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The Regal Carnation HotelProject

This case study revolves around the Regal Carnation Hotel, located in Guam, written by Steve McKenzie. The Tourism industry generates significant revenues for Guam. In Steven Mckenzie's description of the situation, his approach to hotel management led to false representation that does not match the hotel's value. The hotel industry in Guam has essential statistical information that will lead to an effective. In the beginning process of making their arrangements, there were many situations where the McKenzie's failed to use their instincts. When considering, specific problems can be attached to how it took too long to confirm the price and classavailability. Mr. McKenzie's uncomfortable reaction illustrates that he recognized a problem. The great CarnationHotels data might have been false thought or information.It indicates that it misleads customers with thinking it is a unique hotel contender, which may benefit the business.

It is deceptive to organizations that hide those datasomething false with clients. There was less profit to make. the final result, less money to reinvest into the hotel that given time to reinvest, that they told a different story than reality.Guam's main problem or issue is the decrease in therates and the prices of the hotel. Also, the decreasein the emerging competitors in the other countries that have utilized Guam's method of success correctly.

Problem statement by Patrick kinuthia:

Based on the Mckenzie narrative, there are two problems; poor customer service and low employee satisfaction. Poor customer service can be attributed to low guest numbers, especially low non-japanese guest numbers. Mckinzies states there was an improvement in "both the quality and quantity of the breakfast offering" when the number of Japanese guests increased. Going off this assertion, one can assume the hotel business model is focusing primarily on increasing satisfaction and catering to Japanese customers. However, McKenzie offers numerous examples that might suggest an alternative problem.

Mckinzie writes that he frequently saw the front desk manager regardless of the time, both day and night, which suggests employees are overworked. Employees being overworked or lacking enough employees is also shown when Mckenzie writes about their hotel pick up. The complimentary hotel pick up was forgotten, and they had to wait 45 minutes to hitch a ride with other guests. In fact, McKinzie writes the hotel manager picked up guests from the hotel and eventually had to help them check in the hotel as the front desk personals were not well trained.The problem of being overworked is also demonstrated again when Mckinzei writes about the Filipipina housekeepers. Mckenzie argues that the housekeeper's unfriendly demeanor and hostile attitude can be attributed to staff being underappreciated and underpaid.

Based on Mciknzie's experience, a person can easily conclude that the hotel was trying to use shortcuts and do the bare minimum. However, an analysis of Guam tourism data reveals a bigger problem. A problem with the geographic location of the hotel. From 1994 to 2007, the number of visitors to Guam stayed relatively the same, between 1 million to 1.2 million, with an average occupancy rate of 64.28%. Also, the room prices remained about the same averaging about 100 dollars. This means, in Guam, the net revenues from tourism did not decline. One can argue the Regal carnation hotel suffers from a lack of profitability, making management cut corners and try to make it do with the bare minimum. A significant difference is seen when Guam hotel positioning is assessed. The regal carnation hotel lacks a beachfront; it was built by opportunistic investors who wanted to capitalize on Guam's booming tourism industry. Due to the lack of a beachfront and being located away from hotel drive, Regal carnation hotel lacks fine shopping, dining, and nightlife. This makes a choice for this hotel an unlikely choice for tourists. Lack of tourists results in revenue loss, which increases prices for products, low profits, and basically a downward spiral of poor services that Mckinzie describes.

Poor Hotel Management

Poor customer service

Insufficient training

Language barrier - the front desk is well staffed at 2.7 clerks per guest, but not enough staff that can speak several languages to meet the needs of the guests.

Housekeeping was not helpful or friendly.

Feigned language barrier when there was none

Cleanliness of the hotel and room were unsatisfactory.

Issues with providing guests with extra supplies and linens, e.g., luggage rack and pillows

Issues with replenishing the toiletries

Airport pickup

Lost or forgotten information

Wait time was an issue

Inaccurate Information

Website was inconsistent and misleading

Photos of the hotel were different on the website, the lobby, the hotel rooms, and other common areas

Information about the meeting rooms was missing

Breakfast room was first come first served and food was not replenished throughout breakfast time

Available restaurants in the hotel - only two were open

Rental car and excursion availability

Case analysis

The root cause analysis will be used as tool in this study to analyze the problems and the causes of these problems, and to find the type of these causes such as the physical causes, human causes and/or organizational causes. First, the main problems of this study can be summarized into two main problems, and these are the lack of management and the geographical location. These problems or causes can be classified as human and organizational causes because the problems were made by the managers of the hotel which reflect the human cause and the management or entity who established and run the hotel which reflect the organizational cause. The lack of management problem is the first main root that causes different problems or symptoms in the hotel.

Regarding the assumption of the root cause analysis technique which indicate that there are systems or events interacted, these interactions in one area will lead to other interactions in another area. Therefore, tracking these actions will help to find the roots of the problems. This means that tracking these problems or action will help to find where it starts and how it makes the symptoms the hotel is facing now. Root cause analysis technique is made of five main steps, and these steps are defining the problem, collecting data, identifying possible causal factors, identifying the root cause, and recommending and implementing solutions. Thus, the next paragraphs will explain and summarize the root cause analysis steps.

First, the study will start by defining the problem which is the lack of management. This main problem can be explained in different areas. Mr. McKenzie noticed that the manager was lifting boxes, suitcases, and different items, and he never stayed for a long time at the front disk. This reflects the lack of the management experience he had to run, manage, hire, train, organize and keep the employee working in the hotel. Moreover, the hotel did not have the needed number of employees such as the supervisors to manage the hotel transfer, and to train and manage the hotel employees. As a result, this main problem caused another two problems, and these are lack of training and incentives and low hotel honesty and credibility. The lack of training and incentives can be explained in different areas such as untrained employees in the front desk of the hotel to check in. The employees showed a lack of training in taking a long time to check the customers in and lack of basic knowledge of English language. Moreover, the housekeepers who did not have the knowledge and training to deal with the customers. For example, this lack of training and experience was shown by the employees' reaction when Mr. McKenzie asked them for pillows. In addition, the employee's behavior and attitude reflect that they were underpaid and unsatisfied with their income. The rooms cleaning and stocking, the bathroom cleanness, the breakfast room, and the food and beverage offering also reflect the lack of training and supervision to train and supervise the employees to keep and maintain these areas clean, managed, and stacked. Therefore, this problem which is the lack of training and incentives made another two problems as it was mentioned in the chart, and these problems are the poor customer service and poor employee satisfaction.

The poor customer service was shown in different areas such as the complimentary hotel pick up that was forgotten, and the time that was spent which was 45 minutes to hitch a ride with other guests. lack of needed furniture such as luggage rack and pillow, lack of cleanness such as sheeting that did not change during that stay, strong smell, and the sound of the water in the rest rooms, inconsistency in organizing and matching the shape and the color of the furniture, the lack of maintenance of the electric devices such as the air condition, the pool area was too dirty, and the meeting room was too dusty. Moreover, the hotel gives no refund when the customer checks out early or when he/she cancels his/her appointment. The hotel did not provide the whole breakfast menu during the breakfast time, and that reflects what happened with Mr. Mackenzie when he went to get breakfast at 9.30 am. The public area was too dirty unlike the picture that is located on the website. Furthermore, two of the listed restaurants on the hotel website were closed at the time of Mr. McKenzie visit. However, poor employee satisfaction can be explained as the situation when Mr. McKenzie mentioned that the housekeepers showed unfriendly behavior and hostile attitude which reflect that the employees were underappreciated and underpaid.

On the other hand, Mr. McKenzie trip reflect the lack of honesty and credibility, and that can be summarized in different areas. When the customer explores the hotel website to check the hotel and the prices, the website gives the customer a feeling of the quality and cleanness of the place such as the quality of the rooms' furniture and the quality of the room service. However, Mr. McKenzie got a different reaction when he stayed at the hotel. This reaction came from the look of the room, and the old and used room furniture such as hollowed bed. The hotel website gave Mr. McKenzie an idea that the hotel has beachfront, but the hotel did not have that beachfront which reflect the lack of honesty and credibility of the hotel and the occupancy rate which is 65 percent. Furthermore, the information about the meeting rooms was missing and the breakfast room was not made to serve the large number of guests and the food was not replenished throughout breakfast time. Moreover, the number of the available restaurants in the hotel did not reflect the number that was mentioned on the website. Only two restaurants were open. The rental car and the excursion availability were not as the way that was listed on the website. all the last-mentioned reasons gave the hotel an undesired rating on the internet search, and undesired income.