Dealing with intensified competition and economic uncertainty, Hotel brands will invest energy and time to drive revenues. In the era of highly intensified competition, the brands will have to specifically pay attention to generating ancillary revenue by activities to increase the share spent by all guests at the hotel (Legrand et al., 2016).
The hotel brands will consider the adoption of alternate mechanisms of pricing like worthy payment, guarantee of best price, and auctions regarding spare capacity. There will be a need to lay more emphasis upon innovative approach and transformational strategy for voicing the customers with the agenda of change.
By the year 2020, the hotel industry will be promisingly categorized by highly sophisticated travelers having native affinity to higher expectations and technology use in hotel services. Digital natives will use mobiles as the only way to come in interaction with the hotel following all stages of the guest cycle (Richard, 2017).
Based on the era of potential turbulence and uncertainty, there will be a crucial requirement of strategic management capability for Shangri-La Hotels. The key strategies are identified as follows (Richard, 2017):
Scanning the Horizon: The strategy should focus on provision of initial warning system by the scan of horizons by years for identifying key developments, forces, trends and weak signals of possible opportunities and shocks.
Planning based on Scenario: This strategic approach demands the evolution of budgeting, planning and strategy development approaches for considering various feasible market and economic scenarios instead of using some assumptions.
Anticipation: There has to be placement of contingency for enacting initial indications of suspected future shocks more or less the same as the current economic crisis.
Open processes: This involves the experimentation and adoption of portfolio of customer engagement, crowd sourcing, and open-innovation tools for providing continuous challenges, ideas and input to internal thinking (Sharma, 2016).
Rapid implementation and strong workforce: This considers the establishment of staff, managers, and leaders with curiosity, uncertainty tolerance, willingness of difficult decision making, and capability of scenario based thinking. The specific focus is on continuous refinement and learning on the basis of feedback obtained from the operational environment.
Techniques for Strategic Implementation
Understanding the international context of sustainability, environment and energy: The fundamental notion is to develop real expertise within learning for the assessment of strategic effect across a volatile environment in the respective business (Panetta, 2012). While the initial point lies in ensuring continuously updated insights within security, economic, and political risks, the consideration of environment is extremely crucial.
Management of connectivity and technology: The hotel has to enhance with the environment of technological sophistication dealing with expensive and tough choices. This involves technological advancement and increased expectations of employees and guests (Legrand et al., 2016).
Delivery of strategic innovation: In the era of potentially pressured revenue and intensified competition, the overall scenario will fall increasingly on innovative need for closing the gaps of profitability and revenue. This will further require distinctive long, medium and short term strategy (Richard, 2017).
Raising the spectrum of service beyond the scope of segmentation: The agenda of personalization has started to grow and there is a crucial requirement of exploring the concept in-depth. The challenge lies in the adoption of more open approach engaging the customer across several points by the implementation, design and conception of concept with service spectrum.
Understanding the travelers of the future: The growing international population in combination with increased wealth in the development of massive uncertainty and economies regarding customers’ behavior. This forces the reconsideration of marketing approaches and customer research.