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AIRPORT TRANSIT HOTEL COMPETITIVENESS ANALYSIS SERVICE AND OPERATION MANAGEMENT IN HOSPITALITY INDUSTRY

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Mohammad Raies

on 23 April 2011

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Transcript of AIRPORT TRANSIT HOTEL COMPETITIVENESS ANALYSIS SERVICE AND OPERATION MANAGEMENT IN HOSPITALITY INDUSTRY

AIRPORT TRANSIT HOTEL COMPETITIVENESS ANALYSIS SERVICE AND OPERATION MANAGEMENT IN HOSPITALITY INDUSTRY (HTH 710) Mohamed Haidrin b. Mohamed Aris 2010340023
Moammad Hadi Raies 2009472602
Noraiza Hasnita Rawi 2010524595 INTRODUCTION The current context marked by globalization and the increasing recognition of interrelations has imposed new rules of conduct: the prosperity of nations is based on competitiveness on international markets, and that of enterprises, on the integration in the worldwide value chains. Therefore, the competitiveness issue has become a topical subject for all the actors in economy, from the regional level to the organizational one. Defining competitiveness has preoccupied both renowned names in economic thought as well as scientific centers and associations.
According to Porter (1990), the national productivity is the only complete indicator that defines the concept of competitiveness. Competitiveness on an international level is the capacity of the country or firm to coordinate economic growth with the external balance; at the basis of the external performance of industrialized countries lays the fundamental importance of international trade (Management Forum, 1994). Objectives CONCEPTS OF COMPETITIVENESS Scott and Lodge (1985) defined competitiveness as a country’s ability to create, produce, distribute and/or service products in international economy, while rising returns on its sources. Newall (1992) stated that competitiveness is about producing more and better quality goods and services that are marketed successfully to consumers at home and abroad.


In comparison with the definitions of national competitiveness, the firm-level competitiveness is a straightforward concept. According to D’Cruz and Rugman (1992), the competitiveness of a firm as its ability to design, produce, and/or market its products superior to those provided by its competitors, considering both the price and non-price factors. Bordas (1994) stated that tourism business is not singular but encompasses a three-dimensional concept including market, product, and technology that satisfy people’s leisure wants and needs.
Going beyond the firm level, the conceptualized destination competitiveness based on the notion that it is a cluster of tourist attractions, infrastructure, equipment, services, and organization that jointly determines what a destination has to offer to its visitors DESTINATION COMPETITIVENESS According to Crouch and Ritchie (1999), the ability of a destination to provide a high standard of living for residents of the destination. But the destination’s ability to create and integrate value-added products that sustain its resources while maintaining market position relative to competitors (Hassan, 2000).
The ability of a destination is also to maintain its market position and share and/or to improve upon them through time (d’Hauteserre, 2000). It is include objectively measured variables such as visitor numbers, market share, tourist expenditure, employment, value added by the tourism industry, as well as subjectively measured variables such as ‘richness of culture and heritage,’ ‘quality of the tourism experience,’ etc (Heath, 2003)
COMPETITIVENESS IN HOTEL INDUSTRY The competitiveness of a country derives from the performance of its enterprises (Barros, 2005), which certainly include the hotel industry. The hotel industry benefits from a destination’s economic growth and stability and community developments, such as office buildings, retail malls, and entertainment facilities, which draw both business and leisure travellers and help creates demand for hotel rooms. There are many other factors (e.g., input, process, output, and outcome) that determine the hotel industry’s competitiveness.
the hotel industry’s performance is also determined by the factor conditions, including well-trained staff and infrastructures; the demand conditions, such as the spending power of tourists; the supporting industries like transportation and travel industries; and firm strategy, structure, and rivalry, such as the entry mode, pricing strategy, and even the location of the head office of the hotel chains, etc. (Tsai, Song & Wong, 2009).
looking into the nature of the Transit Hotel which been operated in the airport itself. The hotel offers accommodation, facilities and also the services to the passengers who in transit for few hours in the airport. The passengers do not have to get outside from the airport for accommodation.
TRANSIT HOTELS AROUND THE WORLD TRANSIT HOTELS AROUND THE WORLD The Transit Hotels serve business travelers usually rely on the strength of the transit passengers who transit in the terminal. If there is more flight in transit in the terminal, there will be higher percentage of passengers using this facility in the airport. However it depends on the size of the airports and total maximizing handling passengers for a year. Plans for future business development should also be studied such as the number of airlines expected to transit and touchdown in the airport. The transit hotel operators should look into the market demand based on previous 2 to 3 years.

There are challenges from outside competitors. This refers to the outside and nearby hotel which has more demands and more facilities to offer to the passengers.


. Airside Transit Hotel needs to have more marketing strategies in order to let the passengers aware that there is a transit hotel inside the terminal.
Market Area The Transit Hotels serve business travelers usually rely on the strength of the transit passengers who transit in the terminal. If there is more flight in transit in the terminal, there will be higher percentage of passengers using this facility in the airport. However it depends on the size of the airports and total maximizing handling passengers for a year. Plans for future business development should also be studied such as the number of airlines expected to transit and touchdown in the airport. The transit hotel operators should look into the market demand based on previous 2 to 3 years.

There are challenges from outside competitors. This refers to the outside and nearby hotel which has more demands and more facilities to offer to the passengers.


. Airside Transit Hotel needs to have more marketing strategies in order to let the passengers aware that there is a transit hotel inside the terminal.
The most important part of a lodging market analysis is the study of current and future competition. Performance can be measured in terms of occupancy percent and average daily room rate.

The accessibility to transit is only limited to the transit passengers only. Thus the market segment is only to the passenger who on transit more than 2 hours.
Competition Lodging Demand Travellers are willing to consume a large variety of goods and services produced and supplied by various industries, among which the most important are transports, hotel and restaurant services. In another words, demand plays important roles in gaining the present position on the market.

Transit hotel market segments typically fall into four categories: business, leisure, group, and other who are transit for few hours at the airport or those who waiting for flight delay. For instance the Amsterdam Airport Schiphol is one of Europe’s busiest airports servicing business and leisure travelers with over 44.2 million passengers passing through it per year.
Project Refinement Along with innovation, technology is an important strategic asset that allows hotel properties to improve their performance and competitiveness(Nyheim, 2004).

Dubai International Airport expand the airport which starts its operation since June 2002. Costing is estimated AED9.25bn, which includes the construction of terminal 3, concourse 2 and concourse 3, a new VIP pavilion for the Dubai Royal 'Wing', a car park and also a mega cargo terminal addition to the cargo village. The expansion programme was divided into three major projects. The first is the expansion of passenger facilities, including Terminal 3, concourse 2 and concourse 3. The second project incorporates the expansion of cargo facilities, including the mega terminal, and the third is the expansion of airfield infrastructure, such as new aprons, taxiways, roads, tunnels and runway extensions.
Forecasts project the airport to be handling 70 million passengers a year by 2016 and 100 million a year by 2025, which would make it the world's largest airport. Obviously further expansion projects would be necessary before this. Concourse 3 is expected to be complete by the end of 2011. It will encompass 11 floors with 50 airline counters, an 11,000m² retail area, a 32-room, five-star hotel, a 170-room, four-star hotel, two restaurants and two food courts.
Conclusion
As competition in the hotel industry becomes more intense, it is increasingly important for hotels to invest more in marketing activities to attract and retain guests and distinguish themselves from their rivals in order to stay in the industry (Keh,Chu, and Xu, 2006; Brown and Ragsdale, 2002). Investment in processes is important, as it influences customer satisfaction and service quality in the end (Roth and Jackson, 1995); if processes perform badly, it will affect the efficiency, and certainly competitiveness of firms.
To discuss the current information of transit hotels



To analyze the competitiveness of transit hotel in tourism global market
According to OAG, the world's airlines were scheduled to offer 317.4 million seats by April 2011. OAG Frequency and Capacity Trend Statistics (FACTS) reported that, this is the highest ever airline capacity for April, which this is 5% more than April 2010, or 13.9 million more seats that represents 1.25% rise in the average number of seats per flight schedule.
With the increasing number of flights, it will be a great opportunity for transit hotel to become more assertive in the market to cater their market segmentation.
ANALYSIS / Industry Trends
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