Description of The History of The Guest Houses

COMFORT LODGE

• Comfort lodge is a backpacker hotel which is situated in a 5 star location, right in the middle of the Central Shopping District , the “Bukit Bintang” Area where all the major shopping complexes and electronics complexes are concentrated such as Suria KLCC, Low Yat Plaza etc

• The founder of the Comfort Lodge is Mr Leong Tian Hock. The reason he started this business is because 15 years ago, there was very few number of budget hotel and Mr Leong thought that this field or business has a great potential and opportunity.

• Comfort Lodge established since the year 1999. Over the past 15 years, the business was changed, become tougher.

•Comfort Lodge opened one more branch nearby but the competitors are increasing dramatically.

TIME CAPSULE RETREAT

•Time Capsule Retreat located at in the middle of the Sungai Lembing Town.(Bandar Sungai Lembing 26200 Kuantan , Pahang , Malaysia.) •Time Capsule Retreat is founded at the year of 2014, April. •It is a space capsule like hotel.• According from Mrs Tan Siow Lan (owner’s mother): ” Mr Kelvin Young (founder of the Time Capsule Retreat) likes to travel around and he got inspired by the Capsule Hotel in Mexico. When he came back to Malaysia, he had discussed with his father, Mr Young to open a capsule theme hotel in Sungai Lembing.

Description of Location

COMFORT LODGE

VS.

TIME CAPSULE RETREAT

COMFORT LODGE• No. 65, Jln. Changkat, Bukit Bintang.

50200, KL.

• Situated 15 minutes’ walk to the KL Tower & 20 minutes’ walk to the PETRONAS Twin Tower.

• The location is 5 star. Situated right in the middle of Central Shopping District, the “Bukit Bintang” area where all the major shopping complexes are concentrated, e.g. Suria KLCC, Sungei Wang Plaza, Starhill, Times Square and Pavilion. There are also electronics specialist complexes like Imbi Plaza and Low Yat Plaza that has a wide range of electronics goods.

• China Town is also 20 minutes’ walk away and you can shop a variety of imitation goods at a fraction of the original price. A variety of food, local, Chinese, Indian, Indo, Viet, Thai, Italian, German, Brazilian, Arabian etc.

TIME CAPSULE RETREAT• Located in the middle of the Sungai

Lembing Town.(Bandar Sungai Lembing 26200 Kuantan , Pahang , Malaysia.)

• Sungai Lembing is 42km northwest of Kuantan.

• It is situated near the famous Rainbow waterfall. The hotel is located near to a tourist spot.

Comparative AnalysisCOMFORT LODGE

VS.

TIME CAPSULE RETREAT

COMFORT LODGE1. Numbers of competitors of businesses in their respective markets.

- Huge number of competitors in its respective geographical markets.(since last 5 years.)

- 13 in Tengkat Tong Shin area

- 50 to 150 in Bukit Bintang area.

- Shares around 10% in the market in Tengkat Tong Shin area. (Mr. Aaron, Personal

communication, 29/11/2014).

- Top three competitors are Tropical Guest House, Anggun Hotel and Alpha Genesis Hotel.

- Tropical Guest House is famous with its bamboo tropical build style and great hospitality and

just located next to Comfort Lodge.

- Anggun Hotel is a 4-star deluxe boutique hotel with luxury interior and exterior design.

- Alpha Genesis is a bigger hotel compare to other hotels at that area, and it provides breakfast

for guests.

1. Strategies used to compete with its competitors.

• The price of Comfort Lodge is around RM 45 – RM90 per night. [Weak Pricing power (Price taker)]

• The staff of Comfort Lodge will make sure the room is cleaned by the cleaner after the customer checked out from the room to ensure the clean and comfy environment of the hotel.

• They provide proper training for staff every one year.

• good review and high reputation from backpackers.

• Market verdict = Monopolistic competition

Time Capsule Retreat1. Numbers of competitors of businesses in their respective

markets.

- Currently they have no competitors.

 2. Strategies used to compete with its competitors.• Pricing – from RM 90 ~ RM 120 . Although, Times Capsule Retreat has no

competitors at that area, but to prevent lost, they chooses to refer others location market price.[Weak Pricing power (Price taker)] (Miss Tan Siow Lan, Personal communication, 29/11/2014).

• Cooperate with Groupon and Agoda by providing special rate during weekday.

• Advertised through social media such as Facebook and Instagram to improve its popularity. In addition, by using social media, they also provide a platform to their previous customer to share their thought and experience with others.

• Time Capsule Retreat provides a lot of services such as arrange outdoor activities and local tour.

- Hiking (Panorama Hill)

- Visit Rainbow Water Fall

- Jungle Trekking

- Market Verdict = Oligopoly

Suggestion

COMFORT LODGEVS.TIME CAPSULE RETREAT

COMFORT LODGETIME CAPSULE

RETREAT• Provide more Capsule Room Currently there are only 8 Capsule rooms

in Time Capsule Retreat and it is insufficient to the high demand from the customer, to overcome this problem we strongly recommend the owner to add more capsule room to solve the insufficiency of room.

• Provide Shuttle Bus Time Capsule Retreat is located at the

urban area, which is facing the inconvenience of public transportation. If and only if the hotel can provide the shuttle bus service then the inconvenience of transportation will be solved.

• Held more contest or event to promote the hotel

We recommend the owner to held contest and event frequently which aim to promote the hotel. For example, selfie contest; the picture with the most liked and shared on ‘FB’ can stay in the hotel without paying any money.

• Undergo Renovation To provide a brand image to the

customer. This because current building of Comfort Lodge is kind of outdated, should follow the modern trend and design to attract more customers.

Redesign the ambient inside the hotel to create a new atmosphere to the customers.

• Advertise in variety way. Comfort Lodge should advertise

more and in variety way. This is because comfort lodge located inside the deepest part of alley. Hence, they need to advertise they lodge more frequently. For example, they can create a facebook page to connect the business with the customer.