Challenges Envisaged by the Modern Accommodation Manager - Case Study Example

Challenges Envisaged by the Modern Accommodation Manager Introduction This reflective essay deals with issues relating to accommodation management in Australia, with a specific focus on the challenges experienced by accommodation managers. In this regard, issues such as role of accommodation manager, outsourcing and the problems associated with accommodation management have been examined. Solutions for this problem have been scrutinised. Finally, conclusions have been provided. The nation’s economic growth has been significantly assisted by the accommodation industry of Australia. From 2009-2010, this industry had provided direct employment to 71,500 individuals, and generated AU$9.9 million of total income. The total value added to the industry was AU$4.8 million, which represented 0.5% of the national gross domestic product (GDP). The operating tax, before tax, for this industry had been AU$1.1 million and the operating profit margin had been 11%[Ass14]. As such, the accommodation industry of Australia tends to be distinguished by high levels of competition. This can be attributed to the presence of several accommodation providers, who provide similar services at lower costs. Consumers tend to be comparatively price conscious and strive to realise value for money. Moreover, consumers have abundant choice, due to the large number of operators who work hard to provide outstanding service to their customers[Ass14]. The accommodation industry, at AU$7 billion, constitutes a tenth of the tourism industry. Thus, accommodation is central to the tourism industry. As such, travel and accommodation are the essential features of tourism. The tourism industry, in general, and the accommodation, in particular, are beset with comparatively high rates of staff attrition. This is due to the assumption that pay levels are low, working hours are strenuous and uncertainty in employment[Hot06]. Accommodation managers focus upon understanding the various factors that influence the selection of their product instead of the product of a competitor. These factors had been studied for years. Nevertheless, it has been contended that the employment of surveys to isolate the factors that affect the selection of accommodation by guests is defective on account of the logic and methodology adopted[Loc09]. Moreover, it has been suggested that a better approach would be to utilise trigger points in comprehending what affects the selection process. Furthermore, these trigger points should be classified as: first, those that are provided as basic to initial selection, including, cleanliness and price. Second, those that are exclusive to the minimalist, essentials and enhancers levels[Loc09]. Thus, expansion regarding the understanding of the selection of the accommodation product and the pricing strategy can be achieved by observing the product, considering the related trigger points and how these change with time. Regarding guests who seek a single night’s accommodation, qualitative research studies indicate that these individuals have high tolerance towards the quality of their stay. However, for longer periods of stay, the factors influencing the selection of the hospitality provider undergo change and could directly affect the accommodation provider’s profitability[Loc09]. Outsourcing Australia’s hospitality industry has substantially increased its dependence upon outsourcing services in the past two decades. This was due to the quality control, convenience and flexibility associated with outsourcing. Such services include: audio-visual services; Internet providers; online movie suppliers; essential maintenance services; reservation call centres and Occupational Health and Safety (OHS) compliance services; and back office functions, such as payroll processing and accounting[Cha134]. Outsourcing provides several benefits, such as allowing businesses to utilise external vendors to perform service activities that had normally been their internal functions. The latter include information technology (IT), human resource management (HRM) and accounting. A major reason behind outsourcing is cost saving, which enables companies to control the competencies of vendors in specific areas. Furthermore, it allows companies to eliminate the management of peripheral functions[Dav111]. Nevertheless, outsourcing produces several hazards, including: diminished or absence of control, lower innovation levels, and reduced levels of organisational trust. Moreover, outsourcing could increase transaction costs, specifically with respect to functions that create a hiatus between the flow of services or products between the organisation and its customers. A major risk is that of the latent influence of outsourcing upon the competency of the employees hired by an organisation. Thus, despite the reduction in costs in some areas, it becomes imperative for management to enhance focus upon the risks involved[Dav111]. Such risks can be very severe, especially if the service has an adverse impact upon the development and maintenance of successful relationships between the organisation and its employees or customers. However, outsourcing constitutes a very attractive alternative for the providers of accommodation. At the same time, several accommodation providers tend to be hesitant regarding the outsourcing of cleaning duties, revenue management and other management functions. However, there is negligible opposition towards the outsourcing of reservation or land and building maintenance operations. It is undeniable that outsourcing provides tremendous benefits[Arm13]. As such, in the hospitality and strata industry, it is commonplace to envisage the challenge of not segregating operational tasks from strategic tasks. This connotes that managers are responsible for and have to address operational challenges, when they have to focus upon positioning and pricing for their organisation. This outdated culture has the adverse effect of preventing management in several accommodation complexes from concentrating and committing the requisite dedication towards pricing and positioning[Arm13]. Outsourcing Organisations There are several organisations that provide outsourcing facilities for the hospitality industry. These organisations provide several services, including complete housekeeping solutions. The benefits of outsourcing include: first, the client can reduce housekeeping expenses by getting rid of the fixed costs associated with housekeeping. Second, payroll costs can be eliminated. Third, direct costs of recruitment and training can be eradicated. Fourth, rejection of indirect costs of staff maintenance and wellbeing. Fifth, as the costs are directly related to occupancy, the client can make better budgetary decisions[Emp13]. As such, outsourcing has become highly attractive, due to the substantial monetary and time savings involved. As a result, organisations can concentrate to a much greater extent, upon enhancing their revenue generation. Some outsourcing entities provide the following staff on permanent or temporary basis, namely, professional room attendants, house-persons, supervisors assistant, executive housekeepers, public area cleaners, and turn down attendants[Emp13]. Moreover, building networks researchers had recognised that associated networks of associates and friends are crucial for decision making in small firms. Moreover, Greenbank, and Thomson and Gray had discovered that the process of taking decisions was directly influenced by the interaction of their economic, individual and social contexts[But111]. Down supported this perspective, and contended that owner-managers developed skills via the extant social associations inside and outside a network[But111]. Moreover, Thomson and Gray had contended that membership in external organisations improved participation in the management development activities of the small firms. It is indispensable for accommodation businesses to analyse and review their labour and cost experience. It is mandatory for businesses to identify reason behind the departure of their staff, and what could prevent their leaving the organisation. It has been suggested that a study, across the accommodation industry in Australia, into the recruitment of labour and the status of HRM practice would significantly improve knowledge as to why individuals leave organisations. Such knowledge could facilitate a better talent management system in the industry, as well as individual hotels. In addition, turnover costs should be charged to the operating departments. This could lead to a review of employment practices and prevent the misuse of financial resources and human capital[Dav15]. Furthermore, it had been suggested that HR managers were adequately cognisant of the deleterious effect of turnover on productivity and quality of service. Moreover, holiday accommodation managers undertake the task of booking short-term stays for consumers, on behalf of the latter. As such, holiday accommodation managers could be travel agents, visitor centres or tourist bureaux, real estate agents, online booking services, or private individuals. Property managers or their employees, administering the employer’s or their property, are not holiday accommodation managers[Gov17]. In order to enhance its results, the hospitality industry should concentrate more upon recruiting experts or working specialists in the relevant fields. An instance is provided by revenue management, which preferably requires a person without operational hotel experience. There should be a concerted attempt to hire mathematicians, economists and business analysts, as revenue management is fundamentally traditional business analysis. However, it could prove difficult to recruit such individuals, because: there might be no person in the hotel capable of assessing the required skills in a potential recruit; there could be reservations regarding the employment of a person with different skills; and individuals with superior skills could be regarded as a threat to position and even employment of the hotel’s management[Arm13]. The Hotel Motel and Accommodation Association (HMAA) constitutes the primary entity for the accommodation industry of Australia. It represents 3, 4 and 5 star hotels, motels, motor inns, serviced and holiday apartment, resorts, guesthouses, bed and breakfast providers, and time share establishments across the nation. The stances adopted by the HMAA are illustrated by data from several private and public sector sources, including information from the members of the HMAA[Hot06]. This data demonstrated that: first, Australia’s accommodation businesses were labour intensive. Second, employers in the accommodation industry were facing considerable difficulties in recruiting and retaining the appropriate staff. Third, such problems had emerged across the entire range of jobs in the accommodation industry, regardless of whether these were unskilled, skilled or semi-skilled jobs. Moreover, most of the Australians regarded tourism as an entry to the work force and not a full-fledged career. The workforce in the tourism industry tended to be younger, significantly higher part-time, and casual and seasonal labour, in comparison to the other sectors of the economy. Thus, employers in the tourism industry, which relied to a major extent upon labour, faced a greater risk of high staff turnover, and persistent loss of knowledge and skills[Hot06]. In addition, one type of service quality in the hospitality and tourism industries relates to those features of the product that improve the satisfaction of customers. Another type of service quality pertains to freedom from defects or drawbacks. Value, is perceived by guests, only when they are convinced that the sacrifices undertaken are inferior to the benefits derived by them. Therefore, service quality improvement is vitally dependent upon the way the maximum received value can be produced, from the perspective of the customer[Cho99]. The money and time spent upon a product constitute the sacrifices made by the guest. Service quality that pertains to the enhancement of customer satisfaction has the capacity to exert a positive influence upon organisational development. Conclusion The accommodation industry is central to Australia’s tourism. In addition, there is tremendous competition among accommodation providers’ organisations. Due to globalisation, client choices change dramatically. These aspects put pressure upon accommodation managers to take the right decisions at the right time. In addition, accommodation managers should be vigilant about different cultures and choices of the clients. Thus, skilled personnel should be recruited for accommodation management positions. Selecting accommodation products is a challenging task for an accommodation manager, as it should satisfy the requirements of the client. The latter should feel that the facilities enjoyed by them justify the money spent in that regard. Nevertheless, outsourcing is a good option for organisations to deal with accommodation management under certain circumstances. As such, outsourcing has become more attractive to the organisations, due to the cost reduction and time saving involved. Many outsourcing organisations provide permanent or temporary staff for various tasks associated with accommodation management. They may be house-personnel, professional room attendants, supervisors, executive house keepers, cleaners and turndown assistants. The accommodation manager should be well versed with the specific duties while allotting the same to outsourcing personnel. The major problem with accommodation management is that the operational tasks cannot be separated from the strategic tasks. Since, operational tasks cannot be separated from strategic tasks, accommodation manager should exercise the utmost care regarding the daily operations of the organisation. Hence, it demands highly competent mangers, who must take firm decisions instantly, based on the requirements of the situation. In addition, accommodations managers have to be very cautious while outsourcing works, as quality is the main criterion for accommodation services. Thus, this essay, had discussed the issues pertaining to accommodation management with a specific focus of accommodation managers and the challenges faced by them in the global environment. It can be surmised that accommodation manager should be highly innovative and smart, while taking decisions in their job. As such, quality is the prime criterion for the accommodation industry of Australia. References Ass14: , (Assaf & Agbola, 2014, p. 118), Ass14: , (Assaf & Agbola, 2014, p. 119), Hot06: , (Hotel Motel and Accommodation Association (HMAA), 2006), Loc09: , (Lockyer & Roberts, 2009, p. 34), Loc09: , (Lockyer & Roberts, 2009, p. 35), Cha134: , (Chandler Macleod, 2013), Dav111: , (Davidson, et al., 2011, p. 502), Arm13: , (Armstrong-Fray, 2013), Emp13: , (Empire Hospitality, 2013), But111: , (Butcher & Sparks, 2011, p. 283), But111: , (Butcher & Sparks, 2011, p. 284), Dav15: , (Davidson, et al., 2015, p. 51), Gov17: , (Government of Western Australia Department of Commerce Consumer Protection, n.d.), Cho99: , (Chon, 1999), Read More