CASE STUDY: COMPANY ANALYSIS

RHR HOTEL @ Selayang

PRINCIPLES OF ENTREPRENEURSHIP (ENT530): CASE STUDY

FACULTY & PROGRAMME : FACULTY OF BUSINESS AND MANAGEMENT

SEMESTER & GROUP : SEMESTER 6 - NBH6C

PROJECT TITLE : CASE STUDY COMPANY ANALYSIS (RHR

HOTEL @SELAYANG)

NAME STUDENT ID

PUTERI EDRINNA BINTI SUNIP 2020739277

NURRIEZZA NADZIRAH HASDZRI 2020511979
SYAFIQAH BINTI SOPIAN 2021544989
AHMAD SYAFIE BIN MOHD 2021130167
ALI

LECTURER: PN. ZANARIAH BINTI ZAINAL ABIDIN

DATE OF SUBMISSION: 26 NOVEMBER 2023

 ACKNOWLEDGEMENT

We would like to sincerely thank Madam Zanariah binti Zainal Abidin, our professor,
for her advice and criticism while we completed our work. We are appreciative of her
willingness to share her knowledge and ideas with us, since they were priceless in
helping us develop.

We also want to thank our family and friends for their support and understanding, as
well as our classmates for their efforts and teamwork. They have supported and
encouraged us to maintain our motivation and concentration while completing the
project.
Finally, but just as importantly, we would like to thank the RHR Hotel's management,
a fantastic group of individuals who have given us access to many helpful tools and
information. They have been really helpful in giving us the information we need for our
task.

In the end, we are appreciative to Allah for giving us the insight and understanding
needed to do this task. We sincerely thank Him for His favor and direction all along the
way.

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TABLE OF CONTENT

1. EXECUTIVE SUMMARY……………………………………………………. 3

2. COMPANY INFORMATION………………………………………………… 4

2.1 Company Background………………………………………………………4

2.2 Organisational Structure……………………………………………………5

2.3 Product and Services………………………………………………………..6-8

2.4 Business Marketing and Operational Strategy………………………….9

3. IDENTIFICATION OF MAIN ISSUES/ PROBLEMS……………………….10-12

4. ANALYSIS OF MAIN ISSUES BUSINESS MODEL CANVAS……………13-18

5. SUGGESTION/SOLUTIONS………………………………………………….19-21

6. CONCLUSION………………………………………………………………….22

7. REFERENCES………………………………………………………………….23

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 1. Executive Summary

Purpose of this case study of analysis the business model canvas used by this
company. In this case study, RHR Hotel @ Selayang has been chosen. RHR Hotel @
Selayang are providing accommodation services at Selayang. Besides
accommodation services, they also provide facilities for convention, seminar and
corporate retreat. This case study Focuses on several key challenges faced by the
hotel which includes competition, negative reviews, low profit margin and lack of
marketing.

The findings in this case study are, the social media for this hotel are not promoting
much about the hospitality about the hotel. They rely more on online booking platforms
such as Agoda, Expedia and other online hotel booking platforms.

Based on the analysis, several recommendations may be referred to improve RHR

Hotel @ Selayang. Firstly, actively promoting their services and rooms on social
media. Try to create awareness to the public that they are providing great service and
comfortable accommodation. Secondly, they should not rely too much on the online
booking platform. Online booking platforms are imposing high commission payments
to the hotel and that will reduce the profit. Besides that, creating attractive packages
that offer value-added services or amenities can entice guests to choose RHR Hotel
@ Selayang over competitors. Next, they also can encourage the guest to leave a
positive review at online platform.

In conclusion, improving service quality and customer satisfaction are the important
keys for RHR Hotel @ Selayang to success. Implementing the recommendations, this
hotel may overcome challenges that they faced, improve they reputation and may
increase their profit.

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 2. COMPANY INFORMATION

2.1 Company Background

Logo of RHR Hotel @ Selayang

RHR Hotel @ Selayang is managed by RHR Hospitality Sdn Bhd which is a private
limited company that runs a hotel management business that has been registered
since 1993. In 1993, they registered as Residence Hotel Management. However in
2001, they rebranded to Residence Hotel & Resorts due to expanding to various
sectors in the hotel that focused. After that, in 2013 due to regional expansion, they
became known as the RHR group.

RHR Hotel @ Selayang Building

RHR Hotel @ Selayang located at, Lot 17, Selayang 18, Persiaran 3, Bandar Baru
Selayang, 68100 Batu Caves Selangor.

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2.2 Organisational Structure

Organizational Structure for RHR Hotel @ Selayang

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2.3 Product and Services

A. Accomodation Services

All rooms at this hotels are provided with:

● Air conditioning
● Telephone
● LCD TV with selected Astro channels
● In room safety box
● Coffee and tea making facilities
● Mini bar fridge
● Prayer mat (sejadah)
● Rainforest shower
● Free Wi-Fi access
● Ensuite Bathroom

Types of room

1. Deluxe Room
Twin Bedded or Queen Size Bed
Room size: 20 m²/215 ft²
Price : RM 145.00 per night

Deluxe Room
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2. Deluxe with balcony
Twin Bedded or Queen Size Bed
Room size: 20 m²/215 ft²
Balcony view
Price : RM 165.00 per night

Deluxe Room with Balcony

3. Junior Suite
King Size Bed
Room size: 28 m²/301 ft²
Balcony View
Price : RM 235.00 per night

Junior Suite
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 4. Family room
Three double decker bed
Room size: 28 m²/301 ft
City View
Price : RM 325.00 per night

Family Room

B. Corporate Meeting and Event Space

At RHR Hotel @ Selayang, they also provide hall services which may be used for any
corporate event or meetings. For this space fees are depending on how many
participants may be involved in this event or seminar.

Arrangement during seminar

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2.4 Business Marketing and Operational Strategy

1. Early booking discount

For booking at least a month before staying, there is a special discount.

Any booking can be made through RHR Hotel @ Selayang official
website or any online booking platform such as Agoda.

2. Off-peak Promotions.

This promotion is common during weekdays or off-peak seasons. This

promotion is to attract customers to stay during weekdays or any off-
peak season.

3. Providing all information on websites

RHR Hotel @ Selayang providing all information on their websites. There

are some pictures that can be a reference for customers before they
proceed to booking.

4. Collaborating with online booking platform

RHR Hotel @ Selayang is also listed in many online booking platforms

such as Agoda, Booking.com, Expedia, and Trip.com. With this, they can
reach more potential customers. Nowadays mostly customers are
looking for accommodation by checking those platforms because there
is adequate information for them.

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3. IDENTIFICATION OF MAIN ISSUES/ PROBLEMS

The business is currently facing challenges and problems demanding consideration

and resolution to ensure its ongoing success. The following are some of the foremost
issues that we have pinpointed.

3.1 Negative reviews

One way to conceptualize guest satisfaction would be as the total emotional

reaction of the customer to the entire intangible service. Customers’ overall
emotional responses in online reviews can be seen in the overall ratings. The
positive and negative reviews showcase the guest's experiences and level of
satisfaction. Such adverse reviews have the potential to harm the hotel’s
reputation and dissuade prospective customers from making reservations.

3.2 Intense competition

There are numerous hotels operating in the same market and geographic area,
competing for the attention and patronage of a limited pool of potential guests
similar to RHR Hotels @ Selayang. This competition can manifest in various
ways and can have a significant impact on the operations and strategies of
hotels.

3.3 Lack of a marketing strategy

Lack of a structured and planned approach to promote the hotel’s offerings,

attract guests, and enhance overall visibility in the market. A marketing strategy
typically involves the identification of target guests, the development of
promotional rooms and services, and the utilization of various channels to reach
potential customers.

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3.4 Operational efficiency

Operational efficiency in a hotel can arise from various factors and impact the
overall performance and guest satisfaction. Some of the operational efficiency
issues that hotels may face:

3.4.1 Inefficient Check-In/ Check-Out Processes

Lengthy and cumbersome check-in or check-out procedures that

frustrate guests. This may be due to understaffing or lack of training.

3.4.2 Inadequate staff training

Insufficient training for staff members that could lead to errors, delays,
and a decline in service quality.

3.4.3 High employee turnover

Constant turnover in staff can lead to a lack of consistency in service

quality and operational procedures.

3.5 Low-profit margin

The competitive dynamics within the budget hotel market necessitate the
company to provide rooms and services at reduced rates, leading to
constrained profit margins. Below are issues that contributed to a low profit
margins at RHR Hotel @ Selayang:

3.5.1 High operational costs

Hotels operating costs are too high relative to its revenue. This might
include expenses such as labor costs, utilities, maintenance, and other day-to-
day operational expenses.
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3.5.2 Seasonal fluctuations

Hotels often experience seasonal variations in demand. Especially

during off-peak seasons, room rates need to be discounted to maintain
occupancy.

3.5.3 High operational costs

Hotels operating costs are too high relative to its revenue. This might
include expenses such as labor costs, utilities, maintenance, and other day-to-
day operational expenses.

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4. ANALYSIS OF MAIN ISSUES USING BUSINESS MODEL CANVAS

4.1 Key Partners:

4.1.1 Third party booking website.

Third Party Booking Sites offer convenience and a wide range of options for tourist,
hotel sometimes encourage tourist to book directly through our official websites. RHR
Hotel @ Selayang provide direct bookings as they may offer benefits for lower prices,
special promotions, and better flexibility in terms of service. Additionally, direct
bookings allow hotel to establish a more direct relationship with their tourist.

4.2 Key Activities

4.2.1 Accommodation or hospitality

RHR Hotel @ Selayang always prioritize warm, welcoming, and attentive treatment of
guests. It encompasses a range of services and practices designed to create a positive
and enjoyable experience for individuals staying at a hotel. The concept of the hotel
extends beyond the physical facilities and amenities of a hotel to include the way
guests are received, assisted, and cared during their stay. 13
 4.2.2 Hotel management

Hotel management refers to the administration and operation of hotels, resorts, and
other lodging establishments. It involves overseeing various aspects of the hospitality
industry to ensure that guests have a positive and comfortable experience during their
stay. With a competent staff in RHR Hotel @ Selayang, they are ensuring all the tourist
provides with the best service within of their stay.

4.3 Key Resources

4.3.1 Financial Resources

A sufficient of financial measures are the main essential for operating RHR @ Hotel
Selayang which is including marketing, technology, operating assets staff
development. Slightly access of capital and of financial obstruct RHR @ Hotel
Selayang will allows them to continue and improve their resources enact any relatable
development and provide capital for their strategies.

4.3.2 Technology and Infrastructure

A quite updated and sufficient access of technology of RHR @ Selayang Hotel is a

challenging for them to compete with others hotel brands. This is include with
inconsistent operational system, facing issues of software application and
inconvenient of business organization

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 4.3.3 Staff and expertise

The main issues of RHR Hotel @ Selayang is high rate turnover, lack of personnel
training development and limited staffs of each organization

4.4 Value Proposition

4.4.1 Unique and genuine experience

RHR Hotel @ Selayang are focusing on business travellers marketing or formal

corporate function. RHR Hotel @ Selayang might be hard to step ahead for expanding
their business due to lack of innovation to compete with other hotels.

4.4.2 Personalized package and attractive offers

RHR Hotel @ Selayang does not measure the pricing of the rooms with market price
to ensure they can gain profit while accommodating the guests.

4.5 Customer Relationships

4.5.1 Guest feedback and reviews

RHR Hotel @ Selayang are not collecting the review analysis and feedback from the
guest directly as they are fully relying on third parties of booking websites to send the
email to the guest. This approach will contribute to the failure to improve the service
and leaving the bad rating of the hotel image.

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 4.5.2 Personalized services

Since the organisation of RHR Hotel @ Selayang is limited to the business and
travellers marketing, the hotel is unable to provide and expand more choices to the
other guest and they need to innovate more ideas especially during the peak seasons.

4.5.3 Best offers and attractive packages.

Negligence of meeting alignment of the best time of offers during peak season, RHR
Hotel @ Selayang is left behind as missing chances to attract the guest to use their
services.

4.6 Customer Segment

4.6.1 Business Travellers

RHR Hotel @ Selayang’s main target is corporate travellers or any formal events and
the pattern of demand is high whenever possible. The reviews of the hotel is maintain
as meeting their expectations.

4.6.2 Urban population

This group of community are frequently find themselves to stay the place with the
reasonable price and easy for them to stay within short vacation

4.6.3 Solo or backpacker travellers

For solo and backpacker travellers are seeking to find convenience and safe hotel
accommodation to enjoy their solo trip

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 4.6.4 Foreign Travellers

The foreigners will find the place with their personalized preferences including easy
access to the big cities or airports.

4.6.5 Budget Travellers

Budget travellers are seeking to find their stays depending on their fixed budget with
affordable price and contemporary comfort with a great value.

4.7 Channels

4.7.1 Official website

RHR Hotel @ Selayang is providing their website for the guest to book the hotels with
few choices of room package that fits with number of person will staying

4.7.2 Booking website

RHR Hotel @ Selayang is collaboting with Agoda.com, Booking.com and Trip.com to

expand their business and to expand their target audience

4.8 Cost Structure

4.8.1 Assets maintenance and services

Repairing, room services, maintenance, regular sanitization and cleaning is involved

to ensure the hotel environment and facilities are in a good condition in order to
continue their business.

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 4.8.2 Labour cost

Labour costs are involving salaries, commissions, hiring staffs, provides training and
development to employees will run smoothly from front desk line to administrative
staffs.

4.8.3 Operation expenses

Including everyday operation cost is a must to manage the hotels, hospitalities and
facilities, insurances, marketing to expand the business, asset taxes, cost of
organizational and other various expenses in order to align the objective of
organization.

4.8.4 Training and development

Referring to provide staffs to the training programmes, courses, orientation,

onboarding training, technical programme, leadership training to develop their soft
skills and career development.

4.9 Revenue Stream

4.9.1 Room Revenues

RHR Hotel @ Selayang fund is rely on the booking official website and third party of
booking websites including bill of commission and any related fees.

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 5. SUGGESTION/SOLUTION

5.1 Strategic Collaboration

Given the hotel's location in Selayang, cooperating with neighbouring

attractions or tourist locations to provide package packages is one of the most effective
methods to compete with other budget hotels nearby. When reserving a room at RHR
hotel, you may receive cheap tickets, complimentary transportation, or unique access
to specific activities. This hotel can attract budget tourists who want to explore the
surrounding region by adding value through these collaborations.

5.2 Promoting Favourable Comments

Customer satisfaction has a direct bearing on loyalty and may even inspire
visitors to become brand advocates. Positive experiences increase the likelihood that
visitors will speak well about your hotel, generating word-of-mouth recommendations
and lowering your marketing expenses. Moreover, dissatisfied visitors may cause
unfavourable evaluations, which might harm your business's reputation. The good
news is that it's possible to welcome criticism. By asking guests for feedback or
reviews in a proactive manner, you can enhance guest satisfaction and build trust in
your brand. Additionally, gathering feedback from your guests can help you spot and
address any issues before they become major ones, saving your hotel from negative
reviews in the first place. Additionally, by personally thanking the visitor for their input
and letting them know that you are taking steps to address the issue, RHR Hotel may
reduce the likelihood that the unfavourable review will have an impact on your
establishment.

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5.3 Provide a Captivating Bundle

It would seem that by offering appealing packages, such as combining services

or facilities together, budget hotels might overcome their persistent problems with poor
profit margins. Offer a combination of a room and meal package at a discounted cost,
for instance, or add free shuttle service, free parking, free airport transfers, and
delicious breakfast packages. Customers are able to see better value for their money
as a result.

5.4 Online Strategic Collaboration

One of the most effective strategies available today is collaborating with well-
known online travel agencies, like TripAdvisor, Expedia, or Airbnb, to list and promote
hotels. These platforms are widely accessible and can assist in connecting with
prospective clients who are looking for lodging in the neighbourhood. Additionally, the
hotel might attempt to integrate with Waze, so that when a tourist uses Waze and
approaches the Selayang Area, it would display a pop-up advertisement offering
accommodations. Another suggestion is to work with nearby businesses to promote
your hotel. You can do this by giving brochures or flyers that include information about
your hotel, pricing, and contact details to places like tourist information centres, travel
agencies, or attractions. Since Subway is the closest restaurant to the RHR Hotel, you
can also work with them on this. Through these collaborations, prospective consumers
may find hotels in this manner.

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5.5 Taking Advantage of Influencer Partnerships

Hotels may reach a prospective visitor base that they would not have otherwise
known about by collaborating with an influencer. By advertising exclusive deals or
packages on their platforms, influencers can also contribute to an increase in
reservations. Influencer marketing has the potential to be a very economical way for
your hotel to make revenue. After reaching out to an influencer, it's time to begin
forming a collaboration. A successful collaboration will produce material that appeals
to the influencer's audience and enhances the perception of your hotel. Before
proceeding, make sure you have some specific expectations and goals for the
relationship. When a netizen uses an influencer, they may draw attention to their
material and add it to their list of accommodations.

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6. CONCLUSION

To sum up, RHR Hotel has a lot of obstacles to overcome in the low-cost hotel
industry. It's challenging to get clients and stand out in a crowded industry due to fierce
competition from other comparable companies. Unrealistic expectations can lead to
negative reviews that further damage the company's reputation and deter potential
customers. Furthermore, the company's potential to make significant profits is
constrained by its low profit margin, which is a result of having to maintain high
operating expenses and competitive prices. Furthermore, not having a website makes
it more difficult for businesses to market their products and successfully compete with
competitors that are technologically astute.

In order to address these obstacles, the business has to take a calculated risk. This
entails putting into practise successful marketing techniques to set itself apart from the
competition and draw in clients, handling client expectations and managing them to
avoid bad reviews, optimising operational efficiency to cut expenses, and building a
website to create a strong online presence. Through these actions, the business may
become more competitive, draw in more clients, and increase profitability in the ever-
changing low-cost hotel industry.

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7.REFERENCES

(n.d.). Retrieved from https://www.rhrhotelselayang.com/

Kendra. (2022). PRENO. Retrieved from PRENO: https://prenohq.com/blog/how-to-
leverage-the-power-of-influencer-marketing-for-your-hotel/
Kritika, A. (2020). 7 Ways To Get Positive Hotel Reviews from Guests. QLOAPPS.

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