Outrigger Hotels and Resortsc Case Study Solution
With a core focus on improving the customer service & delivering value for customers, Outrigger Hotels and Resorts is exceptionally known for providing exceptional and high-quality customer care and hotel services. It was founded in 1963 by Roy C. Kelly with the mission of bringing the dream vacation in paradise to the reality for the middle income consumers.Featuring unbeatable location for guests within a close proximity to the best attractions of Hawaii. It has expanded through acquisition and became the renowned market player. Additionally, the company has rebranded itself with the name of OHANA for the budget travelers on one hand and began to offer condominiums off the beach front for the purpose of appealing the regular travelers who vacationed more frequently. In such markets, the company has benefited from no market competition and is capable enough to be benefited from the diversified portfolio of product.
Despite of the fact that the strategic position of the company is to remain one of the fastest growing privately held hospitality and lodging firms in the Pacific, it has located its properties where people could enjoy the vacation that is respectfulof the culture, the company is confronted with some issues and challenges; the company lacked the modernized and centralized system in order to enable better integration of the properties. Outside the Hawaii, all other properties owned by the company handled their reservation in house, limiting the collection of data about customers and missing out the opportunity to be benefited from the cross-property traffic. The secondary issues involves inability of the company to recognize return, VIP, special event guest; a dearth of congruity between technology of lodging properties and retail space technology; and a lack of technological amenities for the clientele.
Additionally, the company is threatened by the issue of integrating business operation across the countries, the proliferation of the customer choices with regard to the entertainment budgets, providing technological facilities to the customers or guests and the advent of the internet where most of the tickets were booked through third part travel sites offering dynamic package, hence degrading the benefit of wholesalers for the Outriggers hotels and resorts. After spending considerable amount of money on the business intelligence application, the company is not aware of its usage on the daily business operations.
Internal analysis /key facts
The current software that the company has been using has well defined centralized structure. The information technology infrastructure of the company was considered to be strong which was exemplified with the fact that it implemented JD Edward ERP. The Stellex was introduced as a COBOL application in 1987 that tends to ensures the redundancy and 24/7 uptime which are particularly significant in the accommodation industry which depends on being able to make reservation at any time and ensure that the computer system is operational. Additionally, the company has bought the business intelligence application from Epiphany to gain insights into the business. Also, the data is properly analyzed by the business intelligence software to create reports for the managers in timely manner.
Inspite of the aforementioned competitiveadvantages, the company is posed to the various challenges and issues such as aging legacy information system, old point of sales (POS) system that could not interface, newly developed automated reservation system that is not fully utilized and the limited formal technology training and heavily relied on on-the-job training when it came to the software application, this has created difficulty for the ones who has been hired outside the firm. Since the company has diversifiedits geographic presence and product portfolio it has been sacrificing the centralization of the information system infrastructure and have been unable to harness the potential advantages of the integrated IT systems in the global markets.
The Outriggers group could capture and exploit the opportunity of creating the centralized infrastructure to become able to use the international real time booking information in order to better and effectively manage the reservation system, hence increasing the profit returns over time. Additionally, the internet brings variety of the opportunities by allowing the 24/7 online sales.Also, the travel agents tends to provide the counselling, information, and reassurance to the leisure travelers and to those customer who are turning to the internet for such information. This has presented Outriggers with the requirements of implementing the centralized system for effectively manage the room data availability. Furthermore, a more reliable and faster global communication system would help the company in implementation of the centralized structure.
The technology has becomes significantly important as a part of the hospitality industry growth trend to retain existing customers and attract new ones. A number of hotels are seeking ways to explore innovative technology solutions, which includes a property management system for managing regular operations of hotels and hotel booking engines to increase bookings and exposure. As the trend in technology change, Outriggers is force to adapt to the latest application & technology within its premises. Due to the increasing cost of the labor, there is a likelihood that the company would lot of money if it would not exploit the opportunity of switching to the automated reservation system. The company need to focus on developing effective strategies; such as being flexible with the market trend and to serve the customer base by timely improving and upgrading standards from the reservation time till the check out from hotel………………………………..
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