Post on 05-Apr-2018
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MarketingPlan
2008
MountainView
Hotel
.
MountainViewHotel
MountainViewHotel
0800555666777
info@mountainview.com
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Table of Contents
1.0 Executive Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
2.0 Situation Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42.1 Market Needs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42.2 The Market . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
2.2.1 Market Demographics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52.2.2 Market Trends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62.2.3 Market Growth . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62.2.4 Macroenvironment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
2.3 The Company . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72.3.1 Mission . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72.3.2 Service Offering . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72.3.3 Positioning . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82.3.4 SWOT Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82.3.4.1 Strengths . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82.3.4.2 Weaknesses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82.3.4.3 Opportunities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82.3.4.4 Threats . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
2.4 Competition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
2.4.1 Direct Competition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
3.0 Marketing Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 103.1 Value Proposition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 103.2 Financial Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 113.3 Marketing Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 113.4 Target Market Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 113.5 Messaging . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
3.5.1 Branding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 113.6 Strategy Pyramids . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
4.0 Marketing Mix . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 124.1 Product Marketing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 124.2 Pricing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
4.3 Promotion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 134.3.1 Advertising . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 134.3.2 Public Relations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 134.3.3 Direct Marketing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
4.4 Web Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 144.4.1 Website Goals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 144.4.2 Website Marketing Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
4.5 Implementation Schedule . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 144.8 Sales Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
4.8.1 Sales Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 154.8.2 Sales Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
5.0 Financials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 155.1 Break-even Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
5.2 Sales Forecast . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 185.3 Expense Forecast . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 195.4 Contribution Margin . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
6.0 Controls . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 206.1 Implementation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 206.2 Keys to Success . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
Appendix . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
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1.0 Executive Summary
Mountain View Hotel is a four star hotel offering 75 luxury rooms. Mountain Viewoffers unique lodging products and exceptional hospitality services. Our brand will
be synonymous with the exemplary personal service our guests receive, and theextensive range of business facilities available in a luxurious environment.
Mountain View Hotel will be targeting corporate guests with a two to three nightstay requirement. Our future expansion plans include adding resort type facilities to
draw in more leisure/vacation travelers.
Keys to our success will include developing, maintaining and continuously improvingour standard of services, and differentiating our offering from the rest of thecompetition.
Complementing our quality offering will be a well planned marketing tactics to
augment our business and build Mountain View as a strong brand.We hope this marketing plan creates a long-term growth model for our financialsuccess.
2.0 Situation Analysis
The hospitality industry is currently somewhat depressed due to economic
downturn. Leisure travel is on the decline, however, threat to the critical businesssegment can be considered as short term as indications of a return to normal
business travel are observed.We aim to specialize in serving primarily corporate clients by offering state of the
art business facilities and an exemplary personal service. Our major source of
revenue will come from annually contracted clients from various business sectors.This area of business will account for approximately 70% of the property's revenue.
A conscious planned effort to offer more value and better service than ourcompetitors will help us retain our customers beyond one stay and win repeatcorporate contract business.
2.1 Market Needs
The Mountain view Hotel will offer value to our clients by helping them save their
time, effort and money; this will be realized by offering reliable and competitive
room rates and advance booking services over the internet.We seek to provide our guests with an exemplary personal service and level ofrecognition that they can rely upon. We will provide our guest with a luxurious,
relaxed environment, an environment which they cannot find at our moreimpersonal competitors. Our guests need to know that they can develop a
relationship with the hotel that will ensure efficiency, value for their money andreliability in supplying them with the support they need, when they need it.
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2.2 The Market
The sources of revenue for the hospitality industry in Islamabad are the Leisure and
Business travelers. The Mountain View Hotel aims to specialize in servicing primarilybusiness and corporate clients. We will serve the business community, and visitingbusiness traveler, in Islamabad
Our key clients will be contracted corporate clients originating from both domesticand international markets. The reason for targeting mainly business travelers is the
opportunity to enter into annual contracts and repeat business from these clients.
While our prime objective is to initially win business travelers in the long run weaim to develop resort type facilities to attract leisure travelers.
Table: Market Analysis
Market Analysis Growth 2008 2009 CAGR
Business Travelers 10% 50,000 55,000 10%Leisure Travelers 5% 40,000 42,000 5%Total 7.86% 90,000 97,000 7.86%
2.2.1 Market Demographics
Business Travelers: Guests belonging to this segment are business people, 26- 65 years old,staying in 3-4 star hotels, have visited the destination more than once and are travelling alone orwith a business partner.
Leisure Travelers: Guests of this cluster are predominantly 28-40 years old couples, visit thedestination occasionally, and mostly stay in 3-4 star hotels.
Table: Market Demographics
Market Segment Age Dominant Gender Loyalty Status Benefit Sought
Business Travelers 26 65 Male Medium Productive StayLeisure Travelers 28 40 NA Low Relaxing Stay
Other
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2.2.2 Market Trends
The number of corporate travelers is increasing, as business activities increasefurther in Islamabad more business travelers are expected to seek reliable andcomfortable accommodation.
In summer season a large number leisure travelers / vacationers visiting theNorthern areas of Pakistan, and these travelers tend to stay at Islamabad beforethey head further north. However, due to mild recession in the economy consumer
spending in travel and tourism is on the decline.
Market Analysis (Trends)
0
10000
20000
30000
40000
50000
60000
70000
2008 2009 2010
BusinessTravelersLeisureTravelersOthers
2.2.3 Market Growth
0%
2%
4%6%
8%
10%
BusinessTravelers
LeisureTravelers Others
C.A.G.R
C.A.G.R
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2.2.4 Macroenvironment
The external, environmental issues that affect the Riverview Hotel are:
Pol i t ica l : an unstable political environment may affect our ability to generaterevenue in the future. Economic: Economic recession and rising inflation will be challenging. The recent
recession has seen many smaller hotels go into liquidation, as they do not possessthe infrastructure to support under-performing properties. Social: the trend towards minimizing travel costs leads hotel guests to seek more
value for money. We will take a value pricing approach. Techno log ica l: Internet is becoming an increasingly important source ofinformation and convenience for hotel guests. We will develop an independent
website to cater to that need.
2.3 The Company
Mountain View Hotel is a 4 star hotel comprising 75 luxury guest rooms and
specializing in servicing primarily business and corporate clients.
2.3.1 Mission
Mountain View is dedicated to perfecting the travel experience through continuousinnovation and the highest standards of hospitality.
Mountain View strives to lead the local hospitality industry with innovativeenhancements, making business travel easier and leisure travel more rewarding.
We also aim to maximize staff potential and development in a constructive, cleanand healthy atmosphere using efficient and profitable means.
2.3.2 Service Offering
Our hotel provides guests with an alternative to the impersonal, large five starhotels in the city.
Mountain View Hotel offers 75 luxury rooms equipped with high quality specializedamenities. The hotel also offers a lively ambience with a unique oriental feel.
Each item on the menu, from sophisticated breakfasts to gourmet meals, offers a
pure gastronomic experience.
Our well trained staff is perhaps the most important differential factor providing
exemplary personal service.
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We offer comprehensive business facilities to our corporate travelers such aswireless internet access, DHL express delivery kits, fax and conference room
facilities.
2.3.3 PositioningBusiness Travelers; For Business Travelers Mountain View will be positioned as a
strategically located hotel offering a high level of personal service. We will alsoposition ourselves as the only Hotel catering extensively to business needs by
offering wireless internet access, on site fax services, meeting room space, DHL kitfor easy mailing.
Vacation Travelers; For Vacation travelers the hotel will be positioned as a 4 starluxury hotel that is both central and secluded. The hotel will offer a warm
atmosphere and stress free and relaxing stay.
2.3.4 SWOT Summary
An increase in business activities and tourism promotion is expected to bring moretravelers to the area, we need to capitalize on our strengths to gain maximum
benefits from the opportunities presented to us. Continuous improvements andinnovations in our services will be needed to stay ahead of the competition and to
minimize threats.
2.3.4.1 Strengths
Well established differentiation strategy. specialized and well trained staff that are motivated and highly skilled. Conveniently located.
The upscale ambiance of Mountain view hotel will help attract sophisticated
clients. Detailed web plan
2.3.4.2 Weaknesses Points of differentiation need to be more clearly communicated externally, within
local and national markets. Seasonal turnover requires ongoing training and orientation of new staff.
Premium room rates may deter certain cost conscious customers. Challenges of the seasonality of the business.
2.3.4.3 Opportunities Repeat corporate business based on personal service and quality.
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2.3.4.4 Threats Potential for a competitive brand to enter the market with a similar product. Fully furnished and serviced business apartments offering lower daily rates.
Recovery from economic recession may take time.
2.4 Competition
Other 3 - 4 star hotels and serviced apartments compete for the same corporatebusiness segment. However, Mountain View will have competitive advantage in
terms of its superior personal service and specialized facilities for businesstravelers.
2.4.1 Direct Competition
H o li d ay I n n , I s la m a b a d : 4 star hotel, room rates at par with Mountain View.
Sha l im ar H o t e l , Raw a lp ind i : 4 star city hotel, room rates approximately 10%
lower than Mountain View. Crow n P laza , I s lam abad : 3 Star Hotel, room rates approximately 10% lower
than Mountain View.
These hotels offer similar lodging facilities, although somewhat less focused on
business needs, and offer more leisure facilities than we currently provide.
Table: Growth & Share Analysis
Growth & Share
Competitor Price Growth Rate Market ShareHoliday Inn Rs 15,000 4% 20%Shalimar Hotel Rs 9,000 5% 10%Crown Plaza Rs 8,000 5% 15%
Average Rs 10,666 4.67% 15%Total Rs 32,000 14% 45%
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Table: Competitor Analysis
Competitive Analysis
Competitor Holiday Inn Shalimar Hotel Crown Plaza
Product and/or Service 8 6 6
Quality 7 6 6
Price 6 7 7Location and PhysicalAppearance
Traffic 7 6 5
Appearance 7 6 6
Visibility 8 8 7
Convenience Factors 8 7 7
Added Value Factors
Experience 7 5 5
Expertise 8 6 6
Reputation 9 6 6
Image 8 6 6
Total 83 69 67
3.0 Marketing Strategy
Our marketing strategy will be geared towards delivering a message of consistenthigh quality and personal service. We will use different communication tools to
deliver this message and build a strong brand image and communicate our brandvalues. The initial promotional campaign will be aimed at building awareness and
positive referrals. An over all cost-effective strategy focused on direct marketing,
publicity, our loyalty reward programs, and advertising is proposed.
3.1 Value Proposition
Mountain view Hotel, first and foremost, seeks to offers the best, most personalizedservice for
the corporate and vacation/leisure travelers. We also aim to provide;
Consistent Quality Standards High end amenities Loyalty programs to frequent visitors
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3.2 Financial Objectives
Increase overall room revenue by 10% each year.
Keep payroll expenses down and reduce the level of overtime within theworkforce.
Achieve a double digit growth rate for the first three years.
3.3 Marketing Objectives
Achieve average annual room occupancy of 70% by the end of first year.
Increase repeat customers by 5% every year. Develop brand awareness and acceptance, quantified by a decrease in customer
acquisition costs.
3.4 Target Market Strategy
Business Travelers will be the primary target market, since there is will be anopportunity to enter into annual contracts. Local firms can also be targeted for theuse of professional standard Conference Room facilities.
Vacation travelers will be targeted to maximize room occupancy in holiday season.
3.5 Messaging
Our messaging will reflect the high standard, personal service and unmatched
facilities that we want to be associated with. Our high quality promotional materialwill aim to deliver the message that we offer superior services and we will make
your stay more comfortable and the same time more productive.
3.5.1 Branding
An important marketing objective will be to establish Mountain View as a mid price-
High Quality hotel brand. The Mountain View symbol should convey a message of
high quality and consistency of our services. The Mountain View brand must bemade synonymous with high levels of personal service guests receive, and itsconvenient and strategic location.
Every single element from our hotel logo, websites, brochures, amenities to our
mini bar items should contribute to the brand experience.
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3.6 Strategy Pyramids
4.0 Marketing Mix
Mountain View offers unique lodging products and exceptional hospitality services.
We aim to position ourselves as a high-quality and high-value brand. Our prices willbe competitive but we will not compete on prices. Our promotional activities will
include advertising, direct marketing and public relationing. Mountain View hotels
website will not only offer convenience to our customers by allowing them to checkroom rates and getting advance room reservation but will also serve as animportant promotional tool.
4.1 Product Marketing
4.2 Pricing
Pricing strategy has been consistent with the differentiation objective, to provideadded value for a reasonable rate as opposed to devaluing our products andservices.
Per Night Room rates quoted are; (Inclusive of taxes and service charges,continental breakfast included)
Corporate single - Rs 10,000 Corporate double - Rs 18,000
Corporate double deluxe - Rs 22,000 Corporate suite - Rs 25,000 (maximum occupancy 2 persons).
Per day Conference room rates are; (Exclusive of taxes and service charges, withtea and coffee breaks (2) included)
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Boardroom - Rs 35,000
Conference Hall - Rs 70,000 Ballroom - Rs 100,000
4.3 Promotion
The primary objective of our promotional activities will be to initially increaseawareness about the Mountain View Hotel brand and gradually position ourselves asa destination of choice for business travelers, meetings and conventions. This will
be accomplished through;Mass Communica t ion : Print ads in major news papers, magazines and on theinternet
Targe ted Campa ign ing : Direct mail campaigns to prospective clients
Personal selling in the local market
4.3.1 Advertising
The hotel will be advertised in major news papers and magazines particularly in
business magazines.
4.3.2 Public Relations
Our Public Relation activities will involve arranging interviews of upper tier hotelmanagement in top magazines and TV Channels. Tours of media and press
representatives will be held to get favorable reviews. The following table shows our
primary PR milestones;
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4.3.3 Direct Marketing
The direct marketing activities will be handled by our marketing department.
Carefully designed promotional material will be sent to a list of prospective clients.
4.4 Web Plan
The main focus of our Internet presence is to serve as permanent, always-accessible information and branding tool for prospective clients.
4.4.1 Website Goals
Our website needs to be able to do the following:
1. Convey our messaging of high quality, luxury business accommodations2. Improve room occupancy by making reservations more convenient
3. Be able to take reservations online and make changes to reservations online4. Enable us to conduct surveys and guage consumer satisfaction
4.4.2 Website Marketing Strategy
Our main website marketing strategy depends upon making sure all major travel
sites list our hotel when customers search for hotels in our area. The web siteshould be designed such that it not only offers convenience for the customers butalso promotes the hotel and its services.
4.5 Implementation Schedule
Marketing campaign efforts will be focused from January through April. We willcontinue to track the results of this campaign for the remainder of the year.
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4.6 Sales Plan
4.5.1 Sales Strategy
Mountain View Hotel's sales strategy relies upon repeat business from corporate
travelers. We need to attract new customers and retain existing customers keeping
in view our core sales strategy.
4.5.2 Sales Process
We will mail out promotional packets every 6 months to our key prospects. The
packets will have information about current room rates and special corporate
discounts, as well as information about rooms and amenities for the companies toshare with business travelers.The biggest piece of our sales process will depend on personal relationships. We will
need to make every business traveler feel like we remember them and we know
their likes and dislikes. We also need to cultivate good relationships with the personat the company who makes travel arrangements.
5.0 Financials
Our annual marketing budget is Rs 520,000. Sales are anticipated to achieverevenue of Rs 26,147,500. Our marketing expenses will equate to approximately
1.9 % of the overall revenue.
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5.1 Break-even AnalysisWe will need at least 1,250 night stays to break even. However, according to our
first years sales forecast we should be able to achieve 3,050 nights stays.
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Break-even Analysis
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5.2 Sales Forecast
The first years forecast is based on the average room occupancy as per industry'sstandards. Forecast for the coming years is based on a 10% growth rate.
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Monthly Sales
0
500000
1000000
1500000
2000000
2500000
3000000
3500000
4000000
4500000
Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun Jul
CorporateSuitCorporateDeluxCorporateDoubleCorporateSingle
5.3 Expense ForecastThe breakdown of expenditures is as follows:
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5.4 Contribution Margin
6.0 Controls
6.1 Implementation
Implementation dates for the milestones are given; however, their target
completion dates may be modified. We will continuously monitor all figures and
statistics in relation to projections versus actuals and take appropriate correctivemeasures if necessary.
End results will be evaluated at the end of year meeting where the strategy for the
approaching year will also be established.
6.2 Keys to Success
Maintain and continuously improve our standard of services. To effectively differentiate our offering from the competition.
Develop ongoing relationships with frequent and new guests. Develop and implement a strong communications plan.
Staff training and skill development to ensure the highest standards of service.