A Report on the Luxiricage Hotel

Unit: DBB111 ACQUIRING BUSINESS AWARENESS

Lecturer: Ms Nurul Salleh

Prepared by:

Eddrick Sheah Kim Feng (102764560)

Xiao Rung Bong (102766919)

Alvin Wen Cheng Lai (102765424)

Yu Heng Lam (102764971)

Munny Akter Khan (102764955)

Report of Luxiricage Hotel

Table of Contents.

Contents
1.INTRODUCTION......................................................................................................................................... 2

2.SWOT........................................................................................................................................................ 3

2.1 STRENGTH......................................................................................................................................................3
2.1.1 Contributes to the local economy..........................................................................................................3
2.1.2 High-profit margin.................................................................................................................................3
2.2 WEAKNESS..................................................................................................................................................... 4
2.2.1 Huge Setup Cost.....................................................................................................................................4
2.2.2 Ineffective Branding...............................................................................................................................4
2.3 OPPORTUNITY.................................................................................................................................................5
2.3.1 Few competitors in the area..................................................................................................................5
2.3.2 Large field for technology......................................................................................................................5
2.4 THREATS........................................................................................................................................................ 6
2.4.1 Airbnb.....................................................................................................................................................6
2.4.2 Less customers (covid 19).......................................................................................................................6
3. MANAGEMENT......................................................................................................................................... 7

3.1 PLANNING......................................................................................................................................................7
3.1.1 Short-terms goals...................................................................................................................................7
3.1.2 Long-term goals.....................................................................................................................................7
3.2 ORGANIZATION................................................................................................................................................9
3.2.1 IT department........................................................................................................................................9
3.2.2Finance department................................................................................................................................9
3.2.3Food and Beverage department...........................................................................................................10
3.2.4Cleaning department............................................................................................................................10
3.2.5Sales and Marketing department-........................................................................................................10
3.3 MOTIVATION................................................................................................................................................ 12
4. CONCLUSION.......................................................................................................................................... 15

5. LIST OF REFERENCES................................................................................................................................ 16

1.Introduction
Luxiricage Hotel, a (C-Corporation) was founded on May 7, 2021. This hotel is in Kuching,
Malaysia, in the state of Sarawak. Mr Andy Lam Yu
Heng, the hotel's founder, is 88 years old and has more
than 60 years of professional knowledge, which includes
hotel management, company business, and government

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department management. Mrs Munny and Mr Alvin are the owners of our company. There
are five departments: IT, Finance, Food and Beverage, Cleaning and Sales. The departments
employ a total of 20 people, by a manager and an assistant manager.

Our hotel employs high-tech goods to better serve and safeguard our guests' safety and user
experience. The purpose of luxiricage hotels is to make guests' stays as convenient as
possible. There is no longer a need to check in at a manual counter. They merely have to
book a room online, produce their ID card, and input the
reservation number at the hotel upon checking in. They
do not need to show their ID card and wait a long time
for the traditional counter worker to check in for them.
The room card is no longer needed, customers only need
to provide their facial information when registering,
which allows them to enter the room without swiping
their card. This can avoid potential safety hazards to the hotel if the hotel customer loses the
room card.

2.SWOT

2.1 Strength
2.1.1 Contributes to the local economy.

The hotel sector, being a major source of revenue, may help to keep local economies
surviving. Local attractions may draw visitors, but it is the hotels that keep them coming

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back. People use local services and commodities while they stay in a location. They'll go to
local malls, eat at local restaurants, and buy at local businesses. And, more importantly,
where do all of those top monies go? Within the community, to be precise. As a result, the
hospitality sector is beneficial to the community (SOEG 2021).

2.1.2 High-profit margin.

It is undeniably a successful company, but starting any hotel demands a significant initial
investment. If you want to reach the level of 5-star hotels, you must pay more to maintain
specific professional standards. However, hotels and restaurants in Asian and African nations
benefit from low labour costs. It translates to lower costs and higher profits (Shaw 2020)

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2.2 Weakness
2.2.1 Huge Setup Cost
Unmanned hotels require significant initial expenditure. Construction expenditures, décor
charges, basic equipment costs, and marketing costs are typically included in a hotel's initial
investment. Some smart gadgets are costly and necessitate a significant one-time expenditure
during the early stages of the hotel building. However, this can help us save a lot of money on
labour costs. We can borrow from the bank and even open it up to public joint ventures to
solve the massive investment at this early stage.

2.2.2 Ineffective Branding

The hotel is inferior to its competitors in the region. Self-service hotels are a dangerous place
for most of the traditional self-service hotels in Malaysia. This will cause the hotel to lose this
part of customers.

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2.3 Opportunity
2.3.1 Few competitors in the area
Nowadays, we have many competitors in Kuching such as Pullman hotel, the waterfront
hotel, etc. The technology that we use at our hotel is one of our advantages. Meanwhile, we
can bring luxury and high-tech feeling to the customers. With the continued influence of new
technology, brands are implored to rethink their approach to customer service and stay one
step ahead at the very least with emerging customer expectations.

2.3.2 Large field for technology

Automation is everywhere nowadays, enabling users to accomplish a wide range of tasks
from ordering food, checking luggage at the airport, booking a hotel, right through to booking
an appointment. As technology keeps on improving, one-day self-service hotels will become
authentic in the future. In the hotel industry, the technology still can be said to be
underexplored in hospitality and travel. The technology can be a benefit for hotels as we can
use the technology to upgrade the property management system, automation for check-in and
check-out, using robotics for some services, and get feedback from customers with our hotel
apps. 

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2.4 Threats
2.4.1 Airbnb
According to a （ 2017 ） Boston research on the Airbnb effect, as well as a 2017 STR
analysis of 13 global markets. RevPAR(Revenue per available room ) affected by the price of
an Airbnb offer. Airbnb prices have a serious impact on hotel RevPAR: the higher the rental
price listed on the website, the larger the hotel RevPAR.Moreover, According to the study,
Airbnb's listings not only supplement the lodging market; rather, they exhibit replacement
characteristics in their long-term implications on hotel sales patterns. Customers like to use
Airbnb, lower the demand for hotel rooms. As a result, hotel management must be aware of
the level of service and pricing provided by Airbnb and other sharing platforms in their
market. Airbnb offerings in their neighbourhood can no longer be overlooked and should be
factored into revenue management methods.

2.4.2 Less customers (covid 19)

The COVID-19 virus has affected the health of hundreds of thousands of people worldwide.
The actions taken by local governments to fight the pandemic have had a serious impact on
the global economy. As a result, the tourism industry and hotel business have been greatly
affected. The COVID-19 pandemic may cause the loss of 50 million jobs in the global travel
and tourism industry.

The most direct reason is that hotel revenue has plummeted, and reduced passenger flow has
led to a shortage of capital chains. Not only that, but the hotel also has to bear some necessary
expenses, such as rent, employee salaries, etc. to maintain basic operations. To combat the
adverse effects of the epidemic, hotels can actively use various national policies to obtain
subsidies or financial support, or find partners to carry out business mergers and
reorganizations or sell part of their equity, increase capital and attract capital, and hotels can
continue to operate.

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3. Management
3.1 Planning
3.1.1 Short-terms goals
1. Increase the visibility of the hotel

Increase the visibility of our hotel. We can advertise our hotel on any social media to let
everyone know about our hotel and build a good reputation for our hotel so that people will
know our hotel and be more confident in choosing us. We also can deal with those famous
people to promote our hotel with their popularity. Besides that, we can use social media to
advertise to enlarge the community.

2. Improve the quality of service

Moreover, we can offer our customers the best services that will exceed their expectations
and satisfy what they need. For example, we can make a promotion to attract more potential
customers to choose our hotel thus to increase popularity and build an image for our hotel to
let everyone around the world know us. Meanwhile, the hotel needs to prioritize training for
the hotel staff to minimize mistakes. Providing suitable training can lead your hotel to
success.

3.1.2 Long-term goals

1. Maintain the business and increase profit

After a few years, we need to constantly upgrade our facilities and system so that we can
move with the times. We also can start expanding our hotel around the world thus to increase
profit. Besides that, we can use technology by listing the property online for a booking
platform that can generate leads and help you increase your hotel bookings.

2. Improvement of the quality of service

We need to improve the services of the hotel so that we can attract more customers and the
income of the hotel will increase. Meanwhile, we make our service excellence by using smart
goals which are more challenging or demotivating for employees than trying to meet a target.

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Smart goals are using 5 criteria which are specific, measurable, actionable, reasonable and
timetable.

SPECIFIC Make your goals specific and narrow for more effective
planning.
MEASURABLE Define what evidence will prove you are making progress and
reevaluate when necessary.
ACTIONABLE Make sure you can reasonably accomplish your goal within a
certain timeframe.
REASONABLE Your goals should align with your values and long-term
objectives.
TIMETABLE Set a realistic, ambitious end-date for task prioritization and
motivation.

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3.2 Organization

Figure 1 Our company's organization chart

3.2.1 IT department
The Information Technology department is in charge of all IT systems, business systems,
office systems, computer networks, and telecommunication systems in the hotel on a day-to-
day basis. In addition, the IT manager of the company is in charge of the property's
information technology concerns, goods, and services. Provides user training and support for
all property/site systems, as well as network upgrades, hardware and software maintenance,
and other services. It is one of the most important departments in our firm since our self-
service hotel includes a lot of high-tech devices, which means we'll have a lot of technical
issues and a lot of systems that need to be set up properly; otherwise, our clients would have
problems checking in or out of the hotel.

3.2.2Finance department
Every company's financial department is the most fundamental and crucial. They are in
charge of accounting, financial budgeting, financial planning, internal audit, cost
management, financial reporting, and investment analysis for the company, as well as
participating in the organization's analysis and decision-making on significant topics. Provide
financial analysis and decision-making support for the company's production and operations,
as well as business expansion and international investments.

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Not only that, but also to accomplish various tax-related work on time, to be accountable for
the organization's money management, to be responsible for the scheduling and operation of
funds, and to increase fund efficiency. When the organisation has to start a new project or
invest in something new. They also help with risk evaluation, advice, tracking, and financial
risk management.

3.2.3Food and Beverage department

This division is in charge of meeting the catering requirements of both hotel and non-hotel
customers. The catering department is usually the hotel's principal department, in charge of
material and commodity procurement, as well as warehousing, retrieval, processing, and
services. The hotel's Food and Beverage Department is also a major revenue generator. It is
in charge of supplying high-quality meals to hotel guests and hotel personnel to ensure that
they eat healthy and tasty meals.

3.2.4Cleaning department
Housekeeping is a hotel's operating department in charge of the cleaning, maintenance, and
aesthetic upkeep of the rooms, public areas, laundry, and linen. The effort made by a
housekeeping crew to provide a guest with the desired room has a direct impact on the guest's
hotel experience. Their responsibility is to ensure the sanitation of hotel rooms and public
areas. Not only that, but they also need to wash the sheets and towels used by the customers,
and even when the customers are now extra towels, they are responsible for delivering them.
3.2.5Sales and Marketing department-
The sales and Marketing Department is a strategy department that leads sales, customers, and
the production department. Market research, brand marketing, sales promotion activity
planning and implementation, and salesperson training, among other things, are all part of the
job. The sales department focuses on each period's sales success and profit; particular tasks
include visiting clients, recommending items, and so on.

Our sales department's mission is to grow our hotel, increase its exposure, improve its
reputation, and give customers reasons and incentives to book with us. The sales department's
objective is to effectively deliver items to customers while also recovering the cash.
Recognize the worth of things. Our marketing department takes the whole picture into

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account and represents everyone's best interests. As a result, in addition to revenue, brand
recognition and reputation are important. It's also tough to define and quantify evaluation
standards in detail. The sales department's efforts are represented in the number of items sold
and the quantity of money refunded.

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3.3 Motivation
Motivation is concerned with how a company can inspire its employees to give their utmost.
Motivated employees are more concerned with the company's success and perform better
(BBC Bitesize 2021).

Figure 2 How to motivation employees

We are going to use Maslow’s Hierarchy of needs theory for our company. Abraham
Maslow's hierarchy of needs theory is one of the most famous needs theories. Motivation,
according to Maslow, stems from a person's endeavour to meet five basic needs:
physiological, safety, social, esteem, and self-actualization. These requirements, according to
Maslow, can cause internal pressures that impact a person's conduct (study 2012).

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Report of Luxiricage Hotel

Physiological

Safety

Social

Esteem

Self-actualization

Figure 3 Maslow's Hierarchy

Physiological

Physiological requirements include things like air, food, drink, shelter, clothes, and sleep, all
of which are essential for human life. We will accommodate our employees' physiological
demands by providing pleasant working conditions, appropriate work hours, and adequate
breaks to use the restroom, eat, and/or drink (study 2012).

Safety

The needs that provide a person with a sense of security and well-being are referred to as
safety needs. Personal safety, financial stability, good health, and protection from accidents,
injury, and their negative consequences are all part of safety requirements. We will meet our
employees' safety requirements by providing safe working conditions, stable remuneration
(such as a wage), and job security, which is particularly essential in a down economy (study
2012).

Social

The urge to experience a sense of belonging and acceptance is referred to as social needs,
also known as love and belonging. Friendships, family, and intimacy all contribute to the
satisfaction of social needs. We will address our workers' social requirements by ensuring

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that everyone knows each other, fostering cooperative cooperation, being an approachable
and friendly supervisor, and supporting a healthy work-life balance (study 2012).

Esteem

Self-respect is somewhat more essential than earning respect and appreciation from others in
terms of self-esteem and respect requirements. We will meet our workers' esteem
requirements by praising and recognizing them when they perform well, and by giving them
promotions and extra responsibilities to show that we appreciate them (study 2012).

Self-actualization

The urge to attain one's full potential is referred to as self-actualization needs. While I may
feel compelled to be a good parent, you may feel compelled to work at a senior level in your
company. Because this is a unique requirement, we will meet it by giving workers difficult
work, allowing them to participate in decision-making, and giving them job flexibility and
autonomy (study 2012).

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4. Conclusion
In conclusion, although the hotel industry faces a lot of difficulties, our self-services hotel is
alternative hotel industry. It will replace most employees with high technology, which can
greatly reduce employee expenses and easy to attract customers. Make the hotel smarter and
safer. When the hotel is in a dangerous or unexpected situation, artificial intelligence is used.
The staff will know at the first time and take corresponding measures its management
efficiency is higher than a traditional hotel. Self-service hotels will be the future trend.
Artificial intelligence will serve humans and can do things more accurately than humans. We
will go forward and put more pressure on the market, to achieve a monopoly in the hotel
industry.

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5. List of References

Azavista n.d., 10 ways hotels can increase revenues, decrease costs and boost group hotel
bookings, azavista event technology, viewed 15 July 2021, <https://www.azavista.com/10-
ways-hotels-can-increase-revenues-decrease-costs-and-boost-group-hotel-bookings/>.

BBC Bitesize n.d., Motivation, BBC Bitesize, viewed 15 July 2021,

<https://www.bbc.co.uk/bitesize/guides/zstpvcw/revision/3>

Dean Inès Blal 2020, Hospitality research: Airbnb's impact on hotels, EHL Insights, viewed
15 July 2021, < https://hospitalityinsights.ehl.edu/airbnb-impact-hotel-trends>.

eHotelier 2021, How to increase the visibility of your hotel online, viewed 15 July 2021,
<https://insights.ehotelier.com/insights/2018/02/28/increase-visibility-hotel-online/>.

Hospitality Study n.d., hospitality study | sales & marketing manager, viewed 15 July 2021,
<https://hospitalitystudy.eu/sales-marketing-manager/>.

EHL Insights 2020, setting customer service goals: 4 steps to excellence, EHL Insights,
viewed 15 July 2021, <https://hospitalityinsights.ehl.edu/customer-service-goals-excellence>.

Shaw A, 2020, SWOT Analysis of the Hotel Industry, Marketing Tutor, viewed 15 July 2021,
<https://www.marketingtutor.net/swot-analysis-of-the-hotel-industry/#Employment-
Opportunities>.

Chen, Wan Chi, 2011, pg.19, Marketing Tutor. (2020). SWOT Analysis of the Hotel Industry.
[online] Available at: https://www.marketingtutor.net/swot-analysis-of-the-hotel-industry/
#Employment-Opportunities [Accessed 14 Jul. 2021].

Sainaghi, R., Abrate, G. and Mauri, A. (2021). Price and RevPAR determinants of Airbnb
listings: Convergent and divergent evidence. International Journal of Hospitality
Management, 92, p.102709.

Self-Service Technology in Hospitality & Tourism. (n.d.). SWOT. [online] Available at: ,
viewed 15 July 2021, <https://hotelselfservicetechnologies.weebly.com/swot.html>.

Setupmyhotel .com. (n.d., The Main Departments In a Hotel Or Resort, viewed 15 July 2021,
<https://setupmyhotel.com/train-my-hotel-staff/securityandloss/765-departments-that-make-

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a-hotel.html#:~:text=The%20Information%20Technology%20department%20is>. ). 11
Departments In a Hotel. [online] Available at: [Accessed 14 Jul. 2021].

SOEG 2021, SWOT ANALYSIS OF THE HOTEL INDUSTRY – KNOW THE STRENGTHS
AND WEAKNESSES, viewed 15 July 2021, <https://www.soegjobs.com/swot-analysis-hotel-
industry/>.

SOEG JOBS (2016). SWOT Analysis of the Hotel Industry - Strengths and Weaknesses.
[online] Global Hospitality Portal. Available at: https://www.soegjobs.com/swot-analysis-
hotel-industry/

Study.com. (2012,). The Needs Theory: Motivating Employees with Maslow’s Hierarchy of
Needs, viewed 15 July 2021, <https://study.com/academy/lesson/the-needs-theory-
motivating-employees-with-maslows-hierarchy-of-needs.html.- Video & Lesson Transcript |
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motivating-employees-with-maslows-hierarchy-of-needs.html

高孟阳 (n.d.). 新冠疫情重创马来西亚旅游及酒店业 行业协会呼吁当局提供帮助 .

[online] m.news.cctv.com. Available at:
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14 Jul. 2021].

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