Budget Hotel Report

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SCHOOL OF ARCHITECTURE, BUILDING & DESIGN Research Unit for Modern Architecture Studies in Southeast Asia

Foundation in Natural and Built Environments (FNBE)

ASSIGNMENT: A Comparative Analysis of 2 Businesses of Similar Industry in Different Geographical Locations

REPORT TITLE: BUDGET HOTELS

GROUP MEMBERS:

NAMES ROLES

LIM JOE ONN (0318679) -DESCRIPTION OF BUSINESSES -INTERVIEW QUESTIONNAIRE -TEAM COORDINATOR

CHONG KE QUN (0319214) -PRESENTATION SLIDES

HENG WEI YEN (0319584) -COMPARATIVE ANALYSIS OF COMPETITIVE TRAITS -ARTISTIC COVER

KOH SUNG JIE (0318912) -KEY SUMMARY -MINUTES -OVERALL GRAMMATICAL STRUCTURE

LEE KAI YUNG (0318314) -BIBLIOGRAPHY AND REFERENCE LISTS -DESCRIPTION OF THE HISTORY OF THE TRADE

ONG SENG PENG (0319016) -RECOMMENDATIONS

ENGLISH II / ENGLISH 2 [ELG30605]

LECTURER: MS CASSANDRA WIJESURIA

SUBMISSION & PRESENTATION DATE: 12 JANUARY 2015

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TABLE OF CONTENTS

NO TITLE PAGE NUMBER

1 KEY SUMMARY

3

2 DESCRIPTION OF THE HISTORY OF THE TRADE

4-5

3 DESCRIPTION OF BUSINESSES

6-22

4 COMPARATIVE ANALYSIS OF COMPETITVE TRAITS

23-30

5 OBSTACLES FACED BY NEW BUSINESSES

31

6 RECOMMENDATIONS

32-33

7 BIBLIOGRAPHY

34

8 REFERENCES

35

9 APPENDICES

36-48

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KEY SUMMARY

Throughout our research, budget hotels are a recent and blooming trade. We have chosen Apollo Inn in Penang and Grid 9 Hotel in Kuala Lumpur. Both hotels have similar characteristics of owning excellent reviews and the advantage of being located in the heart of a city. Both have a wide collection of rooms that caters to different travellers. Even with limited space, they managed to find unique ways to facilitate their guests by having a rooftop garden (Apollo Inn) or an interactive space (Grid 9). Despite having heavy competition with surrounding hotels, interesting tactics are applied to make them stand out from the rest.

(100 words)

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DESCRIPTION OF THE HISTORY OF THE TRADE

As all humans need a place to sleep at night, facilities offering hospitality to travellers have been a feature of all civilizations. Whenever a traveller is abroad, he or she needs a place to shelter themselves when dusk arrives. Thus, travellers pay people who provide available space for them to rest. Hence, the hotel industry is born.

During the modern age of globalization, travelling becomes more frequent. Therefore, tourism becomes one of the world’s largest and fastest growing industries. Our country, Malaysia, is a nation rich with numerous holiday attractions and diverse cultures, which become an asset to the country’s tourism industry. Thus, millions of visitors arrive in Malaysia every year. This generates economic growth and employment opportunities as the increasing number of tourists result in higher demands for hotels.

Tourism in Malaysia started from the early 1970s, which gave rise to the hotel industry. It has become the second highest foreign exchange earner for the country after the manufacturing sector. After that, the hotel industry experienced an encouraging growth rate in 1994. In 1998, the new Kuala Lumpur International Airport in Sepang was completed, bringing in 25 million passengers per year and help the growth of the tourism industry as well as the hotel industry.

As the number of tourists visiting Malaysia increased, more hotels were built. As a result, hotels were abundant in our country especially in tourism hot spots. They became a major contributor in our nation’s economy. Moreover, the hotel industry in Malaysia is being continuingly developed to cater more foreign visitors and provide better services all thanks to constant tourism development. The hotel industry in Malaysia is large. It offers accommodation ranging from simple lodging houses to luxurious five-star hotels. Thus, the visitors have a wider range of choices depending on their budgets.

In view of the ever-expanding influx of tourists visiting Malaysia and increasing number of hotels, the hospitality industry competes aggressively and struggles hard not only to earn survival profit but to maintain its competitive advantage. Hoteliers in the country constantly update and improve their services because travellers are highly knowledgeable. With the advancement of modern technology, customers of hotels easily write their reviews online for people to read upon. Therefore, severe competition

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results in little variations among product offerings and facilities in hotels. The service quality by frontline employees become the main factor determining the customers’ patronage.

Nowadays, budget hotels are increasingly popular as they provide comfortable, clean accommodation and convenient service at an inexpensive price. However, due to the fact that the budget hotel industry is risky because of high cost and strong competition, budget hotels come and go. Many budget hotels are actually secondary or tertiary businesses of larger corporations and might shift into another industry through time. Thus, finding a budget hotel that lasts for more than a decade is quite rare. As for this assignment, we chose to compare and contrast between two budget hotels, Apollo Inn in Penang and Grid9 Hotel in Kuala Lumpur.

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DESCRIPTION OF BUSINESSESES

The research in this assignment is based on the analysis of two budget hotels, namely

Apollo Inn and Grid 9 Hotel. Both budget hotels are located 356 km away from one

another. Apollo Inn is located in Georgetown, Penang while Grid 9 Hotel is located in the

heart of Malaysia’s capital city, Kuala Lumpur.

Location of Business 1, Apollo Inn:

Location of Business 2, Grid 9 Hotel:

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We selected a hotel in Georgetown, Penang and a hotel in Kuala Lumpur because these

places are major tourist destinations and dense urban areas. This guarantees a wide

range of customers. Also, both Apollo Inn and Grid 9 Hotel possess excellent reviews by

online rating systems.

TripAdvisor and Agoda ratings for Apollo Inn:

TripAdvisor and Agoda ratings for Grid 9 Hotel:

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Business 1: APOLLO INN

Current location: No. 7, Jalan Sungai Ujong, 10100 Georgetown, Penang

Number of branches: 2

Number of employees: 6 (3 locals, 3 foreigners)

Main service: Accommodation

Number of rooms: 20

Room types: Deluxe Family, Deluxe Double, Standard Twin, Dormitory

Estimated current number of customers: Full - 50

Peak season - 50

Average per day - 35

Opening Date: November 2009

Expenditure per day: RM 1500

Annual Revenue Figure: RM 1 million

Recent Development: December 2013 - Opening of Chulia Mansion, the first branch of

Apollo Inn

March 2014 - The disappearance of flight MH 370 severely decreased the number of

foreign customers

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Apollo Inn was founded in November 2009 by a partnership of 4 businessmen. As

Georgetown, Penang was granted UNESCO World Heritage Site status in 2008, the

number of tourists visiting Penang drastically increased. Thus, the founders found a

great opportunity to open a new hotel in downtown Georgetown. As available land in

the Core Zone of Georgetown is scarce and expensive while land too far away from the

heritage sites had less potential for attracting customers, the founders rent a piece of

land in the Buffer Zone of Georgetown.

This map of Georgetown shows the

Buffer Zone and Core Zone marked by

UNESCO. It is shown that the Buffer

Zone is not too far away from the

major tourist attractions in the Core

Zone.

The Core Zone has a high density of

heritage buildings while the Buffer

Zone has a moderate density of

heritage areas.

Apollo Inn is renovated from an abandoned building lot built in the 1980s. The capital to

start this business cost 1 million. This includes fees for renovation, furnishing, painting

and electronic systems.

Since its opening in November 2013, tourists kept pouring in due to its strategic location

near Georgetown, Penang. Most of the customers are from the ASEAN region, mainly

Malaysia, Singapore and Indonesia while 40% of customers are from other regions, such

as China and European countries. To date, Apollo Inn had served customers from over

30 different nations.

The Asian customers on the right are

locals while the Caucasian customers

on the left are from Australia.

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Rooms provided by Apollo Inn

There is a variety of rooms in Apollo Inn. Each caters different groups of customers with

different needs.

DELUXE FAMILY

The Deluxe Family room is furnished

with a 2 luxurious Queen-size beds and

an LED TV, specially catered for a family

on a holiday.

Price: RM 180 per night

SEMI DELUXE FAMILY

This room has a Queen-size bed and a

single bed. It is recommended for

smaller family groups.


DELUXE DOUBLE ROOM

Couples on a holiday usually book this

room as it has a luxurious Queen-sized

bed and a romantic view of

Georgetown.


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STANDARD DOUBLE ROOM

Couples who want a cheaper alternative

may choose this non-windowed room.

It has an en-suite bathroom and a

double bed.


STANDARD TWIN ROOM

Friends on a holiday may stay in this

room. It is non-windowed but provides

convenient safe-boxes and electrical

sockets.


DORMITORY

An exceptional alternative is available

for the budget-conscious, a bed in a

dormitory of 6 beds which are located at

the mezzanine floor. This choice is

suitable for backpackers.


A lift is provided for customers to move themselves from the lobby to other floors.

However, no lift is provided for customers of the dormitory. The dormitory is connected

to the lobby via a short flight of stairs.

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As Apollo Inn is built on a very small strip of land, the rooms and stairs in the hotel are

designed to be narrow in order to save space and maximizing customer amount. The

architect of the hotel used a Japanese approach to design spaces in the hotel by

maximizing the use of limited space.

Facilities in Apollo Inn

Other facilities were provided in the hotel for the convenience of customers.

Lockers for customers to

keep their personal

belongings.

A water dispenser that

provides clean drinking

water

Refrigerator that stores

canned drinks

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Apollo Inn is also known for its visually-appealing interior decoration.

A vertical abstract masterpiece by

local artist Ismadi

Installation of an overhanging

lamp

Light decorations at the lobby

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Apollo Inn has a unique feature, a rooftop garden. Couples can enjoy the scenery of

Georgetown and spend their time with a romantic getaway here.

As Apollo Inn earned huge amounts of

profit despite its short history, they

opened their first branch, Chulia

Mansion in December 2013. This 3-

star hotel is located 200 m away in

Lebuh Chulia. Also, the founders made

plans to move their focus of income to

this new hotel.

Chulia Mansion also has a rooftop

garden. The picture on the right

shows the view from the garden at

night.

Comfortable sitting areas are

provided at the garden

The rooftop garden illuminated by

lights at night

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Business 2: GRID 9 HOTEL

Current location: No. 9, Jalan Maharajalela, 50150 Kuala Lumpur Number of branches: 2

Number of employees: 18 (9 locals, 9 foreigners)

Main service: Accommodation, Food & Beverage, Art Gallery

Number of rooms: 51

Room types: Flying Solo, Standard, Broski, The LMG Crib, La Familia, Single Pods, Super Pods Estimated current number of customers: Full - 140 Peak season - 120 Average per day - 85

Opening Date: February 2007

Expenditure per day: RM 2750

Annual Revenue Figure: RM 1.2 million

Recent Development:

April 2009 - The global economic recession and H1N1 Influenza outbreak decreased

the number of customers, causing severe profit loss.

January 2013 - As net profit of the hotel gradually increased, plans to open new

branches in Puchong and Bukit Bintang were made.

July 2013 - Flight MH 17 was shot down, number of foreign customers decrease

tremendously. Plans to open new branches were delayed.

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Grid 9 Hotel was founded in June 2007 by 1 main developer and 3 shareholders, who

were close friends. Back then when the key founders were studying in Australia, they

got the idea of opening a budget hotel for flashpackers (affluent backpackers) after

observing the abundance of these sort of budget hotels overseas. As Malaysia launched

the ‘Visit Malaysia 2007’ tourism campaign, the founders thought of it as an opportunity

and opened Grid 9 Hotel that year. The hotel was built by renovating abandoned shop

houses.

The hotel is just right next of

Maharajalela Monorail station,

which links with many major parts

of Kuala Lumpur. Due to its

strategic location near a vital

transportation and Chinatown, the

hotel is very convenient for

tourists.

The hotel is named ‘Grid 9’ as the

founders had a concept of adding

interactive spaces to connect backpackers

all around the world, just like a grid which

has lines linking one another. This idea

was revolutionary back then as it made

the hotel different from other

mainstream hotels, which became the

hotel’s main selling point.

Up to 85% of the customers of

Grid 9 Hotel are foreigners. The

photo to the left shows a

Western tourist trying out the

hotel facilities.

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Rooms provided by Grid 9 Hotel

There is a variety of rooms provided to customers. The rooms were given unusual

names, making unique impressions to customers.

FLYING SOLO

This room provides a comfortable single

bed, which suits solo travellers. Perfect

for the lone ranger!


THE STANDARD

A queen size bed for two is equipped in

this room, making it suitable for

lovebirds on a holiday. According to an

employee, the hotel founders almost

named the room ‘The Scandal’, but

changed their decision later on.


BROSKI

Friends who travel in pairs can book the

‘Broski’. As the name suggests, this type

of room is for ‘bros’. It has twin beds and

an en-suite bathroom.


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THE L.M.G CRIB

Named after the initials of one of the

founders who paid for naming rights.

The L.M.G Crib is a more luxurious

choice. It is furnished either with a King

size bed or the option of twin beds.


LA FAMILIA

As the name reckons, La Familia is a

room suitable for travelling families.

Customers can enjoy a wide space with

beds accommodated for a whole family

in this room.


SINGLE PODS

This private pod provides a single bed,

adjustable privacy light and personal locker

space. There is a total of 6 pods in a

dormitory.

A lift connected to all 5 floors is provided. One main stairway connects the first floor to

the second floor. Customers can use a staircase that connects all floors in case of an

emergency.

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The plan layout of Grid 9 Hotel is square with

4 interconnecting hallways of equal length.

Hence, the hallways in a floor are all linked in

a continuous loop, making it easier for

customers to navigate and locate themselves

in the floors.

Facilities in Grid 9 Hotel

The lounge is equipped with a long study

table. Customers can place their laptops

here and enjoy free Wi-Fi.

LCD televisions provide entertainment

and news to customers when they are in

the hotel.

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Grid 9 Hotel has a modern and contemporary interior design, which suits the taste of

young people.

Light bulbs hanging above the bar table. Lightings

like these are in-trend nowadays.

The interior walls of the rooms had

a uniform theme. They used

intersecting lines with shades of

the same colour.

The design of spaces in Grid 9 Hotel never fails to

awe and inspire visitors.

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In order to attract customers to Grid 9 Hotel, the founders implemented a one of a kind

concept and added unique features. The hotel serves as a mix of an art gallery,

interactive social space, ‘gastropub’ (combination of pub and restaurant) and

accommodation area.

The first floor of the hotel serves as

a ‘gastropub’ where backpackers

can enjoy a delicious meal, drink

beer or sip a cup of coffee.

A variety of beverages are served

at the bar. The hotel becomes

crowded on weekends as people

come here to have a drink.

Aside from having a lobby, the

lounge functions as an interactive

space where customers from all

around the world can sit down,

relax and interact with others.

Exchanging experiences and ideas

can be wonderful.

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Customers can play games

in the second floor. A

variety of board games and

a pool table is provided.

The hotel even had its own art gallery

– Galeri Chandan. The purpose of the

gallery is to enhance the local art

industry. Artworks of local artists are

displayed here for free but in return,

the hotel needs to promote their

valuable masterpieces.

Grid 9 Hotel had a lot of corporate

partners. The hotel helps them to

advertise their brands. It is one of the

strategies for the hotel to earn extra

funds.

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COMPARATIVE ANALYSIS OF COMPETITIVE TRAITS


As Apollo Inn is established in Georgetown, a popular tourist destination, it encounters

severe competition with many other hotels. This is due to the fact that many businesses

realized the opportunity to earn profit in this area due to high demand for hotels. 26

hotels are present within its 2 km radius. Perfect competition occurs as no small group

of hotels had the power to manipulate the accommodation prices. To compete with

other hotels, each hotel offered accommodation with the lowest price possible.

The top 3 competitors of Apollo Inn are New

Asia Hotel, Kimberley House and New Rope

Walk. They are all within walking distance

from Apollo Inn.

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COMPETITOR 1 : NEW ASIA HOTEL

This hotel is located at a corner lot, which

faces a bustling road junction, making it

very noticeable by tourists as a potential

accommodation place. It might seem old

and worn-down on the outside, but the

rooms are actually clean and spacious.

Price of cheapest single room: RM 105 per

night

COMPETITOR 2: KIMBERLEY HOUSE

One of the strongest competitors of

Apollo Inn. It attracts customers with its

vintage-style exterior design. The prices of

the rooms are cheaper than those in

Apollo Inn.


night

COMPETITOR 3: NEW ROPE WALK HOTEL

Just 100 metres away from Apollo Inn, this

hotel offers spacious rooms with Wi-Fi

service. It is also located right next to a

few restaurants and a taxi stand. The

rooms are cheaper than Apollo Inn, but

are very basic and lack visually-appealing

design.


night.

Although Apollo Inn is located in a less noticeable location and offered a slightly higher

price compared to most of its competitors, it still attracts many customers every day

due to its comfortable design, beautiful ambience and warm hospitality.

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Strategies Employed By Apollo Inn to Compete With Competitors

A few strategies were employed by Apollo Inn to attract customers.

A free half-day tour is organized for customers to

participate. Most of Apollo Inn’s competitors do not

provide this service, thus giving Apollo Inn an

advantage.

The ratings by customers in travelling

websites such as Expedia and Agoda

are displayed at the walkway,

attracting customers to the hotel as it

showed high credibility.

All customers of Apollo Inn are

cordially invited to enjoy a free

dinner at night. The dinner events

are held at their sister hotel, Chulia

Mansion’s rooftop garden. Both

Apollo Inn and Chulia Mansion are

the only hotels in Penang that

provide a rooftop garden dining

experience.

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Grid 9 Hotel is established in the middle of the bustling city of Kuala Lumpur. As many

tourists and businessmen flock into this city from all corners of the world, there is a high

demand for accommodation spaces. Thus, hotels are literally everywhere. There are 52

hotels within a 2 km radius from Grid 9 Hotel, resulting in severe perfect competition.

Under perfect competition, customers have a vast variety of choices to choose from,

making the hotels competing against one another for profit.

The three main competitors of Grid 9

Hotel are Midah Hotel, Mandarin

Court Hotel and i-Hotel. They are all

located along Jalan Maharajalela, a

major motorway.

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COMPETITOR 1: i-HOTEL

This is yet another budget hotel competing with Grid 9. It

is located between a Chinese restaurant and a 7-eleven

store, thus making it extremely convenient for travellers.

Also, it has a spacious environment and a rooftop patio for

relaxation.

Price for cheapest single room: RM74 per night.

COMPETITOR 2: MANDARIN COURT HOTEL

Mandarin Court is a business hotel that is housed

within the tallest hotel at Jalan Maharajalela. Due

to its height, this hotel grants a good window-view

for its customers. Also, it provides several facilities

such as conference rooms, ballrooms and a

restaurant.

Price for cheapest single room: RM 120

COMPETITOR 3: MIDAH HOTEL

Between the other hotels mentioned, Midah Hotel

is not located beside the highway, thus obtaining

the advantage of tranquillity and cleaner air. It is

also a tall building, giving customers a better view.

It acquires two restaurants as well as massage and

spa services.

Price of cheapest single room: RM 120

Despite the fact that Grid 9 Hotel had less facilities compared to its competitors, it has

successfully received good feedback from most of their customers due to its excellent

service. Also, its unique approach in designing spaces within the hotel attracts many

customers.

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Strategies Employed By Grid 9 Hotel to Compete With Competitors

To attract customers, Grid 9 had a few strategies.

Within Grid 9 Hotel, it has an

avant-garde modern interior

design that left their customers a

good impression. Aside from

backpackers, businessmen conduct

meetings here, which indirectly

promotes the hotel to many big

names.

Grid 9 Hotel adds multiple

functions to available space. It

does not just function as a

budget hotel, it also serves as an

art gallery, pub and restaurant.

This makes the hotel special as

hotels with such concepts are

rare. The vibrant activities

attract customers to the hotel,

making it successful and

competitive.

Equipped with various facilities,

the lounge enhances the

experience of customers. Thus,

customer satisfaction is

guaranteed. Hotels with

interactive spaces for customers

to socialize was a revolutionary

concept. This makes the lounge a

major selling point to attract

customers.

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Comparison between Apollo Inn and Grid 9 Hotel

MAIN CONTRASTS

MAJORITY OF CUSTOMERS Locals Foreigners

SURROUNDINGS Alley/Streets Roads/Highways

LOCATION Less noticeable Clearly seen

CONVIENIENCE OF TRANSPORTATION

None Monorail

CORPORATE PARTNERS None 6

PRESENCE OF OUTDOOR SPACES

Rooftop Garden None

SECONDARY FUNCTIONS None Art Gallery, Pub, Restaurant

DIFFERENCES OF PROVISIONS

RECEPTION Certain hours 24-hour

LEISURE PROVISION Rooftop Garden Pool Table, Board Games, Television

NUMBER OF ROOMS 20 51

PRICES OF ROOMS Changes on weekends Fixed prices

EXTRA EARNINGS None In-house restaurant

DECORATION Constant Changes seasonally

PRESENCE OF LOUNGES None Present

LOCATION OF LOBBY Ground floor First Floor

SIMILARITIES

DESIGNS OF HOTEL Modern contemporary design

LOCATED AREA Tourism hotspot

TARGET CUSTOMERS Budget travellers/ Backpackers

MOTIVES Provide quality accommodation for budget travellers

NATURE OF MARKET Perfectly competitive

RATINGS Excellent internet reviews

CLEANLINESS Good

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Conclusion of Analysis

Grid 9 is more commercially successful.

Despite the fact that they provide less facilities compared to neighbouring hotels33999, they still

promote their hotel very well by advertising its main selling point, which is the unique concept

of combining elements of a budget hotel, interactive spaces, a restaurant, a pub and an art

gallery. The design and theme of the decorations and displayed artworks change seasonally,

making the interior spaces more dynamic. Moreover, they tried to improve their services by

having no delays in booking procedures and providing a 24-hour help-desk. They are thoughtful

of their customers, by providing leisure provisions and an in-house restaurant. Furthermore,

they are sensitive to customer feedback and from that being able to continuously improve their

hotel. Also, transportation is more convenient for customers of this hotel as there is a monorail

station right next to the hotel. Besides that, they are more honest with their business by giving

reasonable and fixed prices. Hence, it is not surprising that they possess a better rating

compared to surrounding hotels and is highly recommended by travellers.

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OBSTACLES FACED BY NEW BUSSINESSES

OBSTACLES DETAILS

Lack of capital to start business Starting a new budget hotel requires a huge sum of money and does not guarantee profit. Therefore, it is difficult to find businessmen who could locate an institution which is willing to lend money. This means that new alternatives to get money have to be explored. If businessmen use their own savings, they might need to go through several years of hardship.

Competitors everywhere Hotels are abundant in Malaysia, especially in tourism hotspots. Hence, hoteliers will have a hard time competing with other hotels for customers. To tackle this problem, a hotel must possess unique features to make it stand out from competitors around it.

Difficulty in getting license from the government

As budget hotels are mushrooming in every corner of the country and a number of them were not successful, the Malaysian government intended to restrict opening new budget hotels and encourage more homestay programs, which is less profitable for investors due to the smaller amount of customers handled. Also, the requirements for getting a budget hotel license nowadays are tougher than before.

Usage of space in available land

Budget hotels must be creative in maximizing the number of customers and functional space in a limited amount of land, but still make the ambience of the hotel as comfortable as possible.

These obstacles faced by new budget hotel businesses are difficult to overcome as they

require a lot of sacrifice from businessmen who are running them.

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RECOMMENDATIONS


Although Apollo Inn is small in size, it is clean and comfortable. It has sufficient rooms,

facilities and services. However, there are still many places for improvement.

CURRENT AREA OF IMPROVEMENT RECOMMENDATION

Not active in promoting its hotel Issue more brochures about the hotel and distribute it the public to increase publicity.

No computers with internet are provided Install computers in the lobby to make it easier for customers to search for travel information online.

Difficulties in transportation for customers

Apollo Inn should provide taxi-calling services for customers. As the hotel is situated beside a narrow alley, taxis are rare in that area. The hotel should also provide bicycle rental services for customers. As most of the other hotels do not provide this service, this will give Apollo Inn an upper hand.

Parking ticket is required for customers

who park their vehicles in the alley, yet

instructions on where to buy the tickets

are unclear.

Sell the parking coupon at the hotel’s counter. A signboard should be placed to inform drivers about the parking ticket requirement. As most of their customers are not from Penang, they do not know where to buy the parking ticket and were fined for it.

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We found that Grid 9 Hotel has good service standards. Customers are given ample

facilities. Nevertheless, there are several suggestions for Grid 9 Hotel.

CURRENT AREA OF IMPROVEMENT RECOMMENDATION

The flat rooftop of this hotel is not accessible to customers and has plenty of space available for development.

Develop this rooftop to become a rooftop garden to make it lively. It can also serve as a place where customers can relax themselves. Grid 9 Hotel can organize events here during festive seasons to attract customers.

Customers need travel guide service in Kuala Lumpur.

Provide Kuala Lumpur tour service for their customers as some of them want to understand more about the city. This can be a new selling point of this hotel as the hotels nearby do not provide this service.

The food and beverages sold in the gastropub are too expensive.

Grid 9 Hotel should sell cheaper food and beverages as an alternative. If the food and drinks are more affordable, more customers will come.

No free breakfast provided for customers.

Some customers might wake up very early for breakfast but most restaurants nearby the hotel may not open yet. Therefore, it will be very inconvenient for customers. Free breakfast can act as a way of attracting customers as some customers have a patronage towards hotels that do so.

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BIBLIOGRAPHY

1. Rutherford, D. G. (Ed.). (2002). Hotel Management and Operation. New York, N.Y. : John Wiley.

2. Jones, A., & Lockwood, A. (2002). The Management of Hotel Operations. London : Thomson.

3. Study Guides : Writing, How to write a Report. (2011) Retrieved from http://library.bcu.ac.uk/learner/writingguides/1.02%20Reports.htm

4. Academic Skills. (n.d.). Report Writing. Retrieved from http://www.canberra.edu.au/studyskills/writing/reports

http://library.bcu.ac.uk/learner/writingguides/1.02%20Reports.htm

http://www.canberra.edu.au/studyskills/writing/reports

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REFERENCES

1. National Tourism Plan 2004-2010 Main Report, 2004. Ministery of Tourism, Malaysia.

2. Humphrey, D., & Conklin, R. (2005). Connections: Writing For Your World. Mason, Ohio: Thomson / South-Western.

3. Khosravi, S., Malek, A., & Ekiz, E. (2014). Why Tourists are Attracted to Boutique Hotels: Case of Penang Island, Malaysia. Journal of Hospitality & Tourism. 12(1), 23-30.

4. Carmel & Lara. (2012). Guidance on Case Report Writing. Occupational Health. 64(2), 27-30.

5. Mey, L. P., Akbar, K., & Fie, Y. G. (2006). Measuring Service Quality and Customer Satisfaction oh the Hotel in Malaysia. Journal of Hospitality and Tourism Management. 13(2). 144-160.

6. O.Lim (personal communication, December 27, 2014)

7. A.Yeoh (Personal Communication, January 10, 2015)

8. Malaysia Travel Guide, Kuala Lumpur have you been there yet? Retrieved from http://www.malaysia-travel-guide.com/kuala-lumpur.html

9. Grid 9 Hotel. (n.d.). Retrieved from http://www.grid9hotels.com/

10. Apollo Inn Hotel. (n.d.). Retrieved from http://www.apolloinn.com.my/

http://www.malaysia-travel-guide.com/kuala-lumpur.html

http://www.grid9hotels.com/

http://www.apolloinn.com.my/

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APPENDICES

Appendix 1. Survey Questionnaire and Results

Date: 27th December 2014

Time: 10.00am

Location: Apollo Inn, Georgetowb

Interviewed Person: Mr. Alan Yeoh

Job Position: Manager

Office Phone Number: +60(4) 261 6388

E-mail Address: [email protected]

1. When was the business started?

November 2009

2. Why is the hotel given the name “Apollo Inn”?

No reason, it’s just a good name.

3. Who are the key founders?

There is quite a number of them, they are all under a partnership.

4. What is the motive of starting this business?

To earn money.

5. How many rooms are provided in this hotel?

20 rooms and 6 dormitories

mailto:[email protected]

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6. What is the estimated current number of customers? There are around 48 customers.

7. What are the number of branches and employees?

Currently, there are only two branches and we have six employees. We plan to open a

third branch too.

8. How much is the rough expenditure per day?

RM1500

9. How much is the rough annual revenue figure?

RM1million.

10. What is the percentage of the hotel that must be booked per day to cover one day’s

expenses?

50%.

11. When is the peak season?

Penang is a popular tourist destination, so the peak season is all year long.

12. Can you please tell us the brief history and recent development of Apollo Inn?

Since the opening of Apollo Inn, there are no major events. Income comes in steadily.

However, after the incidents of MH370 and MH17, the number of customers decreased.

13. Where do most of the customers come from?

Before the incident of MH370, most of the customers are from China. Most of the

customers now are locals.

38

14. Preferred method of booking by customer.

Most of them preferred online booking.

15. Are there a lot of competitors? Who are the top 3 competitors?

There are a lot, there are over 200 plus budget hotels over here. The top 3 competitors

are New Asia Hotel, New Rope Walk Hotel, and Kimberley House.

16. What are the strategies to compete with them?

Service is very vital. Hence, we provide free breakfast, free tours and Christmas buffet

night.

17. What are the obstacles faced by new businesses who wish to enter the market

today? Are they hard to overcome?

Nowadays, the government is very strict on budget hotel license because they prefer

homestay hotels. It is something hard to overcome.

18. Are there any specialized field of knowledge needed to run this business?

Marketing skills, being observant of what the market needs.

39

Date : 10th January 2015

Time : 1.30pm

Location : Grid 9 Hotel, Jalan Maharajalela, Kuala Lumpur.

Interviewed Person : Mr. Owen Lim

Job Position : General Manager

Office Phone Number : +603 9226 2629

E-mail Address : [email protected]

[email protected]

1. When was the business started?

The business started in February 2007.

2. Why is the hotel given the name Grid 9?

Connecting one another, gathering backpackers from different countries.

3. Who are the key founders?

The founders are three close friends who studied overseas. Inspired by foreign budget

hotels, they decided to open a hotel for flashpackers.

4. What is the motive of starting this business?

To earn money, as a passion and meeting new people.

5. How many rooms are provided in this hotel?

51 rooms and dormitories.

7. What are the number of branches and employees?

There is only one branch, two more are coming up at Puchong and Bukit Bintang. We

have about 15 to 18 employees.



40

8. How much is the rough expenditure per day?

55% of the RM5000 gross profit, which is RM2750.

9. How much is the rough annual revenue figure?

RM1.2 million.

10. What is the percentage of the hotel that must be booked per day to cover one day’s

expenses?

50%.

11. When is the peak season?

December.

12.Can you please tell us the brief history and recent development of Grid 9?

The economic recession in 2009 and the recent MH incidents affected our income

tremendously.

13. Where do most of the customers come from?

Most of them are from Western countries.

14. What is the preferred method of booking by customers?

Online travel agents such as Agoda and Expedia.

15. Are there a lot of competitors? Who are the top 3 competitors?

The hotel is literally surrounded by other hotels. I-Hotel, Midah Hotel, and Mandarin

Court. Competition is tight as they offer almost the same price.

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16. What are the strategies to compete with them?

Our facilities can’t compete with other hotels since our land is limited, so we will do well

for customer satisfaction.

17. What are the obstacles faced by new businesses who wish to enter the market

today? Are they hard to overcome?

Capital to start a new business is hard to get as we need a large amount of capital to

start. It is very tough to overcome.

18. Are there any specialized field of knowledge needed to run this business?

One needs to be observant of details, and be able to visualize and forecast trends.

42

Appendix 2. Minutes of Group Meetings

English 2 Final Project Meeting 1

Date : 18 Dec 2014

Times : 5.50p.m. To 6.20p.m.

Venue : Lecture Theater 15

Attendance : Lim Joe Onn (Chairman)

Koh Sung Jie (Secretary)

Victor Heng

Lee Kai Yung

Ong Seng Peng

Chong Ke Qun

No Agenda Actions Person in

Charge

Deadline

1 Hotels Selection

Within Klang Valley : Grid 9

Hotel, Klang.

Out of Klang Valley : Apollo

Inn, Penang.

Approval of interview has to

be made by booking

interviews through phone

calls.

Phone numbers of both

hotels have to be obtained.

Joe

23rd Dec

19th Dec

2a Assigning of Tasks

Before and during the trip

to Penang, each of us

Timetable allocator

Kai Yung

25th Dec

43

should have specific tasks.

Questionnaire preparation

Videographer

Photographer

Interviewer

Driver

Joe

Victor

Everyone

Joe

Victor

26th - 28th

Dec

2b Some of the tasks for the

report had been assigned.

Minutes of meeting

Artistic cover

Presentation Slides

Content

Recommendations for

improvements

Sung Jie

Victor

Jeff (Ong)

Joe

Everyone

Throughou

t the

project

3 Penang Trip Duties

At Penang, we have to

carry out research, analysis

and observation about the

specified hotel.

Analyse the hotel’s

surroundings and take

photos.

Take as many photos as you

can.

Everyone

26th - 28th

Dec

44

Collect brochures and

appendixes.

4 Others

Reminder : Deadline of

Project is 15th January 2015

and other overlapping

deadlines from other

modules.

Reminder : Maximum 3000

words. Do not overdo.

Planning of date for Grid9

Hotel not yet determined.

Next meeting not

determined yet.

Efficient Planning.

Everyone

45

English 2 Final Project Meeting 2

Date : 7 Jan 2015

Time : 6.50p.m. to 7.03p.m.

Venue : Lecture Theater 15

Attendance : Lim Joe Onn (Chairman)

Koh Sung Jie (Secretary)

Victor Heng

Lee Kai Yung

Ong Seng Peng

Chong Ke Qun

No Agenda Actions Person In

Charge

Deadline

1a List of work to be

finished

Artistic Cover

Content page

Analysis of competitors

and strategies of Apollo

Inn

Descriptions and details of

Grid 9

Comparison of analysis of

Victor

Joe

Victor

Joe

Joe

11th Jan

9th Jan

11th Jan

46

both hotels

Recommendations of

improvements for both

hotels

Bibliography

Appendices

Jeff

Kai Yung

Kai Yung

1b List of work to be

finished

References

Video editing and subtitles

Presentation slides

CD

Script

100 word summary

Kai Yung

Jeff & Joe

Ke Qun

Jeff

Everyone

Joe

Joe

11th Jan

47

Appendix 3. Print Screens

Website of Apollo Inn, Link : http://www.apolloinn.com.my/

Website of Grid 9 Hotel, Link : http://www.grid9hotels.com/

http://www.apolloinn.com.my/

48

Appendix 4. Business Cards

Alan Yeoh, Manager of Apollo Inn

Appendix 5: Handwritten Notes Taken During Interviews

Owen Lim, General Manager of Grid9 Hotel

Budget Hotel Report

Economy & Finance

Transcript of Budget Hotel Report