The corporate profile
Rotana hotel management is a limited corporation operating as hotels and resorts Management Company in Middle East and North Africa regions. The company assets total over seventy facilities within twenty-six cities in Middle East and North Africa regions.
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The corporation is headquartered in Abu Dhabi UAE where it originated. The company sales and marketing strategy aims to be effectual and practical in maximizing the expansion of each property’s market share.
Rotana hotel chains consist majorly of five star hotels with over thirty-five luxury guest rooms. Rotana hotel chains specialize majorly in servicing business and corporate clients. The hotel chains service the business communities around the cities they operate in and visiting corporate travelers especially in major cities in Middle East and North Africa.
The key clientele of the Rotana hotel management are corporate clients coming from domestic and international markets within the travel trade segments. The strategic locations of the properties are vital for their success due to their accessibility and proximity to other social services.
In addition, the repeated business the hotel management receive annually and the customer loyalty are vital to its success. Rotana hotel management is committed to offering its guests the most current technical business facilities both within the hotels conferences facilities and inside the rooms.
Situation analysis / Marketing strategy
Rotana hotels management is dedicated to offer its clients high quality and standard services. Offering quality and value to the quests is above everything in Rotana hotel management. The hotel management also recognizes their place in communities they operate and will always work towards developing cordial relationships with these communities.
Above all, the management will always respect and protect the environment of these communities. Rotana hotels management will strive to create and add more value not only to their clients but also to its suppliers, owners and the shareholders.
Moreover, the management will continue to honor the hotel brand values while encouraging all the staff to widen their scope in an atmosphere of conviction and faithfulness.
Market research and knowledge
Rotana hotel depend mostly on corporate guests primarily guests from travel trade. With the current situation in the Middle East and North Africa where most of the hotels are situated, the market is expected to grow.
Moreover, with the continuous growth of the Middle East economies, corporate travels are also expected to grow thereby expanding the market. With these high expectations, Rotana hotel management must continue to focus on offering exemplary services to its clients at reasonable rates to build up customer relationships that go beyond one stay.
However, the hotel management is facing stiff competition from other group of hotels mushrooming in Dubai and Abu Dhabi. Therefore, the hotel management must offer competitive room rates to maintain and attract other clientele.
The survival of Rotana hotel management in this highly competitive environment will depend on the client’s loyalty to the corporate brand. Thus, the brand must continue to provide quality, value, and deliver on its promises.
Rotana hotel management is committed to offer value and benefits to its clients. Above all, the management is committed to offer standard services and facilities at affordable prices, which is according to the customers’ needs. Moreover, Rotana hotel management will always continue offering its guests with exemplary personal services as well as the reliable recognition that they always need.
In fact, it is in Rotana where guests are given more recognition. Above all, guests are provided with relaxed and luxurious environment ideal for business purposes.
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Guests are also given an opportunity to develop personal relationship with the hotel that will result in increased efficiency, reliability, and value for their money as well as providing them with support they require at any given time.
The researches indicate that over 68% of the travelers are aware of the presence of Rotana hotel management. This number is continuously growing and is expected to reach its peak in the next few years. The market trends also indicate that the target market is growing at a steady and considerable rate.
The travel trade has grown averagely within the rate of 6-7% in all the countries where Rotana has facilities and at 9% in areas, it expects to put up new facilities.
The projected growth in the last five years has been slowed by world events. However, the current trends indicate that this growth rate will increase. Once it steadies, it is expected to increase with the increase in economic activities in the region.
Porters Five Forces
To facilitate the analysis of the industry and surroundings in which Rotana hotel management operates, the five forces model proposed by Porter will be applied. In other words, the Porters five forces approach will be utilized in evaluating Rotana hotel management competitiveness in the market (Porter 17).
The customers bargaining power
The Rotana hotel management products and services can easily be substituted with other services being offered by competing hotels at any point in time weakening the Rotana hotel management control.
The buyers of the Rotana hotel management services majorly constitute business and corporate travelers that in the last few years have reduced drastically. This clientele are the end users. Therefore, it can be concluded that the buyer’s power is quite high (Porter 17).
Bargaining power of suppliers
Firms within the hotels industry mainly deal with suppliers of highly perishable products. However, these companies may integrate to form a new competing company. Furthermore, firms such as Rotana hotel management are not capable of switching between supplying companies quickly and cheaply. This makes the bargaining power of suppliers rather high (Dunning 7).
New entrants threat
Because of renewed competition, Rotana hotel management had to go into additional cost to maintain its brand loyalty and promote new products. However, hotel clientele tend to be indifferent based on brand differentiation. There is an easy switch of networks among the non-loyal subscribers. This presents low product differentiation and barrier to entry (Dunning 7).
Competitive rivalry within an industry
Hospitality is one of the highly competitive industries in the world. Majority of local hotels like Rotana hotel management find it easy to set up since they could utilize their market leadership capabilities (Wernerfelt 175).
However, the foreign companies have an advantage in both technological and financial capabilities. Regarding the market accessibility, hotels are free to sell their brands to the consumers. The intense competition will lower Rotana hotel management control particularly, the prices of its services.
Threat of substitute products
There are several similar products offered by other hotels in the industry. Therefore, the threat of substitutes to the Rotana hotel management services is quite high. Rotana hotel management products demands are threatened by substitutes from other hotels products. In the condition that there is increased threat of substitute, there would be variety of alternatives.
This presents disparaging situation to the corporation. Rotana hotel management utilizes strong promotions in order to increase their brand loyalty and capture a considerable market share (Aiginger 64).
Rotana hotel management has well established differentiated strategy that distinguishes its products and services from its competitors. Moreover, the corporation has flat decentralized structures that eases management and reduces costs. In addition, the management and staff consist of diverse skills, which is resourceful to the Rotana hotel management (Davies and Ellis 1190).
The shared values of the hotel management are easily understandable and well communicated to all members of the staff. This is combined with strong and participative culture of all the stakeholders. All the staffs in Rotana hotel management are highly skilled and experienced, motivated and specialized.
The personnel consist of a well-trained team that is proud, respects, and promotes the corporation brand values. The staff of the corporation presents the brand values bring about brand loyalty in the midst of existing and new clients (Fyall and Garrod 23). The corporation also enjoys a strong reputation both within the domestic and international markets because of quality, reliability, and exemplary services to its clients.
Rotana hotel management differentiated strategy need to be well communicated both at the local and international markets. Moreover, seasonal staff turnover need continuous training and orientation, which might be costly to the corporation.
Some of the hotels rooms need renovation regarding putting in place technical equipments that support client’s services. The environment the chain of hotels operates is high volatile depending on the political climate each country presents in the Middle East and North Africa.
There are growth opportunities in the industry after long duration of slouch. Opportunities are also available in some countries such as Hong Kong and Russia where similar model of hotels are yet to be established. Moreover, direct competitors have been absorbed or merged with other thereby providing a vacuum for Rotana hotel management to thrive.
In addition, Rotana hotel management has already established strong and long-term relationship with the suppliers thereby reducing most of the supply costs. It is in Rotana hotels where guests enjoy personal services and quality. This has enabled the corporation to enjoy repeat corporate business. Therefore, guest dependency so far established and developed is another opportunity for the Rotana hotel management.
It is easy for new competitors to enter this market with similar products and brand. This poses a potential threat to the Rotana hotel management. New entries can either be from both domestic and international firms.
In addition to the threats of new entrants, substitute products offered by small and medium sized hotels and larger corporations are currently fully furnished with facilities that Rotana hotel management also offers.
Another threat is the slow growth of economy and some of the political instability being experienced in most parts of the Middle East and North Africa. This instability may cause some of the guests shy away from travelling to the Middle East where most of the hotels situated.
Product strategy and branding
Rotana hotel management brand development and operations strategy is highly aggressive. The strategies are currently being administered in Middle East and North Africa states.
The strategies depend heavily on structures that have been put in place to keep up its reliability and existence on the Middle East and North Africa regional mass media, and worldwide satellite televisions.
The product and branding strategies has also been achieved through recurrent efforts and partnerships with marketing organizations around the world.
Market Communications and CRM
The marketing strategy provides opportunity for the corporation to communicate its brand values, foster close relations with its clientele as well as other stakeholders and to be effective in identifying the needs of the customers. The corporation communicates its brand through its own PLCRS (Private Label Central Reservations System) as well as the internet technologies.
The PLCRS system provides instant messaging to all the communication tools that maintain its presence in Middle East, North Africa and around the world. The constant use of internet technologies provides a medium for hotels rooms reservations, customer relations, and online sales.
Not only internal factors but also external environmental issues affect Rotana hotel management. These include political factors, economic, social, and technological factors (Hartline 99). Like any other industry or business, Rotana hotel management requires politically stable environment in order to achieve its goals.
In a stable political environment, any industry or business will thrive since they will generate revenue. Political stability has only been experienced by hotels situated in Abu Dhabi, Qatar, UAE and those in Saudi Arabia. However, those in Iraq and North African have experience intense political instability thereby reducing revenue generated considerably.
The recent economic recessions in Europe and other trading partners has resulted in many smaller business oriented hotels chains going under (Reid and Bojanic 71). The reason is that travelers have reduced considerably and few businesses are transacted. In addition, these hotel chains do not have supportive infrastructures as larger hotels do.
Fortunately, Rotana hotel management has considerable infrastructures that can support underperforming facilities. Therefore, economic recession not only affected smaller hotel chains but also larger ones including Rotana hotel management.
Costs determine business and corporate travels. Since costs are continuously increasing, guests are constantly seeking value for their money (Reid and Bojanic 71). This is the reason why Rotana hotel management has come up with differentiation strategy. Another important social factor is culture. Most of the Rotana hotel management facilities are located in Arab countries where culture is different and highly restricted.
All Rotana hotels have been fitted with the modern reservation systems to add quality of services to the clients. The installation of on board reservations systems has to be integrated with the hotels central reservation systems to fully operate. The installations of such systems are always costly and require huge investments.
Rotana hotel management structure
The corporation has adopted flat decentralized structures that have been perceived as simplifying management and reduces costs. Each hotel operates as a distinct entity with its own staff management strategies and culture.
The reason why the corporation has flat decentralized structures is that each hotel operates in different administrative and economic environment. Even though much of the operations have been decentralized, they have been integrated with central systems.
Rotana hotel management culture
Despite operating in different cultural environment, the corporation encourages participative culture among its staff and all the stakeholders. All the stakeholders are encouraged to contribute positively to the development of the corporation and promote its values. The provision of quality services, promoting brand loyalty and adding value to the services offered are encouraged among the staff, suppliers, as well as shareholders.
Rotana hotel management leadership and resources
The greatest asset of the firm is its leadership and staff. All the staffs in Rotana hotel management are highly skillful and knowledgeable, aggravated and expert in his area. The diverse skills, management, and staff are resourceful to the corporation. The well-trained personnel promote the corporation brand values.
In essence, the corporation leadership depends entirely on its staff while the staff operates under good leadership. The leadership roles and resourcefulness of the staff are integrated and this makes it possible for the corporation to achieve its goals (Nijssen and Frambach 117).
The effectiveness of the corporation marketing strategies
The corporation marketing strategies are designed to resourcefully and effectively maximize the expansion of the entire facilities market share. In addition, the strategies have generated the sales targets and delivered the brand value and messages around the world.
The key objective of the marketing strategy is to attract guests and corporate clients into the Rotana hotels. Moreover, the marketing strategies are aimed at setting up and preserving individual links with significant travel operators in all its market segments.
In essence, all these objectives have been achieved. However, some of the strategies that have been put in place have proved costly to the firm. Ignoring the competitive structure, product positioning and appropriate market analysis has contributed negatively to the marketing strategy (Handlechner 67).
An inquiry into the overall supply chain of the corporation reveals that the number of new entrants will increase considerably leaving the hotel operators with less concern to take advanced benefits of the market share.
Nevertheless, it has never indicated the closing stages of development as the target market is estimated to increase up to ten percent in the next three years. Furthermore, new hotel operators within the industry depend on value addition as a means of penetrating the market.
In line with the increasing commerce in the region and around the globe, the need for hotel services will also rise in the coming years. The fact that major players in the industry dominate the market share in Middle East and North Africa regions does not necessarily mean that they are the only contributors in the regions hospitality sector. The in-depth analysis on their operations and business activities as well as the recent developments is highly required.
Rotana should consider putting in place strategies that will increase its competitiveness in the global market place. That is, its strategies should be visible within the global context (Handlechner 78). Besides, the corporation operations must be geared towards increasing the customer value. Its services and products must be differentiated from those of the competing firms in addition to continuous provision of quality services.
Moreover, the corporation must focus on creating, communicating, and delivering the value offerings to the target market. In its differentiation strategy, the firm must position its products and services in such a way that the clients understand the ability to fulfill their needs. Pricing is critical in this strategy.
Customers will always go for high quality and high quality attracts high prices (Hartline 234). However, for the corporation to remain competitive and attain its goal of offering high quality and value to its customers, its products, and services must be at reasonable prices. In essence, it must position its products in feasible locations (Handlechner 117) (see the generic price-quality perceptual diagram in the appendix).
Customer focused survey
Q1. Please rate each aspect of our service (tick)
The time taken to speak with our support desk staff
- Very long
- Very short
The staff’s expertise in solving your problems
The staff’s professionalism/courtesy
The staff’s interest in solving your problems
- Very interested
- Fairly interested
- Not interested
The overall time it took to solve your problem
- Very long
- Very short
Q2. Please point out how satisfied you are with our overall services.
The hold time it take to be serviced
- Very long
- Very short
The staff’s expertise in services provision
The staff’s professionalism/courtesy
The overall time it took to be serviced
- Very long
- Very short
Q3. Do you consider thoroughly serviced?
Q4. Was your issue sorted out immediately you contacted support staff?
Q5. Have you seen or use our online support web site before?
Q6. Please provide a general remark on how you would like our services to be improved or other services to be provided
Aiginger, Karl. “Competitiveness: from a dangerous obsession to a welfare creating ability with positive externalities.” Journal of Industrial Trade and Competition, 6.3 (2006): 63–66. Print.
Davies, Howard and Ellis Paul. “Porter’s competitive advantage of nations: Time for the final judgment?” Journal of Management Studies, 37.2 (2000): 1189–1213. Print.
Dunning, John. “Internationalizing Porter’s Diamond.” Management International Review, 33.4 (1993): 5-13. Print.
Fyall, Alan and Garrod Brian. Tourism Marketing: A Collaborative Approach. Bristol: Channel View Publications, 2005. Print.
Handlechner, Manuel. Marketing Strategy. Munich: GRIN Verlag, 2008. Print.
Hartline, Michael. Marketing Strategy. Farmington Hills, MI: Cengage Learning, 2010. Print.
Nijssen, Edwin and Frambach Ruud. Creating Customer Value Through Strategic Marketing Planning: A Management Approach. New York: Springer, 2000. Print.
Porter, Michael. “Location, competition, and economic development: Local clusters in a global economy.” Economic Development Quarterly 14.1 (2000): 15–35. Print.
Reid, Robert and Bojanic David. Hospitality Marketing Management. Hoboken, New Jersey: John Wiley and Sons, 2009. Print.
Wernerfelt, Birger. “A resource-based view of the firm.” Strategic Management Journal 5.2 (1984): 171–180. Print.
Appendix 1. Example of generic Price-Quality perceptual map