Assessment 2: (Week 8) I SCENARIO BASED PROJECT: The Tourism & Hospitality Event Total weighting: 40 %. Due: Week 8 Task Description ● This SCENARIO BASED PROJECT is a major assessment carrying 40%...

Executive summary: There are few sectors more impacted by Covid-19 pandemic as the hotel sector. Covid-19 pandemic impacted tourism and hospitality industry in Australia as well. International and interstate border closures across the country resulted into lack of movement and gatherings of people within each of the Australian states, which impacted the tourism industry and consequently the viability of the Australian hotels. Almost all hotels faced financial losses during the pandemic. Some hotels are on the edge of closing the business down. CITI hotel in CBD is one among of them who got adversely affected by the pandemic. This assignment will describe and explore the business reviving strategies.
There has been a general decline in demand for Australian hospitality services with occupancy rate falling to less than 50 percent. This pandemic has made it difficult for tourism and hospitality industry to survive this pandemic. Due to travelling restrictions and international and interstate border closures, occupancy rate in hotels is falling down. However, interstate tourism is recovering a little bit because some interstate borders are re-opened. But still some inconsistencies regarding border policies have hampered this recovery. So, because of Covid-19 the current market is fluctuating because of border closures and travelling restrictions. Hotel owners need to take more cautious approach while negotiating or renewing hotel management agreements with a greater focus on early termination rights, force catastrophe provisions and more rigorous performance tests.
Some strategies can be tried out to combat this pandemic slow down. Some recommended strategies are as follows:
· Provide special discounts and offers to clients
· Provide COVID safe environment to clients
· Provide amenities to the clients like free breakfast.
CITI Hotel Scenario: CITI hotel is currently facing following listed issues:
1. Low-Occupancy rate
2. Number of clients visiting to hotel are declining
3. Low revenue generation
4. Inefficiency of business operations due to financial crisis
SWOT Analysis of CITI Hotel: SWOT analysis of the hotel has been done in order to identify its strengths, weaknesses, opportunities and threats. This will help to improve and improvise new strategies and make better decisions for the hotel.
Strengths: Strengths of the CITI hotel are as listed below:
1. Convenient location as hotel is easily accessible even through public transport.
2. Near to the ESSENDON airport.
3. On-site parking.
4. Good reviews and ratings.
5. Hotel has trendy night club with lively dance floor.
Weaknesses: Weaknesses of the CITI hotel are as listed below:
1. It mainly provides rooms to couples.
2. It doesn’t provide any kind of free amenities like free breakfast.
3. Prices are slightly higher if compared to other hotels in CBD.
Opportunities: Opportunities for the CITI hotel are as listed below:
1. High brand image to attract more customers.
2. Provide more amenities to customers.
3. Well established position to attract more local clients.
4. Grow the business by investing in chain hotel strategy.
Threats: Threats for the CITI hotel are as listed below:
1. COVID-19 pandemic is the biggest threat to the hotel.
2. Low-occupancy rate.
3. Competitive pricing as competitors are charging less price.
4. Higher maintenance cost during this low revenue generation period.
Objectives: This assignment will be describing strategies to achieve the following listed objectives:
1. Increase profitability of business.
2. Rise in occupancy rate or number of customers.
3. Increase total sales and revenue.
4. Improve brand image and brand reach.
5. Provide COVID free environment to clients.
Sustainability strategies: During this pandemic many hotel management teams are in dilemma of choosing right set of strategies to revive their businesses. Future is very uncertain, but most probably hotels in future will operate on reduce capacity until this pandemic comes to an end. Social distancing needs to be implemented in order to provide corona safe environment. Social distancing measures likely to be implemented on indoor gatherings areas such as restaurants and breakfast buffets. Here some strategies are listed below which CITI hotel could opt out in order to survive this pandemic:
· Focus on providing COVID-friendly apartments. Like provide standalone villas with longer term stays.
· Design the hotel in COVID free manner. Like common areas should contain large preferably outdoors instead of small rooms. There should be facility of full body sanitizing at entry gate of Hotel.
· Focusing more on interstate and intrastate tourists. Because of international borders closures and travelling restrictions hospitality service providers must be focused on interstate and intrastate tourists.
· Underperforming rooms in hotels should be converted into longer-term rentals. As there is great loss in occupancy rate, so hotels need to be flexible in order to survive this pandemic. There may be a number of rooms which are underperforming because of low number of occupancy. So, these rooms can be changed into longer-term rentals. A fraction of total rooms can be reserved for longer-term rentals until this pandemic comes to end. So, that hotel can earn at least something from these rooms instead of keeping those rooms ideal.
· Accepting international arrivals who need to quarantine themselves for 14 days as per federal government’s regulations. This strategy can help the hotel to increase the occupancy rate. And one good thing about this strategy is that room will be straight booked for 14 days.
· Keep eyes on subsidies and benefits provided by government during this pandemic. If government is providing any kind of help to revive your business, then grab the opportunity and make most of it.
· Provide VIP packages to affluent people with special foods and accommodations.
· Promote organic food consumption in the hotel and serve clients with organic food items. Organic food will attract the food lovers who are able to pay higher to consume organic food. So, organic food can be provided at premium prices. This strategy will help the business to maximize the outstanding banquet facilities at hotel.
· Solar panels can be used which will generate electricity power to fulfil the power usage of hotel. Initial cost of setting up solar panels could be higher but in longer term it...