Risk Management Plan for Pleasure Island Hotel:

In creating a risk management plan for the Pleasure Island Hotel, several discriminating factors must be analyzed. The following table presents the overview of factors and the steps necessary to gather the data and complete the plan. References are included at the bottom of the plan.

Issue / Measurement/Issue / Consequence
Economy / Given the economic downturn, we face greater risk due to diminishing travel budgets. / Lower booking rate, less cash flow. Need to offer incentives to fill rooms to keep staff busy and at least cover ROI.
Travel Industry / Industry as a whole is down, what partnerships can be made to minimize risk factors? / Minimize risk by spreading risk – partner with other travel agencies (airlines, tours, and restaurants) to offer cross-promotional activities to boost booking.
Clientele / Many choices, Priceline, other online services increases risk. / Increase visibility by offering referral bonuses, find something new and different to draw clients; ensure that client is treated better than other hotels to maximize retention and minimize risk.
Human Resources / Risk factor of keeping trained employees, with lower booking, layoffs possible; risk inability to handle peak times. / Try to maximize staff by cross training, this minimizes risk for lay offs, offer bonuses for cross-training and longevity.
Environment / Weather, unnatural events are risk factors / No way to control
Uncontrollables / External influences like price changes for supplies, food, etc.; rates of insurance, operating expenses / Do the best to put a plan into place to anticipate and minimize risks.

Synopsis: Given the decline in the hotel and travel industry, coupled with challenging economic times, it is essential that we adopt a risk plan that, at the very minimum, covers the following areas:

  • Strategic alliances with other travel related organizations in our area
  • Increased advertising and marketing presence
  • Cross-Training of staff to ensure coverage

References:

Casado, Matt, (1999), Housekeeping Management, Wiley.

Raza, Ivo, (2004) Heads in Beds: Hospitality and Tourism Marketing, Prentice Hall.

Tarlow, Peter, (2002), Event Risk Management and Safety, Wiley.

Wolosz, Joe, (1997), Hotel and Motel Sales, marketing and Promotion:

Strategies to Impact Revenue and Increase Occupancy, Infinite Corridor.