Swot Analysis of Outrigger Hotels and Resort Essay

1246 Words Nov 17th, 2015 5 Pages
Strengths: Maintaining a centralized management structure with personal interactions of the owner, Roy Kelley (1970’s). Expanding the business and adding more property agreements with 3rd parties and creating international property chain to make the business gain geographic diversity. Creating brand awareness to the budget traveler under their new branch name, OHANA, providing affordable condos. Creating multicultural environments at good locations with multicultural and multilingual employees. Pleasing employees created less turn-over rates and non-unionized labor market. As a result, this created a differentiated service and created priceless appeal. Having good relationships with local tourism …show more content…
a beach front property.

Condominiums represented a significant share of total portfolio of properties but they had problems as well: Only suitable for independent travelers who don’t require travel agencies. Not suitable for travel agents and wholesalers because of their complex standards. Not serving for business ventures who could have office spaces; primary usage was for vocation homes. Typical hotel services such as food and beverage, room service, laundry, daily maid service. This service model didn’t fit with the hotel chain’s overall hospitality strategy. Condominium Hotels customers expected to have same level of service as they would receive at a resort. With diversifying their products, Outriggers’ profile of their customers and competitors changed, which was hard to focus on the target customers. Their target became more middle-class families than brand loyal customers.

OHANA Hotels’ pricing strategy was harder because of its location at off-beach properties. For international properties, 80% of Outrigger’s came from wholesalers, who sent faxes for reservations to the property. Still not being able to use the technology and relying on fax machines can be seen as a weakness. Lack of IT system integrated for the international reservation system might cause a problem. Lack of a reservation solution for Australia, and lack of a real-time coordination with a central reservation service.

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