Accommodation Management in Australia's Hospitality Industry - Case Study Example

Accommodation Management Name Institution Course Date Accommodation Management Introduction Australia’s hospitality industry has been recording remarkable growth over the years and the projections in expected to continue in the foreseeable future (News Room 2016). Australian hotel market, especially in Melbourne and Sidney have been recording a significant growth in the number of hotels driven by strong growth in foreign tourism arrivals, falling office vacancy levels and the government’s increased investments in tourism-related infrastructure as reported by Colliers International’s latest report (Wilkinson 2016). It is remarkable to see hotels of different star ratings, including single star to luxury five star ratings are all recording remarkable growth. In Sidney, for example, 1-star hotel, Base Backpackers Sydney, 3-star hotel, Travelodge Hotel Sydney and 5-star hotel, Shangri-La Sydney are recording booming businesses as Australia continue to witness increased tourist arrivals from all parts of the globe. Nonetheless, the idea behind ratings the hotels with stars and how these differences affects how the hotels operate is less understood. The objective of this report is twofold. The first part of the report compares the differences among the three hotels (1-star hotel, Base Backpackers Sydney, 3-star hotel, Travelodge Hotel Sydney and 5-star hotel, Shangri-La Sydney) in terms of structure, reservations system, service levels, security, staffing, facilities provided, room rates and revenue streams. The second part of the report will provide reasons as to why these hotels have achieved their particular star ratings. Finally, the report will conclude with a brief summary of the main findings of the report. Comparison between Base Backpackers Sydney, Travelodge Hotel Sydney and Shangri-La Sydney Facilities One-star hotels are the most common hotels globally and are found in virtually all cities and towns across the globe. One-star hotels are rated so because they have basic facilities and provide basic services to guests (Khan 2012, p. 65). Base Backpackers Sydney is one of the Sidney-based one-star hotels. The hotel is ranked a one star hotel first because of the nature of its facilities. A typical single-star hotel has good, simple and standard interior design (Hotels.com 2017). Single-star hotels are known to have a simple bed, bed-linen a table with chairs, bathroom with cold and hot water system, soap and a wardrobe. The bathrooms are mainly communal and are shared by guests (O'Fallon & Rutherford 2011, p. 200). Base Backpackers Sydney hotel fits a one-star hotel status in terms of facilities as the hotel’s facilities provided by the hotel include bed, air-conditioned rooms, TV rooms, WIFI, large fully-equipped dining room and kitchen, hotel-style linen, wipe-card access and friendly staff. The hotel has a restaurant, bar/lounge facilities, nightclub, laundry facilities, daily housekeeping, refrigerator and microwave. The facilities found in a single-star hotel are available in a three-star hotel. However, there are additional other facilities that can be lacking in a single-star hotel. It is noted that, in addition to the facilities offered by single-star hotels, three-star hotels offer additional facilities, such private showers and toilets, a telephone, a writing table, wide screen television, and the rooms are typically larger than single-star hotel rooms. Travelodge Hotel Sydney has a wide range of facilities that include spacious guest lounges, a restaurant, a guest room kitchen, a guest room triple, guest room queen, an Internet kiosk, and health and recreation facilities that include a gym and a sweeping pool (Travelodge Hotels 2017). In this respect, it become clear that, apart from the ordinary facilities that a three-star hotel shares with single-star hotels, three star hotels have additional facilities, such as health and recreational facilities and different classes of guest rooms and a guest room kitchen which is lacking in single-star hotels. Additionally, Travelodge Hotel Sydney hotel provide luggage storage facilities that is lacking in single-star hotels (Travelodge Hotels 2017). Moreover, Travelodge Hotel Sydney hotel has a wide packing facilities for vehicles compared to the single-star hotel. The hotel also has conference and event facilities for guests. Five-star hotels have most of basic facilities found in single-star and three-star hotels as enumerated above. However, as demonstrated by Shangri-La Sydney, which is one of the Australian renowned luxurious five-star hotel, it emerges that five star hotels have very spacious and luxurious suites and guest rooms, bars and lounges, health and fitness facilities, and conference and meeting facilities (Shangri-La Hotel, Sydney 2017). Additionally, it emerges that, unlike in single and three star hotels, five star hotels like Shangri-La Sydney have extra facilities. For example, each of Shangri-La Sydney’s guest rooms has individually adjustable air conditioning (Shangri-La Hotel, Sydney 2017). A difference is also notable in the bathrooms where there are a variety of items provided to each guest including hand and body lotion, luxurious soap, and conditioner. There are also bathrobe and slippers provided to all guests, as well as wedding facilities. Services As a single-star hotel, Base Backpackers Sydney, the hotel provides a variety of services that makes them different from other star-rated hotels. First, the hotel provides breakfast for the guests. Second, the hotel has a WIFI connection that gives guests access to free Internet services (Hotels.com 2017). The hotel also has a 24-hour front desk that ensures that guests’ issues are handled on time. The hotel also provides front desk safe, as well as car service to the guests. Additionally, Base Backpackers Sydney provides ATM/banking services to all the guests who might be in need of these services (Hotels.com 2017). Travelodge Hotel Sydney, though being a three-star hotel appears to offer almost similar services as single-star hotels with little notable differences. The services provided by Travelodge Hotel Sydney three-star hotel include accommodation, breakfast, dry cleaning, business services, mail services, car rental, laundry, and airport shuttle (Travelodge Hotels 2017). A five-star also differs from a single and three-star hotel with regards to the services provided, though the difference is small. Although all the services provided by single star and three-star hotels described above are also provided by Shangri-La Sydney, has its own wide parking garage, a hairdressing salon, a beauty parlor, a spa and company owned shuttle services that picks and drops guests to the airport and any nearest destinations. Additionally, the 5-star hotel provides babysitting, 24-hour reception, laundry services, luggage storage, shoe shine, wake-up service, conferencing, banquet facilities, currency exchange and express check-in/check-out among others (Shangri-La Hotel, Sydney 2017). Staffing The differences between single-star, 3-star and 5-star hotels also found with regards to how the hotels are staffed. Generally, the number of employees per room increases as the number of stars increases. According to Jones & Lockwood (2002, p. 41) recommendations, the maximum number of staff per 10 rooms in three-star hotel is 8, four-star hotel is 12 and 20 for a 5-star hotel. Regarding staffing at Base Backpackers Sydney, the hotel being a one-star hotel with not so many rooms, the hotel has a staff of about 80 people with each room having a maximum of 4 staff members working on shifts to ensure that the needs of guests are adequately addressed (Hotels.com 2017). Because of its large number of rooms, the hotel employs about 54,000 people, which is higher than the number employed by single-star hotels like Base Backpackers Sydney. In terms of staffing, Shangri-La Sydney has a staff of about 1000 people with each guest room attended to by about 10 employees (Shangri-La Hotel, Sydney 2017). Structure (e.g. building, front desk, lobby area, rooms) Located in the central business district, Sidney, Base Backpackers Sydney is a five story building located near Town Hall train station. The hotel has a total of 428 smoke-free quest rooms. Immediately a guest enters the hotel, he/she is received at the front desk that is located at the lobby area just adjacent the auditorium (Hotels.com 2017). The lobby area is very large and is fitted with WIFI that enables guests to have access to free internet services. The hotel also has a front desk customer care team that works round the clock on shifts to ensure that customers are properly served and that their needs are satisfactorily met. Three star hotels differ from single-star hotels in terms of structure as demonstrated by Travelodge Hotel Sydney. Travelodge Hotel Sydney hotel has a portfolio of 70 properties that are found not only in Australia, but also in the global market (Travelodge Hotels 2017). In total, the hotel has over 500 hotel rooms for guests. This is quiet large compared to Base Backpackers Sydney, which is a single star with only 428 guest rooms (Hotels.com 2017). Five-star hotels differ from single and three-star hotels as 5-star hotels have more spacious and luxurious rooms. For instance, Shangri-La Sydney hotel provides 565 very spacious and luxurious guest rooms. Additionally, Shangri-La Sydney hotel is contemporarily furnished and features rooms with triple-glazed soundproof windows, signature bed linens and push duvets, which is typical of five-star hotels (Shangri-La Hotel, Sydney 2017). Additionally, like all 5-star hotels, Shangri-La Sydney has a large, spacious and well furnished lobby lounge and a front desk that works 24/7 to ensure that guests’ needs are attended to promptly. Room Rates Room rates are another element that differentiates a single-star hotel from other star hotel categories. Generally, room rates for single-star hotels are relatively lower than two-art-, three-star, four-star and five-star hotels. As for Base Backpackers Sydney, which is a single star hotel, the room rates ranges from $88- $172 on average based on standard rooms (Hotels.com 2017). The price range for the rooms for single-star and three-star hotels is not so big. For instance, it emerged from analysis that the room rates at Base Backpackers Sydney, a three-star hotel is $88- $172 which that for $88- $172 is $93 - $209. This implies that rates are not a major differentiating factor for single-star and three-star hotels. The room rates charged by five-star hotels are higher than those changed by single and three-star hotels. This is demonstrated by the fact that Shangri-La Sydney charges a standard rate of $185 - $405 per night stay at its facilities (Shangri-La Hotel, Sydney 2017). Reservation System Base Backpackers Sydney hotel reservations are made either through direct booking at the front desk that works on 24-hours basis or online through a variety of online platforms that include Booking.com, KAYAK.com, Expedia.com and Hostelworld. It emerges from analysis that room rates for three-star hotels are more expensive than for single-star hotels. Like Base Backpackers Sydney hotel, room reservation at Travelodge Hotel Sydney hotel is made online through the company’s website. Customers are also free to make reservations through phone calls or by visiting the hotel in person. Like Base Backpackers Sydney, Travelodge Hotel Sydney has partnered with Booking.com, Hotels.com, Expedia.com and TripAdvisor.com for reservation purposes (Travelodge Hotels 2017). However, reservation system adopted by the three types of hotels is similar as reservations at Shangri-La Sydney are also made through the company’s website (http://www.shangri-la.com/sydney/shangrila/rooms-suites/), directly at the facilities or through its partner online reservation providers such as Expedia.com, Hotel.com and Booking.com (Shangri-La Hotel, Sydney 2017). Security Security has become an important part of a hotel operation. The need for heightened security of hotels has been necessitated by increased threats of terrorism in Australia and globally. Analysis of all the three types of hotels indicates that all have a security manager who ensures that the premises and guests are secured 24/7. The security starts right at the gate where all guests visiting Base Backpackers Sydney, Travelodge Hotel Sydney and Shangri-La Sydney are subjected to thorough screening and this extends to inside the hotel rooms that are secured with CCTV cameras that are closely monitored by security teams to ensure that nothing goes to a mess (Etrip 2017). Reasons for the Ratings Hotel classification system involves categorizing a hotel in a corded form and this is done based on the objective analysis of facilities and services offered by the hotel (Jones & Lockwood 2002, p. 52). A hotel classification is based on the grading criteria that set the minimum level that a hotel must meet to be classified either as a single-star, two-star, and three-star, four-star or five-star. When grading, the minimum criteria that decides the category that a hotel belongs are the building, which looks at reception, common guest rooms, and technical facilities, such as Internet, elevator and fax (ECC-Net 2010). The grading also looks at the rooms in terms of size, furniture, technical facilities and sanitary facilities. Raters also look at the services offered, such as restaurant, breakfast, luggage, room services and availability of safe (Khan 2012, p. 67). Additionally, the cleanliness and the overall state of maintenance are looked at when rating. Therefore, Base Backpackers Sydney has been rated a single-star hotel because its building, rooms, services and facilities are considered basic. Travelodge Hotel Sydney, on the other hand, has been rated a three-star hotel because it is considered a comfortable hotel based on the building, rooms, and facilities and serviced offered (Travelodge Hotels 2017). Lastly, Shangri-La Sydney is rates as a five-star hotel because its facilities, rooms, building and services meet the status of being considered luxurious. Conclusion Hotels fall into five different categories based on ratings namely single-star, two-star, and three-star, four-star or five-star. The analysis has found that Base Backpackers Sydney has been rated as a single-star hotel, Travelodge Hotel Sydney as a three-star hotel and Shangri-La Sydney as a five-star hotel. The three hotels have been rated in such a manner because whereas Base Backpackers Sydney meets the basic criteria in terms of facilities, building, rooms and services offered, Travelodge Hotel Sydney is considered comfortable while Shangri-La Sydney has a luxurious building, facilities, rooms and services, thus a luxurious hotel making it be rated a 5-star hotel. References ECC-Net 2010, Comparison of minimum criteria for 3-star hotels in the EU, viewed 25 May 2017 http://www.evropskyspotrebitel.cz/files/report-3-star-hotels-2010-11.pdf Etrip 2017, Shangri-La Hotel Sydney, viewed 25 May 2017 http://hotels.etrip.net/Hotel/Shangri_La_Hotel_Sydney.htm?highRate=&pageIndex=0&session_id=fh_IpiYGnIsin0jNanxavcG-A§ion=&checkout=&newSearch=false&checkin=&isAvailabilitySearch=false&destination=The%20Rocks,%20Sydney,%20New%20South%20Wales,%20Australia&placeFilename=place:The_Rocks&lang=en&reset=false&hotelID=1064936&sortOrder=Descending&pageSize=25&radius=&curr=USD&search_id=fh_IpiYGnIsin0jNanxavcG-A|14957163177029045&lowRate=&rooms=2&hotelFilename=hotel:Shangri_La_Hotel_Sydney&sortField=Popularity&noRedirect=&hotelName= Hotels.com 2017, Base Sydney-Hostel, Sydney, viewed 25 May 2017 https://www.hotels.com/ho258430/base-sydney-backpacker-sydney-australia/?rffrid=sem.hcom.EM.google.003.00.04.s.kwrd=c.75635416839.16028910039.198839199.1t4.dsa-87391128309.1009824..0.CjwKEAjw3pTJBRChgZ3e7s_YhAkSJAASG9VrvGlGQDjTqFhAlX9I5gZGTdv6ClAZhbpBP12jLDP9WBoCeaXw_wcB.aw.ds&semid=16028910039.198839199.1t4.dsa-87391128309.1009824..0&gclid=CjwKEAjw3pTJBRChgZ3e7s_YhAkSJAASG9VrvGlGQDjTqFhAlX9I5gZGTdv6ClAZhbpBP12jLDP9WBoCeaXw_wcB&gclsrc=aw.ds Jones, P., & Lockwood, A 2002, The management of hotel operations. 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