Star Hotel

XXX Beach Hotel

Presented By: Group 48 - Decision Sciences

CONTENT

• Tourism Industry in Sri Lanka

• XXX Beach Hotel

• Main Issue

• Analysis of Issue

• Recommendations

TOURISM INDUSTRY IN SRI LANKA

• Tourism is one of the largest industries, within countries and in trade.

Tourism Industry Classification

• By Product (Mass tourism, Alternative Tourism)

• By nature of the activity (Active, Passive)

• Location preference (Coastal, Rural, City, Mountains, Lakes)

• Duration of trip and distance travelled (Day Trip, Weekend break, Annual Holiday)

• By purpose (Business or Pleasure)

• By age/socio-economic group (Back packers, Empty Nesters, Boomers etc..)

(http://geographyfieldwork.com/TourismClassification.htm)

• SWOT Analysis of Tourism Industry in Sri Lanka

Strengths

•Attractive places & comfortable weather condition.•Peaceful Environment.•Stable Political Environment.•Developing Infrastructure Facilities. (According to Mahinda Chinthana Policy)

Weaknesses

•Higher intervention of Government. (through Rules & Regulation)•Lower level of Security facilities.•Language problems.•Lack of infrastructure facilities.•Most facilitated hotels located in city area.

Opportunities

•Rapid growth in world tourism industry.•Depreciation of Rupee value.•Most tourists like to visit Asian countries.

Threats

•Technology Development•High competition from other Asian Countries.•Affect of world oil prices•Bad cultural effects from other countries.

XXX BEACH HOTEL

• XXX Beach hotel is one of the best hotel under the XXX Corporation Group of Companies, a public listed Malaysian conglomerate.

• XXX is one of 3 star semi resort hotel in Sri Lanka which has 160employees.

• They maintain 90 rooms (Standard & Deluxe) with Air Conditioning, In-house Movies, Hair Dryer, Television, Mini Bar, and Balcony/Terrace waiting in each room.

• This excellent hotel in Mount Lavinia also has Coffee Shop, Bar/Pub, Laundry Service/Dry Cleaning, Meeting Facilities, Restaurant & Spa facilities.

• Even though market is too tough they hold the 2nd place on catering the highest market share due to friendly customer service and cheaper rates.

MAIN ISSUE

“Identify the significance factors which affect to Sales of XXX.”

Followed Steps:

•Check the seasonality affect of Demand

•Apply regression model to identify the relationship with selected variables.

- Dependent Variable: Sales

- Independent Variables:

Agent’s Commission

Cost of foods

Advertising expenditure

Entertainment cost

Quality control

ANALYSIS OF ISSUE

• Peak Demand (December) arises in the seasonal period (November. to April), therefore we can conclude most of sales income generate in seasonal period than offseason (May to October)

SUMMARY OUTPUT

Regression Statistics Multiple R 0.999978157 R Square 0.999956315 Adjusted R Square 0.999919911 Standard Error 119.5933607 Observations 12

ANOVA df SS MS F

Regression 5 1964333723 392866744.6 27468.25861 Residual 6 85815.43159 14302.57193

Total 11 1964419539

Coefficients Standard Error t Stat P-value Intercept 1496.985908 293.0576978 5.108161019 0.002203671 Agent Commission 0.018776233 0.017697996 1.060924235 0.329551126 Quality Control 0.043520724 0.016494809 2.638449713 0.038620444 Food Cost 1.311485909 0.006089745 215.3597286 6.76347E-13 Entertainment 0.165718577 0.053052171 3.12369076 0.020488421 Advertising 0.06919445 0.036914979 1.874427447 0.110001568

Demand Function of XXX = 1496.99 + 0.02C + 0.04Q + 1.31F + 0.17E + 0.07A

02. Apply Regression Model to Identify The Relationship with Selected Variables.

Demand Function of Berjaya = 1496.99 + 0.02C + 0.04Q + 1.31F + 0.17E + 0.07A

Test the significance at 95% confidence level

Variable Commission

per month

Quality

Control cost

per month

Food Cost

per month

Entertainment

Cost per

month

Advertising

Cost per

month

T - Cal 1.06 2.64 215.36 3.123 0.02

T- Table

Value

-2.57 to +2.57 : H0 Accept or Reject Area

Relationship Insignificance Significance Significance Significance Insignificance

Overall Evaluation of XXX

SBU XXX Beach Hotel

F-Cal 27468.26

F- Table Value 4.39

Overall Conclusion Significant

RECOMMENDATIONS

• Pay equal attention to all factors which affect to increase sales.

• When forecasting demand adjust the social & economic fluctuations.

• To enhance the reputation of hotel consider the quality of customer service & other entertainment facilities.

• Offer special packages. Eg. Price Adjustment

• Organize some cultural & entertainment activities within the hotel. Eg: Traditional Events.

• Recruiting skill workers who have better knowledge regarding to field.