Business Plan for Hotel le Bonheur - Essay Example

? Business Plan Insert Insert Executive Summary Hotel le Bonheur was initiated in the 20th century. At the onset, the hotel was recording 100% fill-rates throughout all seasons. Its success has been tested twice: through world war and the great depression. Despite emerging strong on both economic times, liberality has posed several challenges on its policies. One incidence was in the 60s when the cause of disagreement was based on unmarried couples sharing a room, which was not allowed before the challenge. Another challenge that has been faced by Hotel le Bonheur is on payment issues. The Hotel has had customers failing to pay for accommodation while others literally sneaking out of the hotel in the night. Such challenges affected operation hence making the Hotel to collapse in the 80’s. (Cesim n.d). However, that was not the end of Hotel le Bonheur. In the 90’s, the hotel was given out to Ronald Bump, a successful real estate developer. Ronald’s investment in restoring the hotel was successful though he did not run it for long before the wife took over after divorce. Mrs. Bump, the new owner of the business, does not appreciate unprofessional practices hence the reason why there is need for a business plan. Having a plan will allow the management team to be aware of the hotel objectives hence facilitating a smooth running of the business as they encounter the challenge of expanding the business. The Hotel targets to grow its capacity by 120 percent through establishing new operations abroad to be able to accommodate more clients. The hotel will not only go back to the days when it was called Happiness Hotel but will be able to offer the happiness required by clients to be able to come back for more services. (Cesim n.d). Contents Objectives 4 Mission 4 Keys to Success 4 Hotel summary 4 Products and Services 5 Market Analysis Summary 5 Target Market segment strategy 5 Service business analysis 6 Competition and buying patterns 6 Strategy and Implementation Summary 7 Competitive edge 7 Marketing Strategy 8 Sales Strategy 8 Sales forecast 8 Milestones 9 Management Summary 9 Personnel Plan 9 Financial Plan 10 Projected profit and loss 10 References 11 Objectives Hotel le Bonheur has the following objectives in the first three years of operations: 1. Renovate and upgrade the rooms through installing latest interior designs. 2. Increase the capacity of the facility by 120% by the third year. 3. Get a facility manager as a permanent employee to run the logistics of the revived business. 4. Increase the sales returns by provide quality services that will earn referral business on top of the acquired businesses. 5. Venture into international market through channel sales. Mission Hotel le Bonheur will work to ensure clients satisfaction in the most conducive and friendly most environment. Keys to Success 1. Managing and surpassing customer expectation 2. Considering customer’s preferences despite opinions from experts 3. Running everything professionally for customer satisfaction 4. Protecting the client’s welfare at all times Hotel le Bonheur upholds all the keys and will always uphold them in every service they offer both locally and abroad. Hotel summary Hotel le Bonheur is still a local Hotel serving both leisure and business travelers (Casapart 2013). Established in the 20’s, the hotel has had both its good moments and worst moments. The worst moments of all was majorly due to poor operation procedures that made clients fail to pay for services hence making the Hotel to collapse in the 80s. Mrs. Bump, a former wife to Mr. Ronald Bump, bought it out in the 90 owns the Hotel. The Hotel specializes in accommodation and catering. It has a base of permanently employees and the rest are temporary. Hotel le Bonheur shares are traded at a small over the counter market price. The business is planning to venture into the international market as well as increase its market shares through the new management team. Products and Services Hotel le Bonheur is purely in the business of providing accommodation and catering services to leisure and business traveler. Market Analysis Summary The Hospitality industry has been growing over the years (Khoury 2013). Majority of the people choose to take leisure travel hence creating a need for such services to be provided. In response to the need, many entrepreneurs have seen hospitality businesses as more rewarding though they are seasonal (MarketingCharts staff 2012). This is because of the profit margins experienced especially during the high seasons. Target Market segment strategy The hotel main target market is leisure and business travelers. This will be both locally and internationally. Internationally, the hotel shall operate on leased properties for the start until it is establish to be able to purchase or build a few premises. To facilitate the success of the international venture, the hotel plan to start marketing its products abroad in June 2013 so that by 2014 the hotel will have enough clients for the year. The hotel projects a rise in seasonal sales in the new market through channel sales. Channel sales allow a company to be able to reach out to a large proportion than when doing direct sales (Kark et al 2002). The management is therefore working on creating enough pull through advertising to be able to make the channels more interested in us than our competitors create. Service business analysis The hotel industry has been doing well in Netherlands, with the number of hotels increasing. Many Hotels have therefore opted to offer services at a cheaper rate to be able to capture what the market has to offer (Casapart 2013). Apart from referral business, many clients are known to get information on the best accommodation places through yellow pages, online searches (Floh & Treiblmaier 2006). The bookings are done through direct contact to the hotel or through channels to the hotels. With the rise in competition, many hotels have invested in good hospitality management as well as improving their face values (Blind and Jungmittang 2004). Competition and buying patterns The clients choose the hotels based on the following criteria: Quality: This is assessed through reviews and the general look of the premises. Added Services: Clients will prefer going to Hotels where they will receive more services at the same place. Price: Especially in the hotel industry, many clients will go for good quality but affordable. Hotel le Bonheur offers a wider range of services with high quality and added services at one point. Their services are affordable and therefore attract clientele from all corners of the globe. Strategy and Implementation Summary Hotel le Bonheur through its new management team plans to expand operations to a more leisure-traveler driven location to be able to cover a wider base of the market. The strategy will be to make investment on additional rooms as well as renovating the existing ones. This will be done in three phases with renovation taking the first phase. Renovation will help in increasing the quality of the premises to march the modern market since the premises was made in the 20’s. Therefore, many architectural requirements and preferences have changed since then. The second phase will be drawing of the architectural plan of the new accommodation blocks, which should take modern architectural designs. The third phase will be the implementation of the plan. To capture sales on the new expanded premises, Hotel le Bonheur plans to make sales through channels. The bookings will be done in advance upon advice by the management on the capacity to be sold. A big portion of the sales will be done at the onset. Through advertising, Hotel le Bonheur will increase its channels sales by creating enough pull. The hotel has chosen channel sales due to its numerous advantages. However, there will be room for walk in clients who access rooms at the over the counter fixed rate. Competitive edge Hotel le Bonheur will create a competitive edge by providing all hospitality services at one stop. Customers will access services like picking from the airport, to accommodation, to catering, to spur, to meeting and conference facilities. The Hotel will also provide internet connectivity for those wishing to remain connected and providing a conducive environment for all types of clients (Hotel Combined 2013). Marketing Strategy Hotel le Bonheur will focus its marketing to both locals and internationals. We will target corporate for business meetings, conferences, and tourists for leisure. The hotel will reach their audience through adverts placed on magazines where half the page will be made of hotel photos, the hotel website promoted through search engines, emails and social media campaigns using e-brochures, hotel marketing websites, promotions in the business fairs, and sponsoring non-profit events per year for marketing. This is because corporate social responsibility is still part of the company (Ibrahim, Howard, & Angelidis 2003). Sales Strategy Previously, the management team and the marketing team have been driving sales to the hotel. The management has been focusing on new business ventures and possible markets while the marketing team has been capitalizing on establishing channels while retaining the already found channels. This strategy will continue even with the international venture. Sales forecast With renovation, building of new rooms and venturing into international market, the sales are forecasted to increase by 100% in the first year, 120% in the second year and above 150% in the third year. This is because renovation will give a new face to the hotel and building more rooms will create more space to take care of all the bookings especially in the high season. The international venture will also open doors for more sales hence the reason for a continued profit projection. Milestones The CEO will supervise the renovation and putting up of the new accommodation block. With the direction of the renovation contractor, some members of the staff with technical skills will be incorporated. The construction will need a construction contractor who will come with his team. The other milestone will be on marketing. The marketing director will be fully involved in planning and implementation of the marketing strategy. This team will start marketing even as the renovation and constructions continue. This is to ensure that the hotel has sales in all seasons as per the capacity available. Management Summary A CEO who foresees all the business operations directs hotel le Bonheur. Next in the rank is the MD who doubles as the sales and strategy director. He makes all the strategies necessary for business operations. Marketing manager takes the third position. The marketing managers will liars with all the advertising companies, the marketing team and the web designers. Last is the facility manger who will be employed to take care of the facility. The incumbent will have the duty of communicating necessary information to key stakeholders on areas that need improvement. Personnel Plan The management team have a plan of establishing a base of permanent employees. This is to encourage efficiency. The temporary employees will also be considered for purposes of providing flexibility needed when managing high season. The permanent employees will be hired through a thorough interview while the temporary employees will be hired on pre-negotiated salary. To be successful in the hiring process, the permanent employees’ salary will be a higher scale as compared to other hotels. This is to ensure that the hotel has a higher retention rate of employees and decrease recruiting cost. Upon employment, the incumbents will go through a thorough training to ensure that they are in tandem with what their responsibilities will be demanding. Financial Plan Since the business is in the initial stages, the hotel needs a good financial base. The required funds include: $2 million for renovation and construction the new accommodation block $100000 for the international venture $75000 for furnishing $45000 for marketing Although there are projections of making profits in the high season, we have a plan on acquiring $ 2 million long-term loans from banks. Our collateral will be the insurance policy on the premises. We also project to have retained earnings of $ 700000 in our balance sheet hence we will be able to offer dividend payments. We project that hotel le Bonheur will make higher profits and gross margins than any other time in its history. Projected profit and loss Gross Margin will increase for hotel le Bonheur as the business advances. With advertising through channels, salaries and other operating costs will be lowered. With channels there will be no hiring and lay-off cost. In the first year, marketing will be high hence creating leads for business in the next 2 years. Therefore, the gross margin will be increasing by day. References Blind K & Jungmittang A 2004, Foreign Direct Investment, Imports and Innovations in The Service Industry 25: 205-227, Netherlands, Kluwer Academic Publishers. Booking.com 2013, 25 Hotels Found in or Near Eijsden, < http://www.booking.com/searchresults.en-gb.html?aid=303948;label=Eijsden-bwmObMwA*CwZlXVETfFbsQS8394623181;sid=2fbbe2be83142c861bf6896fa5ff21b9;dcid=1;city=-2143997;redirected_from_city=1;src=city > Casapart 2013, Hotel Le Bonheur-Parakou, < http://casapart.com/pdf/temp/597.pdf > Cesim n.d, Hotel Le Bonheur, Cesim Practical Makes Profit, Arkadiankatu 21 A, 00100 Helsinki, Finland. Floh A & Treiblmaier H 2006, What Keeps The E-Banking Customer Loyal? A Multigroup Analysis of the Moderating Role of Consumer Characteristics on E-Loyalty in The Financial Services Industry, Journal of Electronic Commerce Research, 7, 2. Hotel Combined 2013, Hotel Le Bonheur, < http://www.hotelscombined.com/Hotel/Hotel_le_Bonheur.htm > Ibrahim N A, Howard D P & ANgelidis J P 2003, Board Members in the Service Industry: An Emperical Examination of the Relationship Between Corporate Social Responsibility Orientation and Directorial Type, Journal of business ethics 47,4,339-401. Kark et al 2002, Methods and Systems for improved Channels sales Support in Electronic Commerce, Denver CO, Pub. No: US 2002/0107761. Khoury S 2013, Hotel Industry Shows robust signs of Growth, Medill, < http://news.medill.northwestern.edu/chicago/news.aspx?id=218168 > MarketingChart staff 2013, Hotel Industry Poised for 2012 Growth,Marketing Charts, < http://news.medill.northwestern.edu/chicago/news.aspx?id=218168 > Read More