Hotel Analysis

Posted: December 22nd, 2022

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Hotel Analysis

Introduction

The selected hotel for analysis in this report is the Kylmäpihlaja Lighthouse Hotel. This discourse is imperative in understanding business and blueprint analyses and their role in service delivery and improvement in the hotel industry. There are several tools employed, including Porter’s Five Forces, Marketing Mix, and SWOT analysis in evaluating the company and deriving information on its current performance and future projections. The blueprint provides an outlook on customer services delivery modes by the company. It details how the hotel customers use different services available. The target market comprises sailors, hotel guests and day travellers. In this section, it highlights protocols that facilitate awareness creation and enhancement of each section. This dual analysis illuminates on the hotel operations, focusing on its internal and external factors. Additionally, it seeks to demonstrate areas of improvement and the effective solution whose implementation will increase profits and sales as well as enhance customers’ experience.

Business Background and Location

The hotel is located on Kylmäpihlaja Island, 10 kilometres from Rauma in Finland. The island and its construction serve as a guide for pilots and ships (Booking.com n.p). The city acquired the island to facilitate its tourism; thus, it has become a tourist destination. The hotel constitutes 13 rooms from where the guests can enjoy the scenic landscape of the tower (Kylmapihlaja Website n.p). In Finland, Kylmäpihlaja Lighthouse Hotel & Restaurant is considered a unique destination due to this particular feature. The hotel has various room types such as the superior, economy, suite, and twin whose prices range between 99-265 euros (Booking.com n.p). When booking, the boat ride provided to the hotel is exclusive. With a rating of 8.6, Kylmäpihlaja Lighthouse Hotel & Restaurant offers the best services in Rauma (Tuuling and Bauert 74).

In terms of structure, the restaurant area has a terrace and a customer lounge which can accommodate up to 30 customers (Booking.com n.p). For the hotel guests, they enjoy free breakfast, and buffet for lunch with an option  for la carte. However, the harbour guests pay for these services. Private event organizers book this space for occasions and corporate events. In driving its brand awareness, the company leverages on the souvenir and café shop. The company sells branded items and some with an archipelago theme (Booking.com n.p). Some of the items sold include postcards, chocolate, stamps, and mugs as well as branded t-shirts. For the souvenirs, the shop sells lighthouse mugs, key chains, playing cards, and shot glasses. Electricity is provided at a fee, depending on the customers’ preference (Booking.com n.p). Another revenue stream endeavour is offering tour guides to both domestic and foreign tourists during the day. They are taken to their cabins or accommodation locations which are within the harbour.

Customers and Market Segments

            The target markets identified thataccess Kylmäpihlaja’s services are Finnish males, foreign males, Finnish females and foreign females. Finnish and foreign males accounted for 38% and 5% of the total hotel customers respectively in 2017. Whereas Finnish and foreign females were estimated at 51% and 6% correspondingly (Kylmapihlaja Website). From these figures, it is evident a higher percentage of hotel guests are females, indicating more women travel together and also as heterosexual couples. Another deduction is the underestimation by the hotel concerning the portion of the former group. A distinct feature observed when evaluating Kylmäpihlaja’s target market is customer age. For Finnish females, the estimated age was from 30-60 years (Kylmapihlaja Website). This finding indicates the hotel should also consider providing attractive services in luring the below 30-year-old age group.

In comparison to Finnish males, the Finnish females’ visiting the hotel are younger, according to the 2017 report (Kylmapihlaja Website). There were more 80-year-old males and less 30-year-old males than females. For foreigners, both males and females are younger than Finns. Additionally, they visit with their children for vacation. Owing to the fact a majority of the Finns visiting the hotel did not submit their ages, indicating older people prefer domestic tourism while the opposite is true for younger people who travel abroad for holidays.

In terms of location, the Finland guests were from four central regions, including Uusimaa 35%, Satakunta 12%, Prikanmaa 22% and Varsinais Suomi 8%. For foreign visitors, they are mostly from France 8%, Germany 19%, Switzerland 26% and Great Britain 10% (Kylmapihlaja Website)). According to the CEO, Germany and Switzerland, visitors are more common. However, regionally, Russian tourists are usually more frequent throughout the year, with a more significant percentage preferring the Sakakunta region as a tourist destination.

Business Value Addition to Customers

From the evidence gathered from numerous interviews conducted with the Kylmäpihlaja’s staff and customers, several vital traits provide business value addition to the services offered to its clientele. Firstly, the view and location are impeccable and extraordinary (Trip Advisor n.p).  Its placement on an island adds to its attractiveness and makes it an exclusive tourist destination. . Secondly, the rarity of the hotel rooms within the lighthouse tower is unique (Tuuling and Bauert 74). It has been a marketing tactic by Rauma and WCSS. Most customers are amazed by the functionality of showers and toilets in the working lighthouse and the accommodation services that are luxurious and well maintained (Trip Advisor n.p). The third aspect is exquisite customer service availed by the hotel staff. The team is highly effective and resourceful. The proficiency in their work is attested to by the excellent customer reviews the hotel has gained globally (Trip Advisor n.p). Lastly, the island has fast internet connectivity, which is a service demanded by the customers. By meeting this need, the hotel has been able to deliver value-adding services to its domestic and foreign guests. 

Customer Environment

Complaints, Failures and Other Causes

In evaluating difficulties faced by Kylmäpihlaja Lighthouse Hotel & Restaurant, this section assesses concerns forwarded by staff and customers who interact with the hotel and its services. According to the CEO, Teemu Knuutila, the primary concern is the duration of the operation. The business operates on a limited time; hence, it is crippled in terms of proliferation. This problem is further complicated by the failed attempts to implement solutions that were proposed by the previous operator (Trip Advisor). Issues hindering further growth include the island’s economy, the slow-paced implementation of new ideas as well as alignment of location logistics. An interview with Kylmäpihlaja’s customer service staff revealed the main problem is high workload and therefore, they are unable to allocate personal time for relaxing.

Secondly, the management demonstrates poor communication which has hindered cohesiveness in operations because hotel expectations are not communicated at the right time further affecting teamwork (Trip Advisor n.p). The employees are unaware of the company’s development plan as well as mission and vision. Therefore, in spite of Kylmäpihlaja being a beautiful exotic location to work, the lack of a unified existence between the management and staff threatens the company’s upward mobility as a powerhouse in the hotel industry. Concerning the clientele, the concerns forwarded are from the sailors, day travellers and hotel guests who frequent the hotel. From interviews conducted with this group, it is learnt that customers generally enjoy services offered by Kylmäpihlaja Lighthouse Hotel & Restaurant (Trip Advisor n.p). However, most suggest there should be more events and activities offered on the island. Additionally, the hotel should invest in constructing a playground for guests who are accompanied by their families.

Recovery

Several strategies are considered in improving the highlighted problems at Kylmäpihlaja. Communication is a crucial deterrent to cohesiveness at the hotel. It is elemental for the CEO to schedule meetings with the staff before the opening of the hotel in summer. A face-to-face interaction will allow the management to communicate the vision and mission of the company effectively. Additionally, the employees will be adequately informed concerning the company’s expectation of each duty post occupied in its varied departments. Lastly, such meetings provide a platform of interaction where employees can know more about their colleagues before the commencement of the season. They will also be able to state their summer expectations in terms of workload management to the management. A key recommendation is ensuring the staff meets the CEO on the Island. This location exposes the workforce to their working environment to decide on whether they are comfortable with the setting. Additionally, it reduces the risk of employees leaving in the middle of the summer high season, which would cost the company substantially in terms of recruitment.

A joint brainstorming session is necessary between the CEO and the team (Lewinsky 698). Therefore, in further enhancing communication, the CEO and the management should organize meetings with the workforce mid of August to access the hotel’s performance at the end of summer. This event is necessary as it allows identification of areas of improvement, and recognition of top performers. It demonstrates the management is considerate of its workers and their ideas on boosting revenue generation, sales, and work productivity for the coming season. Additionally, this works as a motivating stratagem to inspire the workers to return when summer resumes. Hence, it assures service quality to the customers. The last point is on double booking, which is a problem the hotel faces. A practical solution whose implementation can resolve this issue is assigning one particular person or staff group to handle bulk orders, especially from corporates which send their employees for events or team building activities.

            The second action plan is on hotel maintenance which prompts the need for better cooperation between Rauma and WCSS. Since the hotel is under the ownership of the city, WCSSS should come in as a collaborative partner in ensuring the building is serviced routinely, and the premises are conducive for visitation and use. An elaborate plan in resolving this issue is extending an invitation to city administration workers responsible for tourism for a corporate dinner. This action is aimed at facilitating their firsthand experience of the hotel and its landscape to motivate better decision making on maintenance cost allocation. The second phase is inviting kindergartens and schools to the hotel once the season picks. The younger generation will become future customers; therefore, it is necessary to create brand awareness to this client market at any given opportunity (Lewinsky 689). By spending a day at their hotel and experience customer service and its amenities, they are groomed to remember this memorable opportunity hence will revisit the location as adults.

Plan of Action for Improving the Business

 Business improvement should aim at increasing the value for money for customers at Kylmäpihlaja. In expanding the customer satisfaction variable, some extra services should be offered (Lewinsky 686). A suggested service is a massage. Currently, the hotel does not provide this service. Therefore, the WCSS should take on this mandate in ensuring customers can access massage services. It can achieve this by ordering for massage boards since the hotel does not have extra space to establish a massage room. With this amenity which approximately costs 80 euros, the portability is an added advantage. It can serve as a regular bed and a massage table. This feature will save space and also ensure the customers requesting massages can receive the service comfortably.

The second area of improvement is the company’s online communication. Currently, its Facebook profile mainly communicates in Finnish, which limits customer interaction from foreign countries. To attract more clients, the language should be changed to English in luring even clientele from the US (Zehrer 333). Additionally, since Finns also comprehend English, changing the language of communication would be beneficial to both local and foreign customers. After this change, there should be a video release in English to introduce the hotel, and its services. This medium will be useful in attracting customers when it is further uploaded on social media platforms, which will increase the chances of the video becoming viral and reaching a broader target market.

For increasing revenue, the hotel should encourage its prospective and existing customers to make reservations via its website (Lewinsky 687). Currently, many of the customers book rooms through the Booking.com website. The main disadvantage associated with this arrangement is each booking is commissioned. Therefore, in redirecting customers to their website, the company is not obligated to remit commission to Booking.com hence increasing their revenue. In establishing a mutually beneficial partnership, Kylmäpihlaja should enter an agreement where extra services such as boat trips and massages can be booked directly from its website. This information should be included on the Booking.com site as it will ensure there is more traffic to the site hence more room bookings.

The restaurant system of operation should also undergo changes which increase value addition to customer service. The first segment concerns the renewal of menus (Lewinsky 689). Sailors have been noted only to seek harbour space which they pay. Therefore, the new menus should also include additional information such as sauna treatment while also indicating meals available for ordering. This inclusion communicates that they are also welcome to buy meals during their stay at the island. Another addition is vegetarian meals. With the current lifestyle trends where more people are becoming increasingly aware of their nutrition quality, offering vegetarian meals on the menu will ensure more people eat at the restaurant. The third inclusion is a children menu (Zehrer 335). Currently, the hotel does not offer children friendly meals unless requested by guests. Therefore, it is necessary to make the children who visit with their parents feel special by having meals ready for them for serving. This service does save not only time and cost but also increase customer satisfaction.

Blueprint Analysis

Introduction

The blueprint is used as a tool which demonstrates the customer’s perspective or directive when using a service. This section details on different paths used by the Kylmäpihlaja’s customers since they differ. For instance, a customer can decide whether to use the café or sauna or enjoy a meal or beverage at the restaurant, which is considered as developmental parts leveraged to drive sales by the hotel.

Brief Analysis

The first blueprint is for hotel guest. When seeking service, the primary intention is to access a hotel which offers clean rooms and excellent additional services. The customer achieves this by booking a room from the hotel’s website or through a call reservation. The company’s duty to ensure the customer’s preferences are considered and the rooms are in good condition in terms of hygiene and ambience. It is crucial customers use other services such as buying meals at the restaurant and utilizing other facilities such as the sauna and the café. Therefore, each amenity provided should be in good condition for use. After the customer has accessed the service, they are billed. At this point, they are allowed to leave feedback. The hotel’s staff is mandated to avail the best service to the customers to fully enjoy their stay. This role is fulfilled at the front as well as backstages. In enhancing this blueprint, specially designed for hotel guests, the hotel should invest more on brand awareness. This is achieved through extensive marketing, establishing effective feedback processes and innovating new developments contributing to the revenue generation.  

	Stages

Provide feedback on service

Bill payment

Accessing services

Booking through the website

Knows about the hotel

Customer actions

Communication through social media

Interactions at the reception desk

Front stage

Responsive actions to the feedback

Backstage

Using social media for marketing

Creating innovative development processes

Support process

Website booking

Sauna and cooking services

The blueprint for day travellers is slightly different. These customers utilize the café services and have a meal. Lesser processes are involved. Protocols such as cleaning hotel rooms are excluded. However, the staff ensures the staircases and toilets are properly clean for use. These customers have a pleasant experience as they are provided well-cooked cuisines and other café services such as fast internet access. In marketing the highlighted services, the company access more clients through word of mouth. This blueprint is similar to that of the sailors as well. The primary difference is they also access night services hence have to pay harbour fee. The pricing is often dependent on whether they will access electricity and showers. Therefore, the WCSS should ensure bathroom areas are cleaned. Currently, the company is seeking developmental opportunities that will provide the sailors access more services, thus generating more revenue for the hotel.

Conclusion

This review is enlightening on the importance of business analyses in understanding business dynamics and identification of areas whose improvement can drive company sales and promote its brand. The hotel has resources useful in leveraging on its internal and external strengths. Most importantly, prioritizing marketing is crucial in expanding its customer base. Also, the improvement of its communication channel will have a more profound effect on increasing customer satisfaction, further strengthening the company reputation and contributing to its brand awareness globally.

Works Cited

Booking.com. “Kylmäpihlaja Lighthouse, Rauma, Finland.” 2019, www.booking.com/hotel/fi/kylmaa-pihlaja-lighthouse.en-gb.html. Accessed 2 November 2019.

“Booking.com: The Largest Selection of Hotels, Homes, and Holiday Rentals.” Booking.com, 23 June 2015, www.booking.com/reviews/fi/hotel/kylmaa-pihlaja-lighthouse.en-gb.html?aid=356980;label=gog235jc-1DCA0oSEIZa3lsbWFhLXBpaGxhamEtbGlnaHRob3VzZUgzWANodogBAZgBCbgBF8gBD9gBA-gBAYgCAagCA7gCp6727QXAAgE;sid=d83549a97a7cbb7bbdbe97e11647833f;customer_type=total&hp_nav=0&keep_landing=1&order=featuredreviews&page=1&r_lang=en&rows=75&. Accessed 2 Nov. 2019.

Kylmapihlaja Website. “Kylmäpihajan Majakka, Hotelli, Ravintola Ja Vierasvenesatama.” Kylmäpihajan Majakka, Hotelli, Ravintola Ja Vierasvenesatama, 2019, www.kylmapihlaja.com/english.php. Accessed 2 Nov. 2019.

Lewinsky, Norman. “Human Assets Administration Practices & Job Satisfaction: A Obtain Competencies of Hotel Industry.” International Journal of Science and Research (IJSR), vol. 5, no. 5, 2015, pp. 686-689.

Trip Advisor. “Kylmäpihlaja Lighthouse Hotel in the Night – Picture of Kylmapihlaja Lighthouse, Rauma.” TripAdvisor: Read Reviews, Compare Prices & Book, 26 Aug. 2019, www.tripadvisor.com/LocationPhotoDirectLink-g189946-d2232612-i265666670-Kylmapihlaja_Lighthouse-Rauma_Satakunta.html. Accessed 2 November 2019.

Tuuling, Igor, and Heikki Bauert. The Baltic Sea: Geology and Geotourism Highlights. NGO Geoguide Baltoscandia, 2011.

VisitRauma. “Kylmäpihlaja Lighthouse Island.” Visit Rauma, 23 Nov. 2016, www.visitrauma.fi/en/see-and-experience/sea-and-archipelago/kylmapihlaja-lighthouse-island/. Accessed 2 Nov. 2019.

Zehrer, Anita. “Service experience and service design: concepts and application in tourism SMEs.” Managing Service Quality: An International Journal, vol. 19, no. 3, 2009, pp. 332-349.