Resort Management Strategies of One&Only

Introduction

Resort Management Strategies of One&Only will be evaluated in this report by conducting research on the resort and hotel company. The resort is the place where people go the have a vacation, daytime gateway or relaxation and various types of activities are presented in resorts such as live entertainment, massages, food, cosmetic treatments, swimming pool and many other services (Lucas et al., 2015). One&Only resort gives the scope to explore the world’s most coveted destinations (KERZNER INTERNATIONAL LIMITED: 1, 2020). It has both hotels and resorts across the world have great demand. One&Only resort has been selected in this report to evaluate different types of resorts and the issues of managing them. Different types of packages the resorts have been also evaluated. Market research of the beach resort of One&Only has been done and a business plan has been proposed on the basis of the market research. In the last part of the report, sustainable approaches of the resorts have been demonstrated.

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Various types of resorts with their features and the challenges of managing them:

One&Only resorts have various types of resorts, and these are analysed below, including their features:

Beach resort: Beach resorts are resorts which are located directly on the major beaches or very close to beaches. One&Only’s Palmilla resort is a beach resort and it provides exciting activities such as a swimming pool, yoga and meditation, horseback riding, spa, bars, sailing, surfing, whale watching and many other facilities offered by the resort (KERZNER INTERNATIONAL LIMITED: 2, 2020). The resort faces many challenges while managing its business such as global warming. Because of global warming, the sea area’s temperature is becoming higher and many travellers avoid beach resorts for the high temperature. A natural disaster is another key challenge that beach resort faces. Tsunamis, hurricanes and other natural disasters cause great damage to resorts, and tourists to become victims of the disasters. Being a sustainable business operator is another challenge for resorts because they have to design their operations in the sustainable way that may need higher costs.

Mountain resorts: Mountain resorts are situated in a mountain areas and people go there to enjoy mountain-view. One&Only Cape Town is their mountain resort and people get extraordinary scenery of mountains and enjoy activities such as: hiking to the summit of iconic Table Mountain, swimming, paddle boarding, exploring Cape Wine lands and whale watching (KERZNER INTERNATIONAL LIMITED: 4, 2020). The water crisis is one of the major challenges that One&Only Cape Town resort is facing, and it has reduced water consumption by about 30% furthermore, have to reduce water consumption by about 50% (Quartz Media, 2020). The resort has started to switch to washing cars less, altering fountains into rock gardens, topping up swimming pools with recycled water and many other steps which is making creating difficulties for the travellers.

Forest resorts: One&Only Nyungwe House is a forest resort and it shows the beauty of the oldest rain forest in the world, Rwanda. Travellers can enjoy the beauty of orchids, exotic birds, and butterflies, and hike in the jungle, home to rare primates and reptiles (KERZNER INTERNATIONAL LIMITED: 5, 2020). Customers will be rejuvenated with tree house yoga, will be able to taste rustic farm-to-table cuisine and enjoy spa services. Gorilla trekking and chimpanzee trekking is the best experience that customers have through visiting Nyungwe National Park. The resort also faces challenges in executing operations such as: maintaining the supply of foods and products that clients need in the jungle because there is no shop near the resort. Even the resort has to receive clients from taking in their forest resort because transport is not available there.

Golf resorts: The people who love golfing, visit golf resorts for their vacation and have quality time enjoying golfing. One&Only Palmilla Resort is a Golf resort which is located near the Sea of Cortes. The resort provides accommodation facilities and golf passes; therefore clients can play golf and do not need to pay an extra charges for golfing (KERZNER INTERNATIONAL LIMITED: 6, 2020). Golf lovers come to the resort and they can enjoy the sea beach view also. The resort plays challenges of different types, such as there being too many golf clubs that, reduce customers, golf equipment is costly, extremely expensive buggy hiring and many more challenges.

Differences in operational requirements of resorts and the issues managing different resorts:

There are different types of resorts, and all of them face dissimilar issues, and the operational requirements are also different from one another. The operational requirements of various types of resorts are evaluated below:

Operational Issues while operating beach resorts: Global warming has become a major issue that affects beach resorts greatly (Vox media, 2020). One&Only’s Palmilla resort is also affected by the issue because global warming is raising sea levels that can terminate wetlands which is a threat to the resort. Whilst, global warming does not harm forest resorts like beach resorts because rising sea levels will not harm the forest resorts. Sea level is becoming warmer and oceans are becoming acidic which causes different kinds of diseases that also impacts One&Only’s beach resorts. On the other hand, forest resort does not face high temperature because forest area is cooler than other areas of the earth. To reduce the impact of the factor beach resorts have to take steps to reduce carbon emissions including making people aware of the consequences of the issue. The resort should participate in coastal dune, mangrove restoration and wetland restoration protection efforts and encourage others to take part which will help to reduce global warming and natural disasters.

Operational Issues while operating mountain resorts: One&Only Cape Town resort faces a shortage of water which is one of the major problems that raises in managing the mountain resort (Quartz Media, 2020). The resort cannot consume too much they need to provide luxury services to the customers because of the restrictions of Cape Town’s water consumption. On the other hand, beach resorts have no shortage of water, and they can consume water as much it is needed to deliver luxury services to the customers. The resort has to decrease water consumption to adjust to the shortage of water in Cape Town. It will help them to handle the problem and ensure water flow because too much water consumption may reduce the water level more.

Operational Issues while operating forest resorts: Forest resorts are located at a great distance from the city and the distance creates different types of issues. One&Only Nyungwe House is located in Africa and the rain forest is away from the city therefore it has to keep stock of all foods and necessary products that are needed to provide services to customers. Whilst, beach resorts are located near airports or there are available shops and do not need to face difficulties as forest resorts. Even forest resorts have to ensure transport facilities to the customers where customers can visit beach resorts easily. The resort has to keep enough stock of food and other important things to deliver to customers when it is required furthermore keep enough transport to receive customers and bring them to their resort.

Operational Issues while operating golf resorts: Golf resort needs to purchase golf equipment, dresses and other things for golfing which are costly. The hiring cost of a golf buggy is also expensive; therefore One&Only Palmilla Resort needs higher operational costs (KERZNER INTERNATIONAL LIMITED: 6, 2020). On the other hand, mountain resort does not need that type of costly equipment which are needed for golfing and do not need to hire any coach that golf resort needs to guide the clients. Golf resorts face high competition because of the increasing number of golf clubs and they have to provide more attractive packages and cost-effective services to get more customers. As a result, sales will increase, and the costs will be balanced because of more sales.

Different resort packages of One&Only

Different types of resorts provide various types of packages to make customers gratified. Packages of different resources are evaluated below:

Packages of Golf resort: Clients can play in the award-winning 27-hole Jack Nicklaus Signature course in Palmilla golf adventure. One&Only Palmilla golf resort provides different types of packages. For instance: golf packages provide a complementary 4th night after staying three days, including unlimited play on all 27 holes, One RoboGolfPro® session to help, Two 60-minute après-golf sports massages, Private chauffeured round-trip airport transfers and $150 Resort credit (KERZNER INTERNATIONAL LIMITED: 6, 2020). All the facilities of golf packages attract golf lover because they get all the facilities in the package according to their need. As a result, many travellers across the world visit the resort and it increases the revenue of One&Only and achieve their objective of maximizing profitability.

Packages of a beach resort: One&Only Palmilla resort is one of the most beautiful beach resorts in the world. The resort has different type of packages such as 3-night stay packages get complimentary 4th-night stay including daily breakfast, and private chauffeured roundtrip airport transfers (KERZNER INTERNATIONAL LIMITED: 3, 2020). The package includes activities: swimming pools, snorkelling, kayaking, stand-up boarding, fitness session, bars, spa services, five types of restaurants that provides sea foods with a Mexican touch and other facilities of the resort. All the packages and facilities of the resort help them to have travellers across the world. Travellers come to the resort to enjoy the exciting activities, outstanding view and services of the resort and through getting travellers across the globe, the resort has become capable of increasing its profit level which is one of the key objectives of the resort.

Packages of mountain resort: ‘Stay 4 Nights, Pay for 3’ package of One7Only Cape Town provides one night complementary after 3 night stay that saves 25% on accommodation costs for customers, and the customers will stay for 8 nights will get 2 nights complimentary (KERZNER INTERNATIONAL LIMITED: 7, 2020). It includes a daily buffet breakfast furthermore all types of rooms such as president suite and mountain suite are available in this package. Travellers can enjoy hiking to the summit of iconic Table Mountain, swimming, paddle boarding, exploring Cape Wine lands etcetera. Customers get the best accommodation in one of the best resorts of the globe at a reasonable price that increases customers numbers. Travellers across the world come to mountain resort because of the facilities they provide with their packages, and sales of their services increase. As a result, One&Only Cape Town resort becomes capable of fulfilling its targeted sales through the package and generating higher profit.

Market research on One&Only Palmilla Los Cabos resort

Market size: Global beach resort and the hotel industry were $163,296 million in 2016 and it is forecasted to reach $201,359 million within 2023 furthermore the industry is growing with a CAGR of 3.2% (Allied Market Research, 2020).  One&Only Palmilla Los Cabos resort will be capable of capturing the increasing industry growth by being more customer-focused.

Market trend: Beach resorts provide customized experiences because travellers think that customized experiences are the best choice and it worth both their money and time. Beach resorts are providing health services, rejuvenation and relaxation which causes high customer satisfaction. 5 people 1 visit beach resorts to post pictures on social media which has become a famous trend among people (Luxury Travel Magazine, 2020). Some beach resorts provide private beach with luxury stay options to travellers and it is popular for honeymoon couples. Beach resorts offer activities such as surfing, hiking, biking, water sports and others.

Distribution Channel: The distribution channels of beach resorts are: the official website of the resort, travel agents and global distribution systems (Law et al 2015). One&Only Palmilla Los Cabos resort uses its official website to provide direct sales and they do not need to pay commission to a third party for sales. The resort uses online and offline travel agents as their distribution channel, but it increases costs because of the commission of the travel agencies.

The market needs: Travellers of beach resorts want all types of luxurious services including exciting water activities such as; snorkelling, kayaking, water polo, parasailing and other others (Mustapha, and Awang, 2018). One&Only Palmilla Los Cabos provides luxurious services with fitness and spa services in their resort including all types of water activities (KERZNER INTERNATIONAL LIMITED: 2, 2020). The luxurious services and thrilling activities of the resorts make the customers satisfied with the resort.

Target market: The target market is the group of customers to whom a company aims to provide services (Aghdaie, and Alimardani, 2015). Tourists are the first target of One&Only Palmilla beach resort because tourists like to visit beaches to refresh their minds and bored with their city life. Millennials are the group who visit the beach the most, therefore, the resort targets them and provides exciting activities that make the group gratified toward the beach. Couples and families are also the target market for One&Only Palmilla Los Cabos because these groups also love to spend time on the beach and like to visit beach resorts.

Proposal of a business plan for a resort package on the basis of the finding of market research:

Details about the selected package: One&Only Palmilla Los Cabos have many packages and the ‘STAY A LITTLE LONGER’ package is one of the most exclusive packages of the resort. The package provides complimentary nights on the basis of the night stay such: for 3-night stay guests will get 1 complimentary night and 2 nights for 5-night stay in the resort (KERZNER INTERNATIONAL LIMITED: 3, 2020). Daily fitness sessions, unlimited snorkelling, kayaking, stand-up paddle boarding and many other activities are included in the package. The package also has daily breakfast for two and a Private chauffeured roundtrip airport transfer.

Analysis of customers’ needs: Customers demand luxurious services and thrilling activities from the beach resorts. The ‘STAY A LITTLE LONGER’ package includes facilities of luxury accommodation, breakfast, activities like kayaking, stand-up paddle boarding, daily fitness and airport transfer but it does not include spa services, lunch and dinner. The resort should include lunch, dinner and spa services with the package to fulfil all the needs of customers, and furthermore generate higher customer satisfaction.

Market analysis: The target market of the resort is tourists, millennials, families and couples but the package includes breakfast for only two people which is appropriate for couples. The package should include breakfast on the basis of the number of family members. The trend of posting pictures on social media encourages customers to visit, and the package may include photographer facilities, and which will make customers of the group highly satisfied. One&Only Palmilla resort has to post details of the package on their official website to ensure direct sales of the package. The resort has to make sure that travel agencies also inform customers about the package to encourage customers to buy the package.

Competitive analysis:

According to the competitive analysis it is founded that threat of new entrants is low because it is award-winning beach resort and have global demand. Suppliers’ force is lower because it is an international resort and suppliers want to work for these types of companies. The bargaining power of buyers is low because the luxury services they provide is tough to find in other beach resort. Substitutes of the resort services are also low because of the quality of their luxurious services. Atlantis, paradise island, Wynn Resorts, Six senses etcetera are the key competitors of the resort and it faces high competition (Zoominfor, 2020). One&Only Palmilla has to maintain the quality of its luxury services, innovate services and develop beach resort packages to get many more customers across the world and maintain its leading position among the competitors.

USP: USP of One&Only Palmilla resort is the exclusive spa and cosmetic treatments, fitness sessions, exclusive view of the resort and the luxurious services they provide (KERZNER INTERNATIONAL LIMITED: 2, 2020). The USP of the resort is to encourage clients to purchase their packages and stay in the resort.

Marketing strategy: One&Only Resorts do both traditional and digital marketing to promote their services and furthermore stay active on social media such as Facebook, Twitter, Instagram and others (Facebook, 2020). A strong presence on the internet helps them to get more customers across the globe, and the resort should post details of the ‘STAY A LITTLE LONGER’ package on the internet. Therefore, global clients will get a clear idea about the package and it will encourage them to plan their vacation in the resort and save accommodation costs. As a result, sales of the package will increase highly and the resort will generate a higher revenue than past history.

Sustainable initiatives of One&Only resort:

Tree plantation: One&Only resort of Emirates Wolgan Valley planted over 200,000 indigenous trees through its resort team ad preserved and introduced large-scale energy and waste reduction initiatives to contribute to environment saving (Kerzer Communications, 2019). Because of these steps, the resort achieved Virtuoso Sustainable Tourism Leadership Award’ in 2019 award (Kerzer Communications, 2019). The initiatives help them to reduce environmental impact and increase their reputation across the world for their contribution toward environment saving.

Reduced water consumption: One&Onlye Cape Town resort has reduced water consumption by about 30% than the previous year and has taken steps to reduce water consumption to 50% in future (Quartz Media, 2020). The resorts have added low-flow shower heads and caps, washed cars less, converted fountains into rock gardens, top-up swimming pools with treated salt, used native plants, collected unused water from ice buckets, and many other steps that will help them to reach to the targeted amount of water consumption. Because of these steps, the people of Cape Town appreciate the resorts, and the reputation of the resort has increased. Therefore, customers’ satisfaction rate increases and they appreciate the resort’s environmentally friendly steps. As a result, visiting the resort that makes the resort greatly profitable.

Wombat preservation: Australia’s wombat population is decreasing because of disease, and One&Only resorts have taken steps to save them. The resort funds with Emirates and researched the disease through a partnership with the University of Western Sydney (KERZNER INTERNATIONAL LIMITED: 8, 2020). The resort successfully enhanced the population of wombats by decreasing the disease with the help of the research. This initiative has increased the global status of One&Only resort.

Conclusion:

Resorts offer different type of opportunities to refresh customers’ mind, and it is the reason resort is costly. People visits resorts according to their choice as those people who love golf go to a golf resort, mountain lovers go to mountain resort, and forest lovers to forest resorts. One&Only Resorts provide luxury services to customers and offers many packages the customers can choose according to their requirement. The tourism sector forecast to grow more in future and the resort have to be more customer-focused to generate a higher revenue than at present times.

References:

Allied Market Research, 2020. Beach Hotels Market Overview: Retrieved from: https://www.alliedmarketresearch.com/beach-hotels-market [Assessed on: 17 May 2020]

Facebook, 2020. One&Only Resorts. Retrieved from: https://www.facebook.com/OneOnlyResorts/ [Assessed on: 18 May 2020]

Hotel Online, 2019. Mike Bonner Appointed Vice President of Marketing for One&Only Resorts. Retrieved from: https://www.hotel-online.com/press_releases/release/mike-bonner-appointed-vice-president-of-marketing-for-oneonly-resorts/ [Assessed on: 18 May 2020]

KERZNER INTERNATIONAL LIMITED: 1, 2020. One&Only. Retrieved from: https://www.oneandonlyresorts.com/ [Assessed on: 16 May 2020]

KERZNER INTERNATIONAL LIMITED: 2, 2020.  Luxurious Los Cabos Accommodation. Retrieved from: https://www.oneandonlyresorts.com/palmilla [Assessed on: 16 May 2020]

KERZNER INTERNATIONAL LIMITED: 3, 2020. SPECIAL OFFERS. Retrieved from: https://www.oneandonlyresorts.com/palmilla/offers [Assessed on: 16 May 2020]

KERZNER INTERNATIONAL LIMITED: 4, 2020. IN THE HEART OF CAPE TOWN. Retrieved from: https://www.oneandonlyresorts.com/cape-town [Assessed on: 16 May 2020]

KERZNER INTERNATIONAL LIMITED: 5, 2020. RWANDA. Retrieved from: https://www.oneandonlyresorts.com/destinations/rwanda [Assessed on: 16 May 2020]

KERZNER INTERNATIONAL LIMITED: 6, 2020. AWARD-WINNING GOLF COURSE. Retrieved from: https://www.oneandonlyresorts.com/palmilla/experiences/golf [Assessed on: 17 May 2020]

KERZNER INTERNATIONAL LIMITED: 7, 2020. SPECIAL OFFERS. Retrieved from: https://www.oneandonlyresorts.com/cape-town/offers [Assessed on: 17 May 2020]

KERZNER INTERNATIONAL LIMITED: 8, 2020. SUSTAINABILITY. Retrieved from: https://www.oneandonlyresorts.com/wolgan-valley/sustainability [Assessed on: 19 May 2020]

Kerzer Communications, 2019. Emirates One&Only Wolgan Valley wins global Sustainable Tourism Leadership award. Retrieved from: https://www.kerznercommunications.com/one-and-only/emirates-oneonly-wolgan-valley–wins-global-sustainable-tourism-leadership-award/ [Assessed on: 19 May 2020]