Palm Bay Hotel: Opportunities, Innovation Strategies, and Sources for Operational Risk

PALM BAY HOTEL
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Opportunities for innovation in running the Palm Bay hotel. How Palm Bay Hotel can use innovation strategies to create value
Palm Bay Hotel has several areas where the management can focus on creating more value for their customers. First, there seems to be major repair and retrofitting work to the building. Sandra observed that the water pressure was not very good, and the mirror and a few tiles were broken. These are pointers to a neglected and dilapidated building. It is reflected in how customers experience their service. While doing their repairs, they could also repaint, redesign, and repurpose some property spaces to improve the general aesthetic value of the hotel. (Turner & Hesford, 2018) observed that ‘renovation capital expenditures offer significant short-term beneficial impact in terms of increased revenue, profitability gains, higher customer satisfaction, and decreased repair and maintenance expense.’ To improve the aesthetics and experiences of the guest from the moment he/she comes through the gate, the waste disposal system needs to be away from the car park. Relocating the waste disposal area could provide more room for the car park, and guests will not be put off by the stench and filth of waste near where they alight their vehicles. Thus, repurposing the area where staff left rubbish bins for collection would not only increase the parking area but also give guests a better experience as they come in.
It is important to consult an expert in redesigning the space and carrying out the repair and maintenance work. There is a positive relationship between design quality, financial and market share performance of hotels (Zemke & Pullman, 2008). Experts will guarantee quality restoration/repair work, and designers will help maximize the utility of space and improve the property’s aesthetic value. An expert could help redesign the hotel to bring out a certain theme which would be great for marketing. Experts would maximize the value extracted from the property and orient the hotel in the direction of industry trends to help it be competitive in the foreseeable future.
Secondly, Palm Bay Hotel needs to improve its customer experience. Improving customer experience is a multifaceted process that starts before the customer checks in and long after he/she has left. The hotel management has to ease and improve the booking and checking-in process, guest stay, and eventual departure. There are some areas where the management can reflect these changes; first, in the booking and checking in process, the hotel management should work with booking platforms, booking agencies, and their website to ease the process for the client. Once the guest arrives at the hotel, he/she needs to be directed to where to park, be helped with luggage, and assisted through the checking-in process. It may be necessary to have a concierge help guests from the gate to their rooms. Concierge improves a guest’s experience (Oliver, 2020). Guest need not start looking for parking spaces or carrying their own luggage and waiting at the reception. Secondly, the rooms need to be improved for the customer. The hotel management needs to provide new towels and every utility object in the rooms through to the duvets. Online reviews have shown that the existing ones have worn off and are disgusting. Investment in providing better utility objects and materials is also necessary for the customers. Each room needs to have fresh, clean, and quality sheets, towels, and utilities like toothpaste and soap provided daily. The rooms also need to be cleaned thoroughly every day for the next guest, including dusting off all the windows and cleaning the floor and bathroom. Any other tool to improve comfort for the client is also welcome, i.e., aircon installation and/or TV for the entertainment of the guests. The management should ensure that all customers are comfortable and happy throughout their stay in the hotel.
Sources for operational risk at Palm Bay hotel. What Palm Bay hotel can do to limit operational failure
There are two main categories of operational risk in Palm Bay Hotel. First, there is people risk. Employee interactions take on a greater role in determining customer satisfaction during service failures (Anderson, Baggett, & Widener, 2009). People risk stems from problems and liabilities that accrue to a business, and they stem from inadequacies in human capital and management of human resources (McKinsey & Company, 2020). In Palm Bay Hotel, Sandra encountered several human-related operational risks during her stay in the hotel. First, at the reception desk, she was not warmly welcomed. She waited as staff argued in the backroom. This leaves a bad aftertaste in the experience of the guest. Guests would experience bad customer service characterized by a lack of attention to guest needs, hostility by the staff, and generally a poor experience in every aspect where the guest needs service. Secondly, the employees seem to be unqualified in some of their capacities. For example, Cedric is the head of housekeeping and reception, yet his backgr...