The hotel business is classified among one of the most competitive in the hospitality industry. The work that is associated with the hospitality industry is not always easy to manage and develop. The management has to generate strategic analysis to offer in order to establish the most competitive strategy in the industry. The globalization aspect also plays a critical role in the industry, and management should analyze and give in-depth consideration before developing a management approach (Bowie, 2018). Managers are always forced to explore various tasks at any given time to ensure the books are balanced, and also they remain competitive in the industry. Across the globe, the hotel business has been ranked among the fastest-growing sectors characterized by chronological advancement. The advancement has left the industry more competitive eliminating organizations that are managed on traditional management approaches. Modern hospitality management measures have also led to the improvement of organizations and the customer experiences over the years (Kruesi et al., 2017).

The United Kingdom is ranked among the significant tourists’ destination countries in the world. The advanced aviation industry and reliable economic performance indicators of the economy are among the factors that have led to the classification of the region as a great destination (Zhang, 2017). The tourism sector is directly related to the hospitality industry. According to the British Hospitality Association (BHA), the hospitality industry in the United Kingdom contributed more than £41bn to the government as revenue. Comparatively, the industry has been on steady growth. In 2014 the industry paid more than £7bn higher than in 2011. The spending on overseas spending in the sector was projected to be more than £30bn at the end of 2020. The industry is ranked among the eight best tourist destinations in the world (Vejzagić et al., 2016). In 2015, the country recorded more than 30 million tourists. Political and economic stability are among the key factors that significantly contribute to the development of the industry. The growth and development of the tourism industry have led to the advancement of the hotel industry in the country (Rahimi and Gunlu, 2016).

According to Intercontinental Hotel Group (2019), Holiday Inn Express in Newbury Park is a mid-priced hotel, part of the IHG brands. It is opened since 2007, has 126 rooms and is focused mainly on providing essential services at a reasonable price. It is a business-friendly hotel, located near the Newbury Park underground station and has a good connection with central London, London Stansted Airport and London City Airport. The primary services that the hotel provides are accommodation food and beverages, and it also has a banqueting and conference hall that can be used for business meetings or social events (Iraldo et al., 2017).

Research Aims

The study aims to explore the implication of proper management approaches and best strategic measures of Holiday Inn Express Hotel that can be explored to offer competitive advantages over the rivals in the hotel industry.

Research Objectives

To explore the relevance of management theories and investigate the management challenges and issues in hospitality industry
To identify significant management challenges and issues at the Holiday Inn Express Hotel;
To identify the causes and effects of the range of managerial challenges and issues within Holiday Inn Express Hotel;
To recommend the most effective management theory that can be applied at the Holiday Inn Express Hotel for optimal productivity;

Research Questions

In order to meet the objectives of the study, the following research questions were utilized;

What is the relevance of management theories and what are the main challenges and issues in the hospitality industry?
What are the significant management challenges and issues at the Holiday Inn Express Hotel?
What are the causes and effects of the range of managerial challenges and issues within Holiday Inn Express Hotel?
What are the most effective management theories that can be applied at Holiday Inn Express Hotel for optimal productivity?

Research Justification

Management theories have proved basic concepts in the development and articulation of strategic approaches in an organisation. The current hotel management concept benefits from multiple aspects of the hotel as a business opportunity (Rosenberg and Ferlie, 2016). The best strategies develop and adopted in the hospitality industry reflect broader social-economic trends and seek to minimize how the hospitality industry is interchangeable by consumers. The approaches developed are meant to lead to customer satisfaction and promote competitiveness in the long run (McGrath and Bates, 2003).

The hotel sector utilizes the elements from traditional management theory as well as effective practices based on industry-specific skills and experience. Current trends large focused on approaches that largely benefit the businesses directly (Roy, 2011). Some of the research studies are directly based on employee’s productivity analysis while others are based on critical analysis of internal and external factors as competitive advantages (Chow, 2019). These studies have elaborated on the importance of understanding management in hotel sector as a competitive approach. The studies have also elaborated on the best practices and measures that can be applied to achieve optimal results in the long run (Ashton, 2018). This results study will significantly contributes to the exploration of the most effective approaches that can be used in the management of the hotel as an organisation. The study will also explore the challenges experienced in the industry and offer comprehensive management theories that effectively lead to productivity.

CHAPTER TWO

Literature Review

Management Theories in the Hotel Industry

Hotel industries, just like other sectors of the economy across the world, have led to the development of the management theories and the approaches in the attempt to adopt the most effective strategic strategies in the long run (Madera et al., 2017). Hotel management has utilized both traditional and modern methods based on industry-specific experience. The current hotel management concept benefits from multiple aspects of the hotel as a business opportunity. The best strategies develop and adopted in the hospitality industry reflect broader social-economic trends and seek to minimize how the hospitality industry is interchangeable by consumers (Kruesi et al., 2017). The approaches developed are meant to lead to customer satisfaction and promote competitiveness in the long run. McGrath and Bates (2003) stated that in the last 100 years, many researchers, academics, and managers have tried to identify the secrets of efficient management, having as results many contradictory management theories. This section ill critically analyse some of the most critical management theories that are applicable to the hotel business. The literature analysis is developed based on existing studies that have been expounded on the importance of the management theories, especially in the hospitality industry (Ashton, 2018).

Scientific Management Theory

Creativity and innovation are critical in the promotion of productivity across industries. Frederick Taylor established the importance of motivated employees in the workplace. How was among one of the scholars to study work performance in a scientific approach. Taylor’s approach emphasized that forcing individuals to work extremely hard was not sufficient and did not yield optimal results (Jarrow, 2017). However, developing motivational incentives is a critical consideration that increases the employee’s productivity. The importance of the employees in the hotel industry is vital. The management theories call for the development of the understanding of motivational incentives towards the achievement of the set goals of an organisation (Oberoi, 2016).

The initiation of the theory was a game-changer across industries. The strategy was different from how business organizations were developed. Initially, the factory executive enjoyed contact with subordinate staff. The employees were treated in classes with low interactions. There was no standardization of workplace regulations, and the only motivation among the employees was job security (Waring, 2016). According to Taylor, money was the central motivational factor across industries. The establishment of scientific management theory was a game-changer across industries and changed the management approach holistically. Management in the hotel industry should consider the workforce as the central engine in the development of competitiveness across sectors. Scientific management theory is a critical theory that plays a significant role in the development of the industry (Parker, 2016).

Systems Management Theory

Management entails analysis of an organizational environment, developing t its objectives, and developing the most effective strategic approach to meet the set targets within the given period of time. System management offers an alternative approach to the management and planning of an organisation. The system management theory proposes that businesses consist of different components that work harmoniously so that the more extensive system can be productive to the optimal. According to the method, the success of a firm largely depends on interdependence, synergy, and interrelations between different modes of an organisation (Bratton and Gold, 2017).

Contingency Management Theory

According to this theory, no one theory fits precisely in the management of an organisation. There are variously internal and external management challenges that ultimately affect the performance of a chosen management theory. The management approach selected in the hotel should be given critical consideration and analysis in order for optimal productivity. Contingency theory is developed based on three concepts that are likely to impact the organisation culture and productivity (Otley, 2016). Fred Fiedler developed the theory and proposed that the traits of a leader are directly related to the success of an organisation. According to Fiedler’s opinion, there’s a set of leadership concepts, and there are handy traits for every situation in the management of an organisation. The leader must be flexible and able to develop strategic measures and approaches in solving the challenges in the long run (Joslin, 2019). The theory is developed based on;

There is no single strategic approach that is effective in the management of an organisation in the long run.
A manager as a leader in an organisation should be quick to identify the most effective strategic approach depending on the situation.
The fundamental component of contingency theory is the least preferred co-worker scale that asses how well a manager as a leader is focused on the achievement of the organizational goals.

Theory X and Theory Y

This theory is developed based on an understanding of the importance of the employees in an organisation. The individual level of satisfaction in the station of works is weighed as a critical consideration of success in an organisation. Assumptions influence how organizations are run. The premises form the basis of theory X and theory Y. Douglas McGregor is credited for developing the concept of management. The theory is developed based on two management perspective. Analysis of the two approaches is critical in the analysis of the fundamental importance of the process and its implication to the overall performance of the tan organisation. The approach is developed based on the authoritarian representing Theory X and based participative approach representing Theory Y (Aithal and Kumar, 2016; Bratton and Gold, 2017).

Theory X is developed based on a pessimistic view of the labor force in the sense that they cannot work without being monitored by their supervisors. On the other side, theory Y is developed on an optimistic approach that gives the employees the advantage of making the critical decision and increase productivity without supervision. Theory X is based on the proposition that the managers and the employees can achieve a collaborative approach towards the achievement of the set goals within an organisation (Chen et al., 2018). There X primarily applied where there are large numbers of employees. Utilisation of authoritarian approach in one of risky management approaches in the hotel industry. Employees are less motivated, and given the nature of the business, it portrays hazardous trends towards remaining competitive in the industry (Aithal and Kumar, 2016; Popov et al., 2017). Holiday Inn Express in Newbury Park uses an autocratic management theory. The bottom-line employees are not usually allowed to make crucial decisions; they are not encouraged to contribute with ideas and are not motivated to help to achieve company goals. The tasks are well-defined; employees have to follow the direction that is set by the management and is consistently supervised (Aithal and Kumar, 2016).

Employees are one of the most critical assets of hotels. Managers should care more about keeping them happy and motivated. Ouchi (1981) has pointed out the management theory Z, which is focusing on employee well-being and development. Holiday Inn Express in Newbury Park should consider adopting theory Z because having happy employees is essential for providing excellent customer service and keeping the customer satisfied (Tsai et al., 2009).

Management Issues and Challenges in the Hotel Industry

Economic Fluctuations

The hotel sector is one of the major businesses that are largely affected by economic fluctuations. When a nation’s economic fluctuations are high, local tourism and travels increases leading to higher productivity in the hotel sector (Nickson, 2013). High economic performance increases hotel occupancy and boosts the economic productivity of the hotel businesses. In hotels and restaurants, the rate of economic growth and development of an economy has a direct impact on the level of expenditure by the customers. Hotels that heavily rely on international tourists are largely vulnerable and affected by global economic issues (Griffin, 2020). A decrease in air transport and lodging facilities has direct implications on profit levels. A decrease in the number of international tourist’s calls for a reduction in prices of the services to encourage local consumption of the hotel’s services offered (Go and Lee, 2018). Globalization plays a critical role in the food and beverage sector. Restaurants and hotels have a variety of markets for their ingredients from suppliers, offering them at the lowest costs. However, importation of the ingredients increases the cost of the production and raises the costs of the products offered by the hotels (Boella and Goss-Turner, 2019; Kariru et al., 2017).

Skilled Labour Shortage and Retaining Quality Employee

The importance of labor in the hotel business cannot be ignored. Employees play a critical role in the development of organizational culture in a business and the general performance and productivity of an organisation (Bahar et al., 2019). The labor shortage is classified as one of the major challenges in the hotel industry globally (Legrand et al., 2016). The labor shortage is becoming an acute challenge due to a lack of skilled and expertise in the industry. The quality of the employees has a direct implication on the reputation of the brands, revue collection, and the expenses incurred. However, irrespective of the cost of experienced and skilled labor, lowering the standards of the employees required is not a solution in the hotel industry (Rosenberg and Ferlie, 2016).

Technological Demand Changes

The importance of technology across industries in the current operations of businesses cannot be ignored. Technology in the 21^st century has become an integral part of everyday life. Although we use holiday break from normal life chores, it seems we never want to take a break on technology (Ann and Blum, 2020). Technology has been over the years been considered as a competitive advantage across industries. Hotel users demand to be connectivity to the internet during their holidays. Additionally, online booking services are critical as competitive components across industries (Kim et al., 2008). Technology is a travel companion and helps in the marketing of hotel services significantly. Research studies have shown hotel users have a preference for internet-connected regions and hotels. Studies also indicate tourists are more willing to spend more on hotels that are connected on the internet compared to others (Boella and Goss-Turner, 2019; Rosenberg and Ferlie, 2016; Fraj et al., 2015).

Competition Increase over the Years

One of the major characteristics of the hotel business is the growing number over the years. Tourists and travel agents have been growing enormously every year. Travelers are always in the selection of the most effective and efficient services. Due to the high demand in the accommodation, especially during the peak seasons, the number of hotels has also been on the increase. In tourist designated regions, the number of hotels is significantly high and leading to acute competition not only for travelers but also for skilled employees. The competition has called for management to develop competitive advantages to tap the scares resources (Rosenberg and Ferlie, 2016).

Providing Memorable and Meaningful Personal Experiences Challenges

Competition within the hotel industry largely depends on customer’s satisfaction in the long run (Griffin, 2020). Memories are critical in the hospitality industry and are create powerful experiences. There is a growing expectation from the consumers always to offer exemplary services that are critical and ideal in the development of an organisation (Campos et al., 2018). In the hotel and restaurant personalization, design trends and technology can be used in the creation of meaningful experiences to the consumers. The hotel is no longer in the utilization of nice meals and drinks as strategic approaches to offer meaningful memories but the utilization of greater life experiences as a competitive advantage (Rosenberg and Ferlie, 2016).

Lack of Latest and Advanced Marketing Techniques

Marketing is an integral part of an organisation. The strategies developed largely determine the level of success of an organisation. An increase in technology has led to advancement in marketing approaches in the hotel industry, which is also a significant challenge for some companies (Boella and Goss-Turner, 2019). According to the survey carried out in 2017, almost 70% of all the hotels in the world are still developing their marketing incentives based on traditional approaches. Due to inadequate marketing approaches, brand recognition gets profoundly affected to a great extent (Go and Lee, 2018). Customers chose the hotel services based on different reasons based on the location of the hotels, companies brand, and the quality of the services offered (Boella and Goss-Turner, 2019; Madera et al., 2017) Marketers play a critical role in the identification of the competitive approaches and then selling them to the potential customers (Ann and Blum, 2020).

CHAPTER THREE

Methodology

This section outlines the strategic approach used in the collection and analysis of the study to offer infirmed recommendations. As a consultancy firm, data collection data and information collection were made by interviews of various employees across departments (Creswell and Clark, 2017). Analysis of the productivity records was also analysed and monitored in an attempt of exploring significant challenges that significantly affect the productivity of the Holiday Inn Express in Newbury Park. The choice of the research approach was designed to collect all the relevant information that was required to develop an informed decision and recommend the most appropriate management theory.

Review of Research Philosophy

The study was developed based on interpretivism philosophy. The approach entails interpretation and generalization of the research findings. The approach integrates human interests in the research study. The philosophy is based on the assumption that researchers assume that access to the real situation on a society is through social elements like language, shared cultural meanings and consciousness. The philosophy is based on a critique of positivism in social surrounding settings.

The study was developed based on observation and interviews as the primary components of interpretivism philosophy. Qualitative research is more applicable in the fully utilization of the approach. According to Leitch, Hill & Harrison, 2015), interpretivism approach is “associated with the philosophical position of idealism, and is used to group together diverse approaches, including social constructivism, phenomenology and hermeneutics; approaches that reject the objectivist view that meaning resides within the world independently of consciousness”. The approach accordingly is important for the developers of the research studies to appreciate differences between people. The philosophical approach focus on the meaning may utilize different aspects to achieve the research objectives.

Research Approach

Research studies are developed based on theories. Inductive approach mainly focuses in the generation of a new theory based on primary data. On the other hand deductive approach is used to test a theory based on research questions. Deductive approach is developed based on a hypothesis that a research study develops to ascertain while on the other hand inductive research study is developed based on analysis of research questionsb (Leitch, Hill & Harrison 23).

This study is developed based on research questions and objectives. Inductive approach is used and the general objectives of the study narrowed by the research questions. The approach is also associated with qualitative design which makes it the most ideal research approach.

Selection of research method

The qualitative research design was used in the study. The qualitative approach varies depending on the method used in the collection of data (Gaus 2016). The importance of the approach was to obtain a richly detailed understanding of the employee’s concerns and the significant factors that hinders the competitiveness of the Holiday Inn Express in Newbury Park in the hotel industry in London. The approach also allows the collection of more information from a limited sample. The plan was selected as it provided detailed answers to how and whys related to the performance and productivity of the study.

The choice of qualitative research study was based on its importance in the exploration of social interactions. Additionally, qualitative research design process an in-depth understanding of the way people perceive and understand. The approach was also the most ideal in the exploration of individual’s views in a hotel environment and in learning the most effective management theory under the settings (Leitch, Hill & Harrison, 2015).

Data Collection Method

The study was developed based on primary data. The choice of the approach was based on the originality of the data. Interviews and observations were recorded on researcher’s notebook. Fifteen employees were used in the study. Data collection was done through interviews and telephone conversations. Observation method was also used through analysis of the account books. Participants who had worked within the organisation for more than two years provided the much needed to be informed for the development and analysis of the study.

Sampling Method

Data Analysis Method

This entails systematic or logical approach of describing and illustrating research data critical for the development of a research study. Data analysis is essential to ensuring data and provided information is accurate and appropriate before concluding.

CHAPTER FOUR

Data Presentation, Analysis and outcomes

The research questions were developed with the primary focus of meeting the set objectives. The methodology was simplified and the simple strategic measures and approaches identified in an attempt of offering a long-lasting solution to the hotel.

Major Management Challenges

Through a critical analysis of the collected information and observations of the hotel’s operations, Holiday Inn Express in Newbury Park is faced by various issues and challenges that have hindered its competitiveness in the long run.

Challenges listed during the interviews included; lack of skilled personal, lack of motivational incentives to the employees, wrong decisions during a crisis, reduced uptake of the technological services and low customer satisfaction measures that have significantly lowered their level of competitiveness in the long run.

Effective Management Theory

According to the research study, the majority of the employees do not believe the management approaches used are practical. Employees are less motivated, and the retention rate is much lower compared to other companies in the industry. High competition in the industry is also listed among the employees as a significant challenge, and this significantly lowered their chances of success. A more substantial proportion believes the authoritarian management approach is less effective. Employees are less motivates, which has a direct effect on their productivity.

An employee plays a critical role in the development of an organization. They are an essential subsystem that should always form the most vital component of an organization. Departments, workgroups, and business subsections are among the most business subsystems in an organization (Choi et al., 2019). Managers have the responsibility of developing the most effective strategic measures and approaches to boost the competitiveness of an organization. The manager within the hotel should evaluate the strength and weaknesses of organizations and develop the most effective strategy as a competitive advantage. The manager has the responsibility of unifying different components within organizations to work as a single unit. Systematic management theory is regarded as the most effective approach in the hospitality industry. There should be an emphasis on the development and formulation of the most effective strategic measures (Waring, 2016).

Leadership and Management

According to 9 out of 10 participants across all departments, wrong leadership is the primary strategic challenge in the achievement of their set goals. The majority classified the managers as dictators who do not care about the employee’s capabilities while allocating duties. Authoritarian approach lowers employees’ morale and erodes a sense of belonging as a critical factor in the development of an organization.

CHAPTER FIVE

Conclusion

Managers are required to perform various tasks when running a business. O’Fallon and Rutherford (2010) consider that the work associated with hotel management is not easy, and managers are facing many challenges due to the rapid growth and changes in the industry. Price (2019) affirms that according to a survey of approximately 200 UK hotel managers, the most significant operational challenge they face is recruiting and retaining staff. This is also the case of Holiday Inn Express in Newbury Park, which is confronting high rates of staff turnover. Because the hospitality industry is very competitive, technology can give a competitive advantage to the business, or it can leave behind those that do not want to embrace the new trends in technology. Attala (2019) explains that technology can bring benefits to daily operations, guest experience, and marketing and can help to increase revenue and costs savings.

Hotels have indicated a growing number of businesses across the world. The number of hotels is more than the number of the hotel users across the globe. The high competition has led to the cutting of prices of the commodity used and innovation and creativity in the provision of specialized differentiated services as a competitive advantage. Steep falls in the hotel rooms and lodgings occupancy have led to the decline of the prices (Ann and Blum, 2020). A study conducted in 2017 indicated completion in the European hotel sector led to low occupancy. As a result, the average room rate prices declined by 30% of the initial profit within five years. Room’s prices have declined in prices and are not only served as rooms with packages like breakfast and other services like transport services from the airports (Boella and Goss-Turner, 2019).

In the hotel organization where employees show little or no passion for their work, management leaders are more likely to use an authoritarian approach. The choices of any management approach have implications for the general productivity of an organization (Go and Lee, 2018). Authoritarian, for instance, has a low motivational basis, and this makes it the last resort in the development of a strategic approach. The approach leaves the employees with not freedom of the choice of their areas of occupations, and this has a negative implication on the long-run performance and productivity of the employees involved. However, theory Y is employed where the employees show signs of willingness to learn and are enthusiastic about what they do. The approach is more motivational and highly encouraged (Bratton and Gold, 2017).

Management approaches imply the level of success of a business in a competitive industry. Various management theories are applicable in the hotel industry. Management theories are concepts surrounding recommended management strategies that entail framework and guidelines implementable in organizations. Studies have explored the importance of management theories in the development of competitive approaches (Huang et al., 2019). Professionals will not mostly rely on one management theory but develop different concepts from different management theories that are best suited in their industrial sectors. Over the years, managers across industries have been in search of the most effective strategic approaches in the management of organizations. This has led to the introduction and development of management theories. Although some of the arguments were developed many years ago, they still provide stable frameworks for managing businesses (Xiang et al., 2017).

Holiday Inn Express in Newbury Park is one of the hotels that are left behind by the latest trends in technology. The main issues are related to the old devices and software’s that the hotel is using, which makes the employee’s job harder. The management states that the technology in the hotel has not been updated for a long period, and this is causing customer dissatisfaction. As consumers become more familiar with new platforms like Airbnb, hotels will continue to lose business if they do not adequately respond. Airbnb is becoming a significant competitor for the hotel industry (Blal et al., 2018). The new platforms pose a threat to hotels, especially the small hotels like Holiday Inn Express in Newbury Park that does not have resources to compete against them.

The choice of the right approach should be based on a critical analysis of the business and the industry at large. The authoritarian approach is one of the major bottlenecks to the competitiveness of Holiday Inn Express in Newbury Park. The procedure is dictatorial in plan and has significant implications for the employees (Go and Lee, 2018). The approach lowers the level of competitiveness of employees are they are less regarded, and they are also involved in decision making. Lack of appreciation of the employees and the development of the stringent measures without their considerations significantly lowers their level of competitiveness in the industry. The approach selected should be practical and appropriate, and the strategic standard utilized effectively in the long run (Bratton and Gold, 2017).

Another trend that is affecting hotels is the continuously changing of consumers’ demands that now want an experience and not just a stay from a hotel. A great experience often achieved by personalizing the service that guests receive. Holiday Inn Express in Newbury Park is part of the IHG loyalty program. Still, it is not focusing on how to create a unique experience for the members and satisfy their stay preferences. Going green isn’t just a trend; it’s something a lot of travelers emphasized nowadays. The IHG group has a program called Greener Stay that every hotel has to implement. Holiday Inn Express in Newbury Park is struggling to meet the requirements and is finding it very difficult to offer sustainable services mainly because it is very costly; the employees require training, and most of the customers do not want to participate in the program. Experience development is classified as a major challenge, especially to hotels that are managed in traditional manners. Experiences should be offered as an extension of great quality customer service already offered by other companies. Creating an organizational culture of providing customer satisfaction is a critical consideration of promoting competitiveness in the long run (Ann and Blum, 2020).

The authoritarian management approach lowers employees’ morale and has a negative implication on the general performance of the hotel in the competitive industry (Hight, Gajjar and Okumus, 2019). However, the majority of the participants believe Holiday Inn Express in Newbury Park’s brand name in London is still competitive and given the right management approach. They will increase their market share (Boella and Goss-Turner, 2019).

Recommendations

The recommendations were made based on the issues and challenges and the management approaches utilized. Based on critical analysis and evaluation of Holiday Inn Express in Newbury Park management approaches, the following recommendations will be useful in the study;

Authoritarian management approaches have been proved to be less effective in the promotion of competitiveness among employees. Participatory based on Theory X and Theory Y approach will be more effective in the management of the hotel.
Holiday Inn Express in Newbury Park should utilize significantly to improve its competitiveness.
Holiday Inn Express in Newbury Park management should develop motivational incentives that will enhance the productivity of its employees.
Development of technologically enhanced marketing incentives and development of customer satisfaction approaches,
The hiring of highly qualified employees and the division of labor to promote the performance of the emplo

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CONSULTANCY PROJECT HOLIDAY INN EXPRESS NEWBURY PARK

CHAPTER ONE

Introduction

Background