The Al-Munir hotel and Spa
The Al-Munir Hotel and Spa's Declining Performance
The Al-Munir Hotel and Spa is strategically situated in the UAE. Despite its exceptional location, which has given it an advantage over many other hotels, the group has been seeing dwindling returns, as shown by the following outcomes: group turnover has decreased by 22%, the room occupancy rate has dropped from 81 percent to 62 percent, customers are dissatisfied with the hotels, and client retention has decreased from 25 percent to 25 percent. These poor results may be attributed to a variety of issues, but not to the hotel's venue. There exists a problem within the group as the low turnouts, low customer retention, and customer dissatisfaction indicate that there is some laxity or lack of motivation among the staff members.
Factors Contributing to Customer Dissatisfaction
From the survey conducted by the consultant, the customers do not find the hotel to offer services that guarantee value for their money. When a client feels this way it indicates that they are dissatisfied and that they are not likely to visit the hotel. This could also indicate that the services offered are below standards and do not meet the clientele standards. When the respondents were asked to rate the staff they indicated that their services were poor. They did not find the staff to be helpful and enthusiastic about their work. Furthermore, the knowledge of the staff was also questionable. In this regard, the main reasons that guests fail to return to the hotel are because they find the services offered by the staff to be poor and not good value for their money.
The Importance of Innovation in the Hospitality Industry
The Group could also be facing a challenge with innovation. With changing dynamics of the hospitality industry, innovation is key (Chacko & Joy, 2016). Customers need to experience new exciting things every time they visit to ensure customer loyalty and retention of new customers.
References
Chacko, T., & Joy, M. T. (2016). Customer Retention Strategies in Hotel Industry in Trivandrum. Journal of Chemical and Pharmaceutical Science, 9(4). Retrieved September 14, 2017, from https://jchps.com/issues/Volume%209_Issue%204/jchps%209(4)%204%20Thomas%20Chacko%201832-1836.pdf
Khan, S. (2013, October). Determinants of Customer Retention in Hotel Industry. Journal of Applied Economics and Business, 1(3), 42-64. Retrieved September 14, 2017, from http://www.aebjournal.org/articles/0103/010304.pdf
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