1 SCHOOL OF ARCHITECTURE, BUILDING & DESIGN Research Unit for Modern Architecture Studies in Southeast Asia Foundation in Natural and Built Environments (FNBE) ASSIGNMENT: A Comparative Analysis of 2 Businesses of Similar Industry in Different Geographical Locations REPORT TITLE: BUDGET HOTELS GROUP MEMBERS: NAMES ROLES LIM JOE ONN (0318679) -DESCRIPTION OF BUSINESSES -INTERVIEW QUESTIONNAIRE -TEAM COORDINATOR CHONG KE QUN (0319214) -PRESENTATION SLIDES HENG WEI YEN (0319584) -COMPARATIVE ANALYSIS OF COMPETITIVE TRAITS -ARTISTIC COVER KOH SUNG JIE (0318912) -KEY SUMMARY -MINUTES -OVERALL GRAMMATICAL STRUCTURE LEE KAI YUNG (0318314) -BIBLIOGRAPHY AND REFERENCE LISTS -DESCRIPTION OF THE HISTORY OF THE TRADE ONG SENG PENG (0319016) -RECOMMENDATIONS ENGLISH II / ENGLISH 2 [ELG30605] LECTURER: MS CASSANDRA WIJESURIA SUBMISSION & PRESENTATION DATE: 12 JANUARY 2015
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SCHOOL OF ARCHITECTURE, BUILDING & DESIGN Research Unit for Modern Architecture Studies in Southeast Asia
Foundation in Natural and Built Environments (FNBE)
ASSIGNMENT: A Comparative Analysis of 2 Businesses of Similar Industry in Different Geographical Locations
REPORT TITLE: BUDGET HOTELS
GROUP MEMBERS:
NAMES ROLES
LIM JOE ONN (0318679) -DESCRIPTION OF BUSINESSES -INTERVIEW QUESTIONNAIRE -TEAM COORDINATOR
CHONG KE QUN (0319214) -PRESENTATION SLIDES
HENG WEI YEN (0319584) -COMPARATIVE ANALYSIS OF COMPETITIVE TRAITS -ARTISTIC COVER
KOH SUNG JIE (0318912) -KEY SUMMARY -MINUTES -OVERALL GRAMMATICAL STRUCTURE
LEE KAI YUNG (0318314) -BIBLIOGRAPHY AND REFERENCE LISTS -DESCRIPTION OF THE HISTORY OF THE TRADE
ONG SENG PENG (0319016) -RECOMMENDATIONS
ENGLISH II / ENGLISH 2 [ELG30605]
LECTURER: MS CASSANDRA WIJESURIA
SUBMISSION & PRESENTATION DATE: 12 JANUARY 2015
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TABLE OF CONTENTS
NO TITLE PAGE NUMBER
1 KEY SUMMARY
3
2 DESCRIPTION OF THE HISTORY OF THE TRADE
4-5
3 DESCRIPTION OF BUSINESSES
6-22
4 COMPARATIVE ANALYSIS OF COMPETITVE TRAITS
23-30
5 OBSTACLES FACED BY NEW BUSINESSES
31
6 RECOMMENDATIONS
32-33
7 BIBLIOGRAPHY
34
8 REFERENCES
35
9 APPENDICES
36-48
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KEY SUMMARY
Throughout our research, budget hotels are a recent and blooming trade. We have chosen Apollo Inn in Penang and Grid 9 Hotel in Kuala Lumpur. Both hotels have similar characteristics of owning excellent reviews and the advantage of being located in the heart of a city. Both have a wide collection of rooms that caters to different travellers. Even with limited space, they managed to find unique ways to facilitate their guests by having a rooftop garden (Apollo Inn) or an interactive space (Grid 9). Despite having heavy competition with surrounding hotels, interesting tactics are applied to make them stand out from the rest.
(100 words)
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DESCRIPTION OF THE HISTORY OF THE TRADE
As all humans need a place to sleep at night, facilities offering hospitality to travellers have been a feature of all civilizations. Whenever a traveller is abroad, he or she needs a place to shelter themselves when dusk arrives. Thus, travellers pay people who provide available space for them to rest. Hence, the hotel industry is born.
During the modern age of globalization, travelling becomes more frequent. Therefore, tourism becomes one of the world’s largest and fastest growing industries. Our country, Malaysia, is a nation rich with numerous holiday attractions and diverse cultures, which become an asset to the country’s tourism industry. Thus, millions of visitors arrive in Malaysia every year. This generates economic growth and employment opportunities as the increasing number of tourists result in higher demands for hotels.
Tourism in Malaysia started from the early 1970s, which gave rise to the hotel industry. It has become the second highest foreign exchange earner for the country after the manufacturing sector. After that, the hotel industry experienced an encouraging growth rate in 1994. In 1998, the new Kuala Lumpur International Airport in Sepang was completed, bringing in 25 million passengers per year and help the growth of the tourism industry as well as the hotel industry.
As the number of tourists visiting Malaysia increased, more hotels were built. As a result, hotels were abundant in our country especially in tourism hot spots. They became a major contributor in our nation’s economy. Moreover, the hotel industry in Malaysia is being continuingly developed to cater more foreign visitors and provide better services all thanks to constant tourism development. The hotel industry in Malaysia is large. It offers accommodation ranging from simple lodging houses to luxurious five-star hotels. Thus, the visitors have a wider range of choices depending on their budgets.
In view of the ever-expanding influx of tourists visiting Malaysia and increasing number of hotels, the hospitality industry competes aggressively and struggles hard not only to earn survival profit but to maintain its competitive advantage. Hoteliers in the country constantly update and improve their services because travellers are highly knowledgeable. With the advancement of modern technology, customers of hotels easily write their reviews online for people to read upon. Therefore, severe competition
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results in little variations among product offerings and facilities in hotels. The service quality by frontline employees become the main factor determining the customers’ patronage.
Nowadays, budget hotels are increasingly popular as they provide comfortable, clean accommodation and convenient service at an inexpensive price. However, due to the fact that the budget hotel industry is risky because of high cost and strong competition, budget hotels come and go. Many budget hotels are actually secondary or tertiary businesses of larger corporations and might shift into another industry through time. Thus, finding a budget hotel that lasts for more than a decade is quite rare. As for this assignment, we chose to compare and contrast between two budget hotels, Apollo Inn in Penang and Grid9 Hotel in Kuala Lumpur.
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DESCRIPTION OF BUSINESSESES
The research in this assignment is based on the analysis of two budget hotels, namely
Apollo Inn and Grid 9 Hotel. Both budget hotels are located 356 km away from one
another. Apollo Inn is located in Georgetown, Penang while Grid 9 Hotel is located in the
heart of Malaysia’s capital city, Kuala Lumpur.
Location of Business 1, Apollo Inn:
Location of Business 2, Grid 9 Hotel:
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We selected a hotel in Georgetown, Penang and a hotel in Kuala Lumpur because these
places are major tourist destinations and dense urban areas. This guarantees a wide
range of customers. Also, both Apollo Inn and Grid 9 Hotel possess excellent reviews by
online rating systems.
TripAdvisor and Agoda ratings for Apollo Inn:
TripAdvisor and Agoda ratings for Grid 9 Hotel:
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Business 1: APOLLO INN
Current location: No. 7, Jalan Sungai Ujong, 10100 Georgetown, Penang
Number of branches: 2
Number of employees: 6 (3 locals, 3 foreigners)
Main service: Accommodation
Number of rooms: 20
Room types: Deluxe Family, Deluxe Double, Standard Twin, Dormitory
Estimated current number of customers: Full - 50
Peak season - 50
Average per day - 35
Opening Date: November 2009
Expenditure per day: RM 1500
Annual Revenue Figure: RM 1 million
Recent Development: December 2013 - Opening of Chulia Mansion, the first branch of
Apollo Inn
March 2014 - The disappearance of flight MH 370 severely decreased the number of
foreign customers
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Apollo Inn was founded in November 2009 by a partnership of 4 businessmen. As
Georgetown, Penang was granted UNESCO World Heritage Site status in 2008, the
number of tourists visiting Penang drastically increased. Thus, the founders found a
great opportunity to open a new hotel in downtown Georgetown. As available land in
the Core Zone of Georgetown is scarce and expensive while land too far away from the
heritage sites had less potential for attracting customers, the founders rent a piece of
land in the Buffer Zone of Georgetown.
This map of Georgetown shows the
Buffer Zone and Core Zone marked by
UNESCO. It is shown that the Buffer
Zone is not too far away from the
major tourist attractions in the Core
Zone.
The Core Zone has a high density of
heritage buildings while the Buffer
Zone has a moderate density of
heritage areas.
Apollo Inn is renovated from an abandoned building lot built in the 1980s. The capital to
start this business cost 1 million. This includes fees for renovation, furnishing, painting
and electronic systems.
Since its opening in November 2013, tourists kept pouring in due to its strategic location
near Georgetown, Penang. Most of the customers are from the ASEAN region, mainly
Malaysia, Singapore and Indonesia while 40% of customers are from other regions, such
as China and European countries. To date, Apollo Inn had served customers from over
30 different nations.
The Asian customers on the right are
locals while the Caucasian customers
on the left are from Australia.
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Rooms provided by Apollo Inn
There is a variety of rooms in Apollo Inn. Each caters different groups of customers with
different needs.
DELUXE FAMILY
The Deluxe Family room is furnished
with a 2 luxurious Queen-size beds and
an LED TV, specially catered for a family
on a holiday.
Price: RM 180 per night
SEMI DELUXE FAMILY
This room has a Queen-size bed and a
single bed. It is recommended for
smaller family groups.
Price: RM 140 per night
DELUXE DOUBLE ROOM
Couples on a holiday usually book this
room as it has a luxurious Queen-sized
bed and a romantic view of
Georgetown.
Price: RM 110 per night
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STANDARD DOUBLE ROOM
Couples who want a cheaper alternative
may choose this non-windowed room.
It has an en-suite bathroom and a
double bed.
Price: RM 100 per night
STANDARD TWIN ROOM
Friends on a holiday may stay in this
room. It is non-windowed but provides
convenient safe-boxes and electrical
sockets.
Price: RM 90 per night
DORMITORY
An exceptional alternative is available
for the budget-conscious, a bed in a
dormitory of 6 beds which are located at
the mezzanine floor. This choice is
suitable for backpackers.
Price: RM 50 per night
A lift is provided for customers to move themselves from the lobby to other floors.
However, no lift is provided for customers of the dormitory. The dormitory is connected
to the lobby via a short flight of stairs.
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As Apollo Inn is built on a very small strip of land, the rooms and stairs in the hotel are
designed to be narrow in order to save space and maximizing customer amount. The
architect of the hotel used a Japanese approach to design spaces in the hotel by
maximizing the use of limited space.
Facilities in Apollo Inn
Other facilities were provided in the hotel for the convenience of customers.
Lockers for customers to
keep their personal
belongings.
A water dispenser that
provides clean drinking
water
Refrigerator that stores
canned drinks
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Apollo Inn is also known for its visually-appealing interior decoration.
A vertical abstract masterpiece by
local artist Ismadi
Installation of an overhanging
lamp
Light decorations at the lobby
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Apollo Inn has a unique feature, a rooftop garden. Couples can enjoy the scenery of
Georgetown and spend their time with a romantic getaway here.
As Apollo Inn earned huge amounts of
profit despite its short history, they
opened their first branch, Chulia
Mansion in December 2013. This 3-
star hotel is located 200 m away in
Lebuh Chulia. Also, the founders made
plans to move their focus of income to
this new hotel.
Chulia Mansion also has a rooftop
garden. The picture on the right
shows the view from the garden at
night.
Comfortable sitting areas are
provided at the garden
The rooftop garden illuminated by
lights at night
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Business 2: GRID 9 HOTEL
Current location: No. 9, Jalan Maharajalela, 50150 Kuala Lumpur Number of branches: 2
Number of employees: 18 (9 locals, 9 foreigners)
Main service: Accommodation, Food & Beverage, Art Gallery
Number of rooms: 51
Room types: Flying Solo, Standard, Broski, The LMG Crib, La Familia, Single Pods, Super Pods Estimated current number of customers: Full - 140 Peak season - 120 Average per day - 85
Opening Date: February 2007
Expenditure per day: RM 2750
Annual Revenue Figure: RM 1.2 million
Recent Development:
April 2009 - The global economic recession and H1N1 Influenza outbreak decreased
the number of customers, causing severe profit loss.
January 2013 - As net profit of the hotel gradually increased, plans to open new
branches in Puchong and Bukit Bintang were made.
July 2013 - Flight MH 17 was shot down, number of foreign customers decrease
tremendously. Plans to open new branches were delayed.
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Grid 9 Hotel was founded in June 2007 by 1 main developer and 3 shareholders, who
were close friends. Back then when the key founders were studying in Australia, they
got the idea of opening a budget hotel for flashpackers (affluent backpackers) after
observing the abundance of these sort of budget hotels overseas. As Malaysia launched
the ‘Visit Malaysia 2007’ tourism campaign, the founders thought of it as an opportunity
and opened Grid 9 Hotel that year. The hotel was built by renovating abandoned shop
houses.
The hotel is just right next of
Maharajalela Monorail station,
which links with many major parts
of Kuala Lumpur. Due to its
strategic location near a vital
transportation and Chinatown, the
hotel is very convenient for
tourists.
The hotel is named ‘Grid 9’ as the
founders had a concept of adding
interactive spaces to connect backpackers
all around the world, just like a grid which
has lines linking one another. This idea
was revolutionary back then as it made
the hotel different from other
mainstream hotels, which became the
hotel’s main selling point.
Up to 85% of the customers of
Grid 9 Hotel are foreigners. The
photo to the left shows a
Western tourist trying out the
hotel facilities.
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Rooms provided by Grid 9 Hotel
There is a variety of rooms provided to customers. The rooms were given unusual
names, making unique impressions to customers.
FLYING SOLO
This room provides a comfortable single
bed, which suits solo travellers. Perfect
for the lone ranger!
Price: RM 79 per night
THE STANDARD
A queen size bed for two is equipped in
this room, making it suitable for
lovebirds on a holiday. According to an
employee, the hotel founders almost
named the room ‘The Scandal’, but
changed their decision later on.
Price: RM 89 per night
BROSKI
Friends who travel in pairs can book the
‘Broski’. As the name suggests, this type
of room is for ‘bros’. It has twin beds and
an en-suite bathroom.
Price: RM 89 per night
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THE L.M.G CRIB
Named after the initials of one of the
founders who paid for naming rights.
The L.M.G Crib is a more luxurious
choice. It is furnished either with a King
size bed or the option of twin beds.
Price: RM 129 per night
LA FAMILIA
As the name reckons, La Familia is a
room suitable for travelling families.
Customers can enjoy a wide space with
beds accommodated for a whole family
in this room.
Price: RM 159 per night
SINGLE PODS
This private pod provides a single bed,
adjustable privacy light and personal locker
space. There is a total of 6 pods in a
dormitory.
A lift connected to all 5 floors is provided. One main stairway connects the first floor to
the second floor. Customers can use a staircase that connects all floors in case of an
emergency.
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The plan layout of Grid 9 Hotel is square with
4 interconnecting hallways of equal length.
Hence, the hallways in a floor are all linked in
a continuous loop, making it easier for
customers to navigate and locate themselves
in the floors.
Facilities in Grid 9 Hotel
The lounge is equipped with a long study
table. Customers can place their laptops
here and enjoy free Wi-Fi.
LCD televisions provide entertainment
and news to customers when they are in
the hotel.
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Grid 9 Hotel has a modern and contemporary interior design, which suits the taste of
young people.
Light bulbs hanging above the bar table. Lightings
like these are in-trend nowadays.
The interior walls of the rooms had
a uniform theme. They used
intersecting lines with shades of
the same colour.
The design of spaces in Grid 9 Hotel never fails to
awe and inspire visitors.
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In order to attract customers to Grid 9 Hotel, the founders implemented a one of a kind
concept and added unique features. The hotel serves as a mix of an art gallery,
interactive social space, ‘gastropub’ (combination of pub and restaurant) and
accommodation area.
The first floor of the hotel serves as
a ‘gastropub’ where backpackers
can enjoy a delicious meal, drink
beer or sip a cup of coffee.
A variety of beverages are served
at the bar. The hotel becomes
crowded on weekends as people
come here to have a drink.
Aside from having a lobby, the
lounge functions as an interactive
space where customers from all
around the world can sit down,
relax and interact with others.
Exchanging experiences and ideas
can be wonderful.
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Customers can play games
in the second floor. A
variety of board games and
a pool table is provided.
The hotel even had its own art gallery
– Galeri Chandan. The purpose of the
gallery is to enhance the local art
industry. Artworks of local artists are
displayed here for free but in return,
the hotel needs to promote their
valuable masterpieces.
Grid 9 Hotel had a lot of corporate
partners. The hotel helps them to
advertise their brands. It is one of the
strategies for the hotel to earn extra
funds.
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COMPARATIVE ANALYSIS OF COMPETITIVE TRAITS
Business 1: APOLLO INN
As Apollo Inn is established in Georgetown, a popular tourist destination, it encounters
severe competition with many other hotels. This is due to the fact that many businesses
realized the opportunity to earn profit in this area due to high demand for hotels. 26
hotels are present within its 2 km radius. Perfect competition occurs as no small group
of hotels had the power to manipulate the accommodation prices. To compete with
other hotels, each hotel offered accommodation with the lowest price possible.
The top 3 competitors of Apollo Inn are New
Asia Hotel, Kimberley House and New Rope
Walk. They are all within walking distance
from Apollo Inn.
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COMPETITOR 1 : NEW ASIA HOTEL
This hotel is located at a corner lot, which
faces a bustling road junction, making it
very noticeable by tourists as a potential
accommodation place. It might seem old
and worn-down on the outside, but the
rooms are actually clean and spacious.
Price of cheapest single room: RM 105 per
night
COMPETITOR 2: KIMBERLEY HOUSE
One of the strongest competitors of
Apollo Inn. It attracts customers with its
vintage-style exterior design. The prices of
the rooms are cheaper than those in
Apollo Inn.
Price of cheapest single room: RM 64 per
night
COMPETITOR 3: NEW ROPE WALK HOTEL
Just 100 metres away from Apollo Inn, this
hotel offers spacious rooms with Wi-Fi
service. It is also located right next to a
few restaurants and a taxi stand. The
rooms are cheaper than Apollo Inn, but
are very basic and lack visually-appealing
design.
Price of cheapest single room: RM 69 per
night.
Although Apollo Inn is located in a less noticeable location and offered a slightly higher
price compared to most of its competitors, it still attracts many customers every day
due to its comfortable design, beautiful ambience and warm hospitality.
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Strategies Employed By Apollo Inn to Compete With Competitors
A few strategies were employed by Apollo Inn to attract customers.
A free half-day tour is organized for customers to
participate. Most of Apollo Inn’s competitors do not
provide this service, thus giving Apollo Inn an
advantage.
The ratings by customers in travelling
websites such as Expedia and Agoda
are displayed at the walkway,
attracting customers to the hotel as it
showed high credibility.
All customers of Apollo Inn are
cordially invited to enjoy a free
dinner at night. The dinner events
are held at their sister hotel, Chulia
Mansion’s rooftop garden. Both
Apollo Inn and Chulia Mansion are
the only hotels in Penang that
provide a rooftop garden dining
experience.
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Business 2: GRID 9 HOTEL
Grid 9 Hotel is established in the middle of the bustling city of Kuala Lumpur. As many
tourists and businessmen flock into this city from all corners of the world, there is a high
demand for accommodation spaces. Thus, hotels are literally everywhere. There are 52
hotels within a 2 km radius from Grid 9 Hotel, resulting in severe perfect competition.
Under perfect competition, customers have a vast variety of choices to choose from,
making the hotels competing against one another for profit.
The three main competitors of Grid 9
Hotel are Midah Hotel, Mandarin
Court Hotel and i-Hotel. They are all
located along Jalan Maharajalela, a
major motorway.
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COMPETITOR 1: i-HOTEL
This is yet another budget hotel competing with Grid 9. It
is located between a Chinese restaurant and a 7-eleven
store, thus making it extremely convenient for travellers.
Also, it has a spacious environment and a rooftop patio for
relaxation.
Price for cheapest single room: RM74 per night.
COMPETITOR 2: MANDARIN COURT HOTEL
Mandarin Court is a business hotel that is housed
within the tallest hotel at Jalan Maharajalela. Due
to its height, this hotel grants a good window-view
for its customers. Also, it provides several facilities
such as conference rooms, ballrooms and a
restaurant.
Price for cheapest single room: RM 120
COMPETITOR 3: MIDAH HOTEL
Between the other hotels mentioned, Midah Hotel
is not located beside the highway, thus obtaining
the advantage of tranquillity and cleaner air. It is
also a tall building, giving customers a better view.
It acquires two restaurants as well as massage and
spa services.
Price of cheapest single room: RM 120
Despite the fact that Grid 9 Hotel had less facilities compared to its competitors, it has
successfully received good feedback from most of their customers due to its excellent
service. Also, its unique approach in designing spaces within the hotel attracts many
customers.
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Strategies Employed By Grid 9 Hotel to Compete With Competitors
To attract customers, Grid 9 had a few strategies.
Within Grid 9 Hotel, it has an
avant-garde modern interior
design that left their customers a
good impression. Aside from
backpackers, businessmen conduct
meetings here, which indirectly
promotes the hotel to many big
names.
Grid 9 Hotel adds multiple
functions to available space. It
does not just function as a
budget hotel, it also serves as an
art gallery, pub and restaurant.
This makes the hotel special as
hotels with such concepts are
rare. The vibrant activities
attract customers to the hotel,
making it successful and
competitive.
Equipped with various facilities,
the lounge enhances the
experience of customers. Thus,
customer satisfaction is
guaranteed. Hotels with
interactive spaces for customers
to socialize was a revolutionary
concept. This makes the lounge a
major selling point to attract
customers.
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Comparison between Apollo Inn and Grid 9 Hotel
MAIN CONTRASTS
MAJORITY OF CUSTOMERS Locals Foreigners
SURROUNDINGS Alley/Streets Roads/Highways
LOCATION Less noticeable Clearly seen
CONVIENIENCE OF TRANSPORTATION
None Monorail
CORPORATE PARTNERS None 6
PRESENCE OF OUTDOOR SPACES
Rooftop Garden None
SECONDARY FUNCTIONS None Art Gallery, Pub, Restaurant
DIFFERENCES OF PROVISIONS
RECEPTION Certain hours 24-hour
LEISURE PROVISION Rooftop Garden Pool Table, Board Games, Television
NUMBER OF ROOMS 20 51
PRICES OF ROOMS Changes on weekends Fixed prices
EXTRA EARNINGS None In-house restaurant
DECORATION Constant Changes seasonally
PRESENCE OF LOUNGES None Present
LOCATION OF LOBBY Ground floor First Floor
SIMILARITIES
DESIGNS OF HOTEL Modern contemporary design
LOCATED AREA Tourism hotspot
TARGET CUSTOMERS Budget travellers/ Backpackers
MOTIVES Provide quality accommodation for budget travellers
NATURE OF MARKET Perfectly competitive
RATINGS Excellent internet reviews
CLEANLINESS Good
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Conclusion of Analysis
Grid 9 is more commercially successful.
Despite the fact that they provide less facilities compared to neighbouring hotels33999, they still
promote their hotel very well by advertising its main selling point, which is the unique concept
of combining elements of a budget hotel, interactive spaces, a restaurant, a pub and an art
gallery. The design and theme of the decorations and displayed artworks change seasonally,
making the interior spaces more dynamic. Moreover, they tried to improve their services by
having no delays in booking procedures and providing a 24-hour help-desk. They are thoughtful
of their customers, by providing leisure provisions and an in-house restaurant. Furthermore,
they are sensitive to customer feedback and from that being able to continuously improve their
hotel. Also, transportation is more convenient for customers of this hotel as there is a monorail
station right next to the hotel. Besides that, they are more honest with their business by giving
reasonable and fixed prices. Hence, it is not surprising that they possess a better rating
compared to surrounding hotels and is highly recommended by travellers.
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OBSTACLES FACED BY NEW BUSSINESSES
OBSTACLES DETAILS
Lack of capital to start business Starting a new budget hotel requires a huge sum of money and does not guarantee profit. Therefore, it is difficult to find businessmen who could locate an institution which is willing to lend money. This means that new alternatives to get money have to be explored. If businessmen use their own savings, they might need to go through several years of hardship.
Competitors everywhere Hotels are abundant in Malaysia, especially in tourism hotspots. Hence, hoteliers will have a hard time competing with other hotels for customers. To tackle this problem, a hotel must possess unique features to make it stand out from competitors around it.
Difficulty in getting license from the government
As budget hotels are mushrooming in every corner of the country and a number of them were not successful, the Malaysian government intended to restrict opening new budget hotels and encourage more homestay programs, which is less profitable for investors due to the smaller amount of customers handled. Also, the requirements for getting a budget hotel license nowadays are tougher than before.
Usage of space in available land
Budget hotels must be creative in maximizing the number of customers and functional space in a limited amount of land, but still make the ambience of the hotel as comfortable as possible.
These obstacles faced by new budget hotel businesses are difficult to overcome as they
require a lot of sacrifice from businessmen who are running them.
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RECOMMENDATIONS
Business 1: APOLLO INN
Although Apollo Inn is small in size, it is clean and comfortable. It has sufficient rooms,
facilities and services. However, there are still many places for improvement.
CURRENT AREA OF IMPROVEMENT RECOMMENDATION
Not active in promoting its hotel Issue more brochures about the hotel and distribute it the public to increase publicity.
No computers with internet are provided Install computers in the lobby to make it easier for customers to search for travel information online.
Difficulties in transportation for customers
Apollo Inn should provide taxi-calling services for customers. As the hotel is situated beside a narrow alley, taxis are rare in that area. The hotel should also provide bicycle rental services for customers. As most of the other hotels do not provide this service, this will give Apollo Inn an upper hand.
Parking ticket is required for customers
who park their vehicles in the alley, yet
instructions on where to buy the tickets
are unclear.
Sell the parking coupon at the hotel’s counter. A signboard should be placed to inform drivers about the parking ticket requirement. As most of their customers are not from Penang, they do not know where to buy the parking ticket and were fined for it.
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Business 2: GRID 9 HOTEL
We found that Grid 9 Hotel has good service standards. Customers are given ample
facilities. Nevertheless, there are several suggestions for Grid 9 Hotel.
CURRENT AREA OF IMPROVEMENT RECOMMENDATION
The flat rooftop of this hotel is not accessible to customers and has plenty of space available for development.
Develop this rooftop to become a rooftop garden to make it lively. It can also serve as a place where customers can relax themselves. Grid 9 Hotel can organize events here during festive seasons to attract customers.
Customers need travel guide service in Kuala Lumpur.
Provide Kuala Lumpur tour service for their customers as some of them want to understand more about the city. This can be a new selling point of this hotel as the hotels nearby do not provide this service.
The food and beverages sold in the gastropub are too expensive.
Grid 9 Hotel should sell cheaper food and beverages as an alternative. If the food and drinks are more affordable, more customers will come.
No free breakfast provided for customers.
Some customers might wake up very early for breakfast but most restaurants nearby the hotel may not open yet. Therefore, it will be very inconvenient for customers. Free breakfast can act as a way of attracting customers as some customers have a patronage towards hotels that do so.
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