Hospitality management can be referred as the vast industry and area expertise in business which consist of tourism management, beverage and food management, finance and accounting, HR administration, PR and marketing etc. Hence, a general manager of an hospitality industry or an organization is accountable for smooth functions of operations of distinct departments (Boella and Goss-Turner, 2013). It include overviewing the tasks of management of an resort, hotel or hostel ensuring whether the services are serve as per consumer demands and offered products. In report, study of evolution and alternation is Smart Hostels will be assessed. So the new business FastHost is developing a modified Smart Hostel in London. Report will investigate feasibility and sustainability of this new products along with limitation of development factors within hospitality industry.
The Development Plan
Hostels are covered the vast marketplace in London that provide numerous services and practices within the distinct marketplace. In the previous time, the hostels term more reminds of the accommodation budget, style and small where one has to adjust oneself. Where, in nowadays, this such services have become contrasts of this misconception as this has covered a wide range of hospitality industry (Brown, Arendt and Bosselman, 2014). In a brief term, “hostel can be referred as the value or shared accommodation where beside sharing the private room, the dorm sharing of room is made with other individuals.” Hence, it can be observed that more than half of the hostels are transforming into more luxurious, better and effective service providers through delivering more digitalised services knowing as the term 'Smart Hostels'.
The concept of Smart Hostel was introduced in marketplace back in 1999 where this concept was considered as the shared accommodation approach. The major target or purpose of such disruption in the hostel services were to provide more certain market segment such as comfortable and shared accommodation and deliver more affordable services to eliminate this sector giving a proper recognition among entire hospitality industry. Launching a new B&B business and starting a new venture in this market segment has become more trending in marketplace. FastHost is a venture that is a modified version or idea of Smart Hostel including the digitalise and automize hostel through opting new modifications such as vending machines, self Check-in kiosks, toiletries and snacks, hot and cold drink etc. The main target of these hostels are 18-35 age group people who are studying in universities and pursuing their studies. Hence, FastHost will be developing over the concept of Smart Hostel along with delivering new practices and services to the service user in order to achieve the business objectives in more efficient manner. There are various components that are needed to considered while developing a proper plan for the FastHost hostel (Chang, Gong and Shum, 2011). But initially, this is fundamental to formulate and frame the SWOT analysis of the entire segments in context of organisation in order to understand the major elements of organisation. Here are briefed the SWOT analysis mentioned as below:
Cheaper accommodation: Hostels segments provide the students and adults opportunity to hire accommodation services on more cheaper values than other alternative consisting the provided accommodation of universities.
Safe Environment: As FastHost are professional in delivering more rental services in industry, students can feel more safe in opportunities of housing and confident as well.
Low set-up of Cost: Although FastHost is delivering more high technologies and smart and advanced service, they have set the low cost of accommodation to begin which can be extent further as per the student's budget.
Innovative Idea of Business: Although, there are several agencies and hostels are there in London, FastHost is delivering more better accommodation and other services to students (De Grosbois, 2012).
Online Based: Students and other service users can access the services of organisation through online that is more accessible and comfortable for them.
- Company has less market reputation: As the organisation is a new venture, this can lead to lack in confidence that are intangible and lead to less satisfaction among consumer.
- FastHost has their hostels at four major places of United Kingdom which is not enough and eventually lead to unavailability of services among the services users.
- Lack of marketing and advertising: The major drawback of organisation is it dearth proper marketing and advertising that can lead company to major fall of their practices.