Effect of bushfire on the Australian hospitality industry | Hospitality Management Assignment

1. Executive Summary

The Primary motive of this particular assignment is to discuss the tactics which have been undertaken by the hotel industries of Australia to get recovered from bush fires. It can be seen that the accommodation industry of Australia is mainly relied upon each other so that they can deal with such natural disasters for maintaining the flow of business. In the modern scenario the entire industry if facing with intensive bush fire events that is hampering the operational credibility of the companies within this particular industry. There are many regional hotels are available in the Australian hospitality industry that have directly affected due to the natural disasters and the responses has come from the government agencies and local bodies to develop the operational spectrum of the companies in case of delivering non-perishable and fresh-food and beverages that are needed to be delivered to the companies for providing suitable services to the customers. In can be seen that heavily discounted rooms and free service rate for the fire-fighters have been provided by the hotel companies within the nation. This particular assignment will discuss several aspects that are interrelated with the bush fire events and recovery tactics undertaken by the Australian hospitality industry. The initial section of the analysis will focus on giving an overview of the selected context along with the issues that are interrelated with the context. The research aim will be aptly provided in the assignment as well. The core research will be conducted based on primary data analysis technique.          

 

Introduction

Globalization is considered to be free movement as well as exchanges regarding the capitals, which can be used for making sure that the movement of the good, as well as the human resource between the nations, can happen efficiently. Globalization has a significant impact on the hospitality industry as it allows people to move into different nations for tourism purposes. However, there are significant challenges for the hospitality industry as a result of the globalization as it enables the foreign corporation to make sure that they set up firms in different nations. Australia is considered to be one of the best nations to build hotels as a result of the growth in the economy and the political stability with lesser corruption. It is also expected that the growth in the revenue of the hospitality industry is considered to be growing at a rate of more than 3.5% until the year 2027 in Australia (Ivanov & Ivanova, 2016). However, the industry in Australia has started to have seen a significant amount of the challenges as a result of globalization. Some of the challenges include the Presence of global competitors, natural calamities, and international pandemic such as Covid19. Hence, it is considered to be important for the nations to make sure that the identification of the different challenges to make sure that they can find a method of the mitigation process. This report talks about the future trend about the hospitality industry as well as the challenges that are being faced by them in Australia. The strategies that they have taken for the recovery from the challenges have also been discussed during the report.

4. Research Overview and Background

This research is considered to be significant for the reader as it helps them to make sure that they can identify the risk in a working environment in Australia. The readers are also able to ensure that they can find out the mitigation process through the effective management of the risks. This research is also considered to be significant as it allows us to make sure that elaborative discussion regarding the recovery process that can be used for the enhancement of the business. Various forms of threats that can arise in the business process are also needed to be taken into consideration. The advancement of the technology and it’s the implication on the business process is also needed to be taken into consideration (Chand, 2019). Hence, it can be stated that this report is significant for the future owners of the hotel as well as the Airbnb business to make sure that they can implement the values while making business in the market system. 

5. Problem Statement

The main aim of the report is to find out the opportunities as well as the challenges being faced by the hotel industries while operating in a globalized environment in Australia. The opportunity includes the benefit as a result of economic growth, lack of corruption in the government. The challenges are considered to be competition faced from outside hotels as well as natural calamities. This topic is considered to be significant especially at the time of the Covid19 as it has a severe impact on the hospitality business. Apart from this, the hospitality business in Australia has also suffered as a result of the various bushfires that took the life of more than 800 people as well as more than billon of animals over the year. Natural disaster destroys a large portion of natural resources, which is considered to hurt the hospitality industry (Umrani et al., 2020). Hence, it can be stated that other is likely to be interested in this topic to know about how they can deal with a situation like this while operating in Australia. This report is also considered to be important as it also makes discussion related to the role of the technology in the development and growth of the hospitality business. Hence, this report is significant for the new owners of the hotel as well as Airbnb as they will be making use of the suggestions for the sustainable run of their business.

6. Research Aim

The primary aim of the research is “To analyses the opportunities as well as challenges that are being faced by the Australian hotel industry in the Globalized World”.

 The objectives of the research report are:

  • To find out the opportunities that are available for the hospitality industry as a result of globalization?
  • What are the relevant issues that are being faced by hospitality corporations as a result of globalization?

7. Literature Review

Introduction

This section of the study will provide an overview of the Australian hotel industry, which is one of the most significant business market, which tends to contribute to the development of organizational revenue. It has also been noted that there are a huge number of factors that tend to affect the profitability level of the business and that the activities will be developed on the basis of different theoretical perspectives, which is related to the operations of the country.

Overview of Australia hotel industry

As stated by  Khatter (2020), the Australian hotel industry, tends to provide the customer with a higher level of hotel performance, which is important for developing the supply chain activities, and that it was observed in the recent STR figures, the hotel industry of New Zealand tends to suffer because of the dampening effect activities, which tends to create a disruption in the supply chain operations of the room, and that the supply of room is more in number, in comparison to that of the additional number of rooms sold.

Australian Bushfire

As opined by van Oldenborgh et al. (2020), on the basis of the natural calamity information, it was observed that the bushfire in Australia is common and that it tends to occur after a frequent interval of time, and the most significant reason which is identified for the calamity is that of the natural shape of the continent, and it is turning out to be in the upcoming millions of years. The bushfire which occurred in Eastern Australia is noted to be a catastrophic event, and that it has turned out to kill more than 800 people, and also a higher number of animals. The last observed bushfire of Australia begins in September 2019, and it occurred till March 2020, and it was also regarded to be the worst bushfire, ever observed in the continent of Australia.

Risk management of the Hospitality industry

While considering the activities of the risk of the hospitality industry, it becomes the responsibility of the different organizations to focus on the identification of the risk, which is important for developing plans, and also for developing steps that could mitigate the risk factors. According to Karanovi? & Gori? (2017), the risk management process is associated with different theories, which is based on the likelihood of the event, and that the process is associated with developing plans which will be entirely based upon the likelihood of the event, and that it will help in monitoring the efficiency of the entire risks management system.

The risk management process further helps in developing the decision-making activity of the business organization, and that the operations are associated with prioritizing activities, and that the management activities is important for ensuring effective allocation of the resources, which is important for assessing the decision-making activity. The risk management process further helps in preventing financial loss of the business, and it further ensures that the plan of the entire business is important for developing the budget activities.

The risk activities of the business should consider the overall financial, strategic, operational, and compliance activities. Furthermore Vij (2019), has stated that competitors of the market in the hospitality industry, will primarily focus on the basis of introducing the safety and health guidelines, along with managing the financial risk activities which are associated with observing non-payment of the customers.

SERVQUAL Model

The five significant factors which are included in the SERVQUAL model, are that of the reliability, tangibles, assurance, empathy, and responsiveness. All the factors are important for estimating the overall service quality, and that it focuses on developing the service quality system, which is associated with a higher satisfaction level of the customers. As stated by Prentkovskis et al. (2018), the service model activities are associated with intangible activities, which is important for developing the overall service market of Australia, and that the structured approach helps the researchers in managing the retail approaches and services, which is required for the overall developing the individual performance, and tends to enhance the satisfaction level of the customers.

Figure 1: SERVQUAL model

Source: (Saini & Singh, 2018)

Tangible

It is associated with the physical facilities, which is further associated with personnel, and equipment appearance.

Reliability

Reliability helps in identifying the capability of the firm, which needs to be based on a specific standard, and that the overall system approach needs to be dependable.

Responsiveness

It is observed that responsiveness is associated with the willingness of the customers and that it is important for the business to provide the customers with prompt services, and that it helps in developing the overall brand image of the customers.

Assurance

Assurance is related to knowledge, which is required for managing the courtesy level of the overall business, and that it helps in showcasing the overall ability, which is important for developing the confidence and the trust of the customers.

Empathy

Empathy activities are important for providing care, and that it further helps in obtaining the attention of the business which is required for developing the satisfaction level of the customers.

Risk management strategies

Mitigation

 As stated by Dang, Jasovska & Rammal (2020), the mitigation process is based on reducing the chances of observing risks, and that it helps in further ensuring that the overall principle actions need to be developed effectively. The mitigation process is associated with consideration of higher technological activities, which needs to be over the forecasting of the weather conditions, and that it helps in managing the situational activities, and that it helps in resolving different issues.

Enhancement   

As opined by Wang et al. (2020), enhancement of the activities is based on the anticipating activity of the different ideas, and that it helps in preventing the risk activities. The business also focuses on the evaluation of the resources which is required for managing the tasks, and that it helps in triggering the risk activities. It further provides the business organization with the opportunity of completing the tasks, which is required for predicting the overall business operation, and that it helps in managing the way of the company.

 

Conceptual framework

 

Overview of Australia hotel industry

 

Risk management of the Hospitality industry

How the Hotel industry can recover after the Wildfire in Australia.

Australian Bushfire

Risk management strategies

SERVQUAL Model

 

 

 

Summary

This section has provided information regarding the risk mitigation strategies, which has helped the organization in conducting operations in the unhindered manner, which has further helped in managing the overall business sustainability.

8. Research design

8.1 Methods

From the perspective of an applied research project, it can be stated that the research project is needed to be specific so that the practical issue can be properly addressed from the selected research methodology. The primary research method has been selected as the most significant research approach for this particular research as it may provide the targeted outcome regarding the selected issue (Levitt et al. 2018).

8.2 Collection and sampling

The collected data have been placed in the conceptual framework of the research that may provide a proper literature framework of the analysis. The data have been applied in the research by understanding the exact requirement of the topic and research variables.

In the case of the quantitative research process, the legitimacy of the primary data will be done with the help of the survey procedure of employees of some particular hotel in Australia. Melbourne Marriott Hotel has been chosen for the study and therefore 50 employees will be surveyed regarding the main theme of the project.

The following drawbacks have been observed while using primary data sources:

  1. The data sources are not properly controlled by the researcher him/herself.
  2. The needs of the researcher may not properly meet at each time.
  3. Inefficient spending for the information can be addressed in the case of primary research.

A systematic sampling method is followed for this particular research. For conducting the quantitative-primary research systematic sampling method can be recognized as one of the justified research methods.

By using the systematic sampling method the most reliable population has been selected. In this case, to understand the research topic, officials of the hotel management industry of Australia have been identified from whom the negative impact of bush fire on the business proceedings can be understood. Their direct response regarding the issue can provide accurate results and understanding of the context (Sayed & Ibrahim, 2018).

8.3 Analysis

The primary data analysis technique has been used for this particular research. Based on the conceptual framework that is developed in the previous literature review section the research has been commenced forward. The reason for selecting primary data is also to analyse the perception of different authors regarding the selected topic that may allow the research team to complete a series of sequential steps and process of decision making. The iterative solutions of the research project can also easily gained by using primary research that may encourage the flexibility and dynamism of the research altogether.

However, to understand the effect of bush fire on the operational quality of the hospitality industries of Australia, several survey questions needs to be set for asking questions to the employees of Melbourne Marriott Hotel. In this case, the researcher only needs to invest in the time as the flow of money is limited (Cole & Trinh, 2017). The effort and extensive research is also another thing that is associated with this research. The purpose is the core thing with the primary research based on which the future researches are needed to be commenced. The detailed definition of each researched components is also needed to be addressed in a précised manner so that it can match the research design and objective as well. Apart from that, it is also necessary for the researcher to understand the proper address on the internet from which reliable data can be gathered in a specific timeframe.

 

 

8.4 Ethical consideration

Ethical consideration is one of the most reliable and significant aspects of a research project that may ensure the legitimacy and authenticity of the collected data and its analytical outcome. The ethical considerations are described below:

  1. For storing and managing the data, electronic storage devices have been used. However, the immense support has been gained from the Microsoft office software while managing the research data. The representation of the data has been done by using MS Excel. Where the statistical data have been transformed into pasteurized formats.
  2. To study the research data have been studied through computerized programs, such as MS Office and sampling test program (Greenwood, 2016).
  3. It can be seen that the study has also provided proper consideration to the authors of journals and blogs. To mitigate the possibilities of academic misconduct reference of the journal article or sources have been provided as well.
  4. On the other hand, it can be noted that no members those who have been inducted in the primary survey sessions have been forced to answer the questions in the positive as well as negative manner. All the employees of the hotel have given their consent according to their will and understanding.

9. Findings of the research

In this particular section of the analysis interpretation of the collected data will be obtained. The data will be presented through the use of specific data analysis tools. It can be seen that primary data analysis has been conducted in this particular section of the analysis, based on which the core result of the research will be analyzed. 50 respondents are selected from the Melbourne Marriott hotel of Australia, who is the staff of the organization. The staff is asked with several closed-ended questions from which their responses have been recorded in relation to the specific topic. Based on the primary data analysis process significant data have been collected that may ensure the development of the research findings in a specific way (Damen & Hooft, 2019). The primary data analysis can be identified as one of the most specific research methods that may assist the researcher to address all the significant research issues and carry out the required results of the research. The primary data analysis may also provide greater and specific control to the research based on the collection of data regarding the selected research topic.

Question 1: What is your age?

Area of responses

Number of respondents

Percentage

20-25

9

18

25-30

6

12

30-35

10

20

35-40

15

30

40-45

10

20

Total

50

100

Table 1: Representation of age

(Source: as created by the author)

Figure 1: graphical representation

(Source: as created by the author)

Question 2: What is your gender?

Area of responses

Number of respondents

Percentage

Male

30

60

Female

20

40

Others

0

0

Total

50

100

Table 2: Representation of grander

(Source: as created by the author)

Figure 2: graphical representation

(Source: as created by the author)

Question 3: How often bush fire occurs in Australia?

Area of responses

Number of respondents

Percentage

Very frequently

12

24

frequently

20

40

Rare

9

18

Very often

9

18

Total

50

100

Table 3: Representation of responses

(Source: as created by the author)

Figure 3: graphical representation

(Source: as created by the author)

Question 4: What are the risks that Melbourne Marriott hotel of Australia, faces due to the bush fires?

Area of responses

Number of respondents

Percentage

Reducing the number of guests

30

60

Loss of properties

12

24

Reducing profitability

6

12

Government restriction

2

4

Total

50

100

Table 4: Representation of responses

(Source: as created by the author)

Figure 4: graphical representation

(Source: as created by the author)

Question 5: How far do you agree that due to the bushfires the hospitality business of Melbourne Marriott hotel of Australia, has been significantly harmed?

Area of responses

Number of respondents

Percentage

Strongly agree

10

20

Agree

9

18

Neutral

6

12

Disagree

11

22

Strongly disagree

14

28

Total

50

100

Table 5: Representation of responses

(Source: as created by the author)

Figure 5: graphical representation

(Source: as created by the author)

Question 6: What are the specific threats that the business organization is mainly facing in the modern scenario due to natural disasters?

Area of responses

Number of respondents

Percentage

Financial threats  

21

42

Reduce organizational threats

10

20

Loss of natural and group properties of the hotel

9

18

Minimum number of customer visits

10

20

Total

50

100

Table 6: Representation of responses

(Source: as created by the author)

Figure 6: graphical representation

(Source: as created by the author)

Question 7: How far do you agree that collecting specific information can assist the management to develop a proper risk management strategy?

Area of responses

Number of respondents

Percentage

Strongly agree

14

28

Agree

6

12

Neutral

7

14

Disagree

8

16

Strongly disagree

15

30

Total

50

100

Table 7: Representation of responses

(Source: as created by the author)

Figure 7: graphical representation

(Source: as created by the author)

Question 8: How far do you agree that technical innovation and the advancement of technical pieces of equipment can ensure the possible recovery of the operational health of the company after facing bushfire type of events?

Area of responses

Number of respondents

Percentage

Strongly agree

9

18

Agree

12

24

Neutral

8

16

Disagree

10

20

Strongly disagree

11

22

Total

50

100

Table 8: Representation of responses

(Source: as created by the author)

Figure 8: graphical representation

(Source: as created by the author)

Question 9: do you agree that a risk assessment plan can mitigate the threats related to a natural disaster like bushfire?

Area of responses

Number of respondents

Percentage

Strongly agree

20

40

Agree

8

16

Neutral

3

6

Disagree

7

14

Strongly disagree

12

24

Total

50

100

Table 9: Representation of responses

(Source: as created by the author)

Figure 9: graphical representation

(Source: as created by the author)

Question 10: Do you believe that the Melbourne Marriott hotel of Australia has the capability to control such type of natural disasters with the help of a risk assessment plan?         

Area of responses

Number of respondents

Percentage

Strongly agree

16

32

Agree

8

16

Neutral

7

14

Disagree

12

24

Strongly disagree

7

14

Total

50

100

Table 10: Representation of responses

(Source: as created by the author)

             

Figure 10: graphical representation

(Source: as created by the author)

10. Discussion

Based on the data analysis and findings of the research several aspects regarding the selected research topic have been understood. It can be noticed that the majority of the respondents belongs from the age group of 30 to 40 years are serving in the Melbourne Marriott hotel for a very long time and also have managed to gain significant experiences regarding the impact of such natural disasters on the business operations of the organization. On the other hand, respondents have also reflected that the rate of bush fires in Australian forest regions are specifically frequent that are hampering the business potentials of the hospitality industry due to which the operational capability of the hotel is decreasing since the last few decades. The respondents have also stated that due to the natural disasters several issues have been accounted for by the management of the hotel as the government is implementing different rules and regulations so for protecting natural habitat. Therefore, it is making several challenges for the organization to maintain a specific flow of business. The customer's attraction to the tourist location is gradually getting decreased due to the natural events that are developing challenges for the hospitality industry and Melbourne Marriott hotel to maintain their previous pace of business operation. In relation to the contextual framework of the research several data regarding the occurrence have been identified. The bushfire has been taken place in the Australian forest in the year 2019 and the casualty maintains its devastation toll march 2020. In these seven months of the gap the natural disaster has produces huge economic and loss of natural resources of the nation. The hospitality industry can be recognized as the major sector which has faced most of the financial losses.

Business risk management is the most significant aspect that business organizations are required to incorporate so that they can deal with such events in the upcoming future. Besides that, to incorporate the risk management several theoretical aspects are needed to be practiced. In relation to the literature review of the assignment, it can be seen that a significant implication of the risk management process is discussed that ensures the successful decision-making operation by the corporations. The business recovery strategy is also critically assessed in this case that ensures proper planning and identification of the potential threats for getting over with the casualties and business losses due to such type of natural disasters in Australia. The application of the SERVQUAL model is also discussed in the research that explains five significant service factors such as reliability, assurance responsiveness, empathy, and tangibles which are needed to be considered for identifying the operational qualities of the organization that may assist in gaining a significant response against such type of issues.

11. Recommendations

Based on the above discussion the following recommendations can be understood:

(i) It can be recommended that the management of the Melbourne Marriott hotel may need to develop a specific risk management strategy so that, the staff and operators of the company can easily deal with such issues. 

(ii) The employees of the corporation are also needed to be trained properly so that they can easily make themselves accustomed to such issues and deliver an effective service to the company so that the management can get-over from such a situation.

(iii) The risk management strategy needed to be properly developed so that, the quick and frequent response from the emergency can be ensured.

(iv) As due to bushfire operational capabilities of the organization gets compromised and devastated to some extent it is essential for the manager to ensure the supply of resources to the organization.          

12. Limitations

  • Due to limited secondary resources, some of the areas of the research have been compromised.
  • On the other hand, as there are restrictions that have been accounted for by the Australian government, therefore accurate results regarding the issue have not been found. It makes some of the scopes of the research to get compromised.
  • The limited timeframe has also restricted the exploration of some significant research topic due to which several contents have not been properly covered.

13. Conclusion

Based on the above discussion it can be concluded that the research topic is significant as it represents all the specific information regarding bushfire events and its causalities in the natural resources of the nation. Moreover, proper elaboration has also been provided in the analysis that represents the negative impacts of such natural disasters on the performances of hotel organizations. In addition to that, analysis mainly focuses on the primary data analysis techniques where 50 respondents have been interviewed who are the staff of the Melbourne Marriott hotel of Australia. The analysis has provided a specific understanding of the research topic.

 

 

14. References       

Chand, S. (2019). Pacific integration and regional governance-Globalisation or self-inflicted wounds in the Fiji sugar and garment industries.

Cole, A. P., & Trinh, Q. D. (2017). Primary data analysis: techniques for comparing interventions and their limitations. Current opinion in urology, 27(4), 354-359.

Crain-Dorough, M. (2020). Considering the Source: Sampling and Data Collection in a Mixed Methods Study. In Applied Social Science Approaches to Mixed Methods Research (pp. 54-85). IGI Global.

Damen, J. A., & Hooft, L. (2019). The increasing need for systematic reviews of prognosis studies: strategies to facilitate review production and improve the quality of primary research. Diagnostic and Prognostic Research, 3(1), 2.

Dang, Q. T., Jasovska, P., & Rammal, H. G. (2020). International business-government relations: The risk management strategies of MNEs in emerging economies. Journal of World Business, 55(1), 101042.

Greenwood, M. (2016). Approving or improving research ethics in management journals. Journal of Business Ethics, 137(3), 507-520.

Ivanov, S. & Ivanova, M. (2016). Do hotel chains stimulate globalisation?. Tourism Management Perspectives19, pp.102-108.

Karanovi?, G., & Gori?, D. (2017). Financial Risk Management Challenges in Croatia’s Hospitality Industry. Journal of Business PARadigms, 2(2), 88-99.

Khatter, A. (2020). Managers’ perspectives of environmentally sustainable policies and practices in the Australian hotel industry (Doctoral dissertation, Victoria University).

Levitt, H. M., Bamberg, M., Creswell, J. W., Frost, D. M., Josselson, R., & Suárez-Orozco, C. (2018). Journal article reporting standards for quantitative primary, quantitative meta-analytic, and mixed methods research in psychology: The APA Publications and Communications Board task force report. American Psychologist, 73(1), 26.

O'leary, Z. (2017). The essential guide to doing your research project. Sage.

Prentkovskis, O., Erceg, Ž., Stevi?, Ž., Tanackov, I., Vasiljevi?, M., & Gavranovi?, M. (2018). A new methodology for improving service quality measurement: Delphi-FUCOM-SERVQUAL model. Symmetry, 10(12), 757.

Saini, S., & Singh, R. (2018). Service quality assessment of utility company in Haryana using SERVQUAL model. Asian Journal of Management, 9(1), 702-708.

Sayed, A., & Ibrahim, A. (2018). Recent developments in systematic sampling: a review. Journal of Statistical Theory and Practice, 12(2), 290-310.

Tarrant, A. (2017). Getting out of the swamp? Methodological reflections on using quantitative primary analysis to develop research design. International Journal of Social Research Methodology, 20(6), 599-611.

Umrani, W.A., Channa, N.A., Yousaf, A., Ahmed, U., Pahi, M.H. & Ramayah, T. (2020). Greening the workforce to achieve environmental performance in hotel industry: A serial mediation model. Journal of Hospitality and Tourism Management44, pp.50-60.

van Oldenborgh, G. J., Krikken, F., Lewis, S., Leach, N. J., Lehner, F., Saunders, K. R., ... & Sparrow, S. (2020). Attribution of the Australian bushfire risk to anthropogenic climate change. Natural Hazards and Earth System Sciences Discussions, 1-46.

Vij, M. (2019). The emerging importance of risk management and enterprise risk management strategies in the Indian hospitality industry. Worldwide Hospitality and Tourism Themes.

Wang, L., Wu, W. M., Bolan, N. S., Tsang, D. C., Li, Y., Qin, M., & Hou, D. (2020). Environmental fate, toxicity and risk management strategies of nanoplastics in the environment: Current status and future perspectives. Journal of Hazardous Materials, 401, 123415.

 

 

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