SGS G04 Team 3 Le Phuc Khang Hotel Comparative Studies Report

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STATEMENT OF AUTHORSHIP

Course Code BUSM4568

Course Name Room Division Management

Assignment Title Hotel Comparative Studies Report

Assignment No 2A

Date Due 16th August 2020

Word Count 3010 (excluding statement of authorship, executive summary, table of


contents, references, appendices and summary of teamworks)

STUDENT(S)

Family Name Given Name Student Name

LE PHUC KHANG

LE DAO THUY DUONG

PHAN DIEU LINH

TON LONG KHANH

VUONG HUE MAN

NGUYEN HONG HAI

Declaration and Statement of Authorship:

1. I/We hold a photocopy of this assignment which can be produced if the original is lost/damaged.
2. This assignment is my/our original work and no part of it has been copied from any other student’s
work or from any other source except where due acknowledgment is made.
3. No part of this assignment has been written for me/us by any other person except where such
collaboration has been authorized by the academic/teacher concerned and as detailed in the assignment.
4. I/we have not previously submitted this work for any other course/unit.
5. I give permission for my assignment to be scanned for electronic checking of plagiarism.

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6. I give permission for a copy of my/our marked work to be retained by the Department for review by
external examiners.

I/We understand that Plagiarism is the presentation of the work, idea or creation of another person as
though it is one’s own. It is a form of cheating and is a very serious academic offense that may lead to
expulsion from the University. Plagiarized material can be drawn from, and presented in, written, graphic
and visual form, including electronic data, and oral presentations. Plagiarism occurs when the origin of
the material used is not appropriately cited.

Enabling Plagiarism is the act of assisting or allowing another person to plagiarize or to copy one’s work;
this is not acceptable and is also subject to penalty.

Student Signature(s)

LE PHUC KHANG

LE DAO THUY DUONG

PHAN DIEU LINH

TON LONG KHANH

VUONG HUE MAN

NGUYEN HONG HAI

Further information relating to the penalties for plagiarism, which range from a notation on your student
file to expulsion from the University, is contained in RMIT Statute 6.1 Student Discipline. (See Appendix
in Student Guide or consult Turing.)

Table of Contents
Executive Summary 5

I. Introduction and Overview 6


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II. Comparison and Analysis

1. Pre-Arrival 8

2. Arrival 9

3. Occupancy 11

4. Departure 14

III. Recommendation 15

IV. Conclusion 17

V. References 18

VI. Appendices 22

VII. Summary of teamworks 24

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Executive Summary

The Rex Hotel Saigon is a 5-star luxurious hotel with long established history since 1927 and
located in the heart of city center Ho Chi Minh, whereas The Reverie Saigon Hotel was
established in 2015 and located near the city center with the rating of 5-star. Both hotels have
received an average rating of 4.5 to 5.0 on multiple OTAs platforms and aim to provide the
highest quality to its customers.

This report will focus on analyzing and comparing the guest service of The Rex Hotel Saigon
and The Reverie Saigon Hotel by engaging 4 primary elements in the cycle: Pre-Arrival, Arrival,
Occupancy and Departure. Though that, recommendations are compiled for both hotels in order
to solve the current problems and for future improvements.

Pre-Arrival, Arrival, Occupancy and Departure are the 4 factors in the guest service cycle that
have been applied to analyze the similarities and differences between Rex and Reverie. In the
first stage of the cycle which is Pre-Arrival, both hotels' websites are taken into consideration
and how effective and convenient it creates to the customers along with the utilization in the
business relationship with Online Travel Agencies (OTAs). Following the Arrival stage, the
comparison of welcome and check-in procedures are covered by following the standard of 5-star
hotels. Regarding the third stage (Occupancy), both hotels’s accommodation, food and beverage
and amenities are analyzed with a slight in-depth, but several drawbacks relating to staff training,
facilities degradation, poor quality food, etc. could be identified during this stage. Lastly, the
preparation for guests departure includes a check-out procedure, service billing needs to be
provided accurately.

The Rex Hotel Saigon has been facing several difficulties regarding the facilities degradation and
the poor food quality, whereas The Reverie still maintains their operation without any negative
reviews. Additionally, some academic studies and references are used to make the
recommendations more realistic.

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I. Introduction and Overview

1. Introduction

Vietnam's tourism industry is on a strong development momentum and is gradually becoming a


vital economic sector of Vietnam; Especially, with significant successes in 2019, typically
becoming a prominent name among the most attractive destinations in the world (Vietnamplus
2020). With the rapid growth of the tourism industry, Vietnam is considered one of the countries
with the most outstanding progress in the ASEAN industry. It predicts that the revenue will reach
30 billion USD by 2020 (Cekindo 2019). Dubbed as the most prominent modern city but still
ancient - Ho Chi Minh City (HCMC) is the most popular destination for tourists worldwide when
coming to Vietnam. To meet the growing demand for accommodation, HCMC is estimated to
have 22,000 rooms provided by 2021, and 55.4% will be the premium segment (Vietnamnews
2019). This report was created to analyze and analyze the similarities and differences in the
customer service process of the two hotels, The Reverie and Rex Saigon, thereby giving specific
recommendations to improve the two hotels’ service performance.

2. Overview

Rex Hotel Saigon

With nearly 90 historical years of formation and development, The Vietnam-tourism leading
luxurious 5-star hotel. Rex Hotel Saigon is both a standard role model of the Vietnamese
hospitality industry and a historical symbol of Saigon that has witnessed the remarkable
transformation of Ho Chi Minh City through flourishing periods (Saigon-Tourist, 2020).
Conveniently located in the heart of HCMC at Nguyen Hue St, District 1. Rex is a great base
from which to explore this vibrant city. The hotel's strategic location ensures that guests can
quickly and easily reach many local points of interest and the city's must-see destinations within
8 minutes to Bitexco Financial Tower, an iconic symbol of the HCM economic dynamism
(RexHotelSaigon, 2020). From 2008 to 2019, Rex has continuously been present in the top ten of
elite 5-star hotels in Vietnam rated by the Vietnam National Administration of Tourism (VNAT,
2019). The hotel provides with a comprehensive variety of excellent services such as 286 well-

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appointed rooms distributed into several levels of experience ranging from the most basic Deluxe
room to the greatest Presidential Suite, eleven highly prestigious meeting and conference
ballrooms, outdoor swimming pool, a system of fine restaurants, vertical relaxing garden, and
especially rooftop garden bar voted to be “One of the best Bars Of SouthEast Asia”
(RexHotelSaigon, 2020).

The Reverie Saigon


After 7 elaborate years of construction, The Reverie Saigon has been officially put into operation
in 2015. Reverie has been known as the most spectacularly extravagant 6-star hotel in Vietnam,
along with many prestigious international awards such as ''One of the Top 10 Luxury Hotels in
Asia in 2018'' voted by Smart Travel Asia (VNAT, 2018). The hotel sits on the highest floors of
the contemporary 39-storey Times Square skyscraper in the heart of District 1 with a strategic
two fronts location, providing guests with easy access to the Opera House, the Reunification
Palace. The hotel features a signature over-the-top Italian royal decor mixed with Asian
elements. It has 286 marble-clad rooms & suites designed and decorated with leading high-end
Italian furnishings from chief Italian brands. Most rooms benefit from the towering height which
provides an impressively stunning view as most tourist attractions in HCMC are fully visible
from the hotel rooms' angles. Besides convenient amenities such as a rooftop pool, there are also
several excellent restaurants with diverse culinary styles from Asia, Europe to Italy. Only
Reverie has an exclusive helicopter shuttle service in Viet Nam (ReverieSaigon, 2020). At The
Reverie Saigon, the excellent service and superior facilities are exceptional which provides
unique experiences for the staying guests.

II. Comparison and Analysis

1. Pre-Arrival

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The pre-arrival stage is the first in the customer cycle. The decision to make a reservation
depends on many factors, such as previous customer reviews on online travel agencies (OTAs)
and frequency of hotel interactions with guests. Besides, information on the homepage, such as
physical description and price during the stay, is sent to the customer before completing the
reservation (Prince 2020).

Similarities

Combined with such OTAs as TripAdvisor, Booking.com, Agoda, etc., is also a significant
advantage to attract customers (Talwar et al. 2020). In addition, customers tend to book through
OTAs for a bargain price and to receive experience advice or reviews from previous guests.
Through the OTAs, Reverie and Rex were advertised on the hotel image widely around the
world, bringing the brands of both hotels listed to the top list of hotels in Vietnam. Hotel
information that is easy to find by third parties will help hotels reach more potential guests and
significantly increased reservations, contributing to more revenue (Eran 2018).

Furthermore, Reverie and Rex have optimised ways to reach customers by offering direct
booking services on their official homepage, allowing guests to choose from a wide range of
services at a suitable price. Besides, the eye-catching design of the two hotels also attracts
customers who tend to reserve not only based on the hotel's products but also the sophisticated
design and friendly content prepared on the website (Pinto and Castro 2019).

Both Reverie and Rex received positive feedback on OTAs for excellent room quality, and room
cleanliness is highly appreciated. However, most of the OTA feedbacks of Reverie are carefully
responded by the hotel management, with a pioneering 5-star hotel like the Rex not getting any
response for clients' feedback. Based on a TripAdvisor study, 57% of customers are more likely
to choose to book a hotel that responds to customer reviews on OTAs more than a hotel that
ignores customer feedback (eMarketer 2013).

Differences

Both hotels are in the premium segment, but each hotel has a different way of decorating their
reservation's website.

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First, Reverie’s website is a gorgeous and luxurious design. With a modern theme but classic and
artistic, the homepage easily wins the first impression on the customer. Reverie is thoughtful
when organised the homepage with integrating many service items to minimise booking time.
Also, the website equipped with the popular languages of today, such as English and Chinese,
will contribute to increasing reservations and conditions for guests to book.

Contrary to Reverie's artistic design, Rex's official homepage is elegant. Hence, Rex has
decorated their website extremely friendly and comfortable when updating the booking date box
for guests, also combined with the items arranged intelligently, to avoid customer confusion.
Besides, Rex is also considerate in providing specific contact information right on the homepage
so that customers do not need to search. Moreover, Rex also creates a separate item for loyal
members to receive offers from the hotel. Last but not least, the certificate of a hotel being in the
top 5 luxury hotels in Ho Chi Minh City post on the homepage is also the strategy to attract
customers of Rex hotel.

2. Arrival

In the second phase of the guest service cycle, the process starts with the arrival of the guest at
the hotel, then to the registration at the reception counter and ends with the guest allocated to
their appropriate room. Additionally, the research conducted by Sandra Högnäs (2015) indicated
that there are multiple elements affecting the perspective of a guest in the arrival stage, but three
most important could be mentioned are the surroundings, the interior and the employees. This
section will focus on the arrival stage comparison of Rex Hotel and Reverie Hotel through
analyzing three possible elements mentioned.

Similarities
Overview about the welcome procedure, when the guests arrive at the hotel, the doorman or
bellman would be the first to encounter the guest by carrying the luggage for them and sincerely
greeting them to the hotel.. In this stage, Rex and Reverie have succeeded in forming a
comfortable atmosphere for the guest because it will make them feel special and welcomed.
Following the check-in procedure, the guest will have their interaction with the receptionist to

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have their room registration completed and room keys usage instructions. This step is considered
important as Manana Vasadze et. al. (2018) claimed that the registration process was the crucial
part of the guest hotel experience. According to Renee Evenson 2011 (cited in Sandra Högnäs
2015), a great first impression is a foundation for the customer relationship; through observation,
the receptionists from both hotels have performed very well in obtaining the first impression
from the guest by showing not only the professionalism but also the polite manners which are
known as the core value of the hospitality industry. Lastly, the guest will be instructed to their
room by the bellman along with their luggage delivered at the room.

Differences
Although the preparation for guests arrival procedure of Rex Hotel and Reverie is similar as they
follow the international standard of a 5-star hotel, both have minor differences in many ways
based on their operation process.

The operating process of Reverie is a part that differentiates it from Rex Hotel; first to mention is
the employees positioning in the lobby, there will be 2 doormans, 2 bellmans, 3 security guards,
4 receptionists and 1 manager, the purpose is to maintain the workflow in welcoming guests to
hotel. Secondly, the room registration process through observation is considered to be simple as
guests are only required to fill in a form and ID check.

In comparison, Rex Hotel’s preparation for the guest arrival process is highly professional
required for every employee in the front office. Specifically, the number of employees
undertaking this process daily is 2 security guards, 3 doorsman, 3 bellmans, 2 receptionists and
1 manager. Room registration does not require much but all booking information has to be
checked so it is considered complicated compared to Reverie Hotel.

3. Occupancy

Similarities
Occupancy plays a major role in the hotel service cycle as mainly creating invisible influence on
guest experience based on how hotel staff interact with guests. More importantly, the facilities of
accommodation also have a profound impact on guest overall experience with its conceived

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atmosphere on customers (Manana Vasadze et. al., 2018). This would be analysed through Rex
and Reviere which both acquired a strong brand reputation amongst other five-stars hotels in Sai
Gon. They together provide luxurious accommodations and special high-end service for their
clients. Five-stars standards could be observed by its operations relating to providing customers
with different classes of rooms and accompanying services. The distinctions of these hotels
would be analysed before any solutions to improve.

Room Facilities and Available Service of Rex (Rex Hotel Saigon, 2020)

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Room Facilities and Available Service of Reverie (The Reverie Saigon, 2020)

Differences

Rex Hotel Saigon

Rex Hotel Saigon located right on Nguyen Hue Boulevard, consisting of six floors with 286
rooms mixing modernity and tradition with luxurious services. As can be observed, Rex offers its
clients a variety of room types in which the combination of both modern and traditional values
finds a balanced and harmonious space, coming hand in hand with beautifully decorated and
modern amenities of the room's interiors (Rex Hotel Saigon). However, as being renovated since
2013 (Travel Weekly), Rex has experienced nearly 10 years of operations and not being through
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any major improvement, it is facing the issues of deterioration in room facility quality as hitting
the last period of a hotel life cycle (Pengzhen Yin, 2015). Numerous customers posted their
complaints in Tripadvisor including Kent Daisy (2020) about downfall in-room facilities and
lighting settings resulting in the cold and dark atmosphere. Most noticeably, a glass of the dome
fell onto the street and seriously injured a person (Thao Tran, 2014), this could stem from many
errors in renovating and upgrading the Rex Hotel, posting questions relating to the facilities
management of this hotel (Tran Quy, 2018). The restaurant is considered to be delicious with its
food and beverage, yet the location of level five poses disadvantages for customers to move. Mr
Natalie McDowel (2020) also complained in Tripadvisor relating to the hygiene issue of the pool
area with wild doves and staff professionalism. Overall, Rex is still considered to be a good
hotel, however, the downfall in facilities and operations should be taken into account.

The Reverie Saigon

Reverie has a regal design that is sophisticated, splendid to every detail, both liberal and modern
values mostly basing on Italian royal style, equipping with sumptuous furnishings from top
Italian brands such as Visionnaire, Poltrona Frau, Giorgetti and Colombostile. Three restaurants
of the hotel including R&J (Italian cuisine), Long Trieu (Chinese cuisine) and Café Cardinal
(French cuisine) are also prominently culinary addresses not only by the novel menu of the
Prestigious chef but also by elegant and luxurious surroundings (The Reverie Saigon, 2020).
Reverie Saigon was constructed completely since 2015, hence, Rex hotel seems to be pale in
comparison with it in terms of both facilities and service quality management. With state-of-the-
art infrastructure and extraordinary service levels, Reverie Saigon has gained the top position as
fulfilling both customer delights and the moment of truth with its operations, laying the
foundation for further development of this hotel (Miran K,2013). With over 1300 ratings 5 stars
out of 1500 reviews in Tripadvisor, indicating that Reverie has owned its customer hearts, having
said that, Andryvsutrisna from Tripadvisor (2018) the problems of unfriendly attitude and
lacking hotel basic operational knowledge to support its clients, mainly deriving from some of
the staffs have posed a minor imperfection in its operations.

4. Departure

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Departure is the final phase of the Guest Service Cycle (Vasadze, Mosashvili, Duruli 2018).
Although it takes the shortest time, Hodari et al. (2020) acknowledged that this stage can have a
significant impact on the customer’s feedback .

Similarities

The first step in the departure phase is compiling and correcting the guest bill. Both Reverie and
Rex require the check out time at 12:00. While the guest is checking out at the front desk, the
receptionist contacts the room attendants to check the room without asking whether the guest
used any beverage and snack in the minibar or is there any damage to room utilities. At this
stage, they will have to check their invoice to make sure there was no mistake before presenting
it to the guest. Since the final billing can affect the customer's perception, if there is any
inaccuracy, it can be considered as a markdown for the hotel (Vasadze, Mosashvili, Duruli
2018).

After the customer completes the payment procedure and returns the room key, the receptionists
will take responsibility for thanking the guests for choosing the hotel for their vacation and
inviting them to stay at the hotel for the next time they come to the city. Customer comments and
reviews will also be collected at this time.

These two hotels are located in Nguyen Hue Boulevard which is quite far from the Tan Son Nhat
airport, thus there is airport transportation available for making reservations 30 mins before
checking out. Rex charges 45000 vnd for this additional service (Tripadvisor 2020) while
Reverie costs it for 2153000 vnd (Tripadvisor 2020).

Differences

Although both are 5-star hotels, there are differences in the check-out standards of these two
hotels.

The first difference is Reverie offers a storage service for guests after they check out from the
hotel for leaving their luggage. This is highly valued as it is difficult to arrange the flight time to

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match the check-out time. Besides, guests may want to go sightseeing or eat after check-out
without having to carry their luggage. The Reverie even takes a further step than that, the guests
do not have to come back to the hotel, they can prescribe a pickup location with the receptionist
and the car will come to pick them up with their luggage loaded. Showing our consciousness
after a guest occupancy is crucial to increase their satisfaction and loyalty (Keshavarz &
Jamshidi 2018)

Rex shows a lack of professionalism and cares for his guests by not helping guests with their
luggage once they have completed check-out (Mirami 2019). This is a concern because
customers' experiences end quite far after their occupancy (Feng, Wang & Ryan 2019). Thus, in
general comparison, in the departure phase, Reverie has done a better job in providing guests
with post-stay services which will greatly affect whether guests recommend the hotel service
experience to others.

III. Recommendation

Rex Hotel Saigon

The first thing that needs to be upgraded in Rex Hotel is the quality of facilities. According to
TripAdivisor (2020), Rex Hotel ranks 4 in Best Value of 4 Ho Chi Minh City Heritage Hotels.
However, the latest renovation of Rex Hotel was in 2013 (Travel Weekly, 2020). Based on the
review of the UK guest in March 2020 on TripAdvisor, he/she said “outdated hotel and in very
bad need of upgrading”, the rooftop terrace is very old. Another evidence of the facility's
deterioration is a serious injury of a person caused by the glass of the dome (Thao Tran, 2014).
Therefore, the facilities upgrade and innovating is very necessary for Rex Hotel if this hotel still
wants to be one of the 5-star-hotels and compete with others hotels not only in Vietnam but also
in the world.

The second thing about Rex needs to be improved is the quality of the foods and drinks. Based
on the complaint of the guests on TripAdvisor, the food and beverage was described as real as
possible, such as “the beer was warm and the wine like acid”, “the breakfast was below average".
Food and beverage plays an essential part of the hotel experience, and it is a chain of food
serving from the morning to the night (Hess, 2018). If the Rex Hotel does not want to receive the

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complaint about their quality of meals, the hotel monitor should take into account the quality of
the food and beverage more and more to reach the guests expectations of a meal in a 5-star hotel.

The Reverie Saigon

There seems to be nothing that can make the guests complain about a very luxurious hotel like
The Reverie Saigon. Nevertheless, if this hotel desires to attract more customers, it should add
more languages to its website as there are only 3 languages available: Vietnamese, English and
Chinese. In the global hospitality market, tourism organizations can gain competitive advantage
in expressing their contents in multilingualism (Nektaria Tziora, Nikolaos Giovanis &
Charalabos Papacharalabous, 2016). Appling foreign languages plays an important role in
delivering quality service to guests which makes them feel at home, hence drawing more brand
loyalty (Torres & Kline, 2013). According to the latest statistics of Vietnam national tourism
administration in 2019, accruing for 9 months, Asia and Europe visitors accounted for 91% of
the total of 12,870,506 arriving guests. Therefore, there should be the diversity of displaying
languages, especially in Korean, Japanese and French.

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IV. Conclusion

To conclude, after deep analysis of both given hotels, Rex Hotel is inevitably an old and
prominent brand, this offers Rex numerous advantages in marketing and attracting customers
with curiosity for its service, nevertheless, Rex seems to rest on its laurels with the deterioration
in both service quality management and facilities maintenance, posing adverse impacts on its
reputation. Hence, its managers should carry out new strategies and innovation in terms of
service and infrastructure to improve its status quo and gain its customers and position back.
When it comes to Reverie, as a brand-new player, its service implementation and facilities are
totally superior in comparison to Rex. Having said that, it still has minor disadvantages pointed
out by its clients relating to staff's attitude and professionalism that needs to be taken into
consideration by the managers for further development down the road.

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Ho_Chi_Minh_City.html>

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<http://www.vietnamtourism.gov.vn/english/index.php/items/14259>.
● Vietnamtourism 2019, The Reverie Saigon among Top 10 Luxury Hotels in Asia, viewed
13 August 2020, <http://www.vietnamtourism.gov.vn/english/index.php/items/13072>.
● Vietnamtourism 2019, The winners of Viet Nam Tourism Awards 2019, viewed 13
August 2020, <http://www.vietnamtourism.gov.vn/english/index.php/items/14092>.

20
VI. Appendices

21
VII. Summary of teamworks

Student Name Group Work Level of Signature of


Description Contribution Student

Le Phuc Khang Executive Summary, Arrival 100%


Stage Comparison and Analysis

Phan Dieu Linh Departure Stage Comparison and 100%


Analysis, editing and formatting
the document

Vuong Hue Man Introduction, Pre-Arrival Stage 100%


Comparison and Analysis

Le Dao Thuy Recommendation, editing and 100%


Duong formatting the document

Ton Long Khanh Occupancy Comparison and 100%


Analysis, Conclusion

Nguyen Hong Hai Overview and Recommendation 100%

22

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