IntroThe a very important part in tourism in
IntroThe tourism industry is a vital industry which contributes to the growth of the Singapore’s economy. According to Singapore Tourism Board (STB), Singapore’s tourism industry is doing exceptionally well with it receiving about 13.05 million visitors within the first three quarters of 2017, increased by 5% of 2016. Accommodation plays a very important part in tourism in Singapore, proven by the 22% of tourism receipts being spent on accommodation in Q2 of 2017 adding up to $1.408 million, also making it the second largest percentage on the receipts. In this report, we will be analyzing Integrated Resorts (IRs) in the tourism and lodging industry in Singapore. We will also be comparing the 2 Integrated Resorts (IRs) in Singapore and see how they compare and differ in their own unique ways. Integrated Resorts (IRs) refer to major resort properties built in Singapore which is used to boost the economy by attracting more visitors to travel to the city. According to the Ministry of Trade and Industry, the 2 IRs contributed $3.7 billion to the economy back in 2010, as many tourists travelled specifically to Singapore because of the 2 IRs. In 2016 itself, according Channel NewsAsia Article, Singapore was the fourth most visited city in the world, seeing 16.6 million visitors, behind London, Bangkok and Hong Kong. Singapore is also set to overtake London as the third most visited city in the world by 2025. International arrival is also forecasted to increase by the year 2025, as the 2 new airport terminals, Terminal 4 and 5 in Changi, have opened and set to open in 2030 respectively. The 2 IRs have created more than 100,000 new jobs for Singaporeans, which provided plenty of new opportunities for Singaporeans. Background of IRsMarina Bay Sands (MBS), a five star hotel, is the first resort in Singapore with diverse attractions and facilities. One of the iconic building in Singapore located along the along the Singapore’s Central Business District (CBD), MBS features three unique towers topped by a luxurious and amazing Sky Park. In the late 2004, the Singapore government was deciding to build the island’s first Integrated Resort. The discussion where ongoing till May 2006. Impressively, MBS hotel opens its door in April 2010. The project was being hold back for three years, but considering the labour and economic difficulties it had faced along the way, it is stunning that it was completed as quickly as it was. The MBS complex was the most complicated construction project ever undertaken. The complex was designed by Canadian/Israeli/American architect Moshe Safdie, known for his use of geometric patterns and dramatic curves. Focusing on the hotel, their towers slope but stand on straight legs, which give the complex its unique look. The architecture also follows the principles of feng shui to create a perfect balance of energy and harmonisation with the environment. With 2,561 rooms, it is the largest hotel in Singapore, in Asia its 6th on the list and in the top 50 largest in the world. With their great name, it had made it into the World’s 100 Largest Hotels list. It is interesting to note that the number 26 – the slope of Tower 1 – is considered prosperous since the individual digits add up to 8, a lucky number in Chinese culture. The three towers stand as individual modules, but are unified at Level 23, and again at the top of the towers by the SkyPark cantilever sitting 200 meters above the city. If that sounds awesome, then consider the area of the SkyPark – its length exceeds the height of the Eiffel Tower. For the hotel lobby, the glass façade in hotel lobby brings in natural lighting. Saving on electricity for artificial lighting. Focusing on the facilities of the hotel, three free guided tours are available daily for Observation deck guests. Each tour limited to 50 guests and last approximately 15 minutes. Ticket holders have access to Sands SkyPark Observation Deck and its views. At the one-hectare sky oasis, its filled with lush greeneries, sculptures garden and restaurants like Sky on 57 and CE LA VI. Moshe safdie was the designer for the SkyPark that sits atop the three towers of 200 metres above ground. For the public to enter and visit, entrance fee is required at $23. However, the Infinity Pool is reserved exclusively for Hotel guests staying at Marina Bay Sands only. The Sands SkyPark infinity pool is 1.2m deep and is open from 6am to 11pm daily. Also, swimming in the world’s highest and longest infinity pool with its unrivalled panoramic views – a once-in-a-lifetime experience available exclusively to guests of MBS hotel.Besides MBS, Resorts World Sentosa (RWS) is wholly owned by Genting Singapore, a company of the Genting Group. RWS is located on Singapore’s resorts island of Sentosa. There are world-class attractions including Universal Studios Singapore, S.E.A. Aquarium, The Maritime Experiential Museum, Dolphin Island and Adventure Cove Waterpark. Besides those attractions are world’s renowned destination spa, a casino, six unique hotels and the Resorts World Convention Centre.Where do we know of has the most number of Michelin stars in one destination? It is surely RWS. It offers renowned celebrity chef dining experiences, proving themselves with this platform as a key player in this little red dots’ diverse dining scene. The integrated resort also offers excellent entertainment platform, from original resident productions to concerts and public shows such as the Crane Dance and the Lake of Dreams. The achievements of RWS has been named “Best Integrated Resort” since 2011 for seven consecutive years.Hotel ServicesWith 2560 rooms in total, Marina Bay Sands Hotel offers guests the best of the luxurious world, meanwhile not compromising guests who are on a budget. With 5 different room types and 7 suites, guest will have the widest options available for them to choose. These 5 different types of rooms include the Deluxe, Premier, Family, Club, Grand Club Rooms, whereas the 7 suites include the Orchid, Bay, Sands, Marina, Straits, Presidential and Chairman Suites. The choices of rooms are endless. The prices of rooms range from $509.00 per night to $17,000.00 per night. Marina Bay Sands Hotel offers guests comfortable room spaces ranging from 39 to 629 square meters. Each room is equipped with fully stocked mini bar, a huge TV Screen, in room internet access, own private workstation. Some of the higher tier rooms offers guests more facilities like bathtub, piano, kitchen, dining table, gym room, sauna room and the list goes on. In addition, each guest would be given access to the Gym, Infinity Pool and Sands SkyPark. Guest staying on club tier or higher will have access to the club floor, lounges and will enjoy complimentary breakfast, afternoon tea, cocktails and canapes. Resorts World Sentosa, has a total of 6 unique hotels, with more than 1500 rooms available. Although not as much as Marina Bay Sands Hotel, the 6 different hotels are all unique in their own ways. These 6 hotels are; Beach Villas™, Crockfords Tower, Equarius Hotel™, Hard Rock® Hotel Singapore, Festive Hotel™ and Hotel Michael™ Beach Villas™ offer guests either 1 Bedroom Villa, 2 Bedroom Villa with Living Room, or 2 Bedroom Villa with Master Bedroom. Guest can also enjoy sleeping next to the world’s largest aquarium, in the Ocean Suite. Prices of Villas range from $1341.78 per night to $4755.08 per night. Guest get to enjoy complimentary Wi-Fi, free-form swimming pool at Beach Villas, jacuzzi, complimentary access to gym facilities, buggy service on call, and many other luxurious services one could think of.Crockfords Tower, is an all-suite by invitation only hotel which offers 6 kind of suite to guests. The suites are all appointed with custom designed furniture. The hotel offers Deluxe Suite Twin, Premium Suite, Mansion Living Room, Mansion Master Bedroom, Villa Living room, and Villa Master Bedroom. According to Tripadvisor, Prices of suites start at $822 per night, and can go as high as $1,867 based on average rates for a standard room. Some amenities include butler services, complimentary Wi-Fi, Bang & Olufsen home entertainment system, Magic TV in bathroom and may more. As this hotel can only be booked by invitation, if there’s no invitation, guests cannot book and stay in the hotel. Crockfords Tower, is a definition of luxurious travelling for the rich and famous. Equarius Hotel™, the winner of; 2017 World Luxury Hotel Awards, 2017 World Travel Awards for Asia’s Leading Hotel Suite and 2016 Certificate of Excellence by Tripadvisor, offers guests 3 different room types which are; Deluxe King, Deluxe Garden Room, and Deluxe Pool Suite. The prices of the room range from $370.76 per night to $1588.95 per night, and include amenities like shoe shine service, complimentary Wi-Fi, 24-hour room service, selection of bath salts, complimentary parking and many others. Hard Rock® Hotel Singapore, is a theme hotel where energy and glamour meet cutting edge contemporary design. They offer 6 different room types which includes Deluxe King, Twin, Suite Living Room, and Suite Bedroom. They also have the Rock Star Suite Living Room and Rock Star Suite Bedroom. The hotel prices start at $382.52 per night. Guests can enjoy wireless Wi-Fi access, coffee and tea making facilities, 42-inch flat screen LCD TV with more than 28 channels including the Hard Rock Music Video Channel and more. Festive Hotel™ is a family, child friendly hotel. It is located near to Universal Studios Singapore™, S.E.A. Aquarium™ and many other family friendly attractions. The hotel offers 4 different type of room; Deluxe King, Twin, Garden King and Family King. Prices of rooms starts from $360, with amenities like Free Wi-Fi, Free parking, Breakfast, Swimming Pool and many more. Hotel Michael™, is a hotel which tributes to one of America’s greatest architect, Michael Graves. Hotel Michael is a treat for those who enjoys art. Hotel Michael™, is also the nearest hotel to Universal Studios Singapore™ making it very convenient for its guests. Hotel Michael has 6 different room types which are; Deluxe Room, Deluxe Suite, 2 Bedroom Deluxe Suite, 2 Bedroom Deluxe Premium Suite, Presidential Suite and Merlion Suite. Prices for the rooms ranges from $437.84 per night to $4971.65 per night. Room amenities includes; complimentary Wi-Fi, Wine Chiller, Minibar and many more.Market SegmentMarina Bay Sands have been in their 8th year in operating in market since 27th April 2010. A quoted message from an interview from the MBS president and CEO Thomas Arasi mentioned that “We expect MICE business to grow the most dramatically and contribute 50% or more to the business”. Types of customers varies from Singapore as well as across the border. Such as Corporate Meeting Customer, Tour and Travel groups around the region, Free Independent Traveller (FIT), Retail and entertainment customer.Corporate Meeting events such as Finance, Pharmaceutical, Automotive, Tech and Hospitality can be held of average duration 4-5 days. Past events are International Facility Management Expo and Glasstech Asia held last year 2017. Meetings are easily being held at MBS, Sands Expo & Convention Centre because they have 6 exhibition halls measured over and 250 plus meeting rooms at 30,000sqm with flexible space and configurations. Also, it has the largest ballroom in Asia at 8,140sqm which can accommodate over 6,000 guests. Tour and travel groups can explore the nearby attraction such as Singapore’s Iconic Merlion, Museum, Singapore River and Gardens By The Bay. Retail and Entertainment Customer can enjoy luxurious fashion, watches and jewellery with 279 out of 298 stores being leased out. They carry brands such as Chanel, Gucci, Rolex and Cartier. Most recent entertainment event held near MBS is ULTRA 2017. Also, the ongoing event, Prudential Marina Bay are held at MBS as well. Types of customers are more of Tour and Travel groups who travels around with family. With the type of attractions that are available at RWS, they target family with kids to have their time spend over at attractions at Universal Studio Singapore, S.E.A Aquarium, Dolphin Island, Adventure Cove Waterpark and lastly, Maritime Experiential Museum. Kids who are 4-12years are the target audience that allows their parents along to take part in activities Ocean Dreams, Junior Marine Explorer, Colours of the SEEA tour and be a Aquarist for a Day. RWS gives special promotion to family such as 3D2N Family VIP Package which allow two nights stay in Festive Deluxe Family King Room. Also, they gave daily breakfast for 2 adults and passes to attraction to Universal Studio and S.E.A Aquarium. In comparison,Both integrated hotels have brought many conveniences to their customer. The selection of hotels can vary from the type of facilities and attraction they are looking for such as the retail, meeting, entertainment and attraction.Retail – MBS caters to more of luxurious goods and fashion branding from Italy, Europe and Paris. The retail shop is connected to the hotel, MRT station (Downtown Line and Circle Line) and attraction like Gardens by the Bay. Whereas for RWS, the only shopping mall that is nearest to it is Vivocity which needs to take about 15 mins walk from Sentosa or even a bus service.Meeting – MBS caters to many type of events that was listed above in the market segment. Such as Automotive, Finance etc. They can cater to large events and major events as the type of spaces they have can be able to accommodate to many large sums of people up to 6600 guests. Whereas for RWS, the spaces are good for big convention for 6000 guests, and cater to incentive groups from 10 to 15 guests. Entertainment – MBS have held huge music events at the nearest hotel such as ULTRA 2017 and hotel are fully booked during F1 race. Whereas for RWS, entertainment events the upcoming ones are Soul of Shaolin, Tong Yao- 2018 Best of Teresa Teng and Hits Chinese New Year Songs Concert.Attractions – MBS have skyline like Singapore Flyer and the “supertree” of Gardens by the Bay that brought many visitors from other region to enjoy celebrity dines and many more. Nearby museum has as well attracted a lot of Singaporeans and Foreigner. Whereas, for RWS attraction around is more of family activities such as Sentosa. They can have family picnic at the beaches, buying tickets to see different type of creatures at S.E.A Aquarium and lastly, have swim with the family over at adventure cove. How the hotel reach out to different segments Marina Bay Sands has several ways of making themselves known to the public. One of their famous ways would be through advertisements on television, YouTube, social media, the news and the internet. Through all these advertisements they would use celebrities such as David Beckham to attract potential customers. Due to their unique design, they have been a must for all tourists to stay in. Even though we are living in the 21st century, Marina Bay Sands still uses pamphlets and brochures to advertise their hotel since it can convey messages quickly. Several online travel agencies such as Agoda, Trivago and more are used to showcase Marina Bay Sands Hotel. Since they are very popular among tourists and locals, it is no surprise that they are being showcased by tripadvisor.com as well as Singapore’s tourist attraction recommendation. Marina Bay Sands is gaining popularity through word of mouth by past guests’ experience.Resorts World Sentosa’s way of making them well known to the public is by advertising through social media and television. Since Resorts World Sentosa is part of Sentosa, they are also promoted through their “special” location. They also give out pamphlets and brochures to attract potential customers. Tripadvisor.com promotes Resorts World Sentosa due to all its popular attractions. Online travel agencies such as Trivago, Agoda, booking.com and more has Resorts World Sentosa’s hotel up for show for the public to see. Giving guests a good experience is also important as they tend to talk about their experience to their fellow friends. Advantages and Disadvantages of Different Channels of DistributionThere are many advantages and disadvantages of the different channels of communication. We will be comparing the advantages and disadvantages of Online Travel Agencies (OTA) and Brochures, some of the 2 most commonly used marketing strategies by hotels. Online Travel Agencies, allow users to book flight tickets, hotel rooms, and many other tourists related activities. Some of the popular website includes, Trivago, Expedia and Orbitz. Some advantages of using Online Travel Agencies are firstly, it is easier to upsell rooms and packages. It is also easier to create profiles of guests online. This will increase the revenue of the hotel as they are able to upsell their products, while giving customers what they want. Secondly, OTAs sites are popular with customers who prefer to compare accommodation cost and the services offered by the different hotels. As different hotels sell their product at different prices, this will give the customers the luxury of comparing the different prices of hotels with a just a few clicks. Lastly, OTAs also allow past guests to review their experience and this will allow good hotels to benefit from the review section. This is because many customers also look out for previous experiences when they are choosing a hotel to stay in. However, OTAs also do pose certain disadvantages such as, firstly, OTAs charge the hotels a commission which ranges from 10% – 20%, which means that the hotels would have to pay a 20% commission to the OTAs for every room that a guest booked via the site. Secondly, hotels may need to find a way of managing their rooms across all the different platforms like OTAs, the hotel’s website, front desk, and telephone reservations. This might be very time consuming and may need a lot of manpower to manage. Giving out brochures, is a very traditional way of doing marketing, as it was more popularized when technology wasn’t so advanced. Like OTAs, brochures have its own shares of advantages and disadvantages. Firstly, brochure can provide a lot of information, in a very small amount of space. Many of this information includes the hotel, the products and services as well as the contact information of the hotel. Secondly, brochures can be easily distributed to a targeted audience. For example, as RWS targets family fun, a brochure can be given out to families with young children seen in public, and MBS can give a brochure out to corporate partners, who are interested to use its meeting and function rooms. Some of the disadvantage of brochures includes; the risk of it being obsolete, and the printing expenses. Firstly, as technology is advancing and many people tend to go paperless, the demand for brochures are becoming more and more obsolete in the world, as guests prefer to use the internet, to search for information. Secondly, printing brochures incur costs, and most of the time, certain product of a hotel may change, and this would mean that they would have to print out new brochures to inform their customers. This commonly includes the change in prices and products of the hotel.Although OTAs may pose disadvantages, hotels still prefer to use it as it is a marketing tool, compared to brochures, as OTAs are now very popular in the tourism industry, because of the advancement in technology. How can hotel stand out from each other?An integrated resort can stand out from its competitors by making sure that it is; accessible, fun and also value for money.To be accessible, transportation for an integrated resort is important as it will ensure that the guests or visitors will have an easy and more comfortable journey to the IRs. Marina Bay Sands has an MRT station nearby which is Bayfront MRT. Resorts World Sentosa has an additional $4 payment for the monorail service from VivoCity to Resorts World Sentosa. They also provide shuttle bus services from Harbourfront Station and VivoCity for the price of $1 or walk through the Sentosa Boardwalk for $1. For transportation wise, there extra charges will be implemented when traveling to Resort World Sentosa. Based on these 2 method of transportation, Marina Bay Sands offer visitors and guests an easier way of going to the place, as the Public Transportation system in Singapore is very efficient, convenient and cheap. For an integrated resort to be fun, it needs to offer different kinds of activities and attractions for all their targeted market segments. Firstly, Both Marina Bay Sands and Resorts World Sentosa are located near to a shopping mall. However, Marina Bay Sands guests enjoys more convenience in accessing the shopping mall as the shopping mall is located right below Marina Bay Sands. For Resorts World Sentosa, transportation is required to access the shopping mall. Secondly, Marina Bay Sands do not offer activities for leisure travellers who are seeking thrilling recreational activities. Resorts World Sentosa however, offers activities that allows the whole family to get involved in those activities in attractions like Universal Studio, Adventure Cove, S.E.A aquarium and many others for the family to bond. Marina Bay Sands caters to tourist or locals who would like to witness the view of the night scenery of Singapore while Resort World Sentosa is catered to all types of people who are interested in recreational activities. The 2 integrated resorts offers different kinds of activities, which makes them unique in their own ways, which helps them to stand out from one another.To get the best value for money in an integrated resort, they would have to provide guests with the best facilities, as well as a comfortable room, for a good night sleep. Marina Bay Sands offers an infinity pool, while Resort World Sentosa offers private pools to some of their higher tier guests. Secondly, RWS and Marina Bay Sands have almost the same types of room, but Marina Bay Sands hotel provides a bigger space. The presidential suite for Marina Bay Sands is 509 square metres whereas it is 235 square metres for Hotel Michael and some of the other hotels in RWS. Marina Bay Sands provides a more spacious room for almost the same price. What helps them to stand out from their competitors is the space that they offer in their hotel Rooms. Being a hotel that provides you value for your buck, is one that makes a hotel stand out from its other competitorsBoth IRs are unique in their own way, and this is one of the key feature for hotels or organisation to stand out from one another. It is important to be unique as guest tend to stay at a place because of the uniqueness and the overall environment of an establishment.