Analysis Of Effective Product Expansion Policy To Increase Revenue In Garuda Plaza Hotel
Introduction
In the highly competitive hospitality industry, hotels must continually adapt to changing customer needs and expectations to remain competitive. One key strategy for hotels to increase revenue is through effective product expansion policies. However, the current product expansion policy at Garuda Plaza Hotel has not yet provided satisfactory results. Despite a 5.3% increase in Bed Occupancy Rate (BOR) between 2009 and 2013, revenue growth only increased by 4.2%. With an average revenue growth per customer of 3.8% in the same period, this shows that the product expansion business is not effective enough in attracting more customers to the hotel. This study aims to formulate alternative policies to increase income by analyzing the factors that influence the expansion of products and facilities at Garuda Plaza Hotel.
The Importance of Product Expansion Policy
Product expansion policy is an essential strategy for companies to remain competitive in the hospitality industry. Garuda Plaza Hotel needs to consider several approaches in developing products and facilities to meet customer expectations and market demands. One approach that can be applied is to listen to feedback from customers about what they need. This includes the addition of facilities such as spa, fitness center, or a more modern meeting room, which can increase the attractiveness of the hotel. By understanding customer needs and expectations, hotels can develop products and facilities that meet their demands, leading to increased customer satisfaction and loyalty.
Factors Affecting Product Expansion
In this study, it was found that there are two main factors that affect the needs of product expansion at Garuda Plaza Hotel. First, customer expectations of the addition of products and facilities. Customers today want a better experience during their stay, and they tend to choose a hotel that offers more facilities and services. This is because customers are looking for unique and memorable experiences that go beyond just a place to stay. Hotels that can offer these experiences are more likely to attract and retain customers.
Second, management's desire to add products and facilities is also very influential. Proactive management in responding to industrial trends and innovating can encourage the development of hotels for a better direction. Management's vision and leadership play a crucial role in driving the development of products and facilities that meet customer needs and expectations. By being proactive and innovative, management can create a culture of continuous improvement and innovation, which can lead to increased customer satisfaction and loyalty.
Alternative Strategy to Increase Revenue
Based on the results of the analysis, Garuda Plaza Hotel needs to develop alternative policies to increase income. One of the strategies is to conduct routine surveys to customers to understand their expectations. By understanding customer needs and expectations, hotels can develop products and facilities that meet their demands, leading to increased customer satisfaction and loyalty. This can be done through online surveys, focus groups, or one-on-one interviews with customers.
Involving employees in the development of new services is also very important. Employees are the spearhead in providing services, and they are in the best position to understand customer needs and expectations. By involving employees in the development of new services, hotels can tap into their knowledge and expertise, leading to more effective and efficient service delivery. Satisfied employees will be more motivated in providing quality services, which in turn can increase customer satisfaction and loyalty.
Implementing an Effective Feedback System
Implementing an effective feedback system, both from customers and employees, can help Garuda Plaza Hotel in determining the direction of product and facilities development. This can be done through regular customer feedback sessions, employee feedback forums, and online review platforms. By collecting and analyzing feedback from customers and employees, hotels can identify areas for improvement and develop products and facilities that meet customer needs and expectations.
Collaboration with Local Partners
Collaboration with local partners to offer interesting packages, such as culinary tourism or cultural tourism, can be a significant added value for hotels. This can be done through partnerships with local restaurants, tour operators, and cultural institutions. By partnering with local businesses, hotels can offer unique and memorable experiences that go beyond just a place to stay. This can lead to increased customer satisfaction and loyalty, as well as increased revenue for the hotel.
Conclusion
In a fierce competition in the hospitality industry, Garuda Plaza Hotel must adapt quickly to customer needs and expectations. By paying attention to the factors that influence product expansion and implement appropriate policies, this hotel can increase income and maintain its position in the market. Effective product expansion policies not only add facilities, but also create an unforgettable stay for customers. By understanding customer needs and expectations, hotels can develop products and facilities that meet their demands, leading to increased customer satisfaction and loyalty.
Introduction
In our previous article, we discussed the importance of effective product expansion policy in Garuda Plaza Hotel. We also explored the factors that influence product expansion and the alternative strategies that the hotel can implement to increase revenue. In this article, we will answer some of the frequently asked questions (FAQs) about effective product expansion policy in Garuda Plaza Hotel.
Q: What is the main goal of product expansion policy in Garuda Plaza Hotel?
A: The main goal of product expansion policy in Garuda Plaza Hotel is to increase revenue by developing products and facilities that meet customer needs and expectations.
Q: What are the factors that influence product expansion in Garuda Plaza Hotel?
A: The two main factors that influence product expansion in Garuda Plaza Hotel are customer expectations of the addition of products and facilities, and management's desire to add products and facilities.
Q: How can Garuda Plaza Hotel understand customer needs and expectations?
A: Garuda Plaza Hotel can understand customer needs and expectations by conducting routine surveys to customers, involving employees in the development of new services, and implementing an effective feedback system.
Q: What are some alternative strategies that Garuda Plaza Hotel can implement to increase revenue?
A: Some alternative strategies that Garuda Plaza Hotel can implement to increase revenue include conducting routine surveys to customers, involving employees in the development of new services, implementing an effective feedback system, and collaborating with local partners to offer interesting packages.
Q: Why is it important for Garuda Plaza Hotel to involve employees in the development of new services?
A: It is important for Garuda Plaza Hotel to involve employees in the development of new services because employees are the spearhead in providing services, and they are in the best position to understand customer needs and expectations.
Q: How can Garuda Plaza Hotel implement an effective feedback system?
A: Garuda Plaza Hotel can implement an effective feedback system by collecting and analyzing feedback from customers and employees through regular customer feedback sessions, employee feedback forums, and online review platforms.
Q: What are some benefits of collaborating with local partners in Garuda Plaza Hotel?
A: Some benefits of collaborating with local partners in Garuda Plaza Hotel include offering unique and memorable experiences to customers, increasing customer satisfaction and loyalty, and increasing revenue for the hotel.
Q: How can Garuda Plaza Hotel measure the success of its product expansion policy?
A: Garuda Plaza Hotel can measure the success of its product expansion policy by tracking key performance indicators (KPIs) such as revenue growth, customer satisfaction, and employee engagement.
Q: What are some common challenges that Garuda Plaza Hotel may face in implementing an effective product expansion policy?
A: Some common challenges that Garuda Plaza Hotel may face in implementing an effective product expansion policy include resistance to change from employees, lack of resources and budget, and difficulty in understanding customer needs and expectations.
Conclusion
In conclusion, effective product expansion policy is a crucial strategy for Garuda Plaza Hotel to increase revenue and maintain its position in the market. By understanding customer needs and expectations, implementing alternative strategies, and collaborating with local partners, Garuda Plaza Hotel can develop products and facilities that meet customer demands, leading to increased customer satisfaction and loyalty.