Budget Hotel Chapter 2
1.1.1
Business
Card Design
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1.1.2 Location
BatuFerringhi
is a beach area in Penang, Malaysia. BatuFerringhi is located together with the
nearby beach town of TanjungBungah and the local fishing village of TelukBahang,
make up the northern coast of Pulau Pinang. While
the beaches aren't the best in Malaysia, there are still miles of white sand
and palm trees left. Fierce competition keeps hotel prices low and there's some
great food to be found to at the famous night-market. Additionally, Georgetown can
be reached by car in about 40 minutes and also there are numerous car rental
service providers near to the hotel. The geographic location is very attractive
for both travellers and outstation workers in Pulau Pinang. So, the Container Hotel is confidence with
the location will give us a great opportunity for the business.
1.1.3 Facts and Figures
The
size of the land for our business plan is sitting on a 465 sq m site (5,000
sqft) with a built-up space of 279 sq m (3,000 sqft). In this lot of land we
plan to construct a row of 6.1m containers stacked up one on top of each other
and a row of rooms construct with concrete sewer pipes. There will be a total
number of 16 rooms namely Outgoing, Conservative, and Adventure. According to
the principal the price range should be between RM 80.00 to RM 200.00 per room
and night. As we offer food services we will need a dining room and kitchen to
prepare food. Daily cleaning processors require additional facilities and rooms
in order to store the particular material. In addition, an administrative
office is included in the planning.
1.2 Internal Analysis
1.2.1 Strengths
The
Container Hotel is the first and new concept of hotel in Malaysia which offers
various possibilities to differentiate from its competitors and create a
competitive advantage. Nowadays, customers tend to prefer new and creative
buildings over traditional facilities. Since the target customers are
travellers and backpackers, so a unique and affordable pricing hotel will
increase the attractiveness for them. Moreover, with the quality of
accommodation provided without increases in price, definitely will become the
preferred choice by most of the customers.
The
hotel will be located in BatuFerrighi, Penang, which is situated along the
coastal road north-west of Georgetown and lined with a string of international
standard resorts, is the most popular beach in Penang. The travellers can soak
in the sun or unwind on the beach while enjoying a host of aquatic thrills from
wind-surfing to canoeing. In addition, there are a numerous places which are
transport free for the backpackers to visit including the “Whole World Toy
Museum”, “Topical Spice Garden”, “Penang National Park” and “Seafood Village”.
Moreover, there are also two tourist attractions which is the biggest in Asia,
namely “Escape Park” and “Butterfly Farm”.
From
the location, it takes about 40 minutes drive to the heritage city, Georgetown
and there is car rental service providers located all around the area. Besides,
as the sun sets, BatuFerringhi comes alive with a carnival-like atmosphere with
an open-air bazaar selling anything from ornate curious to enticing souvenir
items.
The
hotel will be constructed by using recycle materials, such as the container and
concrete sewer pipe can promote the green or sustainable building construction
and reduce waste disposal. The reason to use recycled materials because of it
is able to reduce the production of virgin materials. Moreover, it also saves
landfill space and further reduces greenhouse gas emissions and other
pollutants.
The
free Wi-Fi provided for the customers is to allow them keep up with the news
and check their Facebook, or they might be away on business and have a critical
need to respond to emails, do online spreadsheets and internet banking. In
addition, every room in the hotel also come with international plug point as
the target customers are travellers, which allow them to charge their smart
phone, camera, laptops or any electronic gadgets.
Parking
lots right next to the hotel increase the comfort for travellers compared to
normal budget hotels as most of the budget hotels in BatuFerringhi does not
provide parking lots for their customers.
1.2.2 Weakness
Land is getting expensive in Malaysia,
especially in Pulau Penang. Moreover, the tax structure in the country is also
higher as compared to other countries. Hence, due to the main purpose is to
build a budget hotel, the services offered by the hotel are limited and it may
not meet with the world standards.
The
concept of the hotel is unique, but someone might consider that it is weird and
not enough luxury especially for those customers with traditional mind.
Therefore, the Container Hotel is not very family friendly in case there are
family would like to stay into the hotel.
Apart
from that, with the lesser number of rooms provided as compare to other luxury
hotel, it may not be able to fulfil the demand during peak season. However, it
may also a benefit if the demand is not as big as expected during normal season
where empty rooms become costly and might be serious danger for the whole
project.
1.3 External Analysis
1.3.1 Opportunities
The
surrounding tourist attraction zone offers a big opportunity to attain
customers. Travellers or backpackers might be interested to stay into a nearby
hotel for their conveniences to travelling around this area.
Since
the Container Hotel is the new concept in Malaysia, it is able to expanding in
Malaysia and to attract foreigners stay into it. Besides, it also aims to let
them know Malaysian is creative and able to building something unique which
could be a reference to be built in other countries.
The use
of container and recycled materials may lower down the cost of capital; this
offers a further opportunity as the rates could be lower than other budget
hotels.
1.3.2 Thread
The
biggest threat is stagnating or decreasing demand for hotel rooms. Since the
competition is already well established and other hotels are known and well
frequented it might become tough to get foothold in the industry. Additionally,
with the cost of capital put into the project will need to takes a few years to
gain a profit. If due to a bad economic condition the hotel manages only to
establish slowly. These circumstances can endanger the whole project.
The use
of container to build a hotel should take into the considerations of weather in
Malaysia. Since Malaysia is a country with high temperature and high humidity
throughout the year, thermal insulation of the rooms should be done properly to
prevent indoor temperature is too hot.
1.4 Industry Analysis
In order to gain an impression of the
current market situation in terms of competitors and rivalry for hotels, we
decided to collect information about hotels and motels around BatuFerringhi and
its proximity. There are nearly 40 hotels and motels located in BatuFerringhi
area range from budget to luxury hotels. We decided to focus on three
establishments which are most comparable with our conception of the hotel.
The project group considers the
Ferringhi Heritage Budget Hotel, Roomies Penang Guesthouse and Senja Motel as
the key players in the area. Hence, an in depth analysis should reveal valuable
information for the project.
1.4.1 Ferringhi Heritage Budget Hotel
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According to the interview with the
manager, Mr. Ting, the Hotel works with eleven employees (100%) and a few part
time employees, depending on the season. He could not declare how the average
utilization is but he assured that it is above the acceptable level. The
typical client is business traveller and during the school holidays family are
also frequent visitors.
These are the key facts about Ferringhi
Heritage Budget Hotel:
- 21
standard rooms
- Above
average capacity usage
- Typical
client are business people
1.4.2 Roomies Penang Guesthouse
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According to Melinda Chong, the owner of
guesthouse, there are usually 10 employees working for the guesthouse. The
average client is backpacker that stays for one or two nights. Unfortunately,
she could not give any information about the utilization but she mentioned that
during fairs or holidays, the guesthouse is usually fully booked. Furthermore,
she also said that the hotel provides the best in services and amenities with
the money they paid and the guests can enjoy car park and Wi-Fi in public
areas.
These are the key facts about Roomies
Penang Guesthouse:
- 8
rooms
- Rooftop
relaxing area
- Easy
access to the city
- Typical
clients are backpackers
- Free
Wi-Fi in public area and car park for guests.
1.4.3 Senja Motel
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The typical client is the backpackers
but also business traveller, especially at weekends stay often for one night.
During public holidays, the hotel has reduced opening hours due to low
occupation. Besides, she also mentioned that the utilization is inconsistent
and hard to predict as sometime there are no customers stay in.
These are the key facts about Senja
Motel:
- 10
rooms
- Breakfast
excluded from the price
- Typical
clients are backpackers and business traveller
1.4.4 Overview of Competitors
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Hotel
Name
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Number
of Rooms
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Price
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Others
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Single
Room (Standard)
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Single
Room (Advanced)
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Double
Room (Standard)
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Double
Room (Advanced)
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Breakfast
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Ferringhi
Heritage Budget Hotel
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21
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N/A
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N/A
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RM 120.00
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N/A
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+ RM 10.00
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Ø Massage
(+RM 80.00)
Ø Laundry
(+RM 20.00)
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Roomies
Penang Guesthouse
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8
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RM 50.00 (per bed)
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N/A
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RM 220.00
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N/A
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+ RM 15.00
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Ø Free
Wi-Fi
Ø Car
Park
Ø Roof
top relaxing area
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Senja
Motel
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10
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RM 70.00
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RM 85.00
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N/A
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RM 145.00
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+ RM 10.00
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