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ACKNOWLEDGEMENTS

Alhamdulillah, we would like to express our gratitude to Allah SWT for HIS abundant

generosity, providing guidance and strength during the process of completing this report. This

report may not be completed successfully without the cooperation with our team and also

members of class.

This research project may not even materialize without the guidance, from our

lecturer, Madam Wan Jooria Binti Hood.

Last but not least, our deepest appreciation to our parents, for their blessing and prayer

that we have greatly benefited. We are immensely indebted to all individuals involved,

especially our friends who have contributed towards the preparation of this report.


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ABSTRACT

Customer oriented means that completely focus on the customers wants and needs

only. It's not about making the sale, and it is not about how much commission we make. The

focus is solely on the customer. The important of customer oriented are can increase the profit

or sale, will build the long relationship with the customers. That will help greatly in the

customers realizing that both hotel are indeed focused on their needs.

Business orientation with the advent of Web business like e-business or e-commerce,

is the latest technology solution put forward to automate business activities. According to the

current definitions of business-orientation, business offer network accessible functionality

through standard, published, and discoverable interfaces. These important core characteristics

promise at least protocol (syntactic) interoperability regardless of platform, provider, and

location.

Offer by the Tune Hotel like power showers, central & convenient locations, clean

environment, and 24-hour security. While Hotel Istana offer the fully equipped Fitness

Centre, swimming pool, sauna, Jacuzzi and many others for your enjoyment.


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BACKGROUND OF THE HOTEL

Tune Hotel is another brilliant idea from its co-founder Datuk Tony Fernandes, alsothe

founder and CEO of the low cost carrier (LCC) airline Air Asia when he addressed the need

for affordable, quality accommodation in Southeast Asia. Tune Hotel.com has opened its first

flagship no-frills hotel in Kuala Lumpur at Jalan Tuanku Abdul Rahmanon 9 April 2007.

The no-frills concept hotel is the first in Asia. The hotel offered 173single and double budget,

limited service rooms. The founder of the hotel believes thereis still a big gap to be bridged

when Tune Hotel set up its chain of no-frills hotels in thecountry. Rapidly growing regional

economies, coupled with the exponential growth of LCCs, have generated an unprecedented

volume of value-based travelers.

The hotels sector is crying out for clean, safe branded budget accommodation in major

cities. The Tune Hotels.Com brand will deliver that need in destinations across Asia.

Customers can be sure of a quality sleep and shower' experience, in a clean and safe

environment, and to choose the add-on facilities. It's a really exciting concept anddeem in

looking forward to rolling it out across the region. Tune Hotels.Com claims tooffer "a five-

star sleeping experience at a one-star price", with rooms charges start fromas low as RM 9.90

for customers who book in advance through the website. While Tune Hotels will enhance its

services, it will also franchise its brand and expertise to property owners from whom it has

started to receive offers. The plan for up coming hotel locations include Kota Kinabalu

(Sabah); Burmah Road & Batu Feringghi (Penang); Miri & Kuching (Sarawak

LCCT, Sepang; Danga Bay (Johor); Kuantan (Pahang); Ipoh (Perak); Sandakan (Sabah);

Kuta, Bali (Indonesia).


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THE CORE AND SUPPLEMENTARY SERVICES OF TUNE HOTEL IN TERM

CUSTOMER- ORIENTED

From the information we had generated from variety sources, we analyzed the core

and supplementary services provided by Tune Hotel through the flower of service

model. The flower of service which is divided into two categories. The first categories named

facilitating services which includes information, order taking, billing and payment. The

second categories named as enhancing services which includes consultation, hospitality, safe

keeping and exception.

The core service provided by Tune Hotel focuses on limited service concept. The Tune

Hotel offers single and double rooms for its customers. All Tune Hotel chain willhave the

same attributes, hence the customers and travelers will know what to expecteven if they are in

a Tune Hotel in a town they have not visited before. The hotel will alsohave the same rate

structure as Air Asia which starts from RM 0.01 per night if bookings are made in advance,

special promotion and non-peak period, but the price will fluctuatefrom time to time. The

average room rates will be about RM 59.90.

In order to keep the price low, it offers none of these as part of the room charges suchas

television or radio, refrigerator or mini bar, towels, soap or shampoo, private telephoneline,

wardrobes, coffee table or chair, gymnasiums, swimming pools, breakfast and carparking

area.However, Tune Hotel provides the add-ons core amenities and facilities that are

charged separately such as air-conditioning, toiletries amenities and towels but will be

refunded when the item had been returned, lockers for rent for luggage storage and wireless

surfing (Wi-fi).


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a) Facilitating services

# Information

To consider the importance of this aspect in term of giving customer saccurate

information, Tune Hotel has its own official website that would enable thecustomers

to be easily attached to the information without any difficulty. Besides,customers will

also stand a chance to mock-up the room in the Tune Hotel throughthe official website

of Tune Hotel. The information provided by the official websiteis accurate, timely and

reliable. Customers also can easily get the information fromthe front-staff through call

or walk-in to the hotel.

# Order taking

ForTune Hotel, the advance booking system took place under the order taking

process.Customers can make a room reservation by online booking through the

officialwebsite in advance of 3 months maximum. Therefore, customers would

experience an easy, safe and efficient booking procedure.

# Billing

For Tune Hotel, the billing service is provided in detailed and accurately.

# Payment

After we had spent a night, we made our way out of the building which requires us

tosettle the payment. Therefore, this is also one of the important steps to a business

and customers as well. For Tune Hotel, the payment can be made through Credit

card,credit transfer, cheque and cash.


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b) Enhancing services

# Consultation

Consultation involves a dialog to probe customer requirements and then develop

atailored solution. An effective consultation requires an understanding of each

customers current situation. In the Tune Hotel, the front line staffs p

importantroles as a consultant to the customers. If customers face any difficulties or

problem, they may just approach the front-line well trained staff to ask for help.

# Hospitality

Tune Hotel is a limited services concept hotel. Therefore, not everything will be

provided. However, the hotel provides some of the hospitality-related services such as

a charming greeting; clean toilets and washrooms in the lobby; comfortable waiting

area and seating; air-conditioned environment; magazines; security; internet access

room; money changer kiosk; automated teller machine (ATM), 5 star bed, power

shower, clean and fresh environment, 24 hours convenience shop, F&B outlet, cafe

and money changer kiosk.

# Safekeeping

Tune Hotel stress on its customers safety and enhance its security level. Therefore,

asecure keylock system, 47 CCTV cameras are located throughout the hotel with

24hours surveillance. Besides, the hotel also provides a space for customers to

keeptheir luggage.

# Exception

Exception involves supplementary services that fall outside the routine of

normalservice delivery. Tune Hotel always handles customers exception in a positive

wayand in a good manner. The staff deserved a good acknowledgement.


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CUSTOMER-ORIENTATION

Looking at the customer orientation of the Tune Hotel we can see the hotel provide the

service to the customers more close and effect the relationship each other tightly. Tune hotel

is the one of the premier in budget hotel industry. These advertisements show that their

priority is to inform the customer about their special price. The message is clearly defined to

the customers. Thus, the objective is reached.

A customer orientation tends to facilitate differentiation in a market. The strategy is to

gather information from and about the Tune Hotels customers, which is then disseminated

throughout the firm to enable it to appeal to as many customer segments in its market as

possible. As we have noted, we therefore formulated our hypotheses to reflect two sets of

environmental differences, by looking at the market's stage of economic development,

resource availability, and how demanding customers are and then considering these factors at

three levels of economic activity, namely, at the country, local, and consumer levels.

The limited service model used by Tune Hotels.com is similar to the no frills business

model practiced by low-cost carriers such as Air Asia and has been adapted to the hospitality

industry. In term a customer orientation, the hotel focuses on acquisition, satisfaction, and

retention of customers. In contrast, the competitor orientation focuses on monitoring,

managing, and outflanking competitors. An important factor to consider is known as customer

demandingness, which also is best met with a customer orientation. Oddly, a competitor

orientation did not have a negative effect when customer demandingness was high. It is

suitable when the hotel provide the promotion in aspect of low price charge and affordable.

The customer will get the opportunities to get the higher satisfaction and positive expectation

in order to be a loyal customer for the future.
http://www.entrepreneur.com/tradejournals/article/193406676.htmlhttp://en.wikipedia.org/wiki/No_frillshttp://en.wikipedia.org/wiki/Low-cost_carriershttp://en.wikipedia.org/wiki/No_frillshttp://en.wikipedia.org/wiki/Low-cost_carriershttp://www.entrepreneur.com/tradejournals/article/193406676.html


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Besides, the service of Tune Hotel in order taking that we can look are applications, orders

and reservations come into play once the customers decided torrent a room. The process of

order taking must be fast, polite and accurately so that customers do not waste time and

endure unnecessary mental or physical effort. Which is we can see the hotel take a important

things to give their best service that can fulfils the customers satisfaction.


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HOTELS STRATEGY

The marketing strategy implemented by Tune Hotel

To capture the distinctive nature of service performance, the original terminology of 4Ps

(product, place and time, price and other user outlays, and promotion and education) in

marketing mix had been modified and extended the mixture by adding four otherelements

associated with service delivery which includes the physical environment,process, people and

productivity and quality. These eight elements are referred to as 8Ps.

a) Product / service element

Tune Hotel provides services which orientated to the concept of no frill. The details of the

core and supplementary services provided in Tune Hotel had been discussed in core and

supplementary services part.

b) Place and time

Tune Hotel Kuala Lumpur is situated at the central of Kuala Lumpur in Jalan Tuanku Abdul

Rahman and it is easily assessable by LRT and buses. Its also not far away from popular

spot, major shopping and entertainment areas. The check-in time is 2 pm and the check-out

time is 12 pm.

c) Pricing strategy

The pricing strategy applied by Tune Hotel is in the range of RM0.01 toRM99.90. The price

will vary in peak season, promotion period and advancebooking period. Under the advance

booking system, customers will get cheaperprice if booking made in advance and the rate will

be different from time to timedepending on the period. However, the taxation is excluded in

the range of priceof RM0.01 to RM99, 90. The actual prices paid by the customers are core

price plus 5% government tax and 10% service tax. The pricing strategy applied in Tune

Hotel is the same as Air Asia Airline.


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d) Promotion and education

Promotion plays a vital role in marketing. Promotion plays a role in providingneeded

information and advice; persuading target customers and encourages thecustomers to take

action at the specific time. Tune Hotel runs the promotionthrough the advertisement in the Air

Asia Airline official website, newsletter,newspapers and in the official website of Tune Hotel.

e) Physical environment

The physical environment includes the appearance of buildings, landscaping,vehicles, interior

furnishing, equipment, staff members uniforms, signs, printedmaterials, and other visible

cues where all provide tangible evidence of a firmservice quality. Service firms need to

manage physical evidence carefully, because it can have a profound impact on customers

impression. Tune Hotel stresses on the clean, beautiful and comfortable physical environment.

From the lobby to the rooms, the environment in Tune Hotel is clean. Besides, the hand

crafted gallery design along the wall of the corridor and the room instilled a sense of

relaxation to the customers. The overall building in Tune Hotel is comfortable.

f) Process

Creating and delivering product element require designation and implementation of effective

processes. Customers are often actively involved in these processes. Badly designed processes

will lead to slow, bureaucratic, and ineffective servicedelivery, wasted time and

disappointing experience

g) People

According to Safuan Ghazali- Head of Training, the total number of staffs in thehotel is 11

people which include the front-line staff and security guards. All theemployees in the hotel

are trained in term of providing better services to thecustomers because they represent the

hotels image. However, the strongmanagement teams consist of 22 expertises. Thus, all the

employees reflect the core asset and sole determinant to the success of the company.


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h) Productivity and quality

Improving productivity is essential to any strategy for reducing cost. Improvingquality is

essential for service differentiation and for building customersatisfaction and loyalty. Tune

Hotel uses the outsourcing strategy to save theoperation cost and to improve the productivity

of the hotel. After the interview session, we found that our earlier perception towards low

price equal to lowquality in Tune Hotel is wrong in this manner. In fact, although the price is

low but the quality of the services can be compared with other budget hotels.

.


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THE CORE AND SUPPLEMENTARY SERVICES OF ISTANA HOTEL IN TERM

BUSINESS- ORIENTED

The hotel offers 515 guestrooms and suites and we can choose any of the Superior,

Deluxe, and Executive Suite. The best feature of the Room Facilities at Hotel Istana in Kuala

Lumpur is the Club Floor. Here we will find both Club Rooms and Club Suites and can

choose to stay anywhere that suits we style. The State Suites of the hotel can be said to be the

ultimate in elegance and luxury. We can also choose to stay at the Japanese Floor. All the

rooms of the hotel are decorated in typical Asian style with the tapestries matching the bed

linen and well-maintained furniture. In the suites you get a open lounge in addition where we

can relax and from every room we get an excellent view of the Kuala Lumpur skyline.

The best rooms in the Istana Hotel in Malaysia are the elegantly decorated State

Rooms. All the four rooms- Malaysian, Monarch, Presidential and Mahkota are painted in

different colors and decorated following four different themes. In these rooms we will find a

kitchenette, living area and a private Jacuzzi bath. From the rooms we can have a wonderful

view of the city. As a guest of any of the State Rooms you can enjoy the facilities of the Club

Lounge at the 20th floor. Two important features of the Room Facilities at Hotel Istana in

Kuala Lumpur are the presence of an executive writing table and chair in each room and

extension of the telephone line in the bathroom also.

Among the other Room Facilities at Hotel Istana at Kuala Lumpur we find a full length

mirror and a shaving mirror in the room. Iron and ironing board are also provided in the room.

We will always find the mini bar well stocked with reputed brand of liquor and snacks. We

can talk to our family and friends from our own room and even from the bathroom through

the help of the telephone with IDD facility provided in each room.


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a) Superior Room

Hotel Istana's Superior Rooms begin at the third to the eighteen floors, equipped with a

king-size or twin bed and other standard amenities.

b) Deluxe

Hotel Istana's Deluxe Rooms begin at the third to the eighteen floors. It is the newly

refurbished rooms, equipped with a king-size or twin bed and including other standard

amenities.

c) Executive Suite

The Executive Suites located from the eleven to eighteen floors, all designed with the

business traveller in mind. The Premier Rooms has attached parlour. The spacious

guestrooms complete with standard facilities and amenities.

BUSINESS ORIENTATION

Istana Hotel focus on business orientation which are not refer to customer oriented. So

Istana Hotel offer a lot of meeting and discussion place for the businessman meet their client

comfortable. Hotel Istana offers comprehensive banquet and meeting facilities, backed by

experienced event planners and a professionally-trained service team. The Hotel Istana have

meeting rooms of variable sizes, Hotel Istana is the preferred location for conventions,

corporate meetings, government events, product launches and private celebrations.

Hotel Istana also providing guests with computer workstations offering high-speed

internet access, facsimile machines and printers. All of Hotel Istanas convention and


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meeting rooms are complemented with high-speed broadband internet access, modern audio-

visual aids including simultaneous translation equipment. WiFi zones are conveniently

located at foyer areas. Hotel Istana Kuala Lumpur will reposition itself as a business class

hotel on completion of its RM25mil renovation and refurbishment by next month.

The exercise, which began in October last year, would allow the hotel to set more

competitive rates and expand its market segments and allows to spread little bit more and the

future of Hotel Istana is more open and the next year is a new era for us as competition

becomes highly fierce. To increase guests from the leisure segment, Hotel Istana's strategy is

to broaden its range by attracting travellers from countries that are relatively new to the hotel.

HOTELS STRATEGY

The Istana Hotel determined way and use all avenues ranging from e-marketing

promotions, and better representation abroad to offering good packages from our marketing

side. The new ideas and concepts must fit into the majesty of a very well known name. Hotel

Istana must return to its regal association, present itself in an interesting way and stay close to

its Malay heritage.

Renovation at the lobby and coffee house has been completed. Hotel Istana will also

introduce two new restaurants serving North Indian and modern Australian cuisine to replace

a nightclub and Italian restaurant respectively. The Istana Hotel have comp

refurbishment on 217 rooms, by turning them into modern stylised rooms and make

renovation on another 242 room. (Oneill, 2011). The hotel average occupancy rate had been

consistently in the mid-50% for some time but he expected that to improve after the

renovation.


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The Istana Hotel focus in five strategies, it is :

a) Value

This was an excellent value for money the rooms were lovely (including the

bathrooms) and rather clean and the room service was just superb with very reasonable

prices. Istana hotel also offered the great buffet breakfast restaurant at all times for

their guests. Furthermore The Istana Hotel will offered five-star service for very good

value indeed. Overall Istana Hotel was fairly good value for money based on guests

testimonial.

b) Rooms

The Istana Hotel Featuring 505 well appointed guestrooms fitted with modern

amenities, this Kuala Lumpur hotel provides comfortable and luxurious

accommodation in Kuala Lumpur. Facilities include:

Broadband internet connectivity

Room amenities include bathrobes, slippers and lcal newspaper

Remote-controlled TV with movie channels

Radio with five channels and piped-in music with bedside controls

Complimentary coffee/tea-making facilities

Executive writing table and chair

International direct-dial telephones with bathroom extension

Voice-mail system


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Electronic room keycard

In-room electronic personal safe-box

Well-stocked mini-bar

The rooms were comfortable, modern, well equipped and the bathroom was modern,

very spacious and clean and soundproof. Hotel Istana very particular on their

housekeeping staff service to make sure all of work very efficient to bring comfortable

to the guest. Example the guests only had to wait a matter of minutes when requesting

extra towels, iron, etc.

c) Location

Hotel Istana in Kuala Lumpur is a famous name among the 5 Star Hotels in Kuala

Lumpur. The Location of Hotel Istana in Kuala Lumpur is at the corner of the Jalan

Raja Chulan very close to the business and commercial center of Kuala Lumpur.The

Hotel Istana is strategically located within Kuala Lumpurs main Golden Triangle

business and commercial centre. It is also within walking distance to the Bintang Walk

shopping and entertainment hub, the Kuala Lumpur Convention Centre, iconic

landmarks such as the Petronas Twin Towers and the Kuala Lumpur Tower and the

nearby Chinatown (all within walking distance) while the Kuala Lumpur International

Airport (KLIA) is only an hours drive away.

From the Location of Hotel Istana at Kuala Lumpur, the other places you can visit by

walking are the KL Convention Center, Suria KLCC shopping center, Bintang Walk, a

shopping and entertainment area.


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d) Hotel conditions

In each room we get air-conditioning system which can be controlled by the occupants

of the room. To let you access your email without any disturbance broadband internet

connectivity is included among the Room Facilities at Hotel Istana in Kuala Lumpur.

Entertainment need is taken care of by the 29" flat-screen television where you get

various satellite channels as well as in house movie channels.

If we want to rest our eyes but still want to get the news and listen to music then can

switch on the radio with 5 channels placed in the bedside table. Tea/coffee maker with

tea bags and coffee pouches are provided in each room. Our safeguard is ensured by

the electronic room keycard.

The details of the Room Facilities at Hotel Istana of Kuala Lumpur in Malaysia also

show that in the attached bathroom of the rooms you have a long bath with separate

shower area. The toiletries are modern and luxurious. We can get 24 hour running hot

and cold water. Our valuables are kept safely in the electronic personal safe box

provided in each room. A hairdryer and a shaving adaptor are regular features of each

room.

d) Staff Performance

The Hotel Istana focuses on the quality of service and attentiveness from the staff.

The staff and in particular, management were extremely friendly, very accommodating

and professional. From the friendly greeting as we walked into the lobby our stay in

the Istana was a delight. The staff were attentive, but not overly so and extremely

helpful.


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e) Sleep Quality:

The Hotel Istana wants their guests to feel like a King. With offering the fantastic

palace with great service, spacious rooms and fabulous food will make the guest so

comfortable with their days and always a pleasure to stay. Tastefully decorated with

warm earthy colours and decorated with traditional fabric accessories and ideal for

corporate and leisure travellers.


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CONCLUSION


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APPENDIX

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