Executive Summary
Today, hospitality management requires skills and training because of the changing needs and demands of customers. Phulay Bay is taking effective measures in order to facilitate customers in the best possible manner, and I come to know this after my internship in Phulay Bay for a period of 6 months. The Hotel is ensuring provision of top services, and a relaxing environment where guests can feel comfort, and visit the hotel again in order to take benefits from the services offered. In this paper, hospitality management in Phulay Bay is described in detail by explaining how the hotel is using unique selling elements, operations management, solution of problems, empowerment of employees, motivation of employees, and management of revenue.
SECTION 1: Introduction to the Report
Background to the theory area and aim/objectives of report
The aim of this report is to analyze hospitality management in practice, and for this purpose Phulay Bay, A Ritz-Carlton Reserve in Thailand is considered as I completed my internship in Phulay Bay. The company is using theory of unique selling elements, ensuring operations management, management training, solving problems, employee empowerment and motivation, and revenue management. The company is using unique selling elements in order to differentiate its services from competitors. It is focusing on management of operations so that proper services can be provided to customers, and effective planning and organizing can be ensured. Further, it is paying special attention to management training so that leadership skills can be developed in employees, and they can give their best to the organization.
The company is using MR. BIV strategy for solving the problems so that customer loyalty can be established. Moreover, it is considering employee empowerment and motivation so that commitment and loyalty of employees can be improved, and customers can be facilitated in a better and effectual manner. Revenue management is also an important tool for Phulay Bay, as it allows analysis of consumer behavior, availability of services in the market, and price in order to maximize growth of revenue. The objective of this report is to deeply consider management of operations, employees, and revenue in Phulay Bay, so that a better idea regarding conduction of business in an effective manner can be developed.
Methodology used to collect data
In order to analyse operations and business conduction of Phulay Bay, company reports are used so that progress of the company can be considered, and better idea can be developed regarding hospitality management in Phulay Bay. The data that is required is already mentioned by company in the reports such as company has mentioned that Annual Rob Report 100 Resorts 2014 has mentioned Phulay Bay as implausibly luxurious tropical retreat (Phulay Bay 2016). The reports of company are indicative of the fact that it is facilitating customers as well as employees in an effective manner by focusing on needs and demands of customers and employees.
Profile of company
Phulay Bay is a luxury resort formed in the year 1983, and is located in Thailand, which is facilitating customers with luxurious experience, accommodation and resort amenities. It offers furnished one-bedroom villas with traditional décor of Thai culture, where guests are facilitated with formal as well as casual dining. Further, it is providing 24 hours room service, conference facilities, salon, private beach, boutiques, spa, fitness center, Wi-Fi, safety deposit boxes, business centers, garden, restaurant, sauna, and safety deposit boxes to guests. The mission of company is to provide sincere comfort and care to guests. The moto of company is that they are gentlemen and ladies who are serving gentlemen and ladies. It is using MR.BIV, The three steps of Service, mystery shopping, and community footprints strategies for improving performance of the organization. MR.BIV is an abbreviation of mistakes, rework, breakdowns, inefficiencies and variations.
The company is using this approach in order to handle all the problems, and solve them quickly so that guests can be entertained in the best possible manner. The company is emphasizing on finding the problems, and communicating them with the staff so that guests can enjoy tension free environment, and it is also helpful in building confidence of guests and establishing good repute of the resort. The company is, however, using Mystique system for tracking the incidents. The three steps of service of Phulay Bay comprises of greeting guests warmly and sincerely by using the name of guest, fulfilling the needs and demands of guests, and saying good bye warmly by using name of guest. The company is not only focusing on serving guests, but is also conscious regarding its treatment with employees, and is ensuring that employees, particularly new employees are properly welcomed in the organization.
Additionally, the company is using strategy of community footprints so that members can become supportive to communities and develop sensitivity towards environment. Moreover, this strategy is also developed by the company in order to control poverty, and assist children for improving environment, and making it a better place. The company wants to create a difference with this strategy. Additionally, the company is giving importance to maintaining communication, and working in the form of teams for improving functioning in the company.
SECTION 2: Theoretical Review of Literature
Companies use unique selling elements in order to provide best product to their customers so that customers do not move to the competitors. With unique selling elements, company makes itself unique by serving customers in an effective manner (Lewis and Slack 2003). Most of the companies target people of specific age, income level, class, gender, and religion so that they can be served in a special manner. The companies make themselves unique by selling distinctive products that are not easily available with the competitors so that more and more people can be attracted towards the products. They offer products and services in a timely manner, and they also give guarantee of their product and service so that confidence of customers can be built.
This is because of the fact that people are not concerned about buying things, they want to but benefits or results. They, however, buy perceptions that are backed up by proof or evidence. Unique selling proposition depends on several elements, such as pricing, geography, service, quality, expertise, longevity, delivery time, size, selection, and expertise (Daft 2015). Furthermore, for ensuring management of operations, companies consider quality so that no defect is left in any operation. For this, companies are shifting their focus in order to make everyone in the company accountable and responsible. These steps are taken for ensuring conduction of business operations in a smooth manner. It is considered that 15% of problems in an organization are because of workers, and it is the duty of management to solve the problems faced by employees so that all problems of associated with an organization can be solved in an effectual manner, and smooth conduction of all operations can be ensured (Demarko and Lister 2013).
Companies, however, consider customers for making effective operation management certain. They are considering expectations of customers, and are trying to meet them so that provision of quality to customers can be ensured. Companies are investing in marketing, operations, and production for facilitating customers in the best possible manner. Moreover, companies are taking steps for ensuring participation of every employee in the organization. This is because participation of every employee in an organization is essential for the success of any project. This can be considered from the fact that line managers take measures in order to recognize issues that can cause poor quality, and for solving the problems, they perform operations, and they are major source for bringing and implementing changes and improvement in the organization. But, for this purpose, line managers should be educated, skilled, and trained.
However, assistance of upper management is also essential for effectual operations management. Implementation of quality projects and quality improvement projects usually demands resources and time, and for ensuring proper management of operations, management of most of the companies become willing to suffer from short term losses in productivity for bringing improvements on long term basis.
In organizations, management and leadership skills are required for engaging the team, and taking charge of the team in a successful manner. In order to develop management and leadership skills, companies are focusing on management training. For this purpose most of the companies are building significant coaching techniques, analyzing main problems, ensuring decision making, communicating change in an effective manner, strengthening listening skills, and recognizing success of team with excitement. Companies are giving training to managers in a way that they become ready to accept the change for improving performance of their team, and strengthening skills for leadership. Such training programs are making managers confident, inspiring, enthusiastic, and empowered.
One important characteristic of effective workers and managers is that they are good in solving problems. Problem solving is regarded as a system of actions and thoughts that is used by people for fixing the problem. Most of companies focus on improving listening, communicating, and evaluating skills of employees because they are main skills that are required for solving problems in effectual manner. Listening helps in understanding issues and surroundings in an effective manner. Evaluation is a process of collecting information, and making a determination regarding problem source.
Communication is, however, a skill that is required for letting others know about the decision that is made. For solving problems, most of the organizations consider determination of problem, description of problem, brainstorming of probable solutions, deciding on the solution, and monitoring results. Companies consider empowerment of employees in order to encourage them to perform tasks in an effective manner, and also to motivate them. Employee empowerment leads to employee motivation (Nankervis, Miyamoto, Taylor and Milton-Smith 2005). Empowerment, however, occurs when organizations give power, freedom, autonomy, trust, and encouragement to employees for carrying out the tasks related to the job.
Employee empowerment is also used as a motivational strategy, and it plays an effective role in providing a sense of ownership and pride to employees. Employees want to have a feeling of control of their destiny, particularly in their workplaces. Empowerment plays a significant role in providing a worker intrinsic as well as self induced benefits and rewards by permitting them to make their decisions and achieve success. However, employees connect their success with their own capabilities and skills, and try to improve their skills in order to achieve increased productivity in the tasks in future. Moreover, managers can pave the way to the organizational success by allowing employees to develop better and innovative ideas, autonomy, decision making, and implementation of solutions for solving problems (Carter, Ulrich and Goldsmith 2012)
Empowerment makes employees capable of working in an independent manner by using their own knowledge, skills, and abilities, and making effective decisions in order to ensure success at organizational and personal level (Marquardt 2011). Most companies, especially hospitality companies emphasize on managing revenues, and for this they minimize costs and reduce impact of customers by applying length of stay controls. They adopt effective sales, positioning strategies, and direct sales for proper revenue management. Further, they also focus on monitoring and implementing revenue management strategy that helps in maximizing revenue for operations of company.
SECTION 3: Application of Theories
Unique selling elements in case of Phulay Bay can be described by superb resort and excellent location. It is facilitating guests top notch interiors, quality food, and comfortable environment, because of which most of the guests prefer to stay there instead of moving to competitors. Further, the staff of company or hotel is very polite and helpful, which makes stay easy for guests. Staff is very attentive, and guests are greeted everywhere in hotel such as in spa. Moreover, the hotel is offering affordable packages to guests for making them comfortable, and allowing them to enjoy at a reasonable price. Phulay Bay believes on creation of unique experience and environment for guests at an acceptable rate.
The hotel is, however, trying its best in order to ensure effective operations management, which can be analyzed from the efforts of hotel for strategic planning, leadership, focus on customers and market, knowledge management, process management, human resource management, measurement analysis, and business results. Additionally, effective conduction of operations can be considered from the fact that the company has received Malcolm Baldrige National Quality Award by the United States Department of Commerce in the years 1999 and 1992. However, after that it becomes the first organization that manages to win the award twice in hospitality and service industry. Struggles of hotel for improving operations management can also be analyzed with the help of a fact that hotel engineers have developed a system known as CARE or Clean and Repair Everything for creating guestrooms that are free from defects. This system is helping the staff to keep the rooms defect free for about 90 days.
Further, a tool called Mystique is used for recognizing guests in cross-functional manner for anticipating requirements, and preferences of customers. The company has also employed mystery shopping tool for measuring the service quality, and ensuring compliance to rules and regulations. With the help of mystery shopping, the company is gathering information regarding products and services. Mystery shoppers are, however, hired external to the organization, and their identity is not evident to the establishment that is being analyzed and evaluated. In Phulay Bay, Mystery shoppers are performing particular tasks such as asking questions, buying products, behaving in a particular manner, providing feedback regarding expectations of customers. However, after the mystery shopper’s visit, the data is collected, reviewed, and analyzed in statistical manner. This help the company to analyze that whether or not restaurants and stores are working in accordance to criteria set before, and it is also advantageous for further improving operations of the company. There are many other rewards that Phulay Bay won because of excellence in operations management, and these awards include Mobil Five-Star Awards, and AAA Five Diamond Awards.
Further, the hotel is trying its best to deliver quality management training to employees, and it is particularly emphasizing on giving knowledge regarding body language and effective communication to employees. The company believes that body language plays a very important role as it helps in conveying message to other people, and help people to interpret message at an intuitive level. For this purpose, it is essential to have idea regarding body language. It is also important to have knowledge regarding body language because body language is different in different cultures. Therefore, the company considers it important that employees should learn about the body language in order to recognize others and also to consider one’s own self.
Moreover, the company is using different techniques in order to solve the problems of guests and employees. For example, the company has introduced MR. BIV, and Cobalt Card members program. MR. BIV technique is used in order to solve the problems quickly and consistently. The hotel makes it sure that guests communicate to the staff for intimating about the problem. This helps in solving the problem as soon as possible, and is also beneficial as it prevents further emergence of problem. Further, in the company Mystique system is used in order to track the issues and incidents. Staff members of Phulay Bay are very responsible as they record the incidents, and try to solve them in a timely manner so that guests do not find any difficulty during their stay in hotel.
The company is, however, trying its best to take all necessary measures for empowering employees in order to make them capable of exerting positive influence on company as well as on community. The company is empowering employees so that they can actively participate to their communities to help in controlling hunger and poverty, ensuring well-being of children, and environmental conservation. For controlling poverty and hunger, the company has established partnerships with the social organizations and community organization for concentrating their efforts and energies so that remarkable difference can be achieved. The company is providing assistance in building homes, providing food and shelters. The company has also established partnership with the local organizations in order to ensure well being of children.
However, partnerships with local organizations are helping in provision of nurturing and safe environment to children. They are contributing in literary programs, in building playgrounds and libraries, creating employment opportunities for youth, and providing training and encouraging disadvantaged youth. For ensuring revenue management, the company is focusing on achieving team related and personal revenue goals. It is making efforts for reducing the cost, but without compromising on quality. The company is maintaining low variable cost and high fixed cost in order to ensure management of revenue. It is also focusing on provision of some services in advance so that better management of revenue can be ensured.
SECTION 4: Conclusion and Recommendations
Phulay Bay is effectively conducting its business, as the reports are indicative of the fact that it is ensuring proper management of operations, training employees, solving problems in an effective manner, using unique selling elements for creating a difference, motivating and empowering employees, and managing revenue. But, it should take necessary measures in order to provide service in a timely manner. Though the company is trying its best to facilitate all customers in a timely manner, yet sometimes customers have to wait for a longer period of time. This time should be reduced so that guests can be entertained more effectively, and desired results can be obtained.
Reference List
Carter, L., Ulrich, D., and Goldsmith, M. 2012. Best Practices in Leadership Development and Organization Change: How the Best Companies Ensure Meaningful Change and Sustainable Leadership. New Jersey: John Wiley & Sons
Daft, R.L. 2015. Organizational Theory and Design. Canada: Nelson Education Limited
Demarko, T., and Lister, T. 2013. Peopleware: Productive Projects and Teams. New York: Addison-Wesley
Lewis, M.A., and Slack, N. (2003). Operations Management: Critical Perspectives on Business and Management. New York: Routledge
Marquardt, M.J. (2011). Building the Learning Organization: Achieving Strategic Advantage through a Commitment to Learning. Boston: Nicholas Brealey Publishing
Nankervis, A., Miyamoto, Y., Taylor, R., and Milton-Smith, J. 2005. Managing Services. Cambridge: Cambridge University Press
Phulay Bay 2016. The Annual Robb Report 100 Resorts List Honors - Phulay Bay, A Ritz-Carlton Reserve. Available at:
http://www.ritzcarlton.com/en/Properties/PhulayBay/Information/News/Releases/The_Annual_Robb_Report_100_Resorts.htm
