotel revenue?
In this paper, the researcher shall use different such as books, journals websites and online interviews to be able to specify the strengths, weaknesses, opportunities and threat which led to the current position of the hotel.
The Mount Rundle Hotel is close to Banff National Park in Albert, Canada. Thus, the hotel is similar to a resort. Banff town population is 8352 in 2004.
Banff is one of Canada’s most attractive tourist destinations and is the largest city adjacent to Banff National Park in Canada. Banff is 4,800 feet high and is the tallest city in Canada and is surrounded by Rundle, Nor quay and Sculpture Mountains.
In addition, Banff National Park visitors about 4 million tourists yearly and brings more foreign tourists from anywhere else in Canada. A large number of staff working in the hospitality sector is from different countries. Mont Rundle belongs to the Anchor Hotel Group and has 65 well-furnished rooms. The price of the hotel itself is at the highest price category in this area.
The fundamental issue in the case of The Mount Rundle Hotel is related to the failure in providing the convenience service to the guests of the hotel in addition to unsuccessful problem-solving. In this case the hotel management failed to meet the guest requirement which has been raised between the hotel management and one of the guests Steve McKenzie.
From the point of view of the researcher, the main problems are as follows:
1. A luxury hotel but with bad room service from the time of checkout. No front desk staff helped guests to carry their luggage to their rooms. The room has not been cleaned, usually improperly arranged, tidy or reserved at all.
2. The hotel is elegantly decorated but with an unacceptable interior design where the hotel’s restaurant is located inside the hotel under guest rooms making the room smelly like bacon and eggs. In addition, there are useless staircases that reach the rooms’ roles and therefore have difficulty walking and / or carrying luggage.
3. Unacceptable problem-solving and lack of communication skills. The hotel collected the guest’s credit card without any authorization. After many times of correspondence between the management of the hotel and the guest, the hotel still does not give any solutions.
4. The hotel has weak reservation department in addition to the lack of communication services internally and externally. The guest has booked the room through the Expedia but the Expedia didn’t charge the guest which means there is lack of communication between the hotel reservation and Expedia. As a result, the reservation department booked the guest based on the highest room rate which is different from Expedia rate.
5. Financial department had big mistake because the night auditor didn’t report the issue and the finance manager didn’t notice. Therefore, the financial department has decided to solve the problem and fixing the error through charging the guest’s credit card without any authorization which lead to big problem between both of the guest Steve McKenzie and the hotel.
The above mentioned are related to the problem and hereunder, the researcher gives the fundamental causes:
1. Poor management of operations and lack of clear procedures due to the Director General of the hotel is not qualified, and there is weakness in the operational aspects related to the human resources policy and the daily management of the hotel by the manager and department managers, especially the management of reservations and reception and housekeeping, which led to misunderstanding between the hotel and guests, in addition to the serious mistakes by the accounting department.
2. Lack of staff training and poor recruitment in terms of selection of available hotel competencies in the country from different countries. For example, the receptionists were university students and apparently did not receive good training. This resulted in a lack of experienced hotel staff and lack of training, resulting in the poor service and discontent of hotel guests.
3. There is no guest focus by employees. The hotel focuses on internal systems rather than guests. Moreover, the general manager of the hotel has an internal focus and more intent on managing the company’s internal systems and related processes rather than meeting the needs of hotel guests.
Therefore, the researcher considers that the main issues in this case relate to the failure to provide services and financial control procedures. These problems usually arise from mismanagement of operations, lack of competencies in human resource management, irrational thinking, and the extent to which they know what hotel guest services are. Furthermore, if the refund received and an apology delivered to the guest is done correctly, The Mount Rundle Hotel may have stopped this minor problem which has become a major problem.
The key issues in the case of the hotel relate to those failures associated with the provision of services and the procedures for addressing them. These problems arise because of poor management of operations, lack of competencies in human resource management and misconception by a group of employees towards guest services. Moreover, if the service delivery process is performed properly, the Mount Rundle Hotel may finally get rid of these minor problems which over time have become a major problem
Evaluation of Main Issues
· Guest’s confusions: reservation, guest relation departments provide Inconsistent information regarding room rate and real current occupancy which lead to guest’s confusions.
· Recruiting unqualified employees: for example but not limited the front desk staff is just students in colleges in addition to the Housekeeping staff were playing football in the public areas represented in the hallway with holding the towels in their hands. Furthermore, the front desk staff used the credit cards of the guests without authorization even with the loyal guests who stayed at the Mount Rundle Hotel and considered as regular guests.
Comment: in fact, this is the big mistake from the financial department, in particular, the night auditor who checks the daily revenue.
Moreover, the staff the staff did not bother to check payment confirmation at the first time properly since the guest asked regarding payment and he had been assured that payment is already charged by Expedia. Accounting department found the mistake regarding McKenzie’s transaction seven months later, which means they delayed so much.
· Lack of guest services skills: this belongs to the housekeeping department where there was a smelly and uncleaned room, which create unhappy guests.
· Finally, no one helped the guests to carry their luggage during the check-in procedures. In additions, the room was not blocked in the system as per reservation procedures. The guest also had to go down from the room to inquire about the amenities provided such as bathroom make-up i.e. shampoo and lotions. The management of The Mount Rundle Hotel didn’t send an apologizing letter to the guests for any inappropriate conditions faced by the guests.
· Unacceptable thinking: the hotel manager thought that there is no effect if a guest will rebook again with the Mount Rundle Hotel or not, and the employees of this hotel did not consider guests’ perspective at all.
– Tourism area
– Numerous of tourists visit the region
– Luxury hotel
– Affordable price based on its category
– Environmental sense
– Bad reputation due to much complaints by the guests
– Lack of staff training
– Inappropriate interior design of the hotel
– Lacking of qualified and skilled staff
– Old reservation system
– Promoted images of the hotel differs from the reality
– No loyalty consideration
– Distant location from the main cities and capital
– International economic crisis
– Terrorism attacks
– Tough competition
– Losing many loyal guests due to bad reputation and lack of service provided to the guests
– Comp-set new properties expected to open in that area.
– Capability to attract new business
– Many tourists in that area may enable the hotel to attract them to replace the losing guests because of the bad services which not all tourists have an idea about it.
Based on the SWOT analysis, the hotel should implement the following urgently to fasten the recovery:
1. Packaged travel:
The hotel can create a promotion to attract the clients through contracts with the famous travel agencies such as 2+1 means 2 nights plus one night free or making appropriate room rate discounts such as 30% from the rack rate of the hotel.
2. Room furniture:
The management should focus to renovate the rooms in particular that the hotel is luxurious and should maintain that.
3. Food and beverages – F &B:
The hotel management can add in the promotion mentioned in (1) applicable discounts for F &B such as 15% for the main 3 meals of the day in addition to provide welcome drinks upon arrival of the guests to the hotel to reach the guest satisfaction. Moreover, the location of the kitchen should be transferred to another location to avoid the complaints.
The hotel management can provide free picking guests and drop off to the airport to let the guest feel more comfortable
5. Recreation, culture and sports activity:
The hotel management can provide one massage session free of charge which is required by the majority of the guests, hiring bilingual staff that they are able to speak to others by their own language as possible and making a simple tournament for the guests such as billiard games.
Based on adventure tourism (2013) this item is very common among the tourists because it includes the adventures for the tourists, cultural tourism, visiting forests and if the property desires to increase the number of its guests, the management should take into account such item.
6. Shopping trips:
The hotel management can provide bus to do the shopping trips for the guests to make them happy of their stay at the hotel.
Furthermore, most of the guests do not have cars to move around and the hotel knows all the attractive locations which are required o be seen by them.