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James Farrell Hotel

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Xinyi Jiang

on 12 April 2016

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Transcript of James Farrell Hotel

James Farrell Hotel
Tutor: Jenny Cockill
Team of Steven, Leo, Queenie, Carina, Amy

“ Simplicity leads life ”
About James Farrell
Opening Strategy
Concise design style with warm colors
Hardness of the mattress should be moderate
Ensure sheets and quilt cover clean
Customer Profile
Target Market
UK Tourism and Hotel Market
Provide the pickup services from hotel to local train station
Change the decoration style with bright and bold
Come up with the discount package which is time limit in restaurant and bar
Publish the whole day package for conference room
Have a good cooperation with travel agency, offer the special discount
Make the good used of local events
Set up the member price especially to business customers
Age 25~44

Source: Visitscotlan, 2014
Customer Group
Local Competitors
Food & Beverage
Fresh, good quality with brilliant imagination
Using advanced technology skills like self-check in and self-check out service
Our self check-in service is available for 24 hours. Customers can choose to check-in by machine or in front desk. If they need the help about using the machine, they can ask help form receptionist who are available to give a hand for whole days.
Combination of art and simplification Bauhaus style decoration.
"If today's arts love the machine, technology and organization, if they aspire to precision and reject anything vague and dreamy, this implies an instinctive repudiation of chaos and a longing to find the form appropriate to our times."
-- Oskar Schlemmer
Lay out
Room Area
2 Superior Twin Rooms: 30m2
15 Superior Double Rooms: 20m2
9 Triple Rooms: 24m2
9 Twin Rooms: 16m2
5 Double Rooms: 15m2
1 Room for disabled: 16.83m2

Other Area
2 Meeting Rooms: 42.12m2, 14.04m2
1 Functional Room: 65.52m2
1 Restaurant: 71.55m2
1 Front desk: 1.26m2
1 Gym: 14.04m2
2 Toilets: 22.77m2 and 22.95m2
2 Kitchens: 49.59m2 and 24.3m2
Restaurant and Bar
55 seats inside
8 tables for 4 people
3 tables for 2 people
2 tables for 6 people
5 seats for Bar
Facilities & Paid Service
Restaurant & Bar
Internet: GBP 3 per 24 hours
Parking: GBP 7 per day
24-hour front desk
Luggage storage
Self check-in and check-out
General: Newspapers, Non-smoking rooms, Facilities for disabled guests, Triple rooms, Non-smoking throughout, Air conditioning
The visitor age from 25 to 54 occupy 44% in Edinburgh and 47% in Glasgow.
16% of visitors from overseas, but we don't focus on overseas customer.
24% have a desire to touch with local history and culture.
15% visitors have family connections with Scotland to see their friends and relatives.
The main customer group is business customers from UK especially in Scotland.
Improve the room occupancy up to 75%
Remain the reputation of old James Farrel hotel restaurant
Insure the staff quality to improve the service quality by training them in a professional way
Being the best boutique hotel in Linlisgow
Transfer revenue stream from F&B to room
Control the cost of employee's salaries by adjust the arrangement of staff
Achieve customer satisfaction by meeting their requirements
Make profit
Sales Plan
Customer Satisfaction
The great quality of hygiene

Meet customers’ requirements on time

Predict customers’ requirements and meet them in an appropriate way

Customer care

VIP (customer profile and discount)

All equipment and facilities are in good condition

Handle emergency situation in a professional way

Crisis Management
Analysis of Scotland Tourism
Source: Mintel
UK Hotel Market
Uk three star hotel market
Finance & HR
Activities Around The Year
Human Resource
HR Framework
Training Program
Staff Motivation
Environment policy
HR Framework
Train staffs to serve in a professional way and provide customers a high quality of service
Staff Motivation
Link staffs' payment with their performance
Outstanding performance could earn 5~15days days extra annual leaving
Encourage staffs using social media
Environment Policy
Give customers options
Sign for environment protect
Local & Destination Protection:
Train local workers
Support local community development
Work with local people
Try to use non motorized transport
Buy seasonal and local product
Buy product in bulk
Give preference to ‘fair trade’ products

great ?
GM have the awareness of standard
Maintain and encourage staff of awareness
Identify simple changes in routine
Check and maintain equipment
Identify low-cost measure
Water use:
Check regularly for leaks
Install sensor, low-flow and other kind of water-saving fittings
Rainwater and grey water for reuse
Identify different waste
Minimize packaging

Managers Salary Budget
New and Old James Farrell
Budget Jan-Apr
Build James Farrell Hotel's own website and broadcast the products and service.
Sign cooperation contract with business companies and give some discount to attract them.
Sign cooperation contract with online and local travel agency and give some discount to attract them.
Spend on advertisement to promote the reputation and attract more customers.
Gain good feedback from customers and retain them.
Promote the conference rooms for business people.
Make the most of the functional room.
Unique Selling Point
The core value ( the quality equals to the right price)
The strong image of art
Pay more attention to the comfort level and design of the bed.
The application of high-tech in check-in and check-out system
The style of simplicity (Bauhaus)
Source: UTS, 2012
Source: Bauhaus, 2011
Source: Hoteliers, 2014
Source: Hotel.com, 2015
Source: Tripadvisor, 2011
Source: Tripadvisor, 2015
Restaurant and Bar
(inside the restaurant)
There are 55 seats inside the restaurant overall.
8 tables for 4 people
3 tables for 2 people
2 tables for 6 people
5 seats for bar
Functional Room
Functional room can be used in many ways. it can be used for wedding. Also, if the space of conference rooms is not enough in some emergent situation, it can be changed to a temporary conference room.
There are two kitchens inside our hotel. The bigger one is for regular used. The smaller one can be used to prepare food for customers in conference rooms and the functional room.
Definition of the Boutique Hotel
"Boutique hotel are small, 150 rooms or fewer, but not too small. Boutique hotels are typically privately owned or part of a small group of hotels. Boutique hotel design is unique, iconic, memorable and sometimes eccentric. You will find some of the most interesting interior and exterior design elements in these hotels, which are often created by some of the world's leading designer. Lan Schrager and Philippe Stark started this trend. Boutique hotels tend to place a significant focus on creating extraordinary restaurant and bars. These establishments often earn a reputation independent of the hotel and are ingrained in the community, so travelers will frequently blend with the locals. An example is Locanda Verde at the Greenwich Hotel in New York City. "
Source: STAYFUL, 2015
Middle Class
Age Group
Customer Group
Target Customers
The customers who comes to our hotel can afford the price which defines into the middle-income consumers.
Overnight tourist from 25-55 keep the percentage higher than other ages of the people especially the age from 35-54.
Source: TheScottish Government, 2010
People who are interested in the countryside view of Scotland or local food and culture.
People who comes here in order to the business work.
Source: VisitScotland.com, 2009
Source: Booking.com, 2015
Competitive Strategy
Quality High
Quality Low
Price High
Price Low
46% consumers prefer hotel chain
The percentage of independent hotel and breakfast and bed 23% and 21% Respectively

UK Hotel Market Performance
Source: Mintel
People around 25-54 will go to Scotland to have a break

UK domestic tourists are still the pillars of the Scotland tourism, which contributes 73%

55% tourists go to Scotland for the scenery, 28% tourists are attracted by historical and culture

Visit Scotland estimate the spend will reach £5.5bn by 2020

Type of Accomodation Choose
Source: Mintel
Domestic and Inbound tourism Market
Room Supply
Hotel Supply
Source: Mintel
Account for 30% of the whole UK hotel market

Top 5 players: Whitbread, Travelodge, InterContinental Hotels Group, Best Western, and Accor

Whitbread’s financial performance: revenue and profit £2294 million and £323 million respectively

Future market still in development and will be more competitive

Pricing Strategy
ADR £118
RevPAR £70.8 (based on the 60% occupancy
Penetration price strategy
Price lower than many boutique level hotel
Focus on business market
High cost performance

Belongs to Galleria Hotels Group

Core value quality equal price

Many Tourists attractions

Sun Micro System manufactory nearby

Managers' salary paid monthly
Full time employees' salary paid 7.25 per hour
Part time employees' salary paid 6.75 per hour
Here we are
Old James Farrell Income structure New James Farrell Cost Incme Structure
Old & New James Farrell Incomes
New James Farrell Incomes Tendency
Issues of Old James Farrell
Aged decoration
Low utilization of space
Unreasonable room layout
Relatively old facilities
Incomes overly dependent on Food & Liquor
Weak competitiveness in local
Unreasonable labor cost and HR structure
Faultiness of distribution and advertising channel
No strong image of USP

Source: Scottish Government, 2014
Private Sector Business Stock In Scotland
Source: Scottish Government, 2014
Scotland Full Service Hotel Performance
Source: Mintel
Total 155.7 million trips
Contribute 618.9 million nights
Average night per trip 3.97
Source: VIsitScotland.com
Business Market
Sales Strategy
ADR is £86.21

RevPAR is £65.56

Over 16% and 24% tourists in Edinburgh and Glasgow will choose three star hotel
Issue of Old James Farrell
UK Tourism and Hotel Market
Pricing Strategy
About James Farrell
Mission & Objectives
Definition of Boutique Hotel
Opening Strategy
Target Market
Sales Strategy
Finance & Human Resource
The reasons of customers come to Scotland
To sum up, the new James Farrell will be a Bauhaus style boutique hotel and will fulfill the CEO's simplicity and fresh belief. After the modification, the hotel will survive and be successful in such a competitive hotel market.
Full transcript