Table 2.4 Business performance of Huu Nghi Hotel in 3 years
Target
2017 | 2018 | 2019 | Compare | ||||
2018/2017 | 2019/2018 | ||||||
GT | GT | GT | +/- | % | +/- | % | |
1.Total revenue | 29,210.2 | 24,140.3 | 22,634.5 | -5,069.9 | -17.36 | -1,505.8 | -6.24 |
Accommodation Revenue | 7,854.0 | 7,012.2 | 8,049.5 | -0.841.8 | -10.72 | 1,037.3 | 14.79 |
Restaurant Revenue | 18,908.6 | 15,165.8 | 11,779.5 | -3,742.8 | -19.80 | -3,386.3 | -22.23 |
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Unit: Million VND
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2,357.6 | 1,962.3 | 2,805.5 | -0.395.3 | -17.77 | 0.843.2 | 42.96 | |
2.Total cost | 24,535.9 | 21,943.4 | 19,645.6 | -2,592.5 | -9.43 | -2,297.8 | -10.47 |
3.Total profit | 3,667.3 | 2,196.9 | 2,391.9 | -1.470, 4 | -40.09 | 195.0 | 8.87 |
( Source: Accounting Department )
About revenue : Total revenue of Huu Nghi Hotel includes: Accommodation revenue, food and beverage revenue and revenue from additional services (massage, laundry, souvenir sales). In the 3-year period from 2017 to 2019, total revenue decreased in all years, but in the structure, there were fluctuations in each year.
Through the hotel's business performance report in 2017, we can see: The hotel's total revenue was 29,210.2 million VND, the highest in 3 years; in which revenue from food and beverage activities was the highest with 18,908.6 million VND, accounting for 64.93%, followed by revenue from accommodation activities with 7,854 million VND, accounting for 26.97% and finally additional revenue accounting for 9% (2,357.6 million VND).
In 2018, the hotel's total revenue reached VND 24,140.3 million; of which, food and beverage revenue still accounted for the highest proportion with 62.82% equivalent to VND 15,165.8 million, followed by accommodation revenue accounting for 29.05% equivalent to VND 7,012.2 million and the remaining 8.13% with VND 1,962.3 million in revenue from additional services. Compared to 2017, total revenue decreased by 17.36%, quite strongly; the structure of total revenue basically decreased: accommodation revenue decreased by 10.72%, food and beverage revenue decreased by 19.80% and additional services decreased by 17.77%.
In 2019, total hotel revenue reached 22,634.5 million VND; in which, food and beverage revenue continued to maintain the highest proportion with 11,779.5 million VND, accounting for 52.04%, followed by accommodation revenue reaching 8,049.5 million VND, accounting for 35.56% and finally additional revenue with 2,805.5 million VND, accounting for 12.10%. In terms of total revenue, it continued to decrease slightly by 6.25% compared to 2018; however, there were different changes in the total revenue structure. Specifically: revenue from accommodation activities showed signs of increasing
growth, reaching 14.79%, revenue from food and beverage decreased by 22.33% and additional service revenue
growth 42.96%.
Regarding costs : The total costs of Huu Nghi Hotel include cost of goods sold, corporate income tax and business management costs. In general, the total costs of the hotel decreased in all 3 years from 2017 to 2019, because basically the revenue of this period decreased.
In 2017, the total cost of the hotel was VND24,535.9 million, the highest in 3 years. By 2018, the total cost was VND21,943.4 million, down 10.57% compared to 2017. In 2019, the total cost was VND19,645.6 million, down 10.47% compared to 2018.
Regarding profit : It can be seen from the hotel's business performance table that the profit index fluctuates each year.
In 2017, the hotel's profit reached VND3,667.3 million, the highest in 3 years. In 2018, the profit decreased by 40.10% sharply because the revenue this year decreased more than the cost. By 2019, the profit had grown by 8.84% compared to 2018, reaching VND2,391.9 million, despite the decrease in revenue.
Conclusion : Through the business performance table and the presentation above, it can be seen that despite the positive tourism development situation with the number of visitors increasing every year, but with the fierce competition between accommodation establishments in Quang Tri, the total revenue of Huu Nghi Hotel has decreased continuously for 3 years. However, the business performance of Huu Nghi is still maintained. With the orientations and policies in the coming time, it is hoped that Huu Nghi Hotel will continue to operate effectively and develop positively to affirm its brand, as well as create jobs and make useful contributions to society.
1.7 Elements of accommodation service quality at Huu Nghi Hotel
Tangible means
Hotel campus system: quite spacious, airy and clean, with many
Green trees. Reception facilities: full, with a computer, a desk phone, a set of
talk, an mpos machine, sofa for waiting guests. Room facilities: amenities such as air conditioning, refrigerator, wifi, LCD Plasma color TV, international telephone, desk, kettle, hair dryer and some other personal items. Breakfast buffet restaurant: tables and chairs, air conditioning, fan.
Evaluation : Up to now, after many years of use, some facilities such as walls, paint, parts in the bathroom, toilet, etc. are old and damaged. In addition, the air conditioning system and television are also old and quite outdated as well as difficult to use for customers.
Trust
Announced on information channels and at the hotel room types with transparent and clear listed prices. The hotel has provided services with committed time, stored customer information safely and accurately. The staff strives to provide the right service from the beginning and check in/check out on time and quickly.
Guarantee
Huu Nghi Hotel has a team of staff that ensures they have the knowledge, skills and expertise to provide services to customers. The staff works with a standard attitude, ensuring politeness and respect for customers, thereby building and strengthening customer trust. In addition, there is a fire extinguisher system as well as a fire alarm system throughout the hotel and a security team to ensure order and security for customers staying at the hotel.
Response capacity
Hotel staff always provide timely and prompt service to customers. Staff are friendly and willing to help and support customers. Hotel staff inform specific and accurate service delivery timelines. Staff strive to meet customer requests.
Empathy
The hotel provides services at convenient times (24/24h) to meet the normal and unusual needs of customers during the day. Staff listens and accepts customers' opinions and feedback on the quality of hotel services. In addition, there is a hotline and a customer suggestion box, on social media channels such as Facebook, website... with customer comments.
Evaluation : In general, according to the author's personal evaluation, the hotel staff basically has enough knowledge, skills and expertise to provide services to customers. However, in terms of empathy for customers, the staff does not really understand. Staff need to put themselves in the position of customers, so that they can truly feel what customers feel about the quality of service when staying at the hotel.
1.8 Compare room rates of the same type at Huu Nghi Hotel and other hotels in the area
Table 2.5 Comparison of hotel room prices
Golden Hotel
Room type | Room price (VND) | |||||
Single bedroom | Double bedroom | Room 2 bed | Room 3 bed | VIP Room | ||
Deluxe | 450,000 | 500,000 | 500,000 | 800,000 | 1,200,000 | |
Thanh Qua Hotel | Room type | Single bedroom | Double bedroom | X | X | X |
Deluxe | 450,000 | 550,000 | ||||
Friendship Hotel | Room type | Bedroom single | Bedroom pair | Room 2 bed | Room 3 bed | Room VIP |
Deluxe | 400,000 | 480,000 | 480,000 | 650,000 | 960,000 | |
Comment: Through the table above, we can see that Huu Nghi Hotel has a lower price than other hotels in the area for the same room type. However, the rate is not too high, only Huu Nghi's VIP price is much lower than Golden Hotel.
1.9 Market of Huu Nghi Hotel
Along with the general development of the economy, the service industry market is also expanding, leading to increasingly fierce competition between accommodation businesses. Huu Nghi is the same, originally a hotel established a long time ago, competing with young businesses and businesses with strong brands in the market. That is why Huu Nghi Hotel identifies its market as tourists and business travelers. Because the tourism sector of Quang Tri has not really attracted many tourists and the number of visitors to the province for work is quite stable and Huu Nghi is introduced by customers, so these are the two markets that the hotel identifies as its target market.
2. Evaluate the quality of accommodation services at Huu Nghi Hotel
2.1 Analysis of activities related to ensuring the quality of accommodation services of Huu Nghi Hotel in the past time
Through research, I learned that during its operation, Huu Nghi Hotel has increasingly clearly recognized and tried to improve its service quality management activities. These activities include: developing and applying monthly, quarterly and annual staff evaluation and classification reports, and room service evaluation criteria; a hotline to directly report to the hotel director; and year-end collection and processing via the hotel's google map account. The following is a presentation of activities related to ensuring the quality of accommodation services of Huu Nghi Hotel from 2017 to 2019.
Star Rating Chart
5
16
4
16
3
17
2
1
0
2
4
6
8
10
Number of times
12
14
16
18
AVG = 3.67 N=57
Star
2017
6 2 |
Chart 2.1 Star Rating 2017
(Source: Excel Processing)
Note : Data is collected from google map, with star rating, with 5 levels from the lowest 1 star to the highest 5 stars.
Through statistics and charts, we can make the following comments:
In 2017: The number of reviews was quite modest, with only 57 reviews and votes on Google Map with an average value of 3.67/5 stars. This shows that almost all participating customers felt very satisfied and 5-star reviews accounted for 16 times (28.07%) of reviews, 4-star reviews also reached 16 times (28.07%). However, the number of 3-star reviews accounted for a fairly high proportion (29.2%), which is understandable because Huu Nghi Hotel meets the 3-star service standards according to the regulations of the Vietnam National Administration of Tourism. In addition, there were 2 1-star reviews and 6 2-star reviews, accounting for 14.02% of the year.
Digging into the customer feedback and specific comments: There were 26 customer feedbacks during the year. There were 20 positive feedbacks (76.92%) from customers: Mostly those who gave high stars left these feedbacks. The following factors were mentioned by customers in their feedback: One is tangibles: Quite luxurious style and layout; clean toilets; beautiful landscape location; spacious parking; large rooms. Two is responsiveness: Enthusiastic, polite and thoughtful service; full service and reasonable room rates. In addition, 6 customers (22.08%) also expressed their dissatisfaction with the following factors: Responsiveness factor: One customer rated the service as poor; price was a bit high. Tangibles factor: Two customers rated the room system as quite old and the air conditioning system was not working well.