Hospitality Operations of Alltalia Airlines - Research Paper Example

Hospitality Operations of Alltalia Airlines Introduction Operations in the hospitality industry require innovations and creativity to revamp product and service packaging to appeal to more customers. This is promoted by the fact that the hospitality industry does not require any capital other than an idea. A company such as the Altalia’s performance in the market is influenced by its quality as well as nature of the services it vendors to its target market. The open market continues to attract more investors who continuously target the constant market. It is therefore up to the business to identify creative products and services thereby expand the otherwise stagnant market (Florian & Tony, 2012). Currently, Alltalia airlines continue to witness a reduction in revenue. It is progressively losing its market positioning and most of its previous clients are showing interest in its competitors. The management is in disarray since it cannot possibly determine the source of the problem. The company that had a capital base of more than three million dollars and over two hundred employees has now shrunk to about five jumbo jets and other smaller jets with monthly revenue of six million dollars down from the previous eleven million monthly incomes. The current revenue cannot comfortably sustain the operations of the industry a fact that has resulted in the company retrenching some of its employees. The hospitality industry has a number of challenges and requires an extremely vigilant and dynamic management to process and effect policies that counter the challenges. Some of these challenges include understanding the market. Stakeholder analysis According to Slattery (2008), no business exists in a vacuum. Before setting up a business, one must have an effective understanding of the market and the entire community. Operations in the hospitality industry have a number of smaller communities that must integrate for the business to succeed. The management requires a fundamental understanding of all these communities and effect operational policies that incorporates all of them. These communities are the global community, the industry community, business community and the local community. The global community determines the scope of the business, by understanding the global community in the hospitality industry, the Allltalia airlines will determine the global destinations that have a sizable customer base and the new global destinations to introduce to make the business relevant to the market (Painter, 2012). By understanding the industry community, Alltalia airline stays conscious of its competitions. In analyzing the competition, the management determines the weaknesses of the current existing companies and majors on their weaknesses to introduce unique products that complement the weaknesses thus grabbing the market from the previous owners. The industry also reveals the stratification of the current market. Through this, the management formulates products that target every segment of the market thus maximizing sales through an increased presence. Understanding the business community is one of the most important determiners of the success of the market. This includes having an effective human resource management. Operations in the hospitality industry relies on the human resource, the employees of the companies require effective management to ensure that there is efficient flow of information and optimum service delivery to the customers resulting in satisfaction. The management must determine cost effective ways of hiring the human resource and keeping them highly motivated. Alltalia is currently retrenching its employees a clear indication of the human resource management flaws (Lane, 2005). The human resource in the hospitality industry interact with the client on the service delivery basis; they thus represent the face of the business and any form of discomfort in them is reflected in the type of the service delivered to the clients resulting in either positive or negative feedback from the clients. Such forms of motivation as remuneration and employee recognition must be adequate in enticing the employees to operate at their best. The local community on the other hand refers to the immediate community to the business, this is where the business is and in most cases, it shares some of its local resources such as electricity, water and roads in the business. This community is also home to most of the employees in the business (Bowers, 2009). The business must therefore establish an effective relationship with this community since it creates and maintain the company reputation. SWOT analysis Alltalia airline is currently going under as the management continues to shrink its assets and market position. The vision of every business venture is always to grow and extend its longevity in the market while staying relevant to the operations in the market and this includes Alltalia airline. Its failures and shrinking fortunes are purely manageable problems that are solvable with an effective understanding of the business itself. The company’s greatest strength is its small size. Small businesses are easier to manage and are therefore dynamic. This way they get to grow steadily. Such a small company with fewer airplanes can possibly concentrate on the local market and ply every route. Its dynamic nature will allow it to shift flights anyhow to have maximum client number in each of its flights. Furthermore, the small size resonates in fewer employees that are easier to keep motivated and thus work longer hours. With an effective management of its small size, the company will grow to achieve its desired market status. Additionally, the open nature of the hospitality market works as a strength to the small airline, through this, the company formulates service bouquets that target every segment of the market. The middle and lower class members are the majority in every market (Fournier, 1998). They do not attach much comfort and luxury in the kind of services they demand, but will demand convenience. The airline company will simply have to alter its prices after meeting all the other standards to own a piece of the market. Additionally, the company can capitalize on this market dynamism and introduce unique travel bouquets that target different segments of the market. Such uniqueness is a result of creativity, which in most cases lie with the staff. Effective staff management owing to the small company size may therefore give forth to unique features that eventually keep the company relevant to the changes in the market (Willey, 2012). Coincidentally, its small size may play as its greatest weakness. Maintaining relevance in such an industry relies on the company visibility. A smaller company may have a smaller advertising budget, which definitely results in lesser product visibility in the market. Without adequate publicity the company stays unknown in the possible market a feature that results in the company incurring operational costs while earning no income. The hospitality industry has limitless opportunities to every industry player. It is therefore up to the business to determine its own set of opportunity, capitalize on the and thus expand its operations. Alltalia airline enjoys the same provisions of the market. The company targets the lower and the middle class market. This class cares about their spending and will always want the best market prices. The company can possibly capitalize on this to sustain its longevity ad expansion plan until it incorporates the rich and wealth market classes. By reducing the price of operating below the other industry players, the company will earn lesser profit per customer but it will surely have more clients thus an increased demand. The little profit per customer for the thousands of customers will initiate the grow it so yearns for. The company therefore requires to major on creativity and innovations to introduce unique yet convenient products into the market. Uniqueness sells and this will safeguard its operations and market position. The company’s greatest threat is competition especially from the established airlines. There are hundreds of highly reputable airline companies in the market today. The Alltalia airline will therefore have to work extremely hard to beat the competition. Unfortunately, their operation is currently dwindling following poor management of the competition. However, the company can take some time off the market and re launch its operations with new services and intensive media coverage and it is possible that it will turn its fortunes around. Conclusion All the predicaments facing Alltalia airline are purely managerial and may liquidate the company or be rectified and result in the company’s turnaround. The management is the decision making organ in the business, it decides which products to sell and how to sell it. From the analysis, it is evident that this management has no knowledge of operations in the industry thus the numerous managerial flaws. The company will therefore require a complete overhaul of the entire management team and bring in new minds that will try new and relevant ideas. References Bowers, J. (2009). A Practical approach to Employment Law. Oxford: Oxford University Press. Fournier, S. (1998). Consumers and their brands: Developing relationship theory in consumer research. New York: New York Times. Florian, R. & Tony, B. (2012). Mind mapping for dummies. New York: John Wiley and Sons. Lane, M. (2005). Socially Responsible Investing: An Institutional Investors’ Guide, Euro money. London: Aspen. Painter, R. (2012). Cases and Materials on Employment law. Oxford: Oxford University Press. Slattery, M. C. (2008). Contemporary environmental issues. Dubuque, Iowa: Kendall/Hunt Pub. Willey B. (2012). Employment Law in Context. An introduction for HR professionals. Harlow: Pearson Longman. Read More