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MANTRA Audit Report #1

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Audit Report

MANTRA

LEGENDS

Team Members:

Melissa Pun [s5245314]

Edouard Le Rouzes [s5214232]

Ajay Naik [s5275193]

Vivian Cheng [s5247979]

3006MKT - Service Experience


Mantra Legends

Audit Report

EXECUTIVE SUMMARY

This analysis examined the present service performance of Mantra hotels in

Australia, focusing on Mantra Legends Surfers Paradise. The present

performance has been assessed using an analysis of the 4Cs, 7Ps, and

SWOT.

4C's (Context, Company, Customer and Competitor)

Mantra has recently seen negative growth due to the impact of Avoid-19

causing restrictions, high-interest rates and inflation. Following the

restrictions slowly starting to be lifted, the global incertitude about what the

future holds is still impacting the industry. Domestic tourism increased over

the last two years due to the travel ban on international visitors, despite

these encouraging numbers, the lodging sales value of hotels has been

dropping drastically due to major trends, booking websites and third-party

applications increasing competition levels. Positive aspects of Mantra

include its market share, strong financial position and technological

advances. Negative company aspects include the lack of social factors,

economic crisis and the country's political state. The analysis of Mantra’s

customer segmentation revealed that proportionate to population, families

are most likely to accommodate, and provide the highest profit margin per

customer. To remain competitive, Mantra differentiates itself by offering

premium experiential services to consumers for a lower price as compared

to their competitors.

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Mantra Legends

Audit Report

SWOT

Strengths of Mantra include its bargain rate price, free cancellation strong

brand presence, outstanding reviews and partnerships. However, few

restaurant genres, a lack of room features, a low ranking, a monotonous

website and few hotel amenities present as weaknesses. Opportunities for

the Mantra include the potential increase in customers, development of the

interiors, potential for future partnership opportunities, support from the

Australian government and technological advancements. Threats to Mantra

include the exploding popularity of Airbnb's popular and famous hotels at

the same locations, the Closure of hotel facilities due to COVID-19 and

enhanced customer service by competitors, alongside increasing demand for

virtual travel tours.

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Mantra Legends

Audit Report

7P's (Product, Price, Place, Promotion, People, Process and Physical

Evidence)

Mantra's core service offers premium accommodations for couples,

families, tourists, and even business travellers. Supplementary services

include lobby areas, swimming pools, shared lounges, buffets, dining areas,

conference rooms and gymnasium facilities. Analysis of Mantra’s pricing

indicated the brand utilises value-based pricing to balance premium service

offerings with customer value expectations, competitor-based pricing

strategies to remain competitive within the local market, revenue

management pricing in order to compete well in the market and

demand-based pricing to seek a competitive advantage. The mantra legends

hotel is situated in a spectacular location just 100 meters away from the

beach in Surfers' Paradise granting access to the Gold Coast's famous sun,

surf, and sand, whilst the supplementary service delivery strategy involves

both physical and digital distribution channels. Mantra undertakes a variety

of promotional strategies including utilising primarily social media

platforms to distribute promotional materials and organise campaigns, sales

promotion, press releases, partnerships and online reviews including word

of mouth. Mantra recruitment focuses on talent and personality, and Accors'

recruitment policy is based on respect, diversity, and equal opportunities

while offering supportive work culture emphasising employee career

progression opportunities, performance reviews, policies, skills and

attitudes and expectations of superior service performance. The process

analysis was conducted using reviews of Mantra Legends Surfers Paradise

complex with significant customer pain points and bottlenecks identified.

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Mantra Legends

Audit Report

The physical evidence suggests that Mantra Legend must maintain a high

standard of cleanliness since it is a 4-star hotel. However, customer reviews

differ, particularly in terms of circumambient conditions and performance

characteristics, with many recent reviews on Mantra Legend highlighting

the hotel's lack of cleanliness, hygiene, and badly maintained facilities, and

suggesting adaptations and improvements that are required for the service to

function more effectively and the service to align with the hotel brand

name.

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Mantra Legends

Audit Report

Executive Summary

Company background

Analysis of Context, Customer, Competitor, and Company (4Cs)

Context

Market Analysis

Pestel Analysis

Company analysis

Customer analysis

Consumer Mood Board

Psychographic Profile

Competitor analysis

SWOT Analysis

Analysis of the Current Marketing Mix (7P’s)

4.1 Product Strategy Analysis

4.2 Pricing Analysis

4.3 Place Analysis

4.4 Promotion Analysis

4.5 People Analysis

4.6 Process Analysis

4.6 Physical Evidence (Servicescape) Analysis

Conclusion

References and Appendices

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Mantra Legends

Audit Report

PART 1

BACKGROUND

Analysis of The Background of The Company


Mantra Legends

Audit Report

COMPANY BACKGROUND

Mantra group was first founded in 2005 with its corporate office address at

Surfers Paradise, Gold Coast (Bloomberg, 2022). Mantra's vision is to

strengthen its position as the favourite provider of hotels, apartments and

resort accommodations throughout Australia and New Zealand (Gee, 2012)

. Mantra’s parent company is AccorHotels, which is a French multinational

hospitality company that owns, manages and franchises hotels, resorts and

vacation properties (Bloomberg, 2022). Accor is the largest hospitality

company in Europe, and the sixth largest hospitality company worldwide

(Ting, 2021) with 5,300 locations in over 110 countries (Accor, 2022).

The company owns and operates brands in many segments of hospitality:

Luxury, premium, midscale, and economy. Mantra is a wholly-owned

subsidiary of Accor hotels as AccorHotels has completed its acquisition of

Mantra Group for $1.2 billion (Simmons, 2018). Accor's mission statement

expresses that they believe that quality time is about making everyday

moments matter (Comparably, 2021). Mantra has an extensive range of

more than 120 resorts, retreats, hotels and apartments throughout Australia,

New Zealand, Bali and Hawaii (Mantra, 2022), at the same time, Mantra

offers complete conferencing solutions across 25 venues in Australia and

New Zealand (Mantra, 2022). Overall, Mantra has its guest's best interests

at heart truly offering its best services and hoping its customers have a

memorable stay.

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Mantra Legends

Audit Report

REASON FOR SELECTING MANTRA

Mantra is a very well-established brand that has various locations across

different parts of the world with a large amount of competition

(Serra-Cantallops et al., 2017), development within the hotel industry and

the current shifts in the hotel and resort industry due to the changing trends

and customer preferences (Bowen & Whalen, 2017). Ultimately,this

presents an opportunity to analyze and revamp the brand to maintain it

service position in the future.

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Mantra Legends

Audit Report

PART 2

THE 4 Cs

Analysis of Context, Customer, Competitor, and Company


Mantra Legends

Audit Report

CONTEXT

Government responses to Covid-19 have extensively disrupted tourism, travel,

and hospitality industry in which Mantra is operating and led to negative

growth in the sector of around 9% from 2020 to 2021 (Euromonitor, 2022).

Despite restrictions slowly starting to be lifted, the global incertitude about

what the future holds is still impacting the industry and fails to provide any

clear date for a recovery.

MARKET ANALYSIS

152 Billion is the amount in Australian dollars in which tourism contributes to

the economy of the country while providing more than half a million jobs to the

Australian population (Link, 2020). Domestic tourism accounted for around

75% of expenditure in recent years and increased to 80 over the last two years

due to the travel ban on international visitors (Euromonitor, 2022). Despite these

encouraging numbers, the lodging sales value of hotels has been dropping

drastically. From 2019 to 2020 we saw a decline of 38% in revenues followed

by a second decline of 10% from 2021 to 2021 (Euromonitor, 2022).

Hotels tried to adapt as much as possible to the global pandemic by repurposing

their premises as quarantine locations for the government but the current focus

is on the future as restrictions have started to be lifted. Other major trends in the

industry are regarding the booking methods, customers are now using more than

ever intermediaries such as booking websites and other third parties applications

which are directly increasing the competition levels (Euromonitor, 2022).

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Mantra Legends

Audit Report

POLITICAL FACTORS

Travel Bans ● As we saw in recent years travel bans decided by the government and

lockdowns can have dramatic impacts on the operation of hotels.

Despite health crises being unique situations, contingency plans should

be prepared.

These restrictions affect hotels by directly impacting the number of

clients that book rooms since less, sometimes no tourist at all can come

in the country.

● The travel bans also impact the workforce of the hotels since a great part

of the Australian workforce is coming from immigration. We already

started to see negative reviews on traveling websites mentioning the lack

of employees.

Political

Stability

Political stability is always important for any business, the tourism and

leisure industry is one of the most impacted by this factor.

Even with the stability experienced in the past few years, the situation

can change at any time when considering the development of several

situations across the globe.

The potential impact of the war on Ukraine could influence China to

attack Thailand and is a scenario that is very much possible. Solutions

should be prepared in case it ever happened.

Workforce

Regulations

● Wage regulations are very important in Australia and the industry in

which Mantra operates requires a lot of employees in order to offer good

quality services on their premises,

● According to the latest numbers of the government of Australia (2022),

the minimum wage was increased by 5.2% in July 2022 which further

increase the cost of operations of hotels like Mantra which have

thousands of employees.

● In addition, Mantra needs to keep track of the work week regulations and

be proactive in the research of new employees due to a lack of workforce

in the country

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Mantra Legends

Audit Report

ECONOMIC FACTORS

Economic

Cycles & Dollar

Strength

The hotel industry is often the first industry to be hit by the overall

economic cycle meaning that hotel owners cannot watch the economy

dip and react accordingly )(Here’s What You Need to Know about the

Business Cycle, 2019).

They need to be prepared before anyone else and have solid financials to

rely on.(Choi, 1996).

In addition to that, the strength of the Australian dollar has a major

impact on tourism as it becomes more expensive for certain travelers to

come to Australia.

Customer

Confidence

Index

The ANZ-Roy Morgan Consumer Confidence Index is currently at its

lowest point since early 2020 (ANZ-Roy Morgan. 2022)

This is especially relevant to Mantra as lower confidence means that

consumers are less optimistic about the state of the economy

This usually impacts negatively the leisure sector in which Mantra is

operating in (Lai et al., 2010).

Interest Rates ● Growing expenses are a major problem for any business,

The interest rates have a major impact on the industry as it increases, the

hotels' values will drop. (Hospitality Report, 2016)

Australia’s interest rates have been rising and are now at the highest they

have been over the last six years, this also means that the profit will be

squeezed in order to service the higher cost of debt and this can cause

dramatic impacts on businesses in the sector that have a lot of debts, such

as Mantra with 125 million in debts according to the latest balance sheet

made public (Mantra Group, 2016)

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Mantra Legends

Audit Report

SOCIAL FACTORS

Customer ● Customers now more than ever are looking for cheaper options when

traveling

This leads to the mass adoption of platforms such as Airbnb which brings

lower prices, more options, and an easy and simple way of booking

through the app.

This is especially important to factor in during peak seasons since it has

negative impacts on the hotel industry.

Access to

Information

● Access to information has also become much more important over the

years

● Now more than ever it is important for Hotels like Mantra to operate at

an exceptional level in order to receive positive reviews on travel blogs

and booking websites.

● As the survey conducted by PhocusWright (2014) shows, more than 77%

of users usually or always look at Tripadvisor reviews before selecting a

hotel, making this point extremely important.

Safety

Measures

The recent pandemic revealed a new concern that a major player in the

industry needs to account for now which is employee and guest safety

concerns in relation to the health crisis.

Potential customers are now looking to be reassured when going out for

travel as much as on the premises as flexibility of booking and canceling

options due to the probability of having to modify their plans if anything

were to happen.

Hotels providing clear guidelines on how they are addressing this

concern are increasing their chances of getting more customers according

to various studies (Pillai et al., 2021).

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Mantra Legends

Audit Report

TECHNOLOGICAL FACTORS

Service

Facilitation

The development of technologies is important for hotels since it is

leading to the development of tools to facilitate the work of employees

and improve the satisfaction of clients.

Good examples would be how customers can now book rooms online,

receive text message confirmation and have access to information about

the premises easily on the hotel website.

This means that it is important to keep up to date with technology since

it increases the quality of service offered while reducing the need for

employees.

Competitiveness ● Growing power of various travel websites (Expedia, booking.com, etc)

is forcing hotels to remain competitive in their pricing

This is due to the fact that it is now very easy to compare the prices of

many hotels at the same place.

In addition to that, the development of technologies has helped various

services like Airbnb gain popularity and is now becoming a serious

problem for companies like Mantra.

Better Programs ● Technology also helped facilitate the creation of loyalty programs to

reward customers who remain loyal.

Customers can now clearly see what they will gain for doing business

with companies offering reward programs and increasing the chances of

getting more clients.

By becoming a part of the Accor conglomerate, Mantra will now have

access to the global loyalty program with over 100 million members

which is a significant upgrade from their current membership basis of

100,000 people.

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Mantra Legends

Audit Report

COMPANY ANALYSIS

Mantra Group is the second biggest hotel operator in Australia, the group

possesses more than 22,000 rooms in 135 properties across various

countries and has recently been bought by Accor. Mantra is offering a wide

range of properties going from coastal resorts to luxury havens always

located in key leisure destinations. In addition to their accommodations

offers, they also operate a property management service that is now under

the umbrella of Accor apartments & realty.

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Mantra Legends

Audit Report

CUSTOMER ANALYSIS

Mantra surfers paradise attracted guests from the upper middle-class market

segment while targeting families and adults with the expectation of leisure

respectively comprising the primary target markets as their primary location is

usually holiday destinations. Enticing predominantly domestic guests, Mantra’s

surfers Paradise hotel facilities cater to the family target market through their

location and incorporation of luxury utilities in all rooms, although Mantra targets

families as their primary customers they also offer facilities and accomodation for

couples and young adults. Furthermore, the five economic drivers of consumer

trends within the hotel services industry are shifts in economic power, population

change, shifts to environmental consciousness, innovative technology and

changing values regarding the social, political and cultural aspects of

organisations (Passport, 2022)

When it comes to innovative technology nowadays hoteliers are introducing

digitised guest experience as they manage the services they provide to their

customers and can now control many aspects of the guest cycle and experience

online. Needless to say, the trend toward digital and contactless services has

gained new momentum since 2020. The digital platform has significantly

increased the supply of accommodation options available to tourists in the

country (Ibis, 2022). The rapid integration of technologies in all spheres of life

has changed customer expectations (Nozdreva & Churakova, 2021), service

automation and robotic technologies have made their way into the lodging

segment of the hospitality industry as well, affecting different areas of hotel

operations (Yang et al., 2019). Research has shown that Consumers are

increasingly opting for metaverse hospitality and tourism experiences, products,

and services (Gursoy et al., 2022).

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Mantra Legends

Audit Report

The leisure tourism and staycation trend driving a rebound in Australia’s

accommodation sector is supporting property values and revenues across the

industry (Passport, 2021). The main market trend for 2022 for the hotel industry

is to create personalisation and customization for guests. These recent consumer

trends have had a huge impact on the future of the hotel industry. Studies have

shown that 25 to 30% of Australians anticipate they will purchase more on

promotions or look for cheaper alternatives (Child et al., 2020). This survey also

reported consumers are continuing the move towards local by supporting their

local neighbourhood businesses and increasingly choosing Australian brands and

services. The Industry players are facing rising competitive pressure from Airbnb,

as tourists are increasingly choosing properties on the digital platform (Ibis,

2022). The Properties listed on Airbnb are often cheaper than hotel

accommodations and offer greater privacy and independence (Ibis, 2022). As a

result, the demand for accommodation listed on Airbnb has increased over the

past five years, taking demand away from the industry (Ibis, 2022). Ultimately,

customers within this industry prioritise reviews, modern technology, and the

costumer personal needs and wants (Paryani et al., 2010).

Consumer Mood Board

Figure 1. Consumer Mood Board

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Mantra Legends

Audit Report

PSYCHOGRAPHIC PROFILE

DEMOGRAPHIC

VARIABLES

GEOGRAPHIC

VARIABLES

Age Range: 25-50 adults and 5-15 children

Occupation: full-time

Income Bracket: 90,001- 180,000

Education: postgraduates

Social Class: middle class to upper middle-class

Family Size Approx: a family of 4

Family Life Cycle: families

Region: Queensland

State: Queensland

Climate: warmer, subtropical Australian climate

Terrain: Urban/suburbs

Market Density: High

BEHAVIOURAL

VARIABLES

Price Sensitivity: Mediocre

Factors considered: comfort, experience and reviews

Influence: They were either influenced due to marketing,

word of mouth or reviews.

Benefit Expectations: experience, relaxation

Occasion: To take time off from regular life

Brand Loyalty: Mediocre

PSYCHOGRAPHIC

VARIABLES

Personality Attributes: Hard-working individuals want to

spend time with their families and relax

Motives: Main motives include creating experience and

memories

Lifestyles: Active busy social, established in their lives, career

and family

Values:

Attitudes: prefers and choose stylish product

Interests: Nature oriented, loves spending quality time with

family & friends, enjoys relaxing and travelling 19


Mantra Legends

Audit Report

In order to provide valuable competitor analysis, we decided to choose three hotels from

competitors that would be offering a similar service as Mantra’s hotel “Mantra Legends Hotel”

in Surfers Paradise. (Link) We will be analyzing it by booking a room in the middle of the

month of December for two adults and two children.

Price

On TripAdvisor: $5,967 for the week

On TripAdvisor: $1,176 for the

week

On their website: 6,684$ for the

week

On their website: $1,176$ for

public for the week

Or $1,117 for members for the

week

Promotional ● They are currently offering

a discount of 20% for

people booking for 3 nights.

● Peppers are not offering

many promotions but they

are a part of the accor

membership program which

grants their customers

points that they can redeem

for special prices with the

hotel or partners like Qantas

for example.

They are offering multiple

promotions for various

occasions and also offer

great discounts for their

program members (as

shown in the booking

section)

Free accommodation and

breakfast for 2 children

under 16 sharing a room

with their parents or

grandparents.

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Mantra Legends

Audit Report

Distribution

Peppers are offering

multiple locations usually

all situated in leisure

destinations and always

with beautiful views.

Novotel hotels are very

similar to peppers in terms

of location also mainly

located near travel

destinations and have

great views.

People ● All reviews about the staff

are mentioning of how

friendly and helpful they

were.

Process ● Concierge taking bags to

the room

● If customers arrive earlier

than the check-in, they are

offered a parking pass to

wait until the room is

ready.

Some reviews concerning

the staff mentioned that

there was a clear lack of

professionalism.

Concierge taking bags to

the room

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Mantra Legends

Audit Report

Strengths ● Modern looking rooms

(aesthetic)

● Barista coffee offered

(Instead of simple filtered

coffee)

● Double blinds offering

extra darkness

● Free parking

● Location

● Room size (very spacious)

● View of the ocean

● Offering welcome drink

Their cheaper prices and

various offers make this

choice particularly good

for a young couple or very

small families

Linked to supermall

Good location, in the

middle of gold coast

View of the ocean

Weaknesses ● Definitely more expensive

● Few room service options

Don’t guarantee to park

since they are not owning

it and cost 18$ per day

Extra cost for internet

Room service closes at

8pm

Charge for slippers

No basic needs in the

room (bottle of water,

clock, etc).

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Mantra Legends

Audit Report

MAJOR INDIRECT COMPETITOR:

AIRBNB

Over the last couple of years, the booking application has become one of the

most useful tools for travelers looking for more options than just hotels. Airbnb

has created a huge shadow on the hotel industry and every business in the sector

has been impacted.

By offering a wider range of options for all wallets, more location options, and a

booking system that is extremely easy and intuitive to use, Airbnb has been

eating part of the market at an alarming pace. This is becoming dangerous in

periods of peak demand as Mantra loses management opportunities when

property owners decide to list properties using the application. In order to

combat this new behemoth, the hotels need to offer options that Airbnb is not

able to have, things such as loyalty, distribution, and higher quality services as

explained by Tony Ryan an expert in the field (Schlesinger, 2017).

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Mantra Legends

Audit Report

PART 3

SWOT ANALYSIS


STRENGTH

Cheapness

Mantra Hotel is the cheapest. Specifically compared to two competitors

Peppers and Novotel. Comparing the price for one night from September 12

to September 13, Mantra is $170, Novotel is $216, and Peppers is $599.

Comparing the three companies shows that Mantra is by far the cheapest. If

customers consider price to be the most important consideration when

deciding where to stay, Mantra's low price is the most decisive factor.

Moreover, the lower pricing also has the advantage of attracting a wider target

audience, including low-income couples, families, and business travelers.

Free cancellation

Mantra is the only one of the three companies that does not charge

cancellation fees (only for reservations made through their website).

Considering these points, Mantra is the most flexible in case of sudden

schedule changes.

The number of reviews (on Trip Advisor)

Looking at the number of reviews on TripAdvisor, Peppers has 3621 reviews,

Novotel has 1274, and Mantra has the most reviews with 3784. Trip Advisor

is a website that many tourists refer to, and Mantra's official website also has

the Tripadvisor logo. The fact that it has the most reviews on a website that is

seen by so many people is a very useful advantage because it makes it easy

for tourists and potential guests to refer to it.

Partnership with Hertz and Woolworths

Mantra has partnerships with Hertz and Woolworths. Mantra guests can rent

cars at Hertz at special rates. Not only that, but they can also sign up for free

Hertz Gold Plus Rewards. (Hertz, n.d.). In addition, the partnership with

Woolworths makes it simple and convenient for guests to shop online at

Woolworths at least 7 days prior to their stay, write down the reservation

number from their hotel reservation on the checkout page, and the hotel staff

will take care of everything else. (Mantra, n.d.). Many hotels have

partnerships with car rental companies, but it is hard to find a service that

makes it easy to shop online for the groceries that visitors ordered and pay the

bill, without having to carry heavy items.

Largest hotel chain

Mantra's parent company is AccorHotels. Mantra was originally managed by

Mantra Group, but AccorHotels recovered the Mantra roup for $1.2 billion in

2018. (Wilkinson, 2018). AccorHotels is a very large company and is the

largest hotel chain in Australia. (Lexi, 2022). Tourists know that the hotel is

managed by a major company, which leads to brand awareness, which again 25

leads to customer peace of mind.


WEAKNESSES

Fewer restaurant genres

Mantra Legends Hotel Surfers Paradise has only one restaurant. And

that restaurant can be used for breakfast, bar, and bar dining. Mantra

Legends Hotel Surfers Paradise has only one restaurant. And that

restaurant can be used for breakfast, bar, and bar dining. Compared to

the competitor Novotel Surfers Paradise, the dining options are fewer

and less attractive. Novotel Surfers Paradise has a regular breakfast

restaurant, as well as a picnic, cafe, bar, and even poolside dining. While

other nearby hotels have many dining options, Mantra Legends Hotel

Surfers Paradise has only one option, which is a definite weakness

because it is not attractive enough to attract tourists.

Lack of room features

The website, which allows you to research, compare, and book hotels in

your destination at once at the lowest price, describes the features of

each hotel. The Peppers Soul Surfers Paradise and Novotel Surfers

Paradise hotels included housekeeping service as a feature or benefit of

their rooms, but only Mantra Legends Hotel Surfers Paradise did not

have housekeeping service. This could be a big downside for tourists

who are comparing hotels, since the service of keeping the rooms clean

is a necessity for a high leveled hotel.

Low ranking on Tripadvisor

Tripadvisor shows a variety of hotels when looking for Gold Coast and

Surfers Paradise hotels. Competitors Peppers Soul Surfers Paradise and

Novotel Surfers Paradise are rated #5 and #15 out of 38, respectively,

and the lowest is Mantra Legends Hotel Surfers Paradise and ranking at

#18 out of 38 accommodations. Since Tripadvisor is a huge website that

most of visitor see this site to decide which accommodation they are

going or want to stay. So, this low ranking is a main weakness because

of causes tourists to question the quality of the hotel.

Little design potential of the website

The official Mantra hotel website is a very boring website, with only

basic hotel information, an introduction, a booking page, and a few

photos that appear in a slideshow. It is not colorful, and if a potential

customer were to visit the website to learn more about the hotel, he or

she would find it unappealing.

26


Low Property Amenities

Mantra Hotel has few amenities in the hotel. In fact, Peppers, a hotel

owned by the same parent company, has a wide range of amenities

spanning 50, compared to mantra hotel's 30 amenities. And since

these can be found on the travel agent's website, prospective

guests will assume that the lack of amenities is the reason

for the hotel's low price when they are comparing hotels.

OPPORTUNITIES

Increase in tourist

In recent years, the restrictions imposed by COVID-19 have opened

up, and Australia now allows entry to Australia without quarantine,

without PCR testing, and without requiring proof of vaccination.

(Australia Government, n.d.). With so much hassle removed from

traveling, tourism is on the rise. In fact, in the year to June 2020,

more than 3.7 million tourists visited the Gold Coast, including both

international and domestic visitors. (Camper Champ, 2021). From

this perspective, deregulation and increased tourism represent a great

opportunity for hotel.

Developing amenities, Interior

Comparing the in-room decor and the facilities in the hotel to Peppers

and Novotel, the interior in the rooms lacks luxury and gives the

overall impression that the rooms lack quality, it is an opportunity to

increase the number of guests to work on improving the accessories

such as the design sofa, bed frame, and the mirror near the bed. Also,

renovating the interior of the hotel would provide an opportunity to

increase the hotel's appeal points. In particular, changing the interior

of the swimming pool is a great opportunity to target families.

Partnership with Nightclubs, Bars, Game Arcade etc.,

Surfers Paradise has many nightclubs and bars, a golf bar where are

able to play late into the night, karaoke, and a game arcade where

children can play together. Taking advantage of these, it would be a

great opportunity to form partnerships with such places. For example,

creating events such as discounted rates for hotel guests or free

drinks, etc., would provide an opportunity to harvest not only target

families, but also young teenagers as new targets.

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Support by Australia Government

The fact is that the COVID-19 pandemic has resulted in a decline in

international tourism, and Tourism Australia and AFAT (Australia of Foreign

Affairs and Trade) are focusing on tourism recovery. (Australia Govenment,

n.d.). The fact is that the COVID-19 pandemic has resulted in a decline in

international tourism, and Tourism Australia and AFAT (Australia of Foreign

Affairs and Trade) are focusing on tourism recovery. (Australia Govenment,

n.d.). In fact, there are currently a variety of benefits and other supports in

place to support tourism. This is an opportunity to take advantage of these

supports and continue or expand business.

Evolution of Technology

Nowadays, various hotels are taking advantage of technological

advancements to evolve their hotels. Technology in the hotel industry are

includes mobile check-in, digital keys, etc. Currently, Mantra has not started a

program to keep up with the evolution of technology. Therefore, allowing

guests to use their phones and computers to complete procedures would

increase convenience and provide an opportunity to increase guest demand.

THREATS

Airbnb

In recent years, the number of people using Airbnb instead of hotels has been

increasing, especially among young people. Airbnb is a web service that

connects people who want to rent a vacant room (hosts) with travelers who

want to rent a room (guests). The first characteristic of Airbnb is that it is

more spacious than a typical hotel in the same price range (i.e., cheaper and

larger). Therefore, for families that need more space (especially families with

small children), for large groups of people such as multiple families (trips

with multiple bedrooms), and for trips that require parking. This is the biggest

threat because it has more advantages than hotels.

Popular and Famous Hotel nearby

There are other more famous and larger hotels near Mantra, such as JW

Marriott, Meriton, and Hilton. These hotels are more expensive than Mantra.

However, these hotels are more expensive than Mantra, but they have a

worldwide presence. Thus, they are well known. Brand awareness is greater

than Mantra and since the brand is established, there is a huge threat if

consumers or customers prefer services they are already aware of.

28


Closure of hotel facilities due to COVID-19

The implementation of various service restrictions to prevent the

spread of COVID-19 infection and to convert to a new way of life is a

threat to hotels. The implementation of various service restrictions in

order to prevent the spread of COVID-19 and to facilitate the transition

to a new way of life is a threat to hotels. Although it is true that the

border is opened more and more and the number of tourists is expected

to increase. However still impossible to predict what kind of policies

the Australian government will impose on hotels in the future due to

the still unstable increase of the virus, etc. Therefore, the restriction of

hotel services due to new viruses, not only COVID-19, could be a

threat to hotels.

Enhanced customer service by other hotels

Due to the pandemic, various hotels are now more accommodating to

guests than ever before to meet guest demand. For example, they are

operating with weekend check-out times in the evening and allowing

early check-in for guests who arrive early. Such changes by other

hotels to meet the demand of more tolerant and quicker guests are a

threat to the hotels.

Increasing Demand of Virtual Travel Tour

The demand for virtual travel tours is increasing every year. Statistics

confirm that more than 5 million people worldwide visit virtual tours

every day. (Admin, 2021). If the demand for virtual travel tours

continues to increase, partly due to the pandemic caused by

COVID-19, it will threaten to cause serious damage to hotels, as the

demand for hotels will drop.

29


Mantra Legends

Audit Report

PART 4

MARKETING MIX


Mantra Legends

Audit Report

PRODUCT STRATEGY ANALYSIS

CORE

SERVICE

Surfers Paradise Mantra Legends offers premium accommodations for

couples, families, tourists, and even business travellers. It is especially

ideal for families to gather and enjoy an unforgettable vacation in Gold

Coast with an ocean view, such as their Hotel Deluxe Twin Ocean or the

2 bedroom deluxe room.

Their core service is their accommodation, which is in an ideal and

convenient location. It has a wide range of accommodation options,

from hotel rooms to deluxe suites, all with stylish decor and views of the

Surfers Paradise skyline, GC Hinterland, or even the beautiful ocean

view. The average price for a one-night stay in a family room ranges

from $200 to more than $600, depending on availability, booking dates,

holiday rates, and other factors.

31


SUPPLEMENTARY

PRODUCTS OR

SERVICES

Information:

Mantra's website provides direct access to information on

accommodation overview, price rates, booking availability,

type of room, facilities, and terms and conditions (

www.mantra.com.au ). It is simple to navigate and search

for the mantra location of interest on their website.

Pictures of the room, guest facilities, dining area, and

conference rooms are also available for viewing on their

website (evident in image below). Location of Mantra

Legends is also available on both google maps and their

website, making it easier for customers.

32


(images from www.mantra.com.au)

Problem:

Mantra Legends has many participating websites, this may

confuse customers.

Facilities:

The hotel also has a lobby bar, the Fables restaurant,

conference rooms, and a lagoon-style pool.

LOBBY BAR

33


POOL AREA

BUFFET

CONFERENCE ROOM

SHARED LOUNGE

34


Order-Taking:

Booking is simple on the website because customers can search

available dates via a calendar and see which dates are available as

well as pricing (evident in image below). Customers can book

directly through Mantras or participating websites, call Mantra

Group Reservation, or book through websites such as

bookings.com.au or expedia.com.au.

Billing & Payment:

Payments can be made using Visa, Mastercard, Diners, American

Express, PayPal, Australian Dollar personal or bank cheques/drafts,

or Telegraphic Transfer. Customers are given the choice to pay now

or later. Once payment is received, confirmation of payment and

booking will be emailed or mailed to the address provided at the

time of booking.

35


(images from www.mantra.com.au)

Problem:

Mantra Legends has many participating websites, this may

confuse customers.

Facilities:

The hotel also has a lobby bar, the Fables restaurant,

conference rooms, and a lagoon-style pool.

36


Hospitality:

Mantra Legend provides free 2 hours complimentary wifi and an

internet lounge for guests. Tripadvisor reviews highlight Mantra

Legend's exceptional friendly reception service.

The hotel also has a large, spacious seating area in the lobby for

guests to use.

(image from Agoda)

Customers have access to a variety of amenities and services. Some

of the services that mantra legend offers to make life simpler and

more convenient for guests include ticket and tour services, dry

cleaning and laundry services, grocery services, and car rental

services. Fitness centre, sauna, spa, steam room, and swimming pool

are a few of the amenities.

37


Problem: Guests only get 2 hours free wifi, overnight guests are not

satisfied with the paid wifi.

Safekeeping:

Mantra Legends provides secure undercover parking, subject to

availability. Luggage storage and safety deposit box service is also

provided for hotel guests. Furthermore, childminding services are

available for parents who are willing to pay for them. This allows

adults to spend time away from their children in peace.

Problem: Limited parking available.

Consultation:

Mantra Legend offers first rate guest service reception which is

available 24 hours. A concierge is also available to guide and assist

guests service.

Exceptions:

On certain room rates, Mantra Legends provides free cancellation.

The hotel also accepts special requests, but it is dependent on the

request.

38


BRANDING

The Mantra Group is owned by AccorHotels, which is well-known

for its contributions to the Australian tourism industry (Wilkinson,

2018). Mantra Legends is part of Accor's midscale brand, which

includes hotels such as Novotel and Mercure. On their website,

Mantra primarily uses the light blue colour, which is often

associated with the post-stress relaxation process. As is well known

for their brand identity, which positions themselves as the ideal

accommodation for relaxation and leisure.

Mantra Website & logo:

Mantra’s Parent Company: Accor’s Logo:

39


SERVICE

VALUE TO

CUSTOMER

Mantra Legend seeks to provide comfortable and affordable

lodging where visitors may unwind and relax, whether they are

travelling for work or pleasure (Mantra Hotels, 2022).

Review sites: Value for Money

- Booking.com : 7.6/10

- TripAdvisor : 4.0/5

Problem: In 2022, many recent customer reviews state that the

hotel's price is not worth the value.

PRICING ANALYSIS

The hospitality industry is naturally highly sensitive to subtle changes in the

external environment and is dependent on many variables (Min et al.,

2019), so it is critical for the industry to develop effective pricing strategies

that allow them to maximize revenue (Blengini & Heo, 2020). Room rates

are determined by a variety of factors such as the type of room, weekend

rates, availability, and demand. Mantra Legend, as a midscale brand, has

budget-friendly and affordable pricing. Depending on the type of room, the

average nightly rate can range from around $130AUD to over $600AUD.

Domestic tourism in Australia has increased dramatically since the

pandemic and is expected to continue (Hardy, 2021), so hotels must have an

effective pricing strategy in place to gain a competitive advantage

(Subrahmanyam & Sarah., 2022).

40


DEMAND-BASED

PRICING

According to research, demand-based pricing is an efficient

and effective pricing strategy for hotels seeking a

competitive advantage (Nair, 2019). Hotel room demand is

likely to rise during special occasions such as Christmas,

New Year's Eve, weekends, and school holidays. Mantra

Legend uses demand-based pricing, which means that a

normal weekday is less expensive than a weekend, and

prices are higher during events such as Christmas Eve and

school holiday months. Mantra Legend is able to earn

revenue with this pricing strategy as a mid-scale hotel with

affordable and low prices.Room rates at Mantra Legends,

for example, are higher in December than in September. The

hotel uses demand-based pricing in conjunction with a

forecast strategy.

(Booking.com rates: Novotel & Mantra legends)

Both the Novotel and the Mantra Legends are in Accor's

mid-scale category and are located in Surfers Paradise, a

short walk away. Novotel, as seen in the image above, is

slightly more expensive for a family or four-person room.

Peppers Soul, on the other hand, is priced as a luxury

accommodation at a high cost. In comparison to its

competitors, Mantra Legend uses a low-cost pricing strategy

that provides value to its customers by being affordable,

located in the same convenient location as its competitors,

and providing enough facilities for an enjoyable gateaway.

41


DEMAND-BASED

PRICING

Airbnb is another indirect competitor of Mantra Legend.

Airbnb has caused significant disruption in the hospitality

industry due to their wide price range availability and lower

weekend rate increases when compared to hotels (Aznar et

al., 2018).

Problem: Low cost strategy could mean a risk of lower

profit margin. Furthermore, it could have a negative

perception among consumers.

REVENUE

MANAGEMENT

PRICING

According to studies, efficient revenue management

performance is critical in the hotel industry in order to

compete well in the market (Nair, 2019). Accor employs

revenue management to assist hotels in analyzing market

trends, anticipating demand, and converting opportunities

into actual bookings.

42


VALUE-BASED

PRICING

Matra Legend uses value-based pricing. The cost of a hotel

room is affected by the type of room, the number of guest

beds, the balcony view of the room, and the room facilities.

Guests are given flexibility by being able to choose whether

they want to pay for breakfast or pay less for a no-breakfast

room option if they want to eat outside.

HOTEL DELUXE TWIN (4-people)

Price

- Weekday Average Price: $200+

- Fridays-Weekend Average Price: $350+

Perceived Value to Customer:

A hotel deluxe studio that sleeps up to two people costs

$250+ on weekdays and $400+ on weekends. The stylishly

designed Deluxe Twin room that can accommodate up to 4

people at a comparable range pricing, the hotel deluxe twin

appears to be more valuable and beneficial primarily for

families or groups of friends. 43


HOTEL DELUXE TWIN OCEAN (4-people)

Price

- Weekday Average Price: $250++

- Fridays-Weekend Average Price: Over $400

Perceived value: Customers and families can enjoy a

wonderful time with a lovely view on a private balcony

overlooking the famous Gold Coast beach in Surfers

Paradise for only a couple of dollars more than the Hotel

Deluxe Twin price rate. The presence of a kitchen and

cooking facilities in the hotel facilitates domestic travel for

families with children.

44


2 BEDROOM DELUXE (4-6people)

Price

- Weekday Average Price: $400

- Fridays-Weekend Average Price: $800++

Perceived value: The room rates are based on four adults,

but it can accommodate up to six people. With 2 TVs,

in-house movies, and 2 private balcony overlooking the

impressive hinterland or city views, 6 friends or a large

family can get together and enjoy a lovely different

experience away from work and home.

Problem: Many recent negative comments on the price of

the service not being worth it for its value.

45


Mantra Legends

Audit Report

PLACE ANALYSIS

Distribution

Overview:

Mantra Legend's primary information and promotional flow is primarily

through technology and the internet, which includes direct website bookings,

booking sites (such as booking.com and agoda.com), direct phone bookings,

travel agents, and metasearch sites. Guests may make payment at the time of

booking or at a later date, but are expected to pay 7 days before their arrival

date. The negotiation takes place on the direct Mantra website, the indirect

booking sites, over the phone or in person with a receptionist, or with travel

agencies. The main core service, along with the other supplementary service,

can only be provided physically in the hotel.

Mantra has a large collection of hotels, resorts, and apartments all over

Australia that are ideal for business or leisure travel. Surfers Paradise,

Broadbeach, and Coolangatta are among the Gold Coast accommodation

options available at the Mantra. Mantra Legend Hotel is just 100 metres from

the beach in Surfers Paradise, a well-known holiday destination. It grants

access to the Gold Coast's famous sun, surf, and sand. The hotel is

conveniently located near the main City entertainment district, as well as

shopping and famous nightlife. Customers may check in at any time after the

standard check-in time or request an early check-in.

Services

Breakfast: 7 days 7am - 10am

Bar: 7 days 12pm - 8pm

Bar dining: 7 days 12pm - 8pm

46


Mantra Legends

Audit Report

Mantra offers different types of

accommodation hotels all over Australia.

Mantra Legend's competitors, Novotel and

Peppers Soul, are only a short walk apart,

making it even more competitive. Key

information for guests' arrival is listed on

their website, as shown in the image below.

The standard check-in time is 2pm, and the

standard check-out time is 10am, though

these times may vary depending on the

property. Reception and customer service,

on the other hand, are available around the

clock. Room booking can be done anytime.

(map image from google maps)

47


Mantra Legends

Audit Report

PROMOTION ANALYSIS

Although Accor Hotel Promotion is well taken care of, with the many

different brands of Accor hotels, it is important for Mantra Legend to

self-promote their hotel in order to attract customers from other Accor hotels

in the same Surfers Paradise location area.

Table 8. Promotional Analysis

Advertising

(Social

Media,

Campaigns)

Accor and the Mantra hotel employ a diverse advertising and

promotional strategy, including campaigns, television, social media,

websites, and email marketing. To promote their ALL Loyalty Program,

Accor recently launched a million-dollar brand campaign (The Hotel

Conversation, 2022). According to studies, the majority of leisure

travelers use the internet as a planning tool (Leung et al., 2013). Accor,

ALL, and Mantra hotels use Instagram effectively, with regular updates,

visuals, and user-generated content (UGC). Mantras’ parent company is

constantly launching campaigns that help Accor brands to achieve brand

awareness and reputation.

Mantra legend and parent company’s Instagram Page:

48


49


Problem: Although Accor ALL's social media is constantly updated,

Mantra's Legends' personal Facebook and Twitter pages are

neglected, with posts dating back 3-4 years. Mantra Legend does not

make full use of its social media platforms.

Sales

Promotion

(Loyalty

Program)

According to research, loyalty programs are one of the most widely

used strategies in the hotel industry, as well as the most effective in

strengthening company-customer relationships and encouraging

repeat business (Koo et al., 2020; Liu & Jo, 2020). Through their

parent company, Accor, Mantra Legend actively engages in Sales

Promotion. Their global lifestyle program, "ALL: All of Accor, All

for you," allows customers to be rewarded across a wide range of

Accor's portfolio brands, with over 3900 properties across 34 brands

(Mantra, 2022). Members of the ALL Loyalty Program will earn

reward points almost everywhere they go and across a wide range of

Accor brands and partnerships (Hertz, Qantas, Qatar etc), allowing

ALL to unlock lifestyle experiences and enjoy the finer things in life

through ground-breaking experiences, encounters, and events that

money cannot buy. This can include free nights, upgraded rooms,

special deals, and VIP experiences. The hotel also utilises coupons

and special offers on their website to attract and encourage more

customers to choose Mantra Legend.

50


(image from mantra.com.au)

Problem: ACCOR introducing aggressive sales promotions over all

their properties may risk compromising brand value in the long term.

51


Public Relations

( Press, Media

Releases,

Publicity,

Partnerships )

Mantra Legend's public relations as an Accor brand are maintained

through communication with a variety of interested parties,

including customers, the general public, and employees. Public

relations methods used include issuing press releases, news media,

and company results on a regular basis. The Accor Group and

Mantra websites provide an effective platform for Mantra Legend to

engage with the general public.

Paid media on Australia's most popular breakfast show, as well as

partner advertising such as LED signage and video advertising on

Accor stadium screens, were used in Accor's recent brand campaign

(The Hotel Conversation, 2022).

Partnerships- ACCOR

● Paris Saint-Germain; Mantra legend’s loyalty program

under ALL-Accor Live Limitless is visible on the sleeve of

PSG’s training jersey, to engage with and offer unique

experiences to ALL – Accor Live Limitless members all

over the World.

● Olympic and Paralympic Games Paris 2024;

● Roland Garros and the Rolex Paris Masters; Accor is

present at some of the biggest tennis tournaments.

● The Montreux Jazz Festival

● Accor Stadium in SYDNEY

Through all these partnerships, ACCOR is able to get publicity.

Mantra Hotels’ Partners

Hertz: Mantra Hotel guests can take advantage of Hertz's

great deals and earn discounts. All guests can easily rent a

car and have their car rental needs met.

Woolworths: Mantra hotel guests can easily order groceries

online up to 7 days in advance of their stay, and they will

be delivered on the day of their arrival.

52


WORD OF

MOUTH (Online

reviews)

Word of Mouth is a free form of advertising for service businesses.

As internet access has improved, so has the rise of eWOM, which

influences consumer decisions when selecting a hotel (Sparks &

Browning, 2011). Positive hotel reviews boost company ratings,

whereas negative reviews decrease consumer interest (De

Pelsmacker et al., 2018). According to research, online reviews have

a significant impact on travel and hotel consumers (Browning et al.,

2013). Mantra Legend have managed to earn a good amount of

reviews on the famous review sites; Google, TripAdvisor,

Booking.com. The location of the hotel was the best voted by the

guests. The current reviews are as follows:

Google:

No. of reviews: 1911

Rating: 4.0/5

Best voted: Location

TripAdvisor:

No. of reviews: 3786

Rating: 4.0/5

Best voted: Location

Booking.com:

No. of reviews: 4269

Rating: 7.5/10

Best voted: Location

However, many recent customer reviews highlight similar issues,

such as the construction noise level, the price value not being worth

the limited service, the reception employee not being helpful, some

hygiene issues, and finally the tired and worn out appearance of the

hotel.

53


Mantra Legends

Audit Report

PEOPLE ANALYSIS

The Mantra website's employment section connects to Accors' career page

(Accor Careers, 2022). Mantra Legend is now advertising on its website for

a hotel guest service agent, a food and beverage attendant, and a public area

attendant. As a result, these attendees' requirements will be highlighted and

examined in this analysis.

Table 9. Staff Analysis

RECRUITMENT

& TRAINING

Recruitment:

Recruitment focuses on talent and personality, and Accors'

recruitment policy is based on respect, diversity, and equal

opportunities. Accor employees have a variety of job opportunities

in various positions, geographic areas, hospitality areas, and

brands. Mantra Legend hires through a variety of channels,

including Accors' career and recruitment websites. On the careers

website, interested parties can sign up for email notifications when

jobs matching their criteria are posted. Furthermore, with job

search websites like seek and indeed, it has become easier for both

companies and employees to find what they need. Employees can

apply on these sites and then wait for a phone call or email inviting

them to an interview. If accepted, they are likely to begin their trial

2 hour shift, before their training shifts.

Training:

In terms of training, the company provides in-depth on the job

paid training with career progression opportunities.

Internship & Apprenticeships:

INSPIRE management training program allows new students and

graduates to build their leadership foundation through meaningful

experiences and start their ACCOR journey (Accor Careers, 2022).

54


PERFORMANCE

EXPECTATIONS

Employees in Mantra Legends must meet specific requirements for

various roles. For example, hotel guest service representatives are

expected to provide excellent customer service and to provide

guests with relevant information, whereas public area attendants are

expected to work independently and with a strong attention to detail

(Accor Careers, 2022). With a can-do attitude, the company is

willing to provide extensive training to eager employees. Having

previous experience in similar roles is advantageous but not

essential. Employees at Mantra Legend and Accor Hotels are

expected to go above and beyond to provide the best customer

service and experience possible.

Receptionists and front desk managers, for example, are expected to

have a great personality, positive energy, and communication skills,

while assistant managers are expected to be able to handle guest

complaints and provide high-level customer service (Accor Careers,

2022).

SKILLS &

ATTITUDES

Mantra Legend offers a variety of job opportunities in areas such as

rooms, culinary, food and beverage, engineering and maintenance,

administration and support, executive and hotel management, sales

and marketing, and so on (Accor Careers, 2022). Staff are expected

to have good time management skills, a positive attitude, and the

ability to work a seven-day schedule at a variety of times.

REVIEWS

STAFF PERFORMANCE REVIEW

A large number of customer reviews on TripAdvisor, Booking.com,

Agoda, and Google highlight the friendly and helpful staff.

Throughout, excellent customer service is emphasised. However,

there are a few reviews that mention the staff not helping, the

receptionist not picking up, and unwelcoming employees.

55


POLICIES

HUMAN RESOURCE POLICY

● We involve all our employees in improving their working

life

● We encourage dialogue with employee representatives

● We devise solutions to help achieve a work-life balance

● We offer working conditions and benefits that have the

overwhelming approval of our employees

● We fervently defend diversity and equal opportunities

● We help our talents adapt to the digital world and encourage

them to innovate

● (Accor Group, 2022)

INCLUSION

Diversity and inclusion in the workplace promotes growth by

broadening expertise and perspectives (Krithi & Pai, 2021). Accor

employees are naturally diverse; with over 230,000 team members

worldwide, the group is diverse. Gender diversity and equality,

integration of people with disabilities, richness of social, ethnic,

racial, and cultural diversity, and LGBTQ+ inclusion are the four

priorities of the diversity ambitions.

VALUES

Guest Passion, Sustainable Performance, Respect, Spirit of

Conquest, Innovation, Trust.

56


Mantra Legends

Audit Report

PROCESS ANALYSIS

ONLINE

BOOKING

Process Outline:

Online reservations are made a booking over the Internet, rather

than at a hotel or over the phone. Customer can visit the hotel's

official website or an online travel agency and find a booking

page. Enter the desired dates, the number of people staying, and

the type of room visitor want, and the rooms that meet their

requirements will automatically be displayed. The reservation is

completed when the desired room is selected and the credit card

information is entered. Reservations made via the Internet have the

advantage of being accepted 24 hours a day, as there is no need for

human assistance. Mantra has a booking page on its official

website, and reservations can be made through an online travel

agent.

Identified Bottlenecks:

When making a reservation on an Internet site, consumers should

carefully check the terms and conditions of the contract, including

reservation details and cancellation fees, or they may be charged

unexpectedly high cancellation fees. Some consumers may receive

a confirmation e-mail from a travel website, but when they arrive

at the destination, they may find that their reservation has not been

made, or they may make another reservation only to find that it

was made twice. In some cases, the error message was displayed

during the reservation, so the customer made another reservation.

In addition, there are cases where neither the hotel nor the

consumer has proof that the explanation given at the customer

service window was incorrect, etc., and this can cause problems

that are difficult to resolve, leading to a buildup of distrust among

guests.

57


ONLINE

BOOKING

Customer Pain Points:

Guests who have used online booking in the past have said that the

information they received when they made their online reservation

was different from the hotel's response once they actually arrived

at the hotel. For example, The parking lot was listed as "free

parking" when customer made my reservation online, but they had

to pay to park elsewhere.

Furthermore, when booking online, there was no indication of the

number of floors a visitor would be staying on, which was

confusing to learn when he or she actually checked in.

58


CONCIERGE

SERVICE

Process Outline:

A concierge is responsible for making various arrangements and

procedures to ensure the comfort of hotel guests. For example,

they make reservations and other arrangements on behalf of guests

to ensure that their travel and business schedules run smoothly.

Next, they provide sightseeing information to answer questions

from guests who are not familiar with the geography around the

hotel. In other words, the concierge's most main job is to give the

customer service beyond his or her expectations by consulting

with him or her and responding to his or her requests.

Identified

Bottlenecks:

Since each customer has a different personality and uses the hotel

for different purposes, concierge sometimes given difficult

missions. Even if a request seems impossible, concierge are

always expected to do their best, such as proposing alternatives. A

wide range of knowledge is required to respond quickly and

accurately to a wide variety of requests from customers, and

updating information is also essential. Therefore, they must always

stand at the front desk and be there when the customer asks for

them, and of course, they may not be able to help the customer if

they lack knowledge.

Customer Pain Points:

When looked into the opinions of guests who have stayed at

Mantra about housekeeping, it able to found a lot of negative

feedback. Housekeeping is only performed on the fourth day of a

long stay. In addition, basic bed making, only minimal cleaning

and replenishment of amenities, and other less than hospitable

services were mentioned in many opinions. Some of the reviews

about housekeeping indicate that the service is not consistent even

within the same hotel building, such as some rooms having towels

changed while others do not, and the guests feel distrustful of the

cleanliness of this hotel.

59


Furthermore, not only is there no one standing at the reception

desk, but even if there is a person in charge, he or she is in charge

of one person's work, so they have to wait for a long time before

another concierge finally arrives, and other inefficiencies are

mentioned as well.

In addition to the poor turnover rate, the poor attitude of

concierges is also frequently pointed out in reviews.

60


Housekeeping Process Outline:

Housekeeping is an essential part of running a hotel, and Mantra

also provides housekeeping services, although not daily. The main

tasks are to keep the guestrooms in a comfortable condition for the

guests to stay in, which includes cleaning the rooms by throwing

out trash, wiping down, and vacuuming. It is also necessary to

check the operation of the in-room facilities (replenishing

amenities) and that the lights work. They are also responsible for

making the beds, making sure that the sheets are taut and

wrinkle-free. This is an important service that greatly affects the

guest's evaluation of the hotel.

Identified

Bottlenecks:

Neglecting to clean rooms or replenish amenities even slightly can

negatively impact a guest's experience during their stay. This is

because cleanliness directly affects the comfort level of guests

while they are in their rooms. In particular, COVID-19 has made

people more sensitive to cleanliness, including disinfection, so

poor housekeeping can lead to a decline in the overall quality of

the hotel's hospitality.

Customer Pain Points:

When looked into the opinions of guests who have stayed at

Mantra about housekeeping, it able to found a lot of negative

feedback. Housekeeping is only performed on the fourth day of a

long stay. In addition, basic bed making, only minimal cleaning

and replenishment of amenities, and other less than hospitable

services were mentioned in many opinions. Some of the reviews

about housekeeping indicate that the service is not consistent even

within the same hotel building, such as some rooms having towels

changed while others do not, and the guests feel distrustful of the

cleanliness of this hotel.

61


62


Leisure Facilities Process Outline:

Mantra has a variety of facilities within the hotel building and

strives to ensure that guests have a great experience during their

hotel stay without having to go outside. Not only the restaurant,

but also the hotel offers a swimming pool, gym, sauna, and

although not listed on the official website, spa services.

Identified

Bottlenecks:

Furthermore, since these facilities are not for individual rooms,

they are shared by guests of the entire hotel, so guests will pay

considerable attention to cleanliness when visiting these facilities.

Thus, if these facilities do not work, lack cleanliness, and the

overall quality of the facility is poor, the disappointment will be as

great as the expectation.

Customer Pain Points:

Checking the reviews about the facility, many commented on the

size of the facility and its cleanliness. In particular, there were

many negative reviews regarding the small size of the gym and the

cleanliness of the pool and poolside. Guests who have used the

gym, sauna, and pool advise that the hotel's facilities are in

absolute need of remodeling and some effort to keep the facilities

clean.

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64


Mantra Legends

Audit Report

PHYSICAL EVIDENCE ANALYSIS

According to research, the physical environment has a significant impact on

customer satisfaction, as well as employee satisfaction, productivity, and

motivation (Ali & Amin, 2014; Tarmudi & Jaharuddin, 2022). The quality

of the physical environment is especially important for the hospitality

industry, particularly hotels, because it plays a significant role in the

creation of pleasant feelings among customers (Wibisono et al., 2022).

Some of the servicescape elements include cleanliness, layout, decorations,

facilities, lighting, and parking area.

(Screenshots from Mantra Legend Vlog youtube video 2022)

65


Table 12. Physical Evidence / Servicescape Analysis

STRATEGY

(CLEANLINESS)

Previous research has shown that customers are influenced by

cleanliness and hygiene conditions when making purchase

decisions in a service environment (Choi, 2019; Vilnai-Yavetz &

Gilboa, 2010; Zemke et al., 2015). It has now become especially

important as a result of the COVID-19 pandemic (Jiang & Wen,

2020; Pillai, S. G., Haldorai, K., Seo, W. S., & Kim, W. G. et al.,

2021). In terms of Mantra Legend, their room and facility photos

on the website and booking websites appear clean and

well-organized. Mantra Legend must maintain a high standard of

cleanliness since it is a 4-star hotel. Customer reviews on the big

two review sites, Google and TripAdvisor, however, dispute this,

with many recent reviews on Mantra Legend specifically

highlighting the hotel's lack of cleanliness and hygiene. Some of

the few reviews are as follows:

(Images from Agoda & Mantra Website)

66


Google Reviews - Mantra Legends Surfers Paradise

67


TripAdvisor Reviews - Mantra Legend Surfers Paradise

Problems: Many guests have expressed dissatisfaction with the hotel's

online photos, with some citing issues with cleanliness and hygiene, and

with furniture and walls that appear rusted and worn. Mantra Legend, as

a 4-star hotel, does not meet their standard. The appearance of a tired

and worn-out hotel makes the overall result appear less clean and

hygienic.

STRATEGY

(LAYOUT)

The hotel's space and functional layout is crucial since it aids guests in

understanding the surroundings and determining whether their

expectations for service quality can be satisfied (Ahmed et al., 2020).

The design of Mantra Legend is simple and soothing, and it fits in

perfectly with the company's mission to provide relaxation to families

on vacation or business travellers (Mantra Hotels, 2022). With a lobby

bar around the corner, the lobby/seating area for guests is roomy and

effectively manages traffic through the building. The large, outdoor

lagoon-style pool is ideal for families on vacation because it has plenty

of places to sit and relax. It uses a welcoming overall elegant style

design.

68


STRATEGY

(DECOR &

LIGHTNING

(Images from Mantra Website & TripAdvisor)

The glass wall in the lobby and reception area further modernises the

space and provides more natural lighting throughout the day, which is

critical in maximising guest satisfaction (El-Sayed & Abed, 2021). The

rooms at Mantra Legend have amazing natural lighting as well as a

good amount of natural lighting in the lobby area. During the night,

yellow lighting is primarily used in the lobby, with a few colourful

lights around the pool providing a warm and relaxing atmosphere.

69


(Photos from Mantra Website and TripAdvisor)

Problem: Although the natural lighting in the rooms is excellent during

the day, some customers complained that the lighting during the

night-time was dim. The hotel's decor has remained consistent for years,

and the furniture and walls are old and worn.

70


STRATEGY

(FACILITIES)

Research suggests that servicescape influences guest satisfaction

through facility aesthetic dimensions (Simpong et al., 2022). It is

crucial in hotels because it gives customers their first impression. As

seen in the image above the table, the entrance and facilities of this

midscale hotel are simple and welcoming, fitting their mid-scale

luxury level. The brand focuses on leisure for families and business

travelers, and it offers a variety of amenities to guests. Outdoor

lagoon-style pool, indoor heated pool, fitness gym, sauna, and

restaurants for dining are some of the facilities guests can use to

relax and relieve stress.

(Images from Mantra Website)

71


HOTEL

PARKING

Car parking availability is known to be a major hotel selection factor

(Sohrabi et al., 2012), and its absence may result in customer

dissatisfaction (Marani & Mrnjavac, 2015). Parking is available at

Mantra Legends for $20 per day, one parking spot per room. It is

underground parking, which means it is safe and convenient for guests

who are able to get their limited available parking spot. Many

customers' reviews highlight the parking being safe and on-premises.

However, there were a good amount of complaints about either the

parking not being available or being too pricey

Problem: Parking is limited. Customers complain about parking being

unavailable, expensive, and too small for cars to be parked safely.

Mantra Legend's competitors offer less expensive and more parking

options.

LOCATION

& SERVICES

The Mantra Legend Hotel is situated in Surfers Paradise, Queensland,

4217, at 25 Laycock Street. Due to the hotel's location in the

well-known Gold Coast City, getting there is simple using either

private or public transportation. The hotel is only a 4-minute walk

from the station and is served by the tram, which stops at the Surfers

Paradise stop. The hotel offers its clients the option to reserve a car

through its partnership with Hertz (Mantra Hotels, 2022). The area is

convenient and includes three location-related elements that are

crucial for hotel guests: easy access to attractions, easy access to

transportation, and a pleasant environment (Yang et al., 2018). It’s an

ideal location for a family trip/holiday, short break, or even business

trips.

(Mantra Legends exterior view from Agoda)

72


Problem: According to customer reviews, the main issue is that Mantra

Hotel and its facilities, walls, and surroundings appear tired and old,

making it appear unwelcoming and dirty. The main downfall is their lack

of proper maintenance as a 4-star hotel.

73


Mantra Legends

Audit Report

PART 5

CONCLUSION


Mantra Legends

Audit Report

FINAL WORDS

This analysis identified and evaluated the industry, competitors, and

consumers, as well as challenges and potential for future growth, with a focus

on the Mantra Legends Surfers Paradise location. Recent hotel business

performance suggests a rise in consumer demand for low-cost

accommodations. However, unstable economic situations and consumer price

sensitivity need to balance this increased consumer interest with guaranteeing

great customer value. While Mantra is one of the hotel industry's majority

market shareholders because of its strong brand presence and association with

contemporary and sophisticated facilities, Mantra Legends Surfers Paradise's

inadequate maintenance and hygienic conditions undermine the strength of

this customer association. However, this report identifies three opportunities

that enable Mantra hotels to maintain its position as one of the majority

market shareholders.

75


Mantra Legends

Audit Report

OPPORTUNITIES

Opportunity 1: Improving the brand’s online presence

Despite Mantra having a functioning website and social media pages the

explosion in popularity of different social media websites create a massive

opportunity for Mantra to utilise its online presence to its full potential as

millions of potential customer browse the web every day. Mantra has the

opportunity to differentiate itself by joining online platforms, taking

criticism and responding back to customers creating a personalised

experience.

Opportunity 2: Collaborating with celebrity chefs

As Mantra is a 4-star rated hotel offering a luxury and premium experience,

collaborating with celerity chefs to design a full course meal or a special

menu can improve the brand name, as this can be considered a marketing

campaign bringing in a large audience and creating an opportunity to attract

fans from all over the world.

Opportunity 3: Improve the brand ambience

Mantra’s brands has been facing a lot of criticism regarding the cleanliness

and hygiene levels of their hotels leaving customer dissatisfied with their

stay leaving the brand to receive backlash about their surroundings and

facilities. The brand should try its best to address customer concerns as this

will help improve the brand's online presence. Mantra can hire specialists to

renew the facilities with modern technology with regard to current

consumer interests and trends and sterile surroundings whenever possible to

ensure customer satisfaction at every level of the process.

76


Mantra Legends

Audit Report

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