1 AIT Asian Institute of Technology

Designing marketing strategies : a case study of the four first-class hotels in Phnom Penh, Cambodia

AuthorRos Phirun
Call NumberAIT RSPR no. SM-02-46
Subject(s)Hotels--Marketing--Cambodia--Phnom Penh

NoteA research study submitted in partial fulfilment of the requirements for the degree of Master of Business Administration in International Business, School of Management
PublisherAsian Institute of Technology
Series StatementResearch studies project report ; no. SM-02-46
AbstractSince Cambodia joining ASEAN, hotel as well as many other businesses starts growing robustly. Meetings, conferences and many other events and activities will be more increased when Cambodia joins World Trade Organisation (WTO). As a reference, Cambodia is going to host many events such as ASEAN Summit in this November, ASEAN Buddhism Summit in this December with more than 3,000 delegates, and ASEAN Tourism Fairs (ATFs) next January. All of conferences and meetings are going to held in Plmom Penh that lead to growing in demand and big challenging in the hotel industry. Another opportunity, Cambodia is really new in term of tourism industry. Since it is known as a country of peace and stability, many tourists may want to visit the new destination. With its own culture base and many tourist attractions like Angkor Wat that can be a good combination of leisure and meeting, "get meeting in Phnom Penh, go leisure at Angkor Wat", Cambodia can attract millions of tourists to its destination. This build, in addition, confidence to foreign investment to Cambodia that will result to increase business trips as well as the demand of corporate meetings, accommodations and foods and beverages for business people. However, in addition to the growing in the competition among the industry because the growth in demand, hotel has to challenge with many things such as lacks of human capital due to the newly destination, poor in tourist accessibility, i.e. no big capacity airport due to the country is just newly stable, etc. In response to the market growth and confronting with the competition, the four fist-class hotels, which included Cambodiana 'C', Royal Phnom Penh 'R', Inter-Continental 'I', and Sunway 'S' (in short is called C-R-I-S), have set up and implemented its strategies for customer satisfactions as well as capturing marketing share and profit in return. Contributing to price strategy, quality in service and varieties of facilities provided are the key concerns of the whole industry. This paper also illustrates the experiences in services and other key success factors of C-RI- S for their performance to satisfy customers. Some service performance of key sectors such as the front office, food & beverage department and sales & marketing, and strategies such as guest service standard improvement, how to expand market share and the strategy for price competitive advantage of them have been raised up to demonstrate the strengths and weaknesses of each hotel. Customer feedback system and oral comment, in addition, are the main tools being implemented by C-R-I-S for evaluating their continuous service improvement. Quality control, quality check of the hotel operator and staff training are also the key points that C-R-I-S carefully pays attention to. As a result of comparing the services, facilities and strategies adopted by C-R-I-S and their customer evaluation, it can be identified that the key success factors are including (1) Cambodiana ( 4-star rating) is the most successful one in leisure market and still positioning as the second largest in conference and meeting centre after Inter-Continental (5-star rating), but its brand image seem to be reduced step by step from luxurious hotel to budget hotel due to its service performance is lower standard. (2) Royal Phnom Penh ( 4- star rating) seems to be far away from the other three in term of conference market due to it is poor in marketing activities, but the hotel is very strong at the leisure facilities provided and expected to expand its brand image by joining Accor Group. (3) Inter-Continental is strong at all areas except pricing policy that cannot be accepted by many guests at the present time. (4) Sunway (4-star rating) is the most successful one in all areas. Its capacity is small enough that is a key point to not wasting cost of empty rooms. Its services are recognised by many customers and competitors as the five-star services. Price can also be afforded by majority of customers including price of accommodations, food and beverage, and conference centres. Yet, C-R-1-S still has weak points that have to be improved in common. Their staff knowledge, which is the background of the performers, is still lower standard. Many guests are still complaining their communication skill and English proficiency. Therefore, what C-R-1-S should do to meet the cutTent trend and keep sustainable growth are (1) Service quality, staffs have to be trained with the right job and right time to be very friendly and helpful and capable all the times. (2) Facilities, additionally, including guestrooms and conference centres have to be qualified with the reasonable and affordable price, up-todated to meet the changes of technology.
Year2002
Corresponding Series Added EntryAsian Institute of Technology. Research studies project report ; no. SM-02-46
TypeResearch Study Project Report (RSPR)
SchoolSchool of Management
DepartmentOther Field of Studies (No Department)
Academic Program/FoSMaster of Business Administration in International Business (Publication code = SM)
Chairperson(s)Johri, Lalit M.;
Examination Committee(s)Sununta Siengthai;Broustail, Joel F.;
Scholarship Donor(s)Swedish International Development Co-operation Agency (SIDA);
DegreeResearch Studies Project Report (M.B.A.) - Asian Institute of Technology, 2002


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