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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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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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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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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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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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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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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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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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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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 $1,117 for members for the
week
Promotional ● They are currently offering
a discount of 20% for
people booking for 3 nights.
● Peppers are not offering
many promotions but they
are a part of the accor
membership program which
grants their customers
points that they can redeem
for special prices with the
hotel or partners like Qantas
for example.
●
●
They are offering multiple
promotions for various
occasions and also offer
great discounts for their
program members (as
shown in the booking
section)
Free accommodation and
breakfast for 2 children
under 16 sharing a room
with their parents or
grandparents.
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Audit Report
Distribution
●
Peppers are offering
multiple locations usually
all situated in leisure
destinations and always
with beautiful views.
●
Novotel hotels are very
similar to peppers in terms
of location also mainly
located near travel
destinations and have
great views.
People ● All reviews about the staff
are mentioning of how
friendly and helpful they
were.
Process ● Concierge taking bags to
the room
● If customers arrive earlier
than the check-in, they are
offered a parking pass to
wait until the room is
ready.
●
●
Some reviews concerning
the staff mentioned that
there was a clear lack of
professionalism.
Concierge taking bags to
the room
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Audit Report
Strengths ● Modern looking rooms
(aesthetic)
● Barista coffee offered
(Instead of simple filtered
coffee)
● Double blinds offering
extra darkness
● Free parking
● Location
● Room size (very spacious)
● View of the ocean
● Offering welcome drink
●
●
●
●
Their cheaper prices and
various offers make this
choice particularly good
for a young couple or very
small families
Linked to supermall
Good location, in the
middle of gold coast
View of the ocean
Weaknesses ● Definitely more expensive
● Few room service options
●
●
●
●
●
Don’t guarantee to park
since they are not owning
it and cost 18$ 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.
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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
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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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Mantra Legends
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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)
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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.
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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.
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Mantra Legends
Audit Report
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