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Analysing The Hotel Industry Of Singapore Travel and leisure Essay


the hotel industry of Singapore would work and adoptable for kind of customers having right from the lowest budget to star rated. The challenges is present in the Sing htl ind is simply based on the price, location and convenience because all the facilities are mostly provided by all the hotels so that it is very difficult for the clients to identify the service provided by the hotels.

Since it is rough to differentiate the service rendered by the hotels, many hotels get excited about creating a distinct segment market, like providing unique facilities to the customers for example honeymoon plans, specialists vacations, etc.

The Singapore hotel industry encounters an extremely high progress rate in luxury travel market, high -end travelers market and family travel market in the past months.

The recent overall economy uncovers the restaurant sector has market Progress rate of sixteen percentage due to increase in the consumer spending on sit - down meals. The eating out habit has become a life-style for the young ones and even for the middle aged maried people with the children and these aspects strains on the importance of healthy food choices. Nowadays, the consumers are expecting different styles of food and drink from the various parts of the entire world and each one of these shows if the hotel offers a variety and healthy drink and food, it will be able to attract more customers in the foreseeable future.

The Singapore travel and travel and leisure market shows a high growth by having the occupancy rate of 90% in the past one year. The Singapore government's effort in providing low priced service airlines and its work to triple the travelers to Singapore in the approaching years. The 30% upsurge in the trade meetings and exhibitions conducted in Singapore in addition has revealed that the hotel industry in Singapore has very good business opportunities in the approaching years if proper, good development strategies are used by the hotels, they will be in a position to earn a huge market share in turn more earnings.


. The MHCCH is located in three acres of renowned land in Singapore. The hotel is very near to the tourist attractions such as a theme area, a museum, etc. The management has made many changes in the infrastructure facilities of the hotel by adding luxury bedrooms, a bistro; a beauty salon. The hotel has also purchased a land near to that for extension and modernized the hotel for creating home based business opportunities. In order to provide a luxurious appearance for the hotel, the management has generated a new spacious foyer and the hotel has also started a cosmetic salon to offer beauty treatments to its customers.

Problem of the circumstance:

By examining the scenario of hotel industry, i undertake SWOT evaluation of the hotel MHCCH and help the newly joined partner of MHCCH to choose the best strategy from the below mentioned strategies specifically sell the money cow, carry out no serious steps or undergo diversification in business so that he'll be in a position to persuade the other lovers of MHCCH.

In this case, the difficulties in the exterior and inner environment industry and the analysis regarding the Strengths, Weaknesses, Opportunities and Dangers of the MHCCH is usually to be done.

In the next area of the study, by making use of utilizing Ansoff matrix and Porters Grid, how the management can increase the profit in the next two years and then for that what tactical decisions it has to take are reviewed.

Challenges in the micro and macro environment:

Business environment is grouped into three environments namely Internal environment, Market environment and Exterior environment. Many parameters that happen to be existing in the inner and external environment affects the business (MHCCH) either positively or negatively. So before taking strategic decisions, it is important to analyze these environments to find out the factor which highly affects the clients of the hotel industry.

The following stand focuses on the main element factors of the three conditions.



Market Environment



Vision, Mission, Targets of the Hotel



Capability of the management











The main challenges which need to be assessed in the inner and exterior environment are that hotel must concentrate on different type customers like corporate and business friends and other kind of guests like nature fans, family focused and handling the hotel to joy these customers becomes a challenging work in the field of marketing. So to be able to delight these consumers, the hotel should keep an eye on the changing objectives of the customers and should try to please them.

The employees of an hotel play a significant role in getting the customers. The hotel should try to recruit skilled folks because the quality of service rendered by the employees serves as an important factor in delighting the customers. So getting skilled and certified employees is another obstacle in the hotel business environment.

The hotel should make an effort to have good suppliers (Electricity, soft drinks & carbonated water, Perfumes, beauty products & other bathroom preparations, different kinds of liquors, Soap and detergents, etc) who provide products/ services with good quality and good intermediaries who are in immediate contact with the customers before they enter the hotel.

Apart from these difficulties, the hotel also needs to give attention to the socio- social changes (changes in the tastes of the customers), political changes (changes in the law), and scientific changes (providing variety food, appearance of the hotel, adding packages, etc, ).

SWOT Research:

Before selecting a proper option for the marketing plan of MHCCH, the hotel must do SWOT analysis to find out its strengths, weaknesses, opportunities and dangers.

Strength handles the hotel's center competencies and the weaknesses of the hotel handles the present downside which needs to be rectified to be able to capture the clients in the foreseeable future. Talents and Weaknesses mainly focus on the factors that are fully under the control of management however the opportunities and hazards focuses on the business enterprise environment. Opportunity deals with the market which yields more revenue to the hotel that is the area to be covered by the hotel to earn much more customers in turn more income. Threat handles the factors which should be considered very seriously before taking any business decision. SWOT analysis of MHCCH is talked about below.

Strengths of MHCCH:

The employees of the hotel are experiencing good experience in customer support in order to provide quality service; the MHCCH has invested a great deal in changing the looks of the hotel and in providing different varieties of food and also already the MHCCH is having satisfied customers ( exposed in the stand non-business guests occupancy rate). The hotel is situated very close to other entertainment locations.

The credit history of the hotel is high that people may take the finance from bank to carry out the successful performance of the hotel.

Weaknesses of MHCCH:

Corporate and family non - business guest's occupancy rate is low and so the company must invest a lot in adding facilities to the hotel.

Opportunities of MHCCH:

Nowadays consumers prefer to eat outdoor in restaurants alternatively than before and they don't wait in spending more money tasting different types of food. Eating dinner out style of the youngsters and middle aged wedded people has become very common. Singapore government's decision to triple the investment in the tourism industry implies that there are large opportunities for MHCCH to fully capture more customers and subsequently to improve revenue.

Threats of MHCCH:

Competitors are the major threat of MHCCH. Because of the insufficient differentiation in the hotel industry, the competition is fully predicated on the price, location and convenience. The hotel must face competition from the hotels of same infrastructure and also from motels. The hotels which are dealing with specific niche market market segments will also functions as a good competitor for MHCCH. In order to attract the clients of different age group, the hotel must focus on changing the appearance of the hotel, providing food of different countries, etc costs more but still the hotel must invest and at the same time the hotel cannot fix a higher price for its services because your competition mainly focuses on the purchase price. The hotel must concentrate on the plans too because the small hotels may catch the market by giving specialized facilities in one area alone like for example honeymoon packages together.


Thus the obstacles in the micro, market, macro environments of hotel industry are talked about. The SWOT research unveiled that the MHCCH has more strengths and opportunities in comparison with weaknesses and dangers. Because the opportunities are high, unveiled by increase in the market expansion rate and the capability of the MHCCH to raise account from the bankers and the availability of space for even more enlargement activities to be carried out by the MHCCH is good and with this power, the MHCCH has more power to capture the marketplace share. The MHCCH need not be concerned about the hazards posed by the competition if MHCCH provide an eye on competitor's price and variety of services provided by them. So by using its talents, the MHCCH can move forward to catch the attention of more customers.

b) Ansoff's Matrix:

The Ansoff matrix is a technique that aids people available field to consider decisions regarding product development and market growth strategy.

Ansoff matrix focuses on the new products and the product already on the market to be able to improve the profit of the business enterprise.

The Ansoff's 3* 3 pack grid or matrix:


Market Development

Partial Diversification


Market Expansion

Limited Diversification

Partial Diversification

Market Penetration

Product Expansion

Product Development


The major four boxes are Market Development, Market Penetration, Product Development and Diversification.

Market Penetration:

It suggests the business people to focus on existing customers and independently products what they are producing presently. If the business enterprise person adopts this strategy then his major objectives will be

Improve the marketplace share of current products by correcting lower prices when compared to the opponents, advertising and sales campaign, etc. There are many advantages in presenting low prices, they can be recording more market and the low profit acquired by the prevailing players makes the new entrants to have fear in starting the business for the reason that sector. The MHCCH can go for introducing lower prices for the services but it should not incur any loss. The price reduction technique to be implemented by MHCCH will not yield any gain because already the hotel is having good occupancy rate in the case non business guests. As well as the hotel is planning to invest a great deal in the improvement of the hotel, so all these costs will be mirrored in the price of the assistance rendered by the MHCCH. Even though the price warfare exists among the players of the hotel industry, for MHCCH, since it is having dedicated customers, it is best to travel for launching new deals for the customers, rather than minimizing the price.

Market Development:

It suggests the business people to concentrate on new customers and the existing products. Finding out new customers for the merchandise. The MHCCH can also go for figuring out the clients like honey moon packages, etc.

Product Development:

It suggests the business people to give attention to the prevailing customers and new impressive products.

(MHCCH) can concentrate on this aspect. it can select the last option specified in the case, expand the business by buying buying an exterior property which means the expansion of the pub or restaurant to capture the customers. By providing healthier, tasty and variety food style and refreshments to different country people, the MHCCH can get more customers (commercial friends) from

different countries. As well as the table exposed that the corporate friends occupancy rate is suprisingly low and so by implementing all these facilities, it'll be able to get more corporate guests and if they are satisfied, the corporate guests will come and stay with their family, income will be better.


It suggests the business person to give attention to the new customers and the services that is getting into an totally different field. People will take up this strategy when they would like to diversify the chance of damage in the existing business. This circumstance revealed that the competition is more and there are more potential clients to earn an extremely high income.

Selling a cash cow and getting into diversification is not good because this hotel business itself has lot of leads which is discovered by the Singapore government's decision to spend more than $4 billion in order to attract more and more number of travellers to singapore. So it's good for the MHCCH to be in the business alternatively than diversification.

Porter's Grid:

Threats of New Entrants:

More range of business meetings and conferences are being kept in Singapore. the occupancy of accommodation rate being up to in the past few months, Federal government of Singapore effort to enhance the tourism industry appeals to more players into this field. Infrastructure facilities, range of economies and differentiation of product may act as entry barriers and so the MHCCH has to give attention to these aspects.

Bargaining Electric power of Buyers:

Presence of more rivals in the Singapore hotel industry makes the consumers to demand more from the hotels regarding price, quality and impressive (variety of food, other facilities, etc) products. From your circumstance, it is revealed that a difficult competition occurs in the Singapore hotel industry, price takes on a major role and its own real cause is the customer's expectation regarding quality and price which strengthens the buyer's electric power.

Bargaining Power of Suppliers:

The hotel industry is having a very high marriage with the other sectors so the supplier bargaining vitality is high in the hotel sector if the competition is more in the other establishments too then your supplier bargaining electric power can be reduced in the hotel industry and it is essential to examine still more regarding the prevalence of competition in the supplier's sectors.

Threat of substitute's products / services:

The monetary hotels and motels may be the threat for the merchandise of the substitute to MHCCH but concentrating on factors like fast food establishments which includes the encompassing environment, services provided by the catering division at the affordable price.


Since the organization guest's occupancy rate is very low, the MHCCH can concentrate on the area of amenities and services provided in order to capture more customers and in turn to improve profit.

The MHCCH can go for providing different varieties of food in order to attract the clients from foreign countries.

According to my views, I would recommend the MHCCH to choose the latter - expand by investing in exterior property and after getting some returns it can little by little move to the third option -expand by buying the site. The MHCCH can perform the survey in order to search new facilities expected by the clients and also the actual MHCCH 's competition are doing to attract the customers and based on the results the MHCCH can make a decision the strategy to be followed by the hotel in future.

Since there are tons opportunities in the hotel industry, the MHCCH can go for making investments in order to earn income in future. The MHCCH can encourage the other partners by describing the payback period of the investments to be made by it.

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