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Small Business Organizational Diagnosis

Name

Institutional Affiliation

Course Title

Instructor

Date
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Introduction................................................................................................................................................................
Industry and Company Overview...............................................................................................................................
Diagnostic Tools Analysis..........................................................................................................................................
PESTELE Analysis of Hotel Blu..........................................................................................................................
Political factors...............................................................................................................................................
Economic factors............................................................................................................................................
Sociological factors........................................................................................................................................
Technological factors.....................................................................................................................................
Environmental factors.....................................................................................................................................
Legal factors...................................................................................................................................................
Ethical factors.................................................................................................................................................
SWOT Analysis of Hotel Blu...............................................................................................................................
Challenges to be Addressed........................................................................................................................................
1. Competition......................................................................................................................................................
2. Negative reviews..............................................................................................................................................
3. Staffing Shortages.............................................................................................................................................
Areas for improvement...............................................................................................................................................
Strategies to Overcome the Identified Challenges.....................................................................................................
1. Competition......................................................................................................................................................
2. Negative reviews..............................................................................................................................................
3. Staff shortages..................................................................................................................................................
Conclusion..................................................................................................................................................................
References..................................................................................................................................................................
Appendices.................................................................................................................................................................
Appendix A...........................................................................................................................................................
Appendix B...........................................................................................................................................................
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Small Business Organizational Diagnosis

Introduction

Hotel Blu is a contemporary boutique hotel in downtown Vancouver, British Columbia.

Vancouver’s hospitality market is highly competitive, with over 10,000 hotel rooms in the city.

Major companies run opulent resorts with the greatest amenities and services associated, like

Fairmont, Rosewood, and Shangri-la. In the meanwhile, there are alternatives to short rent like

Airbnb, which provides distinctive rental choices appropriate for low-cost travelers. To assess

the position of Hotel Blu in such an unpredictable environment, this paper applies the PESTELE

and SWOT analysis to explore critical external conditions, sources of competition,

organizational strengths and weaknesses, areas of potential improvements, and approaches that

can further improve Hotel Blu's competitiveness. An assessment of online reputation and staffing

challenges follows this. Lastly, tailored suggestions are provided with respect to helping Hotel

Blu distinctively position itself in order to attract talent as well as surpass guests’ expectations.

This will offer Hotel Blu's management an objective snapshot of internal competencies and

external conditions to inform strategic planning and expansion.

Industry and Company Overview

Hotel Blu operates in the fast-growing hospitality industry, especially in this age of

technological advancement. The industry can also be considered fragile since minor changes in

major sectors such as politics and the economy highly impact it. Major trends have taken place

over the recent years in the industry. Most of them are focused on sustainability and leveraging

technology to better customer experience and position the businesses in the market.
 4

Sustainability is an emerging priority across the hospitality sector. Eco-conscious

travelers increasingly seek out green hotels and carbon-neutral vacations. In response, properties

are implementing programs for water conservation, waste reduction, clean energy, and local

sourcing. For example, Hotel Blu utilizes clean energy sources in partnership with Bullfrog

Power to power its guest rooms and amenities. Promoting sustainability helps attract

environmentally-minded guests.

Technology integration is also transforming the hotel experience. Mobile apps allow

guests to select rooms, check in, and control in-room features from their phones. On-demand and

contactless services minimize interactions. Hotel Blu has practiced this by having automated

room controls to provide guests with a seamless and personalized experience, such as keyless

entry and touchless technology. Also, artificial intelligence enables personalized amenities like

Hotel Blu's in-room virtual assistant.

Domestic and leisure (business + leisure) travel are rebounding faster than large group

and international tourism. Hotels are catering stays and remote work trends with day-rate rooms

and corporate meeting rooms. Hotel Blu offers rooms that can be used for corporate meetings,

with integrated systems for screen projection and quality sound (Hotel Blu, 2023). As traditional

conventions lag, capturing rising demand from blended business and vacation travelers presents

an opportunity.
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Diagnostic Tools Analysis

PESTELE Analysis of Hotel Blu

Political factors

Hotel Blu in Vancouver benefits from operating in a politically stable environment. This

is one of the reasons why it’s easy to attract and develop business in Canada because there are

solid governmental institutions and no major internal conflicts to disrupt it. It can be seen in the

chart below that Canada is one of the most politically stable countries globally (Statista, 2023),

and this factor is a good one for business and attraction of tourists. Also, this allows the hotel to

function comfortably due to the stability and order present in Canada.

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Figure 1. Most stable countries worldwide according to the Fragile States Index in 2022
 7

Another important political factor is the government policies and regulations that affect

the hospitality industry. For example, hotels must comply with provincial Employment

Standards Acts that mandate minimum wage, overtime pay, vacation time, and termination

notice requirements for employees (BC Laws, 2023). Managers of the hotel should know about

any amendments or updates to these laws and adhere to them accordingly. Staying current on

regulatory changes enables hotels to integrate compliance smoothly into their operations and

avoid penalties.

The trade relations between Canada and other countries are also crucial for the hospitality

industry, as they affect the flow of tourists, business travelers, and foreign investments. For

example, the United States-Mexico-Canada Agreement (USMCA) is a trade deal that replaced

the North American Free Trade Agreement (NAFTA) in 2020. It aims to facilitate trade and

cooperation among the three countries, which could benefit the hospitality industry in terms of

increased demand and reduced barriers (Council of Foreign Relations, 2020).

Economic factors

The Canadian hospitality industry is recovering from the severe impacts of the COVID-

19 pandemic. Canadian domestic travel has soared with the recovery of confidence among

Canadians who wish to take long-awaited family holidays or reunions. The figure below shows

that investment in hotels through transborder and international travel is rising again after borders
 8

were closed for an extended period.

Figure 2. Investments attracted by the Hotel market in Canada Post-covid-19 (Mordor

Intelligence, 2023).

Rising costs also cause the economic challenges of Hotel Blu. Egencia (2022) predicts

that global hotel rates will rise in 2023 but may be slower than last year. Soaring fuel costs,

perennial food inflation, and mounting employee costs due to pent-up market desire for live

shows all lead to increased hotel charges. As a result of the higher cost environment, Hotel Blu

may be required to increase its room rates to keep the profit margin.

Industry forecasts project steady growth in the broader Canadian hotel market. Total

revenue is expected to reach $6.93 billion in 2023, representing a 1.17% compound annual

growth rate through 2027, resulting in revenue of $7.26 billion (Statista, 2023). Hotel Blu can

anticipate demand growth at pace with overall industry projections. Hotel Blu should closely

analyze market trends to inform investment and development strategies aligned with projected

industry growth.
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Figure 3. Projected revenue growth in the Hotel Industry in Canada (Statista, 2023).

Sociological factors

Sociological factors such as consumer preferences and spending habits positively impact

Hotel Blu’s business. The hotel caters to various demographic groups with unique

accommodation preferences. Younger travelers may, for instance, prefer shared accommodation

that caters to their financial status, while the older guests would have enjoyed the conventional

hotel facilities. Societal change brings new companies like Airbnb, which offer cheaper

alternative accommodation services than regular hotels. Therefore, by monitoring consumer

trends, Hotel Blu should be able to keep pace with changing market conditions by adapting its

offering accordingly to retain its appeal in the market. The constant battle of adjusting to new

lifestyles and booking trends in Vancouver’s changing society is a non-stop affair.

A major societal issue facing Hotel Blu and the broader hospitality industry is acute staff

shortages. As of 2021, employment within the Accommodation and Food Services industry is
 10

still down about 20% from pre-COVID-19 levels. Instead of returning to the Hospitality

industry, workers were yearning to grab opportunities elsewhere in safe jobs or depended on

government aid due to the pandemic (Avison Young, 2021). There was difficulty in getting back

the required number of workers to provide quality services and function maximally at Hotel Blu.

However, there still exists a labor shortage until all the COVID-19 restrictions that have

suppressed employment are lifted.

Figure 4. Labor force percentage change between the accommodation and food services industry

and other Industries (Avison Young, 2021).

Technological factors

Hotels increasingly adopt artificial intelligence and automation to cater more effectively

to their guests. Hotel Blu implements AI tools such as in-room virtual assistants to deliver

tailored services in the customer's comfort zone. Hotel Blu also uses automated room controls to

provide guests with a seamless and personalized experience, such as keyless entry and touchless
 11

technology. By incorporating these current technologies, Hotel Blu has emerged as a progressive

and future-oriented brand. Humans, nonetheless, seek authentic interpersonal relationships.

Figure 5. Hotel Blu uses speech-enabled personal in-room concierges modeled off of Google

Home/Alexa.

Travel websites encourage price visibility and consumer empowerment. On the other

hand, guests can compare the prices for rooms, as well as feedback on most of the hotels before

booking. This compels hotels to keep costs low to appeal to web reservations in the Vancouver

market. This is where a superior product or service comes in handy. Hotel Blu should leverage

search and booking algorithms used by travel sites to optimize its pricing and offers. Since

travelers depend heavily on technology, it has become impossible to ignore the importance of an

active online image.

Environmental factors

Sustainability is an emerging environmental priority for the hospitality industry. Eco-

friendly trends are expected, such as recycling programs, energy-efficient operation of

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businesses, etc, on which guests become more aware or inquire about such information while

booking hotels. The growing awareness of the environment in Vancouver means that Hotel Blu's

facilities and policies should be up to this expectation. Such efforts can be used as a tool for

marketing and improving the business's image through the promotion of sustainability.

In addition, compliance with environmental laws is necessary. This can increase costs of

operation when new demands on water usage, discharges from waste, greenhouse gas reporting,

and many others are imposed. Adherence would be expensive, yet non-compliance presents a

greater reputation and legal risk than the costs of adherence. This allows Hotel Blu to keep up

with its environmental policy development strategies and incorporate them into its system

seamlessly.

Legal factors

Data protection and privacy regulations are growing concerns. Such laws include the

Personal Information Protection and Electronic Documents Act, which regulates collecting,

using, or storing records relating to guests in hotels, as Lawson (2022) notes. Hotel Blu can

improve the handling of such information by having mandatory data security systems and staff

training. Violations may attract hefty penalties or lawsuits against Hotel Blu. Eyes must be kept

open to stay up-to-date with strengthened privacy rules.

Hotel owners should follow innkeeper laws, which ensure the welfare and safety of

guests and their properties. Such legislation requires hotels to pay hotel visitors whose property

is stolen or damaged; however, exceptions, such as where a visitor was reckless, are allowed. All

these laws intend to protect consumers; however, there is a possibility of an increase in Hotel

Blu's risks and premiums. Adhering to strict security protocols and communicating these
 13

effectively to visitors can minimize the risk of occurrences, giving rise to innkeeper's liability

coverage.

Ethical factors

Clear ethical principles should guide hospitality industry operations. Practices like

transparent pricing, honoring reservations, and respecting guest privacy establish trust and

integrity. False or misleading advertising damages Hotel Blu's reputation. Fair compensation and

reasonable work expectations for staff are also important. Hotel Blu should aim to avoid

unethical practices like price gouging, withholding deposits without cause, and overbooking

rooms beyond capacity.

Customer and employee diversity and inclusion are ethical imperatives as well.

Removing barriers to accessibility fosters equal accommodation. Tolerating no discrimination,

harassment, or inequality ensures an ethical workplace. Job opportunities, training, and

advancement should be based on merit alone. Prioritizing diversity allows Hotel Blu to make

ethical decisions aligned with its values.

SWOT Analysis of Hotel Blu

Strengths: Weaknesses:
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● Good location and easily accessible. ● Room rates are high (Trip Advisor,

2023).

● Parking facilities are limited and

expensive (Trip Advisor, 2023).

● Customer service is sometimes poor

(Trip Advisor, 2023)

● Noise from outside heard from inside

● Modern and stylish design (Hotel Blu,
the hotel rooms.
2023).
● Deceptive room descriptions (Trip
● Good rating on TripAdvisor.
Advisor, 2023).
● A rooftop pool and hot tub (Hotel Blu,
● Manual collection of customer
2023).
feedback
● Online booking services.
● Dependence on third-party for

customer feedback collection.

● Limited use of social media platforms.

● Lack of a chat box on the website.

● Dependence on third-party vendors to

supply meals.

● Limited capacity of the restaurant in

the Hotel.

● Entertainment and leisure amenities.

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● Offers meeting venues.

● Sustainability focused.

Opportunities: Threats:

● Growing demand for eco-friendly and ● Existing impacts of COVID-19.

sustainable hotels ● Stiff competition.

● Increasing popularity of online ● Negative reviews or comments on the

booking services internet.

● Growing demand for personalized ● Staff shortage in the hospitality

services through AI-driven customer

 16

service tools industry.

● Room for more promotions and ● Thought to exist under the Radisson

discounts. Blu hotel chain causing marketing

● Partnership with local businesses. challenges.

● Growing demand for sustainability. ● Supply chain disruptions due to

● Automation of feedback collection dependence on third-party vendors.

from customers.

● Partnership with sustainability-focused

organizations.

Please see the detailed SWOT analysis table in Appendix A.

Challenges to be Addressed

1. Competition

The hotel landscape is highly competitive, with over 10,000 rooms spread across

downtown Vancouver (Destination Vancouver, 2023). Major brands like Fairmont, Rosewood,

and Shangri-La operate premier properties that rival or exceed Hotel Blu's amenities and service.

Their strong reputation and lavish accommodations attract high-end leisure and business

travelers. Hotel Blu needs help to differentiate itself from these entrenched luxury hotels. Mid-

range chains also offer comparable locations and prices that can siphon value-conscious guests.

Beyond traditional hotels, home and apartment-sharing services like Airbnb present an

appealing lodging alternative. Airbnb provides a wide selection of central Vancouver units at

often lower costs than hotel rooms. The platform's flexible options appeal to families and groups
 17

seeking more space, privacy, and household amenities when traveling. Airbnb's rapid growth has

redefined the accommodations sector.

2. Negative reviews

In the hospitality industry, online reviews of platforms such as TripAdvisor have great

power. However, negative comments can promptly damage a hotel's reputation and discourage

visitors. Dreadful evaluations about terrible client services, false advertisements, noisy rooms,

overcharging, etc., have been realized for Hotel Blu. The public complaints against Hotel Blu

cast it in a poor light compared to other Vancouver hotels with better ratings.

Figure 6. Customer review complaining of poor service at Hotel Blu.

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Figure 7. A customer review of Hotel Blu complaining of deceptive room descriptions.

Figure 8. A customer review complaining about a lack of refund at Hotel Blu .

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The visibility and persistence of negative reviews create long-term reputational damage.

Research shows that over half of travelers reject hotels with average ratings below 3.5 stars (Wen

et al., 2021). Once Hotel Blu's image falters, it becomes difficult to regain trust. Guests often

deem negative ratings more credible than positive ones (Wen et al., 2021). Even a few bad

experiences amplified online can have an outsized impact.

Poor reviews severely hamper revenue. Ratings provide guests with a basis for evaluation

when making reservations to hotels. The dissatisfied ones are also discouraged through negative

word-of-mouth of others who could visit. As a result, unavoidably, its booking will diminish

when Trip Advisor portrays one and two-star condemnation of Hotel Blu. As a result, customers

will prefer competitors with positive or at least less negative feedback because intense

comparisons among various hotels can be detrimental.

3. Staffing Shortages

Like other hotels, Hotel Blu has faced the challenge of having sufficient workers to offer

quality services to its customers. Labor shortages afflict the broader hospitality industry as

workers departed during COVID shutdowns and have not returned. There is also a need for more

vital employees such as front desk clerks, housekeepers, waiters, and cooks.

Shortage of labor increases operating expenses. Hotel Blu would then have to pay more

in terms of wages and benefits to attract scarce workers. The cost of recruitment and training is

only made worse by high turnovers, as they increase again. However, on the other hand, this

would mean that providing bad services would even result in more catastrophic repercussions

regarding image and loss of bookings.

Hiring and retaining staff in a tight labor market will be an ongoing struggle. However,

not doing this jeopardizes the brand of Hotel Blu and its basic fundamentals. Having the right
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people in place has become a critical prerequisite for management survival, and the latter must

be open to all available staffing options. These could embrace, for example, special motivation

schemes, virtual workplaces, team-building activities, and embracing technological advances.

This involves putting a premium on workers' health, happiness, and quality of life, leading to

their retention. It is, therefore, important to overcome the labor scarcity crisis.

Areas for improvement

One of the areas that Hotel Blu should address is noise, given that it has been mentioned

in several negative reviews. Hotel Blu ought to improve on soundproofing, using techniques

such as double-paned windows, insulators, and white noise makers to address the noise issues.

Quiet hours may have been strictly enforced with certain limitations such as limiting last night's

swimming, lounging or playing outside, etc. It provides sound information in realistic terms

concerning the noise levels, and this helps set the right expectations for guests.

Secondly, Hotel Blu should avoid misleading room descriptions. Truthfully, marketing

bedroom sizes, features, and specifications should be upheld. Definitions require all suites to

have separate rooms, not just partitioned spaces. Pictures and descriptions will give an insight

into what is considered a typical Hotel Blu residence. This means that a list of offerings is

regularly audited to confirm the promotion of this hotel.

Finally, Hotel Blu's room rates are considered high, given comparative value. To justify

pricing, service, and facility quality must be elevated through investments like room renovations

and rigorous staff training. Competitive compensation that attracts and retains excellent

personnel is key. Enhanced monitoring of housekeeping performance helps ensure standards are

met. Periodic value-oriented promotions also boost perceptions of affordability.

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Strategies to Overcome the Identified Challenges

1. Competition

Differentiation is key, and therefore, Hotel Blu must set itself apart by highlighting

unique strengths competitors lack, for example, aggressively promoting the rooftop pool and

lounge as an iconic Vancouver experience. Alternatively, they can highlight Hotel Blu's

advanced facilities, such as in-room AI assistants, which provide tailored servicing. The strategy

enables Hotel Blu to achieve sustainable competitiveness by concentrating on marketing unique

ingredients that customers do not feel anywhere else.

Leveraging loyalty programs and local partnerships also help insulate Hotel Blu. For

example, Hotel Blu could create a loyalty tier system similar to major chains, with increasing

benefits for return guests. Entry-level tiers like "Blu Member" could offer free Wi-Fi and

membership discounts. Higher tiers like "Blu Elite" could add perks like room upgrades, late

checkout, free parking, and complimentary breakfast. Providing exclusive member rates,

birthday rewards, and special packages would incentivize repeated bookings, making Hotel Blu

the obvious choice for loyal guests' return visits. In such a partnership strategy, Hotel Blu guests

would enjoy exclusive experiences at local attraction sites, restaurants, and shops as an

introduction to touring Vancouver during their stay.

Lastly, emphasizing value helps combat budget-conscious competition. Maintaining

quality while touting competitive room rates counters criticism of overpricing. Perceived value

for money can be enhanced packaging-wise through deals or seasons, with bonuses such as

complimentary breakfast and free WIFI. This ensures that Hotel Blu has a high price-to-quality

ratio.
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2. Negative reviews

The hotel should adopt several measures as a reaction against negative online reviews.

They should always be quick to deal with substantive complaints and strive to ensure that such

incidents do not occur again. For instance, dealing with recurring complaints such as ill-

mannered staff and noisy surroundings involves instituting specific training strategies and

regulatory policies that reflect an openness to listening and responding positively to critics.

In response to negative comments, the hotel can appeal to happy guests with a positive

attitude towards it. Li et al. (2019) opine that they can be used to play review cards in rooms,

provide incentives for reviews as well, and announce their achievements and awards to enhance

their good reputation by making people speak positively of them. Some online reputation

management tactics that should be employed by a company marketing its luxury hotel brand

include reflexively replying to scathing remarks by providing an elaboration of the necessary

adjustments while using SEO in order to have positive statements on the hotel appear at the top

search results. It may assist in mitigating certain concerns in isolation.

Upgrading facilities and amenities where reviewers identify shortcomings is necessary.

This includes upgrading old suites, ensuring a similar category is in line with today's standards,

and enhancing sound proofness, directly indicating the commitment of Hotel Blu to addressing

the raised issue. Additionally, for accuracy, promotional materials and room descriptions will be

assessed. The wording in the documents will be refined, while true-to-life photo illustrations will

be adorned. It brings about a meeting point between expectation and reality.

Increased monitoring of ratings across review platforms can help spot emerging issues

early and allow for swift intervention on new criticisms before they multiply (Trip Advisor,

2019). Ongoing vigilance is essential, and Hotel Blu should focus on improving customer
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satisfaction through enhanced training, services, and facilities. Preventing problems is more

effective than managing negative reviews after the fact.

3. Staff shortages

To address staffing shortages, Hotel Blu can implement a range of strategies. One way of

achieving this objective includes offering competitive remunerations. For instance, studies show

that most employees seek good pay and other related benefits while working in the hospitality

industry. One might offer additional perks entailing increased wages, extended vacations,

improved contributions made towards insurance policies, etc. so that they become preferred

employers among all (Jeffrey & Sposato, 2023).

Hiring bonuses and employee referral rewards are also quick ways to speed up filling job

vacancies or offering one-time benefits for newly hired staff and their referees. Jeffrey &

Sposato (2023) note that creating effective hiring channels and building an exceptional business

identity is imperative. The hotel should use creative advertising through social media and

popular job sites and promote Hotel Blu's work culture, enhancing its reputation as a great

workplace.

Hotel Blu can also establish partnerships with hospitality schools and culinary programs

to recruit fresh graduates and create internship and apprenticeship programs to build a

continuous talent pipeline. Providing training and advancement opportunities is crucial to boost

retention and engagement, as employees are more likely to stay if they feel invested in and can

envision career growth within the company.

Listening to the needs of staff and fostering an excellent workplace culture is equally

important. Happy, supported, empowered employees will stay within a company longer. There
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may also be room for synergies in finding alternatives, such as better ways of providing public

transport to the workers in downtown hotels.

Conclusion

To survive in a highly competitive Vancouver hospitality industry, Hotel Blu must

continuously adapt and innovate. Hotel Blu can improve its competitive advantage in terms of

location and other amenities by providing a unique guest experience in order to draw bookings

and loyalty. Hotel Blu needs to execute specific plans, such as handling negative reviews, hiring

staff, and maintaining a solid market position to align itself with emerging trends while

distinguishing itself from its competitors. Hotel Blu has a good grasp of its operating

environment and suggestions to improve operations services and message; it is thus well placed

to develop its reputation and increase market share in the competitive Vancouver hotel market.
 25

References

Avison Young. (2021). Canada Hotel Market: 2021 Review and 2022 Outlook. https://avison-

young.foleon.com/ca-marketing/canada-hotel-market-2021-review/key-impact-factors/

Avison%20Young%20Canada%20Hotel%20Market%202021/Avison%20Young

%20Canada%20Hotel%20Market%202021/2022%20EN#:~:text=COVID

%2D19%20status-,Staffing,this%20percentage%20fell%20to%205.1%25.

BC Laws. (2023). EMPLOYMENT STANDARDS ACT. [RSBC 1996], CHAPTER 113.

https://www.bclaws.gov.bc.ca/civix/document/id/complete/statreg/00_96113_01

Council of Foreign Relations. (2020). NAFTA and the USMCA: Weighing the Impact of North

American Trade. https://www.cfr.org/backgrounder/naftas-economic-impact

Egencia. (2022). Five trends in the business travel hotel industry.

https://www.egencia.com/en/five-trends-business-travel-hotel-industry

Jeffrey, H. L., & Sposato, M. (2023). Post pandemic “revenge travel”: developing organizations

to address staff shortage. Development and Learning in Organizations: An International

Journal, 37(5), 18-20.

Lawson, T. (2022). The International Hotel Law Review: Canada. The Law Reviews.

https://thelawreviews.co.uk/title/the-international-hotel-law-review/canada

Li, X., Wu, C., & Mai, F. (2019). The effect of online reviews on product sales: A joint

sentiment-topic analysis. Information & Management, 56(2), 172-184.

Mordor Intelligence. (2023). HOSPITALITY INDUSTRY IN CANADA MARKET TRENDS.

https://www.mordorintelligence.com/industry-reports/hospitality-industry-in-canada/

market-trends
 26

Statista. (2023). Hotels - Canada.

https://www.statista.com/outlook/mmo/travel-tourism/hotels/canada#revenue

Statista. (2023). Most stable countries worldwide according to the Fragile States Index in 2022.

https://www.statista.com/statistics/752087/20-least-fragile-countries-worldwide/

Trip Advisor. (2019). TripAdvisor Study Reveals 77% of Travelers More Likely to Book When

Business Owners Respond to Reviews. https://ir.tripadvisor.com/news-releases/news-

release-details/tripadvisor-study-reveals-77-travelers-more-likely-book-when

Trip Advisor. (2023). Hotel BLU. https://www.tripadvisor.com/Hotel_Review-g154943-

d6621137-Reviews-Hotel_BLU-Vancouver_British_Columbia.html

Wen, J., Lin, Z., Liu, X., Xiao, S. H., & Li, Y. (2021). The interaction effects of online reviews,

brand, and price on consumer hotel booking decision making. Journal of Travel

Research, 60(4), 846-859.

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Appendices

Appendix A

Detailed SWOT Analysis

Factor Description

1. Strengths

Good location and easily accessible. The hotel is located in the heart of downtown
Vancouver, which makes it easily accessible
to popular tourist attractions, restaurants,
stadiums and shopping centers.

Modern, stylish design (Hotel Blu, 2023). The hotel has a modern and stylish design that

appeals to guests who prefer contemporary

aesthetics (Hotel Blu, 2023).

Good rating on TripAdvisor The hotel has a relatively good rating on

TripAdvisor, with many guests praising the
hotel’s customer service, location, rooms,
amenities, and breakfast.

A rooftop pool and hot tub (Hotel Blu, 2023). The hotel has a rooftop pool and hot tub that

offers stunning views of the city skyline

(Hotel Blu, 2023).

 28

Online booking services. Has online booking services, thus reducing

physical interaction and time consumption in

physical booking

● Entertainment and leisure amenities. Entertainment and leisure amenities such as a

swimming pool, jacuzzi, spa, and a fitness

center are present.

● Offers meeting venues. Has rooms where individuals or

organizations can hold their meetings. The

rooms are equipped with technology

 29

equipment for quality sound and image

projection.

Sustainability focused.

2. Weaknesses

Room rates are high. Customers have complained in their reviews

that the room charges in the hotel do not
match the quality of service and the room
sizes are also small and not worth the price.

Parking facilities are limited and expensive
Several customers have raised negative
reviews on Tripadvisor complaining about
being charged for parking without being
informed that they would be charged and
also being charged hefty fees.

Customer service is sometimes poor Customers have complained of poor services

in the Hotel either from the room attendants,
or the recipients.

Noise. Noise from outside due to the streets and

activity around the hotel can be heard from
within the rooms causing discomfort of the
customers.

Deceptive room descriptions. ● The hotel’s room descriptions are

misleading and do not match the

guests’ expectations. For example,

some guests complained that the

“suite” rooms were not actual suites

 30

but just normal rooms with no

partitions or doors (Trip Advisor,

2023).

Manual collection of customer feedback The manual uploading of customer emails on

Tripadvisor to collect customer feedback is

not the best approach.

Dependence on third-party for customer Dependence on third-party for customer

feedback collection. feedback collection which could lead to lack

of control, less reliable feedback, and biased

responses.

Limited use of social media platforms. The hotel has not explored all social media

platforms and only uses Instagram and

LinkedIn while there are others such as

Facebook, tik-tok and Twitter; which would

help them target different types of market

and this has limited to their online marketing

strategy.
 31

Lack of a chat box on the website Lack of a chat box on the website for quick

customer support.

Dependence on third-party vendors to supply Dependence on third-party vendors to supply

meals. meals leading to less control over food

quality, higher meal costs, and limitations on

changing offerings.

Limited capacity of the restaurant in the This would limit the number of people they

Hotel. can hold at a time.

3. Opportunities

Growing demand for eco-friendly and Growing demand for eco-friendly and
sustainable hotels in this era of green energy.
sustainable hotels

Increasing popularity of online booking Increasing popularity of online booking

services to reduce time spent on physical
services booking.

Growing demand for personalized services. Growing demand for personalized services
through AI-driven customer service tools

Room for more promotions and discounts. The hotel can offer more promotions and
discounts to attract budget-conscious
travelers.

Growing demand for sustainability. There is a growing demand for renewable

energy and green technology from
government organizations and even
individuals.

Automation of feedback collection from Have an organization-owned automated

customers. customer feedback collection system to gain

 32

control over their own data collection that

could help them make better informed

decisions.

Partnership with sustainability-focused Ability to attract partnerships with more

organizations. organizations that are sustainability focused.

4. Threats

Existing impacts of COVID-19. The COVID-19 pandemic has significantly

impacted the travel industry, leading to

reduced demand for hotels.

Stiff competition. The hotel faces stiff competition from other

hotels in the area that offer similar services

and amenities. These include Fairmont,

Rosewood, and Shangri-la.

Negative reviews or comments on the The hotel’s reputation could be damaged by

internet. negative reviews or comments on social

media platforms since many people go

through such reviews to determine if they will

work with a certain business.

Thought to exist under the Radisson Blu hotel Thought to exist under the Radisson Blu hotel

chain causing marketing challenges. chain causing marketing challenges,

misplaced competition, negative reputation

 33

transfer and also ownership uncertainty which

can deter bookings.

Supply chain disruptions due to dependence Dependence on third-party vendors to supply

on third-party vendors. meals can cause supply chain disruptions,

vendor mistakes, food safety risks and vendor

relationships change.

Appendix B.

Competitor analysis

One of the major competitors of Hotel Blu is Fairmont Pacific Rim Hotel. As a boutique

property, Hotel Blu's 75-room capacity is dwarfed by Fairmont Pacific Rim's 377 expansive

suites and guest rooms. Fairmont's larger scale enables more extensive amenities like multiple

dining outlets, an immense spa and health club, and lavish event spaces. Hotel Blu's compact size

limits its offerings. Fairmont's rooms emphasize luxury with top-tier beds, coffeemakers, and

entertainment systems. While modern, Hotel Blu's standard guest rooms provide a more basic

experience. Fairmont's expansive rooms and suites better accommodate long stays or meetings.

Hotel Blu's intimacy appeals more to short-term couples and individuals. Location is a strength

for both competitors, situated downtown near attractions. However, Fairmont's prime convention

center address gives it dominance for corporate travelers. Meanwhile, Hotel Blu's boutique

ambiance suits leisure guests. Reviews for Fairmont indicate consistently outstanding service and

amenities fitting its luxury tier. Hotel Blu's reviews are mixed, signaling inconsistent execution.
 34

As seen in the images below, competitors to Hotel Blu have more positive reviews on Trip

Advisor than Hotel Blu.

Figure 9. Fairmont Pacific Rim has larger rooms compared to those of Hotel Blu and better

views of the mountains.

Figure 10. Hotel Blu positive reviews ( to the left), are fewer than those of Fairmont Pacific Rim

( to the right)
 35

Figure 11. A perfect customer review about Fairmont Pacific Rim

The other major competitor for Hotel Blu is Rosewood Hotel Georgia. Rosewood Hotel

Georgia's elegant 1920s-inspired decor contrasts Hotel Blu's sleek modern interior. Rosewood

offers a historic ambiance blended with contemporary comforts, while Hotel Blu has a tech-

forward boutique style. Both boast downtown locations proximate to attractions. However,

Rosewood's culinary options, like the acclaimed Hawksworth restaurant, surpass Hotel Blu's

more basic fare. Reviews for Rosewood are outstanding, reflecting refined service fitting its

luxury aspirations. Hotel Blu garners mixed feedback. Rosewood also leverages its long-standing

heritage, while new entrant Hotel Blu lacks this gravitas. With higher prices but an elegant,

refined atmosphere and dining, Rosewood attracts discerning guests seeking an exclusive

Vancouver experience.
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Figure 12. Rosewood hotel Georgia offers a historic ambience.

Figure 13. Hotel Blu positive reviews ( to the left), are fewer than those of Rosewood Hotel

Georgia ( to the right)

The third major competitor to Hotel Blu is Shangri-La Hotel. Shangri-La is an established

luxury brand, which boasts international prestige that small newcomer Hotel Blu lacks. Shangri-
 37

La's extensive portfolio includes flagship icons like the Paris property, demonstrating proven

hospitality expertise. Hotel Blu's single location limits scale advantages. Desirable on-site

amenities like diverse bars/restaurants and boutique excursions cater to discerning guests. A

strong loyalty program and brand reputation drive bookings. Financial performance is robust,

with revenue up 60% in 2021. In contrast, Hotel Blu faces mixed reviews and anonymity beyond

Vancouver. Shangri-La's premium positioning, luxury facilities, and financial strength enable a

top-tier guest experience that commands higher rates than Hotel Blu's mid-market value offer.

Figure 14. Hotel Blu positive reviews ( to the left), are fewer than those of Shangri-La Hotel ( to

the right)