Question
La Maison Ltd is in the hospitality sector and operates 50 hotels which vary from 80 to 120 rooms. The Company prides itself as a
La Maison Ltd is in the hospitality sector and operates 50 hotels which vary from 80 to 120 rooms. The Company prides itself as a business hotel which is a home away from home, the hotel group provides accommodation to the business traveller. The hotel group had not appealed nor made efforts to be a player in the leisure market. The hotel offers breakfast and dinner is available at nearby restaurants. The location of the hotels is in prime locations suitable for the business traveller. In its March 2020 integrated report, prior to 2020 Covid -19 outbreak it published its bold plans to build five hotels in the coastal regions of South Africa; improve its booking platform and contribute to the environmental, social and governance ESG agenda by reducing its impact on climate changes. The hotel cited growth and innovation and environmentally friendly initiatives as bold strategic objectives for the following five years. The hospitality sector has been hard hit by water shortages and electricity outbreaks and load shedding in the country. This sector around the world is said to be a contributor of approximately 1% of carbon emissions. Extreme weather conditions have impacted on the cost of operations and also the number of tourists and other guests has reduced. You are the management accountant and top management have sourced some information from you. Your answers need to factor that the hospitality industry is one of the hardest hits by prolonged lockdowns. The company gradually re-opened its hotels as the government continued to adjust the lockdown related risks. Various cost cutting interventions included freeze pay for some staff members, closing some hotels where corporates cut down travelling and resorted to on-line or virtual meetings. The company continues to look for ways to manage overheads and still be a major player as most players have closed down. Your answers to mention the airline and specifically the Airbnb player.
c) Discuss the key stakeholders that will have to be considered as a result of the introduction of changes that include cost cutting, innovative ways of booking and entry into the leisure market. Using Mendelows matrix, recommend what approach Management of La Maison Ltd should take in relation to each one. No drawings of the model are required.
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