Executive Summary
In a crisis, the instability of the external and internal environment increases, and the likelihood of an even greater aggravation of the negative aspects of the crisis due to a rise in the share of adverse risks in the activities of enterprises in the service sector increases. The topic of various risks is today the most relevant in the scientific research of many scientists. Therefore, in crisis management of a small business in the hotel services sector, it is important for management to clearly know the types of risks, the degree of their impact on the enterprise, and be able to identify the riskiest objects of a small business in the hotel services sector. Atlantis Dubai resort is a large and top-notch hotel that needs to focus on options between futurism and medieval-style in order to be resilient to customer behaviour changes. In addition, the resort needs to have sufficient funds in order to ensure financial stability during crises.
In the case of Anantara Palm Dubai, the hotel excels at providing a wide range of options to its customers, and thus, its resilience needs to be focused on the correct marketing strategy regarding the alternatives. Poppies Samui resort is an outstanding example of a small and high-quality resort that needs to improve its resilience through maximum sustainability. Lastly, Vythiri Resort does not possess any form of resilience measures, but it can handle crises due to the lack of sophisticated procedures and entertainment. Therefore, the resorts’ unique location and its simplicity make it resistant to potential disruptions. Today, there are many risks that can affect the work of a small enterprise in the hotel services sector, especially in conditions of instability or crisis. Among a large number of threats, it is necessary to single out the most probable areas of hotel services for small enterprises.
Resort Management Report
The essence of enterprise crisis management can be explained using the psychological, financial, and economic, political, and structural-technological categories. From the point of view of the psychological approach, crisis management is considered as a necessary procedure that people resort to as a result of irrational behaviour and the desire for enrichment, which often leads enterprises to a crisis state. The report will focus primarily on four resorts, where two of them are Dubai-based resorts, one is Indian, and the last is situated in Thailand. Atlantis Dubai is an example of the most luxurious hotels that offer top-notch services but lacks the required flexibility. Anantara Palm Dubai is also a high-quality resort that focuses on providing a wide range of options depending on the clients’ needs. Poppies Samui is an outstanding illustration of trading its capacity and size for the quality of experience, which elevates its actual category. The last resort is the Vythiri Resort, and it is a highly affordable option that attracts guests with unique jungle-based features. Both Dubai based resort express a fairly high level of resilience towards crises due to a strong infrastructure of the region as well as the resorts’ inner management systems. Poppies Samui is less resilient, but it can sustain itself due to its size, whereas Vythiri Resort lacks any form of crisis resilience.
Crisis Evaluation
The overall approach of crisis evaluation is based on assessing the resort’s particular risks and evaluating its preparedness to the dangers. Each resort faces a different set of challenges due to its unique location, financial reserves, size, political influences, and the surrounding geography. Therefore, each unit needs to have a complete comprehension of potential sources of threats and dangers in order to develop appropriate response protocols. In addition, the given resilience is also reliant on current measures that ensure the functionality of the resorts.
Resort Crisis Resilience and Impact
Anantara Palm Dubai
Competition – 8, price – 6, natural disaster – 2, political conflict – 2, economic crisis – 2, employment – 2, property damage – 1, food and sanitation – 1, entertainment safety – 2, crimes – 1, power outage – 2, service errors – 1, and seasonal dependence – 1.
Insurance resilience – 4, interruption protection – 5, price adaptability – 4, model – 3, approaches – 3, supervision – 4, insurance – 4, entertainment control – 4, emergency access – 5, staff retention – 4, off season compensation – 5, and competition sustainability – 5.
The competition level in the region is high, and the marketing strategy is based on providing a multitude of options. These approaches are effective because they attract all sorts of clients. The core strengths of the resort are infrastructure and alternatives, and they provide a sustainable competitive advantage because it is challenging to build such structures. Safety control and quality management procedures are highly effective at service improvement, and the response plan during a crisis is utilizing the most suitable structures. The main characteristics impacting the operation is the overall luxuriousness of Dubai. The resort does not possess major sustainability solutions, and thus, it can undergo restructuring through the use of the latest technology. The weaknesses can be observed in marketing, where a potential client might not fully understand the uniqueness of each option, and it can be eliminated by better social media and website design.
The Anantara Palm Dubai approach methodology implies a series of actions for several stages of crisis management. This analysis of data, including financial, commercial and service, and identification of the possible consequences of the crisis for the hotel. This also includes identifying possible actions to overcome the crisis, identifying potential risk factors for identified activities, and setting deadlines for implementing anti-crisis measures. For example, the fact that Anantara Palm Dubai offers three additional options in conjunction with the main hotel makes it resilient to consumer preference changes (Anantara the Palm Dubai resort, 2020). The first stage is carried out by experts, hotel workers, or invited specialists. In the practice of running the Anantara Palm Dubai hotel business in times of crisis, it is customary to independently audit data. During this event, a working group is formed, consisting of experts and senior managers, as well as leading managers of departments of the hotel company. The working group assesses the status of such areas as the organisational structure, staffing, compliance with standards, finances, organisational dynamics, and the quality of services.
In addition, it is obligatory to carry out an analysis of external factors through an audit of relations with partners, a review of relationships with suppliers, and inspection of relations with interested parties during the verification of the state of a hotel company. The auditing task of Anantara Palm Dubai is to compare the received data not with the previous ones, but with the planned indicators. The impact is manifested in an anti-crisis program that should be developed, and in hotel practice, as a rule, the main anti-crisis measures for the hotel business include a number of indicators (Brown et al., 2018). This is personnel who must have an understanding of their involvement in the process and actions, increase the level of motivation, determine the growth opportunities for each employee. The business is controlled in a crisis through adjustments to the operational and financial parameters, which should be aimed at stabilizing the financial condition, optimizing the number of partners and customers. The main objective is to preserve the flow of customers and the development of a strategy for overcoming the crisis, which will correspond to the interests of owners and managers. The milestones for Anantara Palm Dubai are distinctive in this approach. Thus, one can understand what the owners and managers of the hotel business are focused on during the crisis in different countries of the world.
Poppies Samui, Thailand
Competition – 9, price – 8, natural disaster – 4, political conflict – 4, economic crisis – 4, employment – 4, property damage – 2, food and sanitation – 2, entertainment safety – 4, crimes – 4, power outage – 4, service errors – 4, and seasonal dependence – 4.
Insurance resilience – 5, interruption protection – 3, price adaptability – 3, model – 2, approaches – 3, supervision – 3, insurance – 4, entertainment control – 2, emergency access – 3, staff retention – 4, off season compensation – 3, and competition sustainability – 4.
The general competition in the hotel industry of the region is extremely high, and marketing strategies are focused on promoting quality over size. The latter approach is effective at attracting clients who do not enjoy crowded hotels. The core strengths of the resort are its low capacity and interior design, and these features provide a sustainable competitive advantage for a niche of tourists. Both quality management and safety control are decent at ensuring service improvement. The response plan in case of a crisis is based on tight control and regulatory policies due to a small size. The main characteristic of Thailand is the seasonality of the climate, which can influence the operation of the resort. The design of the resort is highly sustainable due to the overall smallness of the structures, and thus, the next step in improvement can be making it fully dependent on alternative sources. Weaknesses are minor, and they are based in the resort’s marketing, which does not advertise its smallness as strength.
In the case of Poppies Samui, measures are needed to increase sales through the formation of new hotel products and changes in price proposals. In addition, cost optimization measures are required, as these provisions are drawn from the best practices of successful enterprises in the hospitality industry. This condition is undoubtedly relevant in the modern world, but it is worth noting that the main task in the operation of a hotel enterprise such as Poppies Samui during a crisis is to maintain competitiveness. For instance, a simple tour through a hotel Poppies Samui shows that the resort is fairly small, but the quality is outstanding (Take the tour, 2020). An important aspect directly related to the emergence of a crisis situation within the hotel business is the insufficient level of professional qualifications of employees, which entails irresponsibility to the owners for the consequences of managerial decisions and the financial result of activities.
The effectiveness of Poppies Samui in a crisis situation consists in a set of business processes, taking into account internal and external factors influencing the crisis situation, as well as constantly assessing the effectiveness of the existing strategy at the level of the organisational structure, marketing, and the enterprise management system as a whole. Currently, new conditions and trends are emerging, which largely determine the efficiency and competitiveness of hotels in a crisis (Brown et al., 2017). Poppies Samui depends on external factors, globalization processes, and scientific and technological progress, and the latest modern technologies radically change the consumer behaviour model, their preferences, as well as the conditions for the functioning of enterprises. It should be noted that in the impact of interaction between Poppies Samui, both with external and internal factors, a crisis situation arises, the reasons for which may be the quality of the services provided, the state of market demand, and the price of the service.
In addition, there are also factors such as the material base of the hotel company and external factors that do not depend on the hotel sector. This prompts Poppies Samui to offer an expanded content of the provided hotel services, to strengthen the service component in its work. Taking into account the heterogeneity of the flow and the factors that form it allows the hotels to offer the market the services required in terms of quality, volume, and quantity and to combat the seasonal demand factor in Poppies Samui. Deep personalization of service and full concentration on the requests and needs of customers.
Atlantis Dubai
Competition – 6, price – 4, natural disaster – 2, political conflict – 2, economic crisis – 2, employment – 2, property damage – 1, food and sanitation – 1, entertainment safety – 4, crimes – 1, power outage – 2, service errors – 1, and seasonal dependence – 1.
Insurance resilience – 5, interruption protection – 4, price adaptability – 2, model – 3, approaches – 4, supervision – 5, insurance – 5, entertainment control – 5, emergency access – 5, staff retention – 5, off season compensation – 4, and competition sustainability – 4.
The competition in the hotel industry of the region is fairly serious, because other resorts are also luxurious. The main marketing strategy for attracting and retaining guests is providing a lux-level environment in either futuristic or traditional settings, and they are highly effective due to adhering to a wide range of tastes. The core strength of the resort is a dual offer, which allows it to compete with major hotels. Being one of the top Dubai’s resorts, it’s quality management, and safety control procedures are effective in improving the service. The response plan is to adjust to the relevant crisis and rely on reserved funds. The main characteristic of a region is its location and infrastructure, which is partially due to Dubai’s inherent state. The resort is not highly sustainable, but the usage of solar panels is present, and the latter can be expanded through large investments. The weakness is the lack of options for individuals who do not seek highly futuristic or castle-looking resorts, and thus, the resort needs to offer a wider range of options.
Atlantis Dubai’s approach to crisis management considers various methods of financial management, depending on the reasons causing the insolvency of the enterprise. The latter includes management inefficiency due to the actions of the owner, the formation of a suboptimal cost structure for the production and sale of products, and an inefficient tax system. This requires a change in financial and economic policy at the macro level to eliminate these shortcomings, that is, to determine other conceptual foundations for the content of financial recovery.
The financial and economical approach of Atlantis Dubai is interpreted by anti-crisis financial management as a process of restoring solvency, eliminating the imbalance of incoming and outgoing financial flows in order to achieve economic equilibrium to ensure the activities of enterprises. Atlantis Dubai’s structural and technological approach is based on the innovative renewal of enterprises, and it can be fully used in the conditions of a forecasted creative economy. The impact of this approach is that although it requires significant investment, it can subsequently lead to substantial economic growth. The crisis financial condition of enterprises is determined, on the one hand, by the general economic and political situation, and, on the other, by their ineffective management. The development of measures aimed at increasing only financial stability will not lead to a real restoration of solvency and financial well-being (Zech, 2016). Atlantis Dubai can achieve these positive results in its development and overcome the crisis situation through the implementation of an economic recovery plan based on an appropriate strategy.
With regard to Atlantis Dubai at the luxuriousness level, interest in crisis management grew at a time when countries were exposed to various external factors of influence. For example, it only offers two resorts with highly different themes, such as futurism and medievalism (Atlantis Dubai, 2020). In such situations, hotel companies were looking for ways out of the problem, developed anti-crisis programs. Another example is the impact of global financial crises on the purchasing power of the population. Under the influence of such trends, the people of many countries are changing their priorities in acquisitions, including traveling less or reducing the time and budget of their holidays. Consequently, hotel enterprises incur losses. This situation also raises many questions among specialists, motivating them to develop anti-crisis programs.
Vythiri Resort, India
Competition – 4, price – 8, natural disaster – 4, political conflict – 6, economic crisis – 4, employment – 6, property damage – 6, food and sanitation – 4, entertainment safety – 2, crimes – 6, power outage – 6, service errors – 6, and seasonal dependence – 6.
Insurance resilience – 2, interruption protection – 2, price adaptability – 3, model – 1, approaches – 2, supervision – 2, insurance – 3, entertainment control – 1, emergency access – 2, staff retention – 3, off season compensation – 3, and competition sustainability – 3.
The overall competition in the hotel industry of the region is not high due to the unique location of the resort. The marketing strategy used to retain and attract guests are price and location, and the latter is effective at achieving the goal. The core strength of the resort is its uniqueness because it is located in the middle of the jungle. The tendency of resorts being situated at the beaches allows Vythiri Resort to remain competitive. Safety control and quality management procedures are fairly basic because it does not offer a sophisticated form of entertainment. There is not a direct response plan in case of a crisis, but the resort will adapt and operate under the limitations. The main characteristic of the region is that it is surrounded by thick jungle forest. The resort design does not include sustainability solutions, and it can change this state by introducing basic solar panels. The weakness is the lack of a spacious open area, which can be eliminated by property expansion.
It is important to note that the situation at Vythiri Resort, compounded by current action and terrorism, is forcing executives to monitor trends and innovate in order to attract tourists at any cost. Business intelligence and vision play a role in doing business in order to integrate purpose-built hotel services and design into the environment in which they are located, combining with the cultural, historical, and natural resources of the destination. For example, a tour video shows that cultural context is highly preserved in order to ensure that guests are able to undergo an immersive experience (VR Studios, 2017). It is important to consider some of the trends that Vythiri Resort executives are implementing in the hotel complex during a crisis due to local conditions. This includes providing uninterrupted power to Vythiri Resort and focusing on the health and well-being of visitors.
In addition, it is important to consider the overall impact of the underlying activities. Thus, the given functional model of Vythiri Resort allows one to have an idea of the need for measures during a crisis of hotel events and a basic set of actions. Each hotel, such as Vythiri Resort, should have its own characteristics depending on the causes of the crisis. If negative phenomena affect the financial efficiency of a hotel company, it loses profits, and hence profitability has inadequate liquidity indicators (Mikulic et al., 2018). Business reorganisation measures are aimed at restoring the solvency of the hotel business. This is the restructuring of debts, if there are difficulties with the return of loans, increasing the liquidity of hotel resources, eliminating cash gaps, and optimizing costs.
Recommendation
The recommendation for both Atlantis Dubai and Anantara Palm Dubai is to create a reserve fund and be involved in financial stability through diversification. This will allow these large resorts to survive crises that will completely shut down any form of operations. In the case of Poppies Samui, the resort needs to ensure the maximum level of sustainability and use it as a backup strategy in order to maximize the resilience factor. Vythiri Resort needs to utilize its relative simplicity by undergoing a steady growth pattern without involving itself in a financial burden.
It is important to understand that reducing the share of risks affecting a small enterprise in the sphere of hotel services is realized through timely assistance to guests, signing in advance longer agreements with the most convenient counterparties, constant optimization of financial flows, and improving the quality of guest service. Reducing the number of risks is implemented by eliminating them, preventing them, and avoiding them. The risk substitution method involves the use of risks that are not directly aimed at the operation of a small hotel business, but that can compensate for the negative impact of other threats (Masa’deh et al., 2018). In practice, this is a complicated model for working with risks, although it requires not so much material or time resources as the ingenuity and experience of anti-crisis managers.
Conclusion
In conclusion, the hospitality industry is an important business globally, and current development trends and tourism demand are driving its transformation. Numerous trends highlight the importance of the modern hospitality industry, as the modern tourist is not satisfied with just the basic hospitality offering, such as in Atlantis Dubai or Anantara Palm Dubai. It requires a differentiated and personalized service that becomes the main motive for travel. As a result of the existing and ever-growing variety of hotel complexes, the competition in which businesses need to survive is increasing. In addition, crisis situations cause the situation in the country’s economy as a whole and external international relations, such as the case of Poppies Samui. As a result, the operation of hotel enterprises, such as Vythiri Resort, during the crisis is a fundamental goal for maintaining the value of the hospitality industry. It is important to form a model of enterprise management in the hotel industry during a crisis, which has a basic set of actions necessary to improve the crisis situation.
References
Anantara the Palm Dubai resort (2020) Web.
Atlantis Dubai (2020) Web.
Brown, N. A. et al. (2017) ‘Exploring disaster resilience within the hotel sector: a systematic review of literature’, International Journal of Disaster Risk Reduction, 22, pp. 362-370.
Brown, N. A. et al. (2018) ‘An integrative framework for investigating disaster resilience within the hotel sector’, Journal of Hospitality and Tourism Management, 36, pp. 67-75.
Masa’deh, R. et al. (2018) ‘The effect of promotional mix on hotel performance during the political crisis in the Middle East’, Journal of Hospitality and Tourism Technology, 9(1), pp. 33-49.
Mikulic, J. et al. (2018) ‘Strategic crisis management in tourism: an application of integrated risk management principles to the Croatian tourism industry’, Journal of Destination Marketing & Management, 7, pp. 36-38.
Take the tour (2020) Web.
VR Studios (2017) Vythiri Resort of Wyanad in vr/360 video. Web.
Zech, N. M. (2016) Crisis management within the hotel industry – a stakeholder relationship management approach. PhD Thesis. University of Latvia. Web.