Reforms in the Hotel Industry

Question: Discuss about the Report for Reforms in the Hotel Industry. Answer: Introduction The hotel industry in Australia is not only a focal point for the local communities but an important driver of the local, state, and national economy. The over 6,000 Australian hotels employ more than 300,000 people and contribute 11-14 billion annually to the economy (Australian Hotels Association, 2016). In addition to providing employment opportunities, the industry is a major consumer of locally produced goods and a source of support to the local sporting and community organizations (Mitchell, Font and Li, 2014). The industry also offers essential services such as conferencing and entertainment. In definition, a hotel is an establishment that provides catering, lodging, and other services in the lieu of payment. As Australia concentrates more on the service-based economy due to the growth of Asian source markets and globalization, the importance of the hotel industry, will become more prevalent (Australian Hotels Association, 2013). Employment from this sector is expected to rise more than any other sector, growing by more than 17 percent. Over the past, the industry has faced some challenges such as wage issues and lack of information security awareness, which have impeded growth. The hotel industry can grow and make more contribution to the national economy if the right frameworks are put into place (Australian Hotels Association, 2013). The focus of this essay, will, therefore, be on the reforms needed or already done in the hotel industry, with a particular focus on Lux hotel. Reforms Needed in the Hotel Industry The hotel industry needs to adopt technology to streamline their processes. At this age, some hotels are yet to have a website. Given that social media is a popular platform for hotel reviews and check-ins, hotels and restaurants should take the opportunity to share beautiful photos of their facilities and their food on social media (Tatar and Eren-Erdogmus, 2016). Hotels such as Lux should choose a social media platform wisely- based on the target audience- rather than joining all of them. Marketing automation makes it possible for customers to receive personalized emails based on their location and activities. A good example is sending a personalized email on special discounts on the clients birthday. With advanced marketing automation, more sophisticated tasks such as emailing to customers who have been clicking in some regions of the web site can be performed (Leeà ¢Ã¢â€š ¬Ã‚ Ross, 2013). Through marketing automation, the hotel industry can watch and nurture their prospective clients to encourage repeat businesses. The Australian government is making some efforts to reform this industry. A good example is a recent increase in the small business annual entity turnover threshold to $ 10 million from $ 2 million (Hotels welcome small business tax concessions, 2016). Corporate tax is expected to decrease by 1%. Hotels operate in a highly competitive hospitality environment. The lifting of the threshold will enable more hotels to invest and grow. In order to meet customers expectations, hotels need to reinvest and improve their services. The recent developments will not only help them to do so but will assist them to provide more employment opportunities. A recent survey by Tourism Accommodation Australia showed that 96% of the 3.4 and 5- star hotels surveyed offer some form of free Wi-Fi to guests (Australian Hotels Association, 2016). Sixty-five percent of the hotels surveyed do not charge for Wi-Fi access. Thirty-five percent offer it on some conditional basis, while less than 5 percent requires the guests to pay. The provision of fast, efficient, and high-quality internet connection is a big revolution in the hotel industry. With it, guests can answer their emails, update their social media channels, download streams, and hold online conferences. Research shows that some small and medium hotels are in debt, and because of this, some are opting out of business. When in debt, an internal transfer saves the day. In simple terms, an internal transfer is a management-led buyout. The hotels property is sold to the management and to those employees that wish to see the hotel in operation. The model not only helps to revive debt-stricken hotels but permits the transfer of previously state-owned hotels to limited-liability ventures primarily owned by the hotel management and the employees (Patiar, 2016). Under normal circumstances, the general manager holds a significant stake in the newly formed company. Assistant and Department managers also have an interest in stock ownership. Employees can also participate in ownership if they wish. An alternative to management buyout is new investment. If the existing management is flexed on resources to assume ownership through internal transfers, it can seek new partners to invest in the hotel. Ownership, in this case, is determined by the number of shares in the investment. Online bookings are becoming more widespread in the hotel industry. As some hotels become more famous; thanks to the Search Engine Optimization (SEO), more and more hotels are now accepting online bookings (Hospitality, 2015). While some people prefer to make calls, online booking has revolutionized the hotel industry as customers can reserve bookings without being constrained by the hotels working hours or book any other time when calling is not convenient, such as late in the night. Online booking has brought about a new dimension in marketing and customer service. Many industry participants now consider it essential to have an online booking system complete with a well-designed mobile site and a good interface (Hospitality, 2015). A single most important decision for many hotels is whether to develop their customized booking system or use a third party service. While each decision has its advantages and disadvantages, it is advisable to choose depending on individual needs. Through the revolution of Electronic Point of Sale (EPOS), systems are increasingly becoming more sophisticated, allowing hotel industry to provide better customer service and carry out their operations more efficiently. By integrating with inventory management, CRM, and other tools, loyalty programs, information on stock, information on capacity, and more are now more accessible with a touch of a button. Conclusion Though the hotel industry in Australia is a key player in the local and national economy, many problems such as wage issues and debt have significantly affected it. Through reforms such as favorable taxation system, internal transfers, new investments, automation and adoption of new technologies, hotels can streamline their operation and serve their customers better, thereby growing their profits and boosting their contribution to the national economy. References Australian Hotels Association. (2016). Australian hotels embrace connectivity - Australian Hotels Association. [online] Available at: https://aha.org.au/australian-hotels-embrace-connectivity/ [Accessed 9 Aug. 2016]. Australian Hotels Association.(2013). Industry Data - Australian Hotels Association. [online] Available at: https://aha.org.au/industry-data/ [Accessed 6 Aug. 2016]. Hospitality.(2015). 7 technologies that are transforming the hospitality industry. [online] Available at: https://www.hospitalitymagazine.com.au/management/7-technologies-that-are-transforming- the-hospitali [Accessed 6 Aug. 2016]. Hotels welcome small business tax concessions. (2016). 1st ed. [PDF] Brisbane: AHA, p.1. Available at: https://aha.org.au/wp-content/uploads/2016/05/Press-Release-Hotels-welcome-tax- concessions.pdf [Accessed 9 Aug. 2016]. Leeà ¢Ã¢â€š ¬Ã‚ Ross, D. (2013). Comment: Australia and the small to mediumà ¢Ã¢â€š ¬Ã‚ sized hotel sector. Int J Contemp Hospitality Mngt, 10(5), pp.177-179. Mitchell, J., Font, X. and Li, S. (2014). What is the impact of hotels on local economic development? Applying value chain analysis to individual businesses. Anatolia, 26(3), pp.347-358. Patiar, A. (2016). Costs allocation practices: Evidence of hotels in Australia. Journal of Hospitality and Tourism Management, 26, pp.1-8. Tatar, S. and Eren-Erdogmus, I. (2016). The effect of social media marketing on brand trust and brand loyalty for hotels. 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