EXPLORING STRATEGIES TO ATTRACT ASIAN TRAVELERS IN ONTARIO, CALIFORNIA A Project Presented to the Faculty of California State Polytechnic University, Pomona In Partial Fulfillment Of the Requirements for the Degree Master of Science In Hospitality Management By Priya A. Patel 2019
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EXPLORING STRATEGIES TO ATTRACT ASIAN TRAVELERS IN ONTARIO, CALIFORNIA
A Project
Presented to the
Faculty of
California State Polytechnic University, Pomona
In Partial Fulfillment
Of the Requirements for the Degree
Master of Science
In
Hospitality Management
By
Priya A. Patel
2019
PROJECT: EXPLORING STRATEGIES TO ATTRACT ASIAN
TRAVELERS IN ONTARIO, CALIFORNIA AUTHOR: Priya A. Patel DATE SUBMITTED: Spring 2019
The Collins College of Hospitality Management Neha Singh, Ph.D. _______________________________________ Project Committee Chair Professor and Director of Collins College Graduate Studies Michelle (Myongjee) Yoo, Ph.D. _______________________________________ Assistant Professor of Collins College Hospitality Management Margie Ferree Jones, Ph.D. _______________________________________ Professor of Collins College Hospitality Management
SIGNATURE PAGE
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ABSTRACT
The tourism and travel industry around the world has sustained many declines in
outbound travelers, however, the current trends have shown consistent and steady
increases. Recent tourism and travel statistics reflect an influx of Chinse tourist into the
United States and more specifically to Southern California. The growth in China’s
economy, development, and population, leads to an increase in Chinese outbound
travelers. In 2016, Chinese tourists spent the most dollars in the US in comparison to
inbound tourists from other countries. This high spending group has started to create a
new demand in the City of Ontario due in part to the addition of daily direct flights
between Taiwan Taoyuan International Airport and Ontario International Airport. This
increase in demand creates an opportunity for lodging facilities in the area. This
exploratory study will look at a combination of services, amenities, and internal and
external marketability opportunities of a single independent lodging facility, to ultimately
develop a strategy to help capture the benefits from this growth in tourism. Methods used
will include a SWOT analysis and competitive analysis. The academic significance for
this research is to yield results that are expected to better understand and add to existing
research in the context of Chinse inbound tourists. The practical significance is to create a
tailored strategy for Ontario Airport Inn management team to implement in order to
better serve and attract Chinse tourists.
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TABLE OF CONTENTS
SIGNATURE PAGE ....................................................................................................... ii ABSTRACT .................................................................................................................. iii
LIST OF TABLES .......................................................................................................... v CHAPTER ONE ............................................................................................................. 6
INTRODUCTION .......................................................................................................... 6 CHAPTER TWO ............................................................................................................ 9
LITERATURE REVIEW ................................................................................................ 9 CHAPTER THREE ....................................................................................................... 15
METHODOLOGY........................................................................................................ 15 CHAPTER FOUR ......................................................................................................... 18
FINDINGS.................................................................................................................... 18 CHAPTER FIVE .......................................................................................................... 31
Unpredictable economy. After the last recession, the city and the businesses took
several years to rebuild. The unpredictability of the economy poses a constant threat to
the hotel. If the economy becomes unstable, the number of travelers decrease.
Political uncertainties. The political environment in the country as well as every
tier down to the city is uncertain. Legislation and policies are constantly evolving.
Table 4
SWOT Analysis Matrix for OAI
Internal Strengths: Weaknesses: Value for money Breakfast Location Independent hotel Property cleanliness, Marketing attractiveness, and layout Outdated infrastructure and Renovated rooms architecture Amenities Meeting/conference space Safe and secure environment Food and beverage Courtyard Fitness center
Based on the findings from this research, the following discussion will illustrate
the researcher’s basis and understanding for the proposed strategies. The discussion will
detail several categorize that the researcher has outlined and will be linking the findings
to the literature and its practical implications.
Conclusion
As the number of Asian tourists is increasing, understanding their needs and wants
are incredibly important. This exploratory study uses existing research, SWOT analysis,
and competitive analysis to develop strategies that are focused on attracting Asian
travelers to the Ontario Airport Inn hotel. The practical implications of this research is to
propose strategies that can be implemented by OAI owners and management team. The
research focuses on hotel accommodations and marketability opportunities specifically to
ensure practical and viable strategies. Theoretical implications of this research are to add
to existing research by further understanding who Asian travelers are and what attracts
them.
Findings suggest that the OAI has a good foundation of services and amenities that
are significant to Asian travelers. The hotel needs to focus on tailoring their marketing
strategy to include key words and phrases that can easily be recognized by inbound Asian
tourists. In addition, the hotel needs to advertise and promote the activities and attractions
that are important to Asian travelers. A main attraction and activity that is underutilized
are the local gaming facilities. The property’s physical appearance and condition is both a
strength and weakness in attracting these travelers. The appearance is attractive however
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the condition is dated and would benefit from creative upgrades. Further conclusion of
study findings is summarized below.
Hotel services and amenities. The current amenities offered by OAI are exactly
what Asian travelers are looking for during their stay. From research, toiletries, a safe and
secure environment, shuttle service, and the accessibility to coffee/tea and hot drinking
water are important for the Asian travelers. The findings from the competitive analysis,
show that the competitors also provide these same important services and amenities.
Continuation of these services and amenities will help market to Chinese travelers
The meeting space and conference room have not been used and can become a great
asset to attract Chinese travelers. With the growth of GTP bookings, opening these large
spaces can become a huge advertising selling point when booking these large groups.
While opening these spaces, offering amenities such as a hot water/tea station, for small
fees, would attract the Chinese traveler. Research also shows that Chinese travelers
generally look for a common area for gathering when seeking hotel accommodations. All
three competitors already offer meeting and conference spaces. Opening this space with
optionable amenities at the OAI will attract the Chinese travelers due to this significant
finding.
Hotel price and location. The OAI has great value for the price point to attract Asian
travelers. In comparison to its competitors the OAI is a more affordable option for more
if not, the same hotel value. Research found that location and price were dependent of
each other. Location was important however; a more affordable hotel would allow for the
Asian travelers to spend the “saved” money on shopping. This is a significant finding as
the location of OAI and its competitors are all within a two-mile radius. If all other hotel
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accommodations are met, then this leaves Chinese travelers with the difference in prices.
The Ontario Airport Inn must maintain its value to money ratio as it is a huge competitive
advantage when attracting Chinese travelers.
Food preferences. The current breakfast offered by OAI is a weakness because the
competitors are currently offering a full hot breakfast. This creates an opportunity to
redevelop OAI's breakfast to attract Asian travelers. This upgraded breakfast can surpass
what the competitors are offering by included Asian specific breakfast options. Research
shows that this group of travelers is drawn to foods that are from their own cultures.
American foods are seen as too salty or sweet. Introducing Asian food items in addition
to the traditional American breakfast options would become a huge competitive
advantage to attracting Asian travelers.
Hotel marketing. A large strength for the OAI is its proximity to many important
activities and attractions that Asian tourist want to experience. The abundance of local
shopping malls and restaurants allow for an opportunity for OAI to expand its shuttle
service. This would create an advantage over the three competitors as none offer this
service. The popularity of shopping for this particular group has been shown through
research to be a prominent activity.
Due to the hotel’s location and proximity to many large popular tourist attractions and
activities, the strategies for marketing must be aimed towards what the Asian travelers are
looking for. The research shows that certain phrases and terms are most commonly
searched by this group. Attractions such as Universal Studios Hollywood, Disneyland
Park, and beaches are common places this group looks for. One specific
attraction/activity that has been omitted from advertisements from OAI and its
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competitors are the close gaming facilities. Research continues to grow on the importance
of gaming and gambling for this specific group of travelers. Advertising these and other
popular attractions will benefit OAI during the booking processes.
Current marketing strategies the OAI has is not utilizing its potential. To capture the
influx of Asian travelers and to promote new changes, their marketing presence needs to
be improved. The online feedback reviews are positive and should be used to help market
the property. The online reviews in comparison to the competitors are strong and
positive.
Partnerships and group package tour. With no current partnerships and
relationships with local businesses, the OAI is losing its potential of attracting Asian
travelers. The hotel can benefit from reaching out to local businesses and the ONT
airport. The OCC and Citizens Bank Arena hold dozens of events and shows annually.
Partnering with event centers would greatly attract business. Another partnering
opportunity would be with large group travel booking companies that cater to Asian
groups. Due to the increased popularity of GPT traveling, capitalizing these partnerships
before the competitors would ensure OAI's increase in profits from this group of
travelers.
Other. The opportunity to develop the courtyard to become more purposeful would
greatly attract attention. The current courtyard is not utilizing space to reach its potential.
This can be changed if a resort style pool area was developed. A heated spa and kiddie
pool would add value to the property. Also having small activities such as a putting green
would attract the attention of families. With this development, there is an opportunity to
bring a new design aspect to the property. Current strength is the properties landscaping
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and this courtyard development would only add to its strength. This will attract Asian
travelers because research shows they like to capture pictures of pretty scenery.
The infrastructure and architecture of the property can greatly be improved with the
development of the courtyard. Another opportunity within this development would be
creating a new and unique exterior that could eliminate the current outdated architecture.
This development must create a unique and new twist for the hotel. A boutique style
design would greatly and positively impact the appearance and character of the whole
property. Current hotel trends from many large branded properties are looking to create
smaller brands that appeal to boutique guests (How design enable guests to connect with
boutique hotels, 2018).
In comparison to its competitors, OAI is lacking a multilingual staff. The current staff
speaks English and Spanish. Hiring a Chinese speaking staff member would add value to
the hotel. This would also allow for easier communication and a sense of comfort with
Asian travelers.
Proposed Strategies
The proposed strategies are listed in table 7. The upgraded breakfast must be top
priority as it is already below standards in comparison to its competitors. The advertising
strategy is a feasible and a quicker strategy which can be implemented with more ease.
Looking to partner with group travel agencies and hiring a Chinese speaking staff will
improve and shape the properties services. The shuttle service will have to be
implemented and tested with trial and error as there are many alternatives in
transportation, ie Uber, Lyft, etc. Opening the current meeting and conference space is
achievable as it does not require extreme renovations. The courtyard development and
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exterior design will take a large amount of time and money to implement. The benefits
however out way the cost due to the potential business it can attract. The current
competitors do not have physically unique properties with resort-style courtyards. This
redevelopment will create a competitive advantage that other hotels will not be able to
compete with.
Table 7
Proposed Strategies
Upgrade breakfast and include Asian breakfast options Advertising popular activities/attractions, especially gambling/gaming Hiring Chinese speaking staff Partnering with the airport, local event centers, and group travel agencies Shuttle to local shopping centers Opening meeting and conference space. (more public areas) Develop courtyard for physical appearance (photo opportunities) Creating new exterior
Study Limitations and Recommendations for Future Studies
This research has some study imitations as it is as an exploratory study. First, the
findings are collected and gathered by the researcher which can lead to biased and
subjective results. Second, the methods used are tailored to a single hotel which creates a
limitation in terms of generalizability and if this study were replicated different results
will be yielded. The strategies cannot be applied to any hotel in Ontario. Third, there is
no reliability check to show the validity of this study. Finally, this study is a preliminary
analysis which does not factor in the cost of implementing the proposed strategies.
Further analyses must be done with regards to cost.
Future studies can take the SWOT method and use that information to utilize an
Importance-Performance Analysis (IPA) (Phadermrod, Crowder, & Wills, 2019). To
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continue this case study utilizing IPA and then reevaluating the hotel's performance after
implementing the proposed strategies would show the validity of this research paper.
Another continuation study would be to evaluate the return on investments after the
implementation of the strategies. If the return on investment is of significant value, this
would support and prove this research to be credible. The growth of ONT airport is
expected to continue due talks and negotiations with other international airlines. This
creates an opportunity for other types of travelers to visit Ontario and an opportunity for
additional exploratory studies.
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