HAT303 Hotel And Accommodation Management

Introduction 

The aim of the report is to evaluate the contemporary types of accommodation services. This is the way through which the understanding for the different types of operations management issues that can take place in any of the operational contexts. The accommodation management is changing with the change in time and needs of the customers. Multi-sided technology platforms like Airbnb have dominated the global accommodation sector. Airbnb’s rapid growth can be attributed to the consumers’ willingness to make use of the accommodation services directly from the property owner. The report will include the current issues that accommodation services are facing in the competitive market.

Accommodation management 

Accursing to Ettema, 2012, the accommodation means to the room or place where you will stay or an agreement about sharing something. There are different types of accommodation that are present it includes hotels, resorts, motels and many others. Along with this, the development of technology has also brought the Airbnd. According to the author, this accommodation service is dominating the market with the rise in the competition within the sector.

Industry overview

In Australia, the accommodation association of Australia is the national industry body for the Australian accommodation industry. The members of this accommodation include hotels, resorts, motels and many others (Tourism Accommodation Australia, 2013). Considering the viewpoint of the Australian Bureau of statistics, the average hotel accommodation occupancy across Australia was 72.7% in the 12 months to September 2010 with an average room rate of $147.65. In addition, the employment in the accommodation sector is near to the 90,000 people nationally. In addition, the employment is not limited to the private sector as there are 188,000 employed in the general pub sector (Australian Hotels Association, 2016). This has been identified that there are approx. 4279 tourism accommodation established in the market of Australia. Moreover, the total accommodation rooms that are present in Australia include 227,320 and 640,454-bed spaces.  

According to the report, this has been found that the number of domestic overnight trips that take place in Australia has fallen by 1.1% on the average each year over the year 2001-2010 (Accommodation Association of Australia, 2018). In Australia, the outbound tourism is growing at a much faster rate than the inbound tourism. According to the Bankwest for a business report, the biggest accommodation state that is available in Australia is New South Wales with the total of 4,141 accommodation options in operations. Queensland comes second when it is about offering the accommodation services in Australia with 3,256 and Victory and Western Australia remain behind with 2,988 and 1,195 respectively (Butler, 2017). This accommodation facility is not only increasing in the hotel, motel and other element but there is a rise in the business of Airbnb’s.

Identified issues analysis

The industry analysis of the accommodation reflects that the need of the accommodation facility has been increased in Australia but this is also true that with the rise in the accommodation facility there is an increase in the problems that might be faced by the management in terms of the operational context. Some of the issues are given below: -

Rise in competition: - The accommodation management is becoming difficult due to the rise in the competition among the accommodation. This is the fact that there are different accommodation facility is available. In addition, the hotel industry is considered as the ever-blooming business and the travel keeps growing. In the Australian market, there is a rise in the demand for the accommodation facility. This is the reason business are expanding their existing business along with this the entrepreneurs are bringing the new ideas in the accommodation industry so that they make the profit out of this. Airbnb’s is becoming one of the biggest competitors of the hotels and different types of accommodation management. According to the analysis, this has been found that the business of Airbnb's has turned over $5.3 million and it will grow by 45% last year in tapping into the increasing demand for a more luxurious alternative to the internet giant Airbnd (Waters, 2017).

Cleanliness issues: - In the accommodation facility there is a need for the cleanliness because the visitor will only stay the place if they find it clean. The management also faces issues related to cleanliness because staffs get to occupy in attaining the other guests due to which they sometimes face trouble in maintaining the cleanliness at the place. The lack of cleanliness at the place affects the visitors as they shift to the hotel competitors or towards Airbnb’s (Guttentag, 2015).

Lack of marketing efforts: - The industry of hotel is technology averse to an extent due to which most of the options are available for the hotels in capturing their market space in the online market. Though, according to the latest research, this has been found that more than 60% -70% hotels make use of the old marketing practices due to which they are not able to grab the attention of most of the visitors in the market of Australia. Further, this is the reason due to which the other competitors have achieved the success in capturing the market. This is one of the major issues that are emerging in the accommodation services.

Poor customer satisfaction: - The customer satisfaction is one of the essential determinants that are required to be fulfilled by the hotels in the Australian market. Though, some of the hotels in the industry only focus towards the accommodation facility due to which they get fail in offering the quality foods which exploit the position of the hotel in the market due to which the customers don’t visit the place (Xiang and Law, 2013). Along with this, the poor quality food is exploring the customer satisfaction towards the hotel.

Conclusion 

In the end, it can be said that the accommodation facility and services are increasing in the market of Australia. Though, the hotel accommodation services are facing competition due to the emergence of different options of accommodation which include Airbnb's. There is a tremendous rise in the use of the Airbnb's services by the visitors of Australia. The analysis related to the Australian accommodation industry has been done with the analysis of the current issues that accommodation services are dealing in the competitive market space.

References

Accommodation Association of Australia (2018) Future COAG Regulatory Reform Agenda [Online]. Available from: https://www.finance.gov.au/sites/default/files/Accommodation_Association_of_Australia.pdf [Accessed on 18^th August 2018]

Australian Hotels Association (2016) Industry Data [Online]. Available from: https://aha.org.au/industry-data/  [Accessed on 18^th August 2018]

Butler, L. (2017) Areas on the rise in the Australian accommodation sector [Online]. Available from: https://www.accomnews.com.au/2017/09/areas-on-the-rise-in-the-australian-accommodation-sector/ [Accessed on 18^th August 2018]

Ettema, D.F. (2012) Multi-faceted tourist travel decisions: A constraint-based conceptual framework to describe tourists’ sequential choices of travel components. Tourism Management, p.9.

Guttentag, D. (2015) Airbnb: disruptive innovation and the rise of an informal tourism accommodation sector. Current issues in Tourism, 18(12), pp.1192-1217.

Tourism Accommodation Australia (2013) Australian Hotels: Contributing to economic growth and national prosperity [Online]. Available from: https://aha.org.au/wp-content/uploads/2013/07/AHA-National-Policy-Platform-2013.pdf [Accessed on 18^th August 2018]

Waters, C. (2017) Putting the luxury into Airbnb [Online]. Available from: https://www.smh.com.au/business/small-business/putting-the-luxury-into-airbnb-20171123-gzrhrz.html [Accessed on 18^th August 2018]

Xiang, Z. and Law, R. (2013) Online competitive information space for hotels: An information search perspective. Journal of Hospitality Marketing & Management, 22(5), pp.530-546.