CHINA EMPRESS HOTEL Business Plan Presentation Joanne Lee, Trainee Manager of Public Relations Department Kristen Lee, Trainee Manager of Food And Beverage Department Kelsi Shum, Trainee Manager of Guest Relations Department Carol Wu ,Trainee Manager of Human Resources Department
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CHINA EMPRESS HOTEL
Agenda Vision and Mission 2. Business plan objectives 3. Products and services 4. SWOT analysis 5. Market analysis 6. Strategies 7. Contingency plan 8. Schedule of works 9. Budget plan 10. Sales Forecast 11. Conclusion 12. Q&A 1.
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CHINA EMPRESS HOTEL
Vision and Mission Vision
To be one of the leading hotels in Hong Kong and China Mission
To be our customers‟ home away home by offering superior accommodation and exceptional dining experience
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CHINA EMPRESS HOTEL
Products and Services
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CHINA EMPRESS HOTEL
Products and Services China Empress Hotel features modern facilities, excellent cuisine, pleasant environment and wholehearted services, which offer our customers the most unforgettable accommodation experience in Hong Kong.
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Products and Services Home-style comfort
The best of Cantonese cuisine Comprehensive business services 6
CHINA EMPRESS HOTEL
Full of Chinese colour dĂŠcor
The unforgettable accommodation experience
SWOT Analysis Internal
Strengths
•Willingness to learn
Weaknesses
1. Staff
•Senior staff are experienced
1. Staff
•Low academic qualification of staff
•Satisfactory service provided to mainland customers
2. Company
•Provides further training
•Poor spoken English and Putonghua of staff
•Poor service and low efficiency 2. Company
•Difficult in retaining staff •Poor working condition
External
Opportunity
• • • •
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CHINA EMPRESS HOTEL
Good prospect of the industry Locational advantages Government support Economic improvements
Threats
•
•
Keen competition with other hotels in the same district Decreasing room occupancy rate
Main Problems Manpower 1. Poor language skills Services
2. Low academic qualification in HRD and GRD 3. Poor working conditions 4. Less training opportunities 5. High staff turn over rate 8
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1. Decrease in room occupancy 2.Insufficient meeting facilities
Products 1. Poor quality of food and beverage
Market Analysis Industry Analysis Target Market Competitor analysis
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Size of the industry At the end of 2010 175 hotels 60,428 rooms
619 tourist guesthouses 5,926 rooms
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Source: The HKTB
Hotel Room Occupancy The rate of hotel room occupancy is increasing by 5% from 2009 to 2010
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Source: The HKTB
Compared to the same months in 2010 and 2011, ďƒ the rate of hotel room occupancy was raised from 83% to 86%.
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Source: The HKTB
Trends and Prospects
Market keeps expanding -Potential market -More competition
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Source: The HKTB
Customers Analysis Numbers of tourists
Countries
Expenditure
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• In 2010, > 30 million tourists visited Hong Kong • 2010>2009 (21.8%)
• Majority : mainland China • The rest : South and Southeast Asia, Taiwan, Europe, Africa, the Middle East, North Asia, The Americas and Australia, New Zealand and South Pacific. • > 50% visitors stayed in Hong Kong overnight
• Overnight visitors: total spending in the market of hotel bills was over HKD 25 million • The rate of the spending in this market has been growing steadily (2005-2010) • Compared to the total spending in the same market in 2009, the growth rate was increased by more than half in 2010.
CHINA EMPRESS HOTEL
Source: The HKTB
Majority : mainland China
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CHINA EMPRESS HOTEL
Source: The HKTB
External Forces Advantages in China
Hong Kong Government Support
• Stronger currencies and improved economic condition of mainland China, Taiwan , South Korea and India
•„Asia‟s World City‟
• Expansion of Individual Visit Scheme(IVS) in Shenzhen
• Investment in 42 high-potential cities in Mainland • 70% of MICE budget to strategic markets
It provides new source for the local market and boosts higher demand for hotels. 16
CHINA EMPRESS HOTEL
Source: The HKTB
Market Analysis Industry Analysis Target Market Competitor analysis
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Competitors Holiday Inn Golden Mile Hong Kong
(4 stars) Hotel Panorama by Rhombus
(4 stars) Hyatt Regency Hong Kong, Tsim Sha Tsui
(5 stars)
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Competitor Analysis - Background Holiday Inn Golden Mile Hong Kong Hotel Panorama by Rhombus
Hyatt Regency Hong Kong, Tsim Sha Tsui
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• Opened in 1982 • Owned by Holiday Inn • Holiday Inn is a brand of hotels forming part of the InterContinental Hotel Group (IHG) • Provides Priority Club Rewards
China Empress Hotel
• Opened in 2008 in 1980 • •Opened Owned by Rhombus International Hotels Group • •Owned Rhombus International Hotels Group is an owner-operated by China Empress which is a multicompany focused on hospitality operations and consulting
national hotel and resort company.
• • • •
Opened on Nathan Road in 1969 Reopened at Tsim Sha Tsui in 2009 Owned by Hyatt Hotels Company Hyatt is a global hospitality company having 50 years experience.
CHINA EMPRESS HOTEL
Competitor Analysis – Location advantage
K11 art mall
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Competitor Analysis - Target Customer Holiday Inn Golden Mile Hong Kong
• International business and leisure travellers
Hotel Panorama by Rhombus
Hyatt Regency Hong Kong, Tsim Sha Tsui
• International business and leisure travellers
• Upper class international business and leisure travellers
China Empress Hotel • International business and leisure travellers 21
CHINA EMPRESS HOTEL
Competitor Analysis - Facilities China Empress Hotel 350 rooms
Holiday Inn Hotel Hyatt Golden Mile Panorama Regency Hong Kong by Rhombus Hong Kong, Tsim Sha Tsui 612 rooms 324 rooms 381 rooms
•Swimming •Swimming pool pool •Fitness •Fitness Centre Centre Garden •Sauna and CHINA EMPRESS HOTEL 22 •Sky
•Fitness Centre •Sky Garden
•Swimming pool •Fitness Centre •Sky Garden
Competitor Analysis – Business China Holiday Inn Hotel Hyatt services and facilities Empress Hotel
•Business Centre •Meeting rooms
Golden Mile Panorama Hong Kong by Gained „Best Rhombus
Regency Hong Kong, Tsim Sha Tsui
•Executive floors and suites • Meeting rooms
•Business Centre •A ballroom •Meeting rooms
- Wireless internet access
Business Hotel for HK, Macau and Guangdong‟Centre award •Business in 2009 androoms 2010 •Meeting
Gained „Best Business Hotel in China‟ award in 2009 -Printing -Photocopying
-
Facsimile
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•Secretarial support
•Secretarial Services CHINA EMPRESS HOTEL •Private
Administrative & translation services
Secretarial support Correspondenc
Competitor Analysis - Cuisine Holiday Inn Golden Mile Hong Kong
Hotel Panorama Hyatt Regency by Rhombus Hong Kong, Tsim Sha Tsui
1. Bistro on the Mile: 1. Santa Lucia (international buffet) Restaurant and Sky Bar 2. Osteria Ristorante (international food) Italiano: (Italian specialities) 2. Café Express
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3. Loong Yuen Cantonese Restaurant: (won award, voted as one of the Hong Kong‟s Best Restaurants)
3. Sweet Corner
China Empress Hotel 1. The Star Café
1. Hugo's A classic European restaurant 2. The Chinese Restaurant a traditional 1920s tea house.
3. Cafe 4. Chin Chin Bar
Competitive Edge special position in the local industry With high reputation A more affordable price than the five-star hotels Better quality and more comprehensive service than the three-star ones or other tourists guesthouses. More recreational facilities Attractive to mainland China tourists with our fascinating decoration in traditional Chinese style and upstanding Cantonese cuisine
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Strategies Maintain Niche Market Language Enhancement Business Partnership
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Maintain niche market
Our hotel aims to enhance our uniqueness by reinforcing the niche market with a more focused direction of development in our products and services.
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Maintain niche market
Marketing Strategy Promotion in China • Focuses in Guangzhou, Shenzhen, Shanghai, Beijing and Dongguan - accounted for 52% of Hong Kong‟s mainland tourists in 2009 (HKTB) - relatively populous and wealthy cities in China in 2010 Shanghai
Beijing
Guangzhou
Shenzhen
Dongguan
GDP (billion RMB)
1687.2
1377.8
1060.45
950.0
424.6
Population (million)
22.21
13.82
10.25
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6.48
Source: websites of the municipal governments of the cities
A large number of potential customers 28
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Maintain niche market
Focuses: MICE services seasonal promotions of food outlets accreditation in Quality Tourism Services Scheme Formats: • Leaflets distributed in travel agencies • Outdoor billboards in transportation stations and large shopping malls • Printed advertisements in popular tourism magazines & websites
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Websites ď‚— Baidu and Google: the most popular searching engines used in China in 2009 Beijing, Shanghai, Shenzhen, Guangzhou
11 coastal cities
64.5%
72.4%
72.5%
71&
69.9%
25.4%
18.4%
18.1%
17%
19.8%
Magazines
Total
Source: China IntelllConsulting Corp.
Chinese National Geography Monthly circulation:600,000
Traveller Monthly circulation:338,000
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6 major 3 major cities central cities in the west
CHINA EMPRESS HOTEL
National Geographic Traveler Monthly circulation:494,000
Travelling Scope Monthly circulation:320,000
Source: MeiHua Information
Maintain niche market
Sales strategy I. Offer MICE services • Mainland overnight business visitors:
- accounted for 11.9% (growth rate: 11.9%) - stayed longer and spent more in Hong Kong than those for vacation Business overnight tourists Average length of stay (nights) Per capita spending (HK$)
Vacation overnight tourists
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2.7
6,777
6,664
- HKTB‟s promotion of „Meetings and Exhibitions Hong Kong‟
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Maintain niche market
Upgrade existing facilities: Installs LCD projector, overhead transparency projector, Whiteboard, wireless microphones, free high speed wireless Internet access, advanced security software, net conferencing software
Provide Various packages for different events - offers different meal packages for customers with conferences of different lengths and purposes - provide discounts to customers who use our meeting rooms for two or more days to attack organizers of large-scale events
Establish a professional MICE team - assists in the planning, operation and follow-up of events - include 6 staffs with multilingual-translation, IT, public relations and event ,management skills
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Maintain niche market
II. Catering services Products: Cantonese cuisine (Lotus Garden): - improve quality of set lunch (survey: 63.6% not satisfactory) - maintain good reputation with seasonal promotion Chinese cuisine (Lotus Garden):
- introduce various choices of authentic dishes (Shanghai , Beijing, Sichuan cuisine) - hire one new executive chef Western cuisine (Royal Grill Garden):
- improve quality of set & menu dinner (survey: 35.3 %& 53.2% not satisfactory respectively) - introduce fusion dishes trendier dining experiences 33
CHINA EMPRESS HOTEL
Maintain niche market
Services: Improve communication skills (verbal customer service) in both English and
Putonghua of the waiting staff in all 3 outlets Enhance efficiency food and beverage room service
(survey: 28-34% not satisfactory) set time limit for food delivery Revise the appeal of food & beverage room service menu
(survey: 23-34% not satisfactory) redesign the menu with pictures and food description in both Chinese & English 34
CHINA EMPRESS HOTEL
Maintain niche market III.
Reward scheme
ď‚—
HKTB 2009 visitor profile :No. of visits to Hong Kong
More than 87% More thanonce once
87%
83% intended to re-visit Hong Kong
ď‚—
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Holiday Inn: Priority Club Rewards CHINA EMPRESS HOTEL
96% intended to re-visit Hong Kong
Maintain niche market
Details of reward scheme: No. of check-in
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A $50 coupon to be used in our food outlets
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A free buffet dinner in Lotus Garden or Royal Grill Garden
4 or above
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Rewards
CHINA EMPRESS HOTEL
A discount of 20% off in room rates
Strategies Maintain Niche Market Language Enhancement Business Partnership
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Language Enhancement Our hotel aims to upgrade service and improve communication skills of staff by providing opportunities for further English and Mandarin training.
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Current situation Levels of English skills of staff
%
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Reading and Writing: Satisfactory Speaking & Listening: Marginally satisfactory Enhance skills
Current situation %
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Levels of Putonghua proficiency of staff
CHINA EMPRESS HOTEL
Pronunciation: Not satisfactory Vocabulary : Marginally satisfactory Grammar : Satisfactory
Strategy – Language Enhancement Outsource training program
Kaplan Corporate Training of Kaplan Hong Kong According to the course management of Kaplan Regular assessments: mid term and final term
( to ensure the performance of the staff) Period: 6 months
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tion in the market teachers perience in Background other hotels and authorized • Opened in 1938 ce • Large coverage in
the world (> 1 million students and 31,000 employees)
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CHINA EMPRESS HOTEL
Teachers Qualification
Clients
• TEFL (certificate of “Teaching English as a Foreign Language”) • TESOL (”Teaches of English to Speakers of Other Languages” certificate) • Grade 1 in PSC (“The National Putonghua Proficiency Test”)
• Famous in Hong Kong • The Walt Disney Co. APAC • Island Shangri-la HK • Marco Polo Hotels • Mandarin Oriental Hotel Hong Kong
Highlights of the training program English Reading, Writing, Listening, Speaking
Professional Skills: - Conference Calls - Business Writing - Effective Meeting Skills - Negotiation Skills - Speech and Presentation - Teleconferencing and video conferencing
Enhance Workplace English
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CHINA EMPRESS HOTEL
Putonghua - Pinyin System - Comprehensive training in listening, speaking, reading and writing - Differences between Cantonese and Putonghua
Improve Putonghua Pronunciation and spoken skills Professional Skills:
- Business phone conversations - Company introduction - Meeting skills - Serving guests - Office tour - Professional glossary
Direction of Language Enhancement Training Program
Long Term Measures
Each department has its own training
• Change of recruitment policy: Recruit people with higher language proficiency Save training cost
content PRD: Writing skills of press release and promotional materials and skills of holding press conferences F&B: customer service conversation GRD: Skill of telephone manner
• For all staff: Putonghua
Pronunciation
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Strategies Maintain Niche Market Language Enhancement Business Partnership
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Contingency plan
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Contingency plan
more attractive rewards change
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Promotion in China
regular evaluation change media
F&B
evaluation from waiting staff revise menu/ promo
Business partnership
Chan
Language enhancement
Chan
Reward Scheme
regular assessment & report change association
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Schedule of Work
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Schedule of Works Milestone
Start date
End date
Manager
Department
Promotion in China
1 June 2011
1 June 2012
Chris Cheung
PR
Upgrading MICE facilities 1 June 2011
1 August 2011
Jessica Fung
IT
Improvement of catering services
1 June 2011
1 December 2011
Patrick Chan
F&B
Language Enhancement - Language Test
1 June 2011
1 December 2011 Raymond Chu April in every year
HR
1 June 2012
Marketing
March in every year Expansion of business partnerships
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1 June 2011
CHINA EMPRESS HOTEL
Zoe Yu
Budget Plan
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Budget Plan
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Projects
Estimated Annual Budget (HK$)
Promotion in China
$ 820,000
Upgrading MICE facilities and services
$ 1,127,000
Improvement of catering services
$ 479,000
Language Enhancement
$ 947,000
Expansion of business partnerships
$ 400,000
Total
$ 3,773,000
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Sales Forecast
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From 2011 to 2012, net profits increases about 30 %
Conclusion
Feasible
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Profitable
Success
Q & A Session
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