need to look into, as also the profitability of different segments. As an example, online travel agents (OTAs) often charge commissions/buy lower net rates than Eastern Paradise. Additionally, the hotel needs to pay to be connected to the OTAs via conduits such as SynXis and EZYield. Even if the Luxury Hotel obtains the business with a direct relationship with the customer through Elite.com, reservation fees need to be paid to HQ for the bookings materialized via Elite.com. Digital marketing dollars also need to be invested (e.g., search engine marketing, display marketing and metasearch marketing) to attract online traffic to come book via Elite.com rather than jumping to OTAs or other channels. The future of hospitality is all about being innovative and using technology to strengthen guest relationships and improve guest experiences while at the same time keeping an eye on the bottom line and making day-to-day operations more efficient. In order to maximize profitability you know you need to look beyond top-line revenue figures with an objective of optimizing the business mix that can yield the highest profits. As the Executive Team of the Luxury Hotel, you need to constantly keep your pulse on emerging trends to avoid disappointing guests and falling behind competitors. Over the last few years the number of rooms available in Singapore has been on the rise. Competition has intensified and several other 5 star hotels in the vicinity are also targeting a similar segment mix as the Luxury Hotel. Added to which, the SouthWing is beginning to look a little tired in comparison to the competition. A similar story is echoed in F&B, with competition coming in from speciality restaurants that have opened in the luxury Mall development a short walk from the hotel. One of these is a Michelin Star Italian restaurant that is giving the Italian speciality restaurant at the Luxury Hotel, a run for its money. Current Challenges at the Luxury Hotel
Please find in the next pages further statistical information that will help you understand the current reality of the Luxury Hotel.
Made with FlippingBook Annual report