Introduction

The hospitality industry is experiencing a boom across the world. Bangladesh is not an

exception. A plethora of new hotels have opened in Dhaka, Chittagong, and other important

places. The Five star hotel industry is also rising vary first as new five star brands known

worldwide are showing interest in the up coming hotel industry. Four five star brands are

operating in the country and some others are about to come within next few years. The

competition is very hard and going to be extremely intensive. Dhaka Sheraton has been

operating in the city since 1985, Pan Pacific Sonargaon has celebrated its 26th anniversary in

the year 2007, Radisson Water Garden Hotel has started its journey in 2006. The newest five

star hotel is “The Westin” which has started operation form 2007. Thus the first five star

hotel Dhaka Sheraton lost its leading position as well the monopoly business. More new

hotels are about to come. In the year 2007 global tourism increases by higher than expected.

According to the UNWTO World Tourism Barometer, from January to April 2007

international tourist arrivals worldwide rose by over 6%. The Asia & pacific region achieved

the highest growth which is 9%.1 Responding to the huge growth, many hotels are to be

opened in the region. From a review the estimation revealed is, 18 new hotels will be opened

in 2008, 24 in 2009 and 35 in 2010. It is very clear that the competition is getting harder. To

deal with the completion and to be in the leading position, the hotels must try to give their

best services to the guests. Now Radisson Water Garden Hotel is the market leader & doing

an excellent job.

According to sources, every year 5,000 foreign tourists visit Bangladesh who spend $1,000

each during their visit while around 0.2 million foreigners come to Bangladesh for business

or other purposes. The number of business travelers is eyeing a double-digit growth.2 As

tour operators are now quite organized with many of them having their own hotels,

restaurants, ships and buses to provide quality services to the travelers, the travel industry is

now growing by around 30 percent a year, according to Tour Operators Association of

Bangladesh (TOAB).3 In this report the performance of Dhaka Sheraton is evaluated in

comparison with the other five star hotels in Bangladesh. The present position of the hotel is

revealed by analyzing the RevPar, occupancy rate, revenue and the ADR.

1 ‘The Bangladesh Monitor’, Volume XVII, Issue no 2, September 1-15, 2007. Page 12 http://www.skyscrapercity.com, page 153 http://www.skyscrapercity.com, page 13

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Statement of Problem:

The problem is to determine the present situation of Dhaka Sheraton Hotel in the highly

competitive market in comparison with the other five star hotels operation in the market. To

mull over on this matter the following sub problems came into focus:

a) Setting some certain parameters.

b) Knowing and understanding the facts that affects the hotel business.

c) Comparing among the five star hotels operating in the industry.

Scope of the Study

This internship report covers the activities performed by the Sales and Marketing

Department of Dhaka Sheraton Hotel such as dealing with customers, maintaining

relationship with customers, making phone calls and answering the quarries, arranging

functions of various types, arranging marketing & promotional activities etc. Besides this,

the report will help in finding problems in the total service process and will provide some

suggestions for possible solutions for Dhaka Sheraton Hotel.

Objective of the Study

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The precise objectives of the internship report are highlighted as follows:

To draw a vivid picture of the present state of Dhaka Sheraton by analyzing their

synchronous condition in the current perspective

To represent the trend of five star hotel industry in Bangladesh.

To cover an extensive analysis of the activities of the hotels indicating the steps

taken to improve the quality of services to stay in the competition.

To study the various services, foods and other unique facilities offered by the

Hotel to its customers.

To show the strengths, weaknesses, opportunities and threats of Dhaka Sheraton

Hotel.

To determine the current position of Dhaka Sheraton Hotel in the competitive

market.

Methodology of the Study

Hospitality Industry is one of the most dynamic, profitable and challenging industries in

Bangladesh. In this report I have tried to sketch a vivid picture of the leading five star hotels

of Bangladesh on the basis of their overall performance. The current trend of the hotels is to

build up the Brand Image apart from others. For tailoring this paper, data has been collected

mainly from Dhaka Sheraton. To fabricate the report both primary and secondary data is

used. Primary data are collected from the hotel authority. The primary sources consist

mainly of personal observation and records during the attachment period and secondary data

are collected from hotel’s publications, newspapers, journals, Sheraton’s quarterly magazine

etc. Interviews with the corresponding personnel of various departments helped to

conceptualize various important matters. The area under consideration is the five star hotel

industry as well as the overall hotel industry in Bangladesh. The data are collected by direct

conversation with the hotel authority. Data about the other competitor hotels were collected

from the same hotel as the hotels used to share their position after every operating day. The

accumulated data are scrutinized and processed through various relevant statistical methods.

The data are analyzed and presented through several graphs and comparisons are made 3

among the hotels. The deviation in quality & performance and the reasons behind the

deviations are determined. On the basis of the analysis of the internal strength and weakness

with consideration of the external threat and opportunities, some suggestions are made to

improve the company’s overall performance.

Limitations:

The competitor hotels did not provide any sort of information.

The comparisons are made only on the basis of room revenue, because information

about the banquet revenue is highly confidential.

One major limitation was the time constraint.

Some essential data could not be gathered because of confidentiality concerns.

Lack of information about the competitor’s strategies.

2.1 Hospitality Industry

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Hospitality refers to the relationship process between a guest and a host, and it also refers to

the act or practice of being hospitable, that is, the reception and entertainment of guests,

visitors, or strangers, with liberality and goodwill.

Hospitality industry is a huge term. It does not only include hotels but restaurants and others.

It is entwined in our daily life-grabbing a sandwich for lunch, stopping off for a coffee or

drinks with friends, staying at a hotel, going to the cinema or theatre, school meals, eating at

a canteen in work, catching a bus, motor-way service stations and the list goes on and on.

For an in depth understanding of the term of hospitality, the starting point is the etymology

of the word itself. The word hospitality derives from the Latin hospes, which is formed from

hostis, which originally meant a 'stranger' and came to take on the meaning of the enemy or

'hostile stranger' (hostilis) + pets (polis, poles, potentia) to have power. Furthermore, the

word hostire means equilize/compensate.1

In Bangladesh hospitality mainly refers to the hotel industry. A hotel is an establishment

that provides paid lodging, usually on a short-term basis. Hotels often provide a number of

additional guest services such as a restaurant, a swimming pool or childcare. Hotels have

conference services and meeting rooms and encourage groups to hold convention and

Meetings at their location.

The word hotel derives from the French hotel, which referred to a French version of a

townhouse or any other building seeing frequent visitors, not a place offering

accommodation.

The hospitality sector is experiencing a boost due to higher levels of disposable income and

leisure time and the falling cost of air travel. The hospitality industry is more focused on

those factors that they have control over and the vast majority of hospitality providers also

report aiming to boost profitability through customer loyalty.

According to a survey performed by UNWTO, among 1000 people more than 50 percent of

the respondents cited a hotel brand’s ‘global presence’ as a contributing factor when

selecting a hotel loyalty or frequent guest program.2

A hotel’s major portion of the revenue comes from room business which is their main

purpose. Revenue from food and beverages is almost as high as that from accommodation.

1 http://www.hotelmanagement-network.com/industry/2 ‘The Bangladesh Monitor’, Volume XVII, Issue no 2, September 1-15, 2007. Page 1

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Hoteliers can generate additional revenue when visitors spend money in their restaurant, spa

or bar, and this has enabled hotels to offer special rates or promotions to fill nights that

typically generate lower occupancy rates.

However, competing on price alone is increasingly difficult and many hospitality businesses

are now attempting to sell the 'experience' in a bid to attract both new and repeat business. A

reported seven out of ten hotels and restaurants were keen to be seen as innovative and

stylish. The industry's heritage was built on efficient service, but innovation, style and

offering a premium experience are increasingly important brand drivers. Hotels once aspired

to be as comfortable as someone's home. Now guests are looking to make their homes as

stylish as the hotels they stay in, which is a reflection on how successful the industry has

been in creating outstanding experiences.

San Amalan, General Manager of Westin Dhaka said that the economy of Bangladesh is

growing with people having more purchasing power. “Looking at the economy of

Bangladesh, it can be said that it will get better and better,” he said and added that there is

indeed need for top quality hotel in Bangladesh.” With the growth of hospitality industry

and increase in the availability of quality hotel accommodation, tourism sector is also

expected improve. Amalan expressed the hope while talking to The Bangladesh Monitor

about the opening of the Westin Dhaka.3

An approximate picture of the present situation is that the average growth of arrivals to

Bangladesh at 15 per cent (the average growth in 2003 and 2004) needed an increase of

more than 3500 rooms every year. China has registered 43 per cent growth in tourism. If

only one per cent decide to visit Bangladesh (granted Approved Destination Status by

China), Dhaka will need 10 more hotels.4

2.2 Hotel Markets and some useful terms

3 ‘The Bangladesh Monitor’, Volume XVI, Issue no 20, June 1-15, 2007. Page 12

4 http://colorsofbangladesh.com/index.php6

In order to understand the Hotel market and the position of the hotel in the industry some

terms are used. These terms explain the hotel markets and explicate the hotel’s position in

the competition. The terms are:

Market Share

Market Penetration

RevPar

ADR (Average Daily Room rate)

2.2.1 Market Share

Market Share is the number of rooms in a hotel as percentage of the rooms in the hotel’s

competitive market set. Market set is the total number of rooms the hotel is in direct

competition with within its area’s market or segment.

For example, assume that a ‘hotel A’ is a full service hotel with 500 rooms. Its market

set includes other full service hotels. The market set would not include high end hotel or

low end hotels of the market segment of limited service.

Thus, if the market set of ‘hotel A’ has 2000 rooms, the market share of ‘hotel A’ is

calculated by dividing the Total rooms of ‘hotel A’ (500) by the total market set (2000)

which is 25%.

The market share changes when any one leaves the market or a new one enters the

markets. Generally, he larger the market share, the better player the hotel is in the

market.

2.2.2 Market Penetration

Market penetration is the percentage of demand for rooms actually accruing to a hotel. It

is calculated as the ratio between the total rooms occupied in a hotel against the total

rooms occupies collectively attributed to the hotel’s Market set. Market penetrations

calculated by dividing the number of actually occupied rooms divided by the number of

rooms to be occupied in the fair market.

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2.2.3 RevPar

RevPar stands for ‘revenue par available room’. It is one of the most important

performance metric in the hotel industry. RevPar is typically calculated by multiplying

the hotel’s average daily room rate (ADR) by its occupancy rate. It may also be

calculated by dividing the hotel’s total guest rooms revenue by the guest room count and

the number of days in the period being measured. RevPar is the revenue of a hotel only

from rooms. It does not take into account revenue from other hotel services such as

restaurants, tennis courts, bar and other services. While calculating the RevPar the

complementary rooms are also taken into account.

For example, suppose ‘Hotel A’ has 400 rooms of three types of rooms such as X, Y, Z

and the rents are $200, $400 & $600 respectively. During a period of time the hotel sold

200, 100 & 50 rooms respectively of X, Y & Z type. So the calculation of RevPar is

Table 1: Calculation of RevPar

Room type Room rate No. of rooms sold Room revenue

X $ 200 200 $ 40000

Y $ 400 100 $ 40000

Z $ 600 50 $ 30000

Total rooms sold 350 $ 110000

So the RevPar of the hotel for that particular period is ($ 110000 / 400 rooms)

= $ 275

2.2.3 ADR

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ADR stands for ‘Average Daily room Rate’. It is considered as a hotel’s base

measurement of success. ADR is calculated by dividing total rooms revenue by total

occupied rooms. If the previous example is considered, the ADR will be $ 314

( $110000/ 350 rooms).

These four terms are the indicators about a hotel’s performance. The ADR, RevPar

reveals the position of a hotel in the industry. Usually Hotel’s are ranked within an

industry according to its position of RevPar.

2.3 Porter’s Competitive Forces Model:

According to Michael Porter a firm faces a number of external threats & opportunities. These are:

a) The threat of new entrants into its market

b) The pressure from substitute products or services

c) The bargaining power of customers

d) The bargaining power of suppliers

e) The positioning of industry competitors.

He developed a model which is known as competitive forces model 5 (Michael Porter,

1985). According to the model competitive advantage can be achieved by enhancing the

firm’s ability to deal with customers, suppliers, substitute products & services, and new

entrants to its market.

This model is used to describe the interactions of external influences specifically threats and

opportunities that affect an organization’s strategy and ability to compete.

3.1 Background

5 Laudon Kenneth C. ‘Management Information Systems’ 8th edition9

Sheraton is world’s largest chain hotel. The origins of Sheraton date back to 1937. The

founders, Ernest Henderson and Robert Moore, acquired their first hotel in Springfield,

Massachusetts and the company started its journey. Within two years, they purchased three

hotels in Boston. One of the hotels was “Sheraton”. The rooftop sign of the hotel was so nice

that Mr. Ernest Henderson and Mr. Robert Moore decided to keep that sign as trademark and

from then the name ‘Sheraton’ formally born. Soon the founders expanded their holdings to

include properties from Maine to Florida. At the end of its first decade, Sheraton had proven

so popular and had become a relied-upon brand to be the first hotel chain to be listed on the

New York Stock Exchange.

Sheraton expanded internationally in 1949 with the purchase of two Canadian hotel chains

and grew rapidly around the world. In 1960s the first Sheraton hotels in Latin America and

the Middle East was established and, by 1965, the 100th Sheraton opened its doors. Sheraton

reached a milestone in 1985 as the first international hotel chain to operate a hotel in the

People's Republic of China. International Telephone & Telegraph (ITT) of New York,

America, formally owned Sheraton. In 1998 Starwood Hotels & Resorts Worldwide Inc.

bought Sheraton from ITT and since then Sheraton has been the largest brand owned by the

Starwood Hotels & Resorts Worldwide Inc.

Presently there are more than 450 Sheraton Hotels in the world. Sheraton operates its

business managed by five divisions of Sheraton Hotel Corporation all over the world having

its head office in Boston, America.

3.2 Starwood Hotels & Resorts Worldwide Inc.

Starwood Hotels & Resorts Worldwide Inc. is one of the leading hotel & leisure companies

in the world with approximately more than 860 properties in more than 95 countries at its

owned & managed properties. Starwood hotels are a fully integrated owner, operator &

franchiser of hotels and resorts with ten internationally renowned brands. Starwood's brands

include Sheraton Hotels & Resorts, Four Points by Sheraton Hotels, St. Regis Hotels &

Resorts, The Luxury Collection, Le Méridien, W Hotels, elements, Aloft, bliss and Westin

Hotels & Resorts. Starwood Hotels also own Starwood Vacation Ownership, Inc., one of the

premier developers and operators of high quality vacation interval ownership resorts.10

3.3 Dhaka Sheraton Hotel:

The main building of the Hotel was constructed by Pakistan Services Limited in 1966.

From then, till 1984 the Hotel was managed by Hotel Intercontinental. After the

independence Bangladesh Services Limited (BSL), a government body took over the

ownership. Since 1985 Starwood has been managing the hotel with its brand Sheraton.

Dhaka Sheraton Hotel is the first global branded Five Star hotel in Dhaka. For many years it

has been recognized as a quality venue for business and leisure travelers as well as a great

meeting place for local people having a world class standard with devotion to guest

satisfaction.

3.4 The core values of Sheraton

The core values of Sheraton are being Warm, comforting and making connections.

Warm

Traveling sometimes feels cold and impersonal but arriving at Sheraton makes it warm. The

Sheraton members make one to feel welcome, because they know how to listen and they

care. Guests matter.

Comforting

Sheraton gives the guests the opportunity to be themselves. Arriving at Sheraton makes

one not only see but also feel the comfort all around the world. The Sheraton members greet

and immediately make the guests feel at ease.

Connection

Sheraton helps guests connect to what matters most to them. The members connect with the

guests as a person, so they fell welcome- like they belong here. Sheraton helps guests to stay

in touch with what’s important to them so they can feel in control- not anxious or absent.

Sheraton makes the guests to feel human again.

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The business of Sheraton is no longer about selling rooms and their features but more about

selling experiences, memories, lifestyle and a brand, with people and service culture.

Hospitality is all about love, care, warmth and empathy- the more the better. It’s not just

about providing good food, drinks and a nice room. It includes understanding the needs of

the guests. At Sheraton the guests feel special because they understands the guests needs,

wants, expectations and emotions. Every guests of Dhaka Sheraton Hotel feel a warm and

welcoming connection and a sense of comfort and belonging.

3.5 Overview of the Hotel:

Standing majestically in the city’s most prestigious location, lush surrounding of the city’s

premier park Ramna, Dhaka Sheraton Hotel distinguishes itself as the pre-eminent place to

stay in Dhaka. Dhaka Sheraton is a chain hotel of world famous Starwood Hotels and

Resorts Worldwide, Inc. (NYSC:HOT), which has more than 860 hotels and resorts

worldwide. Only 16 Kilometer from the international airport in Dhaka, the location of hotel

is one of the best places from where to explore the city’s main business districts. The main

Business location is only 3 km away. The location is becoming more convenient as many

new shopping centers and departmental stores are being developed in close vicinity of the

hotel.

The Lobby /Entrance

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A stay with Dhaka

Sheraton is an

“Experience” – an

experience that is

Adventurous, Happening,

Soul-jogging, Spirit

lifting……

SHERATON

The difference of the amazing works of artistic treasures can be felt at the moment of

entering the graceful lobby. At the very first step, the enormous chandelier (which has a

historical significant) at the entrance greets the guests with its rich heritage. The “WOW”

factor greets guests on arrival! From the moment guests steps inside the doors they cannot

help but be impressed by the modern, elegant ambiance of the surroundings. The atrium

style lobby features two glass encased panoramic lifts to the new Executive Rooms and a

beautiful glittering chandelier hanging from a very exciting and freshly colored glass dome

above. This new architectural look is a sign of modern décor interspersed with some

traditional flavor.

The hotel lobby also provides an artistic whose work of arts provides connoisseur a food for

thought and the helpless children of Bangladesh a reason for existence. The proceeds from

the painting are given to UNICEF’s Save the Children Fund. A café is attached with the

lobby to meet the needs of the guests. The Hotel lobby has a Tourist Info touch screen

Kiosk. This Kiosk 24 hour e-lobby provides information support to the guests of Dhaka

Sheraton Hotel.

3.6 Guest Rooms and Amenities:

The Hotel has different categories of rooms to cater to the requirements of the guests.

Having 272 rooms Dhaka Sheraton Hotel has categorized different type of floors & rooms

for different segment as like as Executive Club Floor, Starwood Preferred Guest Floor,

smoking & non-smoking room, junior suite, executive suite, deluxe suite, presidential suite

etc. The rooms are exquisitely appointed to meet the needs and tastes of guests. The

different categories of rooms of the Hotel are as follows:

The Executive Club Floor’ of Dhaka Sheraton Hotel offers distinguished service in and

ambience of refined sophistication plus a host of amenities. It gives the experience of a

unique ‘hotel within the hotel’. Executive Club Floor Rooms are situated at the West Wing

on the 5th, 6th & 7th floors. The Club Floor Lounge on the 7th offer unparalleled luxury with

an inviting, intimate atmosphere where the dedicated attendants take care of guests’ needs.

The private lounge has been designed with only one purpose in mind to offer guests

luxurious oasis of peace and relaxation.

Table 2: Room Category13

Room Category No. of Rooms

Presidential Suite 7

Star Suite 5

Executive Suite 7

Junior Suite 15

Executive club floor 28

Premium Deluxe Room 20

Deluxe Room 190

Total 272

Fig: 1: Different types of rooms.

In the Executive Club Floor the facilities that one can take for granted are

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complementary continental breakfast,

complementary tea/coffee with assorted cookies,

complementary snacks during the lunch time,

complementary laundry and shoe shine,

late check-out till 4.00 PM, deluxe fruit basket,

complementary in-room tea/coffee making facilities,

In-room safety

A variety of international & local newspapers and magazines

Complimentary local calls & Facsimile services

E-mail & Internet facilities etc. The Club Floor has an exclusive executive lounge for

all the business needs. It offers the best.

Dhaka Sheraton Hotel has introduced Specialty Floors on the 10 th & 11th Floors of its East

Wing. It’s the first of its kind in Bangladesh. A relaxing Specialty Lounge is opened in

March 2007 on the 11th floor for all of the Starwood Preferred Guest (SPG) members. It

provides excellent value for membership with a comfortable lounge, wireless access, LAN

Connection, TV, bottomless tea coffee and cookies throughout the day and a 20% discount

on the Business Center. It also offers a happy hour where all drinks are available at 50% off

normal price.

The rooms of Dhaka Sheraton Hotel features a host of amenities, which include

International Direct Dialing (IDD) phone, in-room safe, in-room tea/coffee making facilities,

Mini Bar, fresh fruits, imported mineral water, television with remote control, satellite

channels which include 27 local & international channels, complementary daily news paper,

writing desk, hair dryers, laundry & dry cleaning facilities, electronic safety deposit box,

internet connection, bathrobes and slippers, iron and ironing board, non-smoking floors etc.

The hotel was the first in the country to introduce the most modern technology of room

locking system the electronic card system in every guest room. All the time there is a

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medical service for the guests. All the rooms of Dhaka Sheraton Hotel are equipped with

smoke detectors and automatic fire sprinkler system. The supplied water is pathologically

proven and free from all sorts of bacteria and arsenic.

Other facilities of Dhaka Sheraton Hotel also includes a new below ground car-parking

facility for 120 vehicles, a new central air-conditioning system, and modern state of the art

telephone system complete with voice mail, automatic wake up call and direct touch dialing

to departments throughout the hotel.

3.7 Dining & Entertainment facilities:

Dhaka Sheraton Hotel has a wide range of dining experiences along with some fabulous

dining venues.

Restaurants

Dhaka Sheraton Hotel boats with its haute cuisine. A Dinner or Lunch is always special and

when it happens at Sheraton, it becomes simply superb. Traditionally Sheraton has a rich

culture of serving delicious food items at its various restaurants. Sheraton’s rich taste is

reflected in the mixture of the ingredients and special blends of spices that is used to make

the savory dishes burst with flavors. The hotels renowned Chefs, for their repertoire of the

innovation cuisines are very popular in the town. The range of available and eaten at

Sheraton is really diverse. One can eat high-quality specialty food from around the world at

Dhaka Sheraton. Sheraton has the following restaurants to satisfy the guests.

The Vintage Restaurant

The Vintage Restaurant of Dhaka Sheraton is a Premiere Prestige Restaurant with three

course of meal. It is renowned for its pomp and grandeur and its reputation of being the most

sophisticated restaurant to dine. The Vintage Restaurant offers a semi-formal dining

experience, serves a selection of imported beef, game, poultry and seafood with quality

wines to compliment. It has an aura of the past. The interior has all the features that remind

guests of the antique laced past. The menu of the Vintage is carefully crafted with all the

best possible edibles from this and the other side of the continent, with all the meat being

imported. The Vintage Restaurant is a reflection of the golden days of the past. As one steps

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inside one gets a feeling of stepping into the past which has come alive from the pages of

history. The warmth and ambience makes it the finest restaurant of the capital.

Bithika Restaurant

The hotel’s Bithika Restaurant serves Bangladeshi and International a la crate breakfast,

lunch and dinner as well as daily sumptuous theme buffet. It is the first choice of the guests

because of its quality food of a large variety. It remains open from 6.00 AM to 11.00 PM

everyday.

Lobby Café

Annoying having a sweet-tooth will find it impossible to resist the desserts and the

confectionaries at the lobby café of the hotel. The lobby café serves to every one from 6.00

AM to 10.00 PM every day.

Italia Bar and Bistro

Italia Bar and Bistro is a touch of Italy in Dhaka and an informal Italian dining experience. It

offers delicious Italian cuisines as pizza, pastas, salads and desserts. Italia server’s delicious

foods with Italian specialties. This Italian style pool café is the place where one can gaze at

the turquoise outdoor swimming pool of Sheraton and the adjacent picturesque settings and

simultaneously Italian delicacy like pizza and pasta. Overlooking the famous evergreen

Ramna Garden, the restaurant is positioned for easy access for everyone.

The Bar

The bar is the place where guests can get world class Alcoholic and Non-alcoholic drinks as

well as the foods. Accompanied by big-screen television and lively music one can have a

time of imagination under the wooden finished ceiling. Live entertainment is now the

biggest charm of the Bar. An exciting Filipino Band namely ‘ Musique Sense’ entertains the

guests live by playing separate stints and popular contemporary music.

DUNHILL Cigar Lounge

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Designed by DUNHILL, the DUNHILL Cigar Lounge is the first of its kind in Bangladesh

and offers a wide variety of premium DUNHILL cigars for the enjoyment of the guests. It is

the subtle mix of luxury and tangible comfort.

The Lounge includes a bar, offers Italian Coffee, snacks, Internet and features a wide plasma

TV Screen for entertainment. The Filipino band also plays music filled with popular ballads,

jazz and blues. Recently an exciting ‘Indian Classical and Gazal Evening’ has been

introduced. These entertainers perform for a limited session three days a week. They present

a combination of Indian Classical and Gazals.

Balaka Restaurant & Bar

“Balaka” the Sheraton lounge in the third floor of the Zia International Airport in Dhaka

offers dining, tea, coffee, snacks, soft drinks and shower facilities. The lounge also has e-

mail and Internet facilities. It offers services to the departing passengers.

3.8 Meeting & Event Facilities

Dhaka Sheraton Hotel is the ideal venue for national and international meetings, incentives,

conferences, exhibitions and social events. Sheraton has a range of conference, exhibition

and banquet facilities from small meeting to international seminars or private dinner to

lavish wedding. Sheraton has 11function rooms to choose from and with these

multifunctional venues Sheraton is the event hotel of choice in the city. The hotel continues

to strengthen its position in the MICE (Meeting, Incentives, Conferences & Exhibitions)

market with many high profile events occurring in the hotel.

Dhaka Sheraton is the largest and the most conveniently located meeting facility in the city

and is the ideal central location for conducting business. With combined exhibition

capabilities and meeting facilities Dhaka Sheraton can host almost all types of conventions,

meetings or events. Each year Sheraton hosts thousands of meetings, conventions, trade

shows and entertainment events. The rooms are equipped with motorized screens to support

audiovisual facilities with an in house audio video management team. Videoconference

facilities are new addition to modernize the meeting facilities.

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Some necessary electronic equipments are also available to make the meetings a success.

The equipments are available on rent which includes Cordless microphone, Lapel

microphone, Tape recorder, CD & DVD Player, Overhead projector, Slide projector and

LCD projector with screen, Screen only for projection and other facilities essential for

holding a meeting, conference or a wedding ceremony.

Winter Garden

Dhaka Sheraton Hotel has Winter Garden the largest room of 9600 SFT – multi purpose

function facilities. Winter Garden offers conference, exhibition and banquet facilities from

meeting to international seminars, dinners to memorable & lavish weddings.

The winter garden can accommodate 1200 people at a time of conference and 600 persons at

time for banquets. It is painstakingly designed with electronic smoke doctor, automatic

sprinkler system, audio-visual system, computer plug ins, imported adjustable stage, VIP

lounge and rest rooms, imported dance floors and special lighting.

Grand Ballroom

The Dhaka Sheraton’s Ball Room is an ideal meeting and convention venue with its grand

3800 SFt of meeting and function space, where 400 people can be accommodate for

conference and 250 persons for banquets. In addition, to facilitate the events there is a foyer

of 1190 SFt. in front of the ballroom. The room is equipped with modern event facilities.

Top of the Park

Overlooking the famous evergreen Ramna Garden, Top of the Park is located at 11th Floor

of Dhaka Sheraton Hotel. The venue is ideal for small meeting, international seminar for

upto 50 persons as conference style and upto 40 persons for dining. Top of the Park is

equipped with modern meting facilities.

Table 3: Meeting rooms & their capacity

Capacity under different seating arrangements

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Rooms Theatre Classroom U shape Cocktail Banquet

Winter Garden 1000 380 80 700 500

Ballroom 400 150 60 300 240

Marble Room 120 100 40 150 70

Top of the Park 45 28 24 30 25

Chameli 54 40 35 70 50

Bakul 106 75 40 80 60

Palash 54 40 35 70 50

Shimul 54 40 35 70 50

Dalia 22

The Business Center

An ideal meeting place for a small group. The Business center of the hotel provides a range

of secretarial services including typing, printing, facsimile, photocopying, scanning, e-mail,

web browsing and spiral binding etc.

Recreation Facilities

To expose the hotel guests to a host of recreation facilities, the hotel offers swimming,

tennis, squash, and a modern gym where an invigorating workout can be a rewarding

experience. The guests can walk into their own spa, revitalizing sauna, steam and Jacuzzi.

Guest Receiving Counter at Air-port

The Sheraton’s guest-receiving counter is situated at the arrival hall at the airport where the

guest can ask for assistance to take them to Sheraton hotel.

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Other Facilities at Sheraton

At the end of lobby shopping facilities is located. Where CD, Photoshop, handicrafts shop,

jeweler and arts are available. At the third floor of the main building a new massage facility

available for all the guests which is known as SPA. In the extension building a number of

airline office, multinational office, UNO office, commercial banks, money exchange and

Dhaka Sheraton Hotel Laundry shop are located. Just beside the main entrance there is a

desk for guide tour they can facilitate guided tour for the guest.

3.9 Guest Programs:

Sheraton has built the industry’s leading frequent guest programs around big IDEA.

Instant rewards & no blackout dates.

Destinations wherever you go

Everything you need for an enjoyable stay.

Always consistent service and value.

Such programs are Starwood Privilege & Starwood Preferred Guest.

Starwood Privilege

Starwood Privilege members enjoy a host of dining and accommodation benefits for even

the most discerning lifestyle. This is a program that recognizes the guest’s appreciation of

the finer things in life. As a Starwood privilege member, one can explore a world of

fascinating diversity and contrast and enjoy a tremendous array of rewards at the fingertips.

These include exceptional accommodation and dining privileges plus a virtually limitless

variety of notable hotels in which to enjoy them. Some of the benefits and privileges a guest

will receive are as follows:

Complementary night stay at Dhaka Sheraton hotel

Room discounts vouchers.

Complimentary room upgrades

21

50% or 60% off Rack rates

Late checkouts

Group dining vouchers offering

10% off lowest retail \rates and the Preferred rates in 80 participating proprieties in

Asia Pacific and 13 fabulous properties in Australia, Fiji & Vanuatu.

Unlimited dining discount in over 300 restaurants in Asia Pacific.

Transferable guest memberships.

Starwood Preferred Guest Programme

Dhaka Sheraton Hotel is a member of Starwood Preferred Guest Program – the industries

leading frequent guest program built around the idea of – instant rewards and no blackout

dates, destinations wherever one goes, everything one needs for an enjoyable stay, and

Always-consistent service and value. Starwood Preferred Guest is the hotel industry's

most rewarding frequent travel program. By taking advantage of Starwood Preferred

Guest, one can enhance the experience each time they stay with Sheraton.

In February 1999 Starwood Preferred Guest was born, and since then frequent travelers have

crowned it the number one hotel loyalty program in the world. As a member of Starwood

Preferred Guest, every stay at Sheraton earns Starpoints that can be used for free nights

without restrictions at 850 distinctive hotels and resorts around the world. Sheraton’s Free

Nights never come with blackout dates or availability restrictions. If Sheraton has a room,

you have a room. At Dhaka Sheraton Hotel the point can be used to buy to purchase some

very nice Bangladeshi gifts from the SPG display cabinet in the lobby.

The elite travel program Starwood Preferred Guest is voted "Program of the Year" for last

six years during annual Freddie Awards, one of the most prestigious customer generated

honor and travel awards in the travel industry. This year the program accepted 11 out of 20

awards including:

22

Program of the Year

Best Award Redemption

Best Elite Level Program

Best Customer Service

Best Web site – SPG.com

Every service provider at Sheraton is a Brand champion of the world’s most popular brand

Sheraton. They symbolize the brand by creating exceptional services to the guests and

fellow associates. The business of Sheraton is about selling experiences, memories, lifestyle

and a brand. Brand is the most important thing that can create emotion. People and Service

culture are the most important ingredients in making a successful brand. People are the most

valuable resources. Services are delivered by three methods. They are Place, Process and

People. Everything communicates through them.

The Sheraton people seize in heart ……I am responsible for the Place in

which I work, the Process I use to deliver service and the way in

which I deliver that service. I make the difference, I am Sheraton.

3.10 Sheraton’s Signature Service

Sheraton is known by its services and the people who deliver the services are the

ambassador of the brand. All associates deliver their best to satisfy the needs of the guests

in a best possible way and their effort makes Sheraton the most accepted brand of the world

23

I am Sheraton

by both the travelers and the business people. To provide best services the Sheraton Team

tries to

Understand people and where they come from

People crave to be connected with the things that matter the most to them. Sheraton

keeps them connected with those that matter.

Sheraton tries to satisfy the needs and wants of the guests and cross their

expectations.

Sheraton is unique because of the experiences, relationships, memories and

interactions it deliver to the guests.

Sheraton has insights about the guests which allows it to develop some empathy to

create emotional connection. Now a days business is about making connection. And

Sheraton’s core value is to make connection.

3. 11 Organization Chart of Dhaka Sheraton Hotel:

24

General ManagerEx-com Member

Financial Controller

Ex-com Member

Director- Human

ResourcesEx-com Member

Chief Engineer

Ex-com Member

Executive Chef

Ex-com Member

Director- Sales &

MarketingEx-com Member

Front Office Manager

Executive Secretary

Revenue Manager

F & B

Manager

Operation Manager-Bolaka

Sheraton’s policy is to decentralize authority. The general manager is responsible for the

successful operation his/her hotel. He is all in all of the Hotel. He has the authority to make

decisions along with the Executive Committee (Ex-com) members. All other Ex-com

members and the department heads reports directly to the General Manager. Whenever

necessary, the general manager is assisted by the Departmental Heads. The functional

departments of Dhaka Sheraton Hotel are:

All these departments work together with a common objective- to provide the best possible

accommodation & services to the guests. These six departments are equally responsible

25

Asst. DirectorMarketing Communication

Asst. DirectorSales & Marketing

Director- Catering Sales

Chief Accountant

Purchase Manager

Credit

Manage

r

HR Manager

Training Manager

Medical Consultant

HR Administrator

Sales & Marketing

2. Human Resource &

Training

Room Division

Food & Beverage

A & G Controller

6. Engineering

for the successful operation of the hotel. The departments are interdependent. If any one of

the departments does not work correctly, any function can face a disaster. All the sub-

departments also work in lieu. The hard works of the peoples who work’s at Sheraton is the

base of its popularity and success.

3.12 The Driving wheels of Dhaka Sheraton Hotel:

Sales & Marketing id the department that energizes and stimulates the Hotel operation,

rejuvenates it and keeps the Hotel going. The department does the marketing and promotion

of the Hotel, sales the services, organizes functions and so on. The department incorporates:

Sales & Marketing

Public Relations

Catering

The Sales & Marketing Department works in the following sectors:

a) Press Relations

b) Guest Relation

c) Property Promotion

d) Community and Customer Relation

e) Internal Commutation

f) Networking

g) Promotion of MICE (Meeting, Incentives, Conferences &

Exhibitions) facilities

Sales & Marketing:

26

Sales & Marketing:

The major task of sales and marketing segment is to make a position of their product in the

customer’s mind. The sales team of Dhaka Sheraton is a competent one. They visit various

local & multinational companies organizations both government & private, banks,

manufacturing organizations etc. They knock wherever there is a possibility of business.

They promote their special services and facilities and often offer special discounts for

prospective clients. Thus they attract customers to book rooms for their guests at Sheraton

and arrange their various types of function at Sheraton. The sales and marketing department

also signs contract with various company’s regarding providing accommodation facilities.

Such an agreement was signed with the Saudi Arabian Airlines to offer accommodation to

the crew members for the next two years.

The sales and marketing efforts depends on demand. The efforts mainly is to consolidate and

holding on the existing accounts as well as to target new accounts with emphasis on luring

away clients from competitor hotels by offering them better and unique services, room rates

and discounts.

The Sales team of Dhaka Sheraton Hotel tries hard to capture the new businesses and some

selected major markets from the competitor hotels. As there is a huge competition in the

market place and four Five Star Hotels are making every effort to capture the market, the

sales team of Dhaka Sheraton Hotel is always ready to provide standing by service to the

Hotel. Various activities of this department has establishes Dhaka Sheraton as the friendliest

Hotel in the city. They have taken the Hotel in such a position that it is known as the place

of quality, personal service, caring for little things and a place with homely atmosphere. The

sincere participation of the associates of the Sales & Marketing Department contributed

significantly to enhance the positive image of the property and the Sheraton brand in the

competitive market.

To maintain guest relation the Sales & Marketing Department takes various steps such as:

Maintaining good relationship with the guests is the key to repeat the guests.

Welcome the VVIP guests and arrange banquets and welcome cakes when

necessary.

Send welcome letters and gifts to the potential guests.

27

Arrange special reservation for the top customers.

Send welcome gifts and cakes to repeat the guests.

Send birthday cakes to the hotel guests during their stay along with birthday cards.

Arrange farewell party for a long staying guests and crew members of airlines and

other corporate guests.

Invite corporate customers on special occasions.

Inform in-house guests about the happenings and events at the hotel.

Prepare welcome banners for large groups booked at the hotel.

Handle guest reservation made through websites or direct phone calls efficiently.

Reply guests letter and complaints speedily.

Public Relations

Public Relation section of the Sales & Marketing Department portrays the brand ‘Sheraton’.

It provides extraordinary support to the sales team. The main objective of the public relation

department is to

Promote the image of the property accurately, positively and effectively through the

channel of mass media both national and international.

Uphold the activities of the Hotel to the potential customers competently to hold the

new markets.

Co-ordinate with the Sales & Marketing, Catering and Food & Beverage in matters

relating to advertisements and promotional activities.

Arrange, co-ordinate and manage various activities concerning the corporate social

responsibilities.

Maintaining effective relationship with the media, social groups etc.

Support overall marketing and sales program.

Preparing write-up for press release, publication etc.

It is the responsibility of the PR department to design and publish the quarterly

magazine of Dhaka Sheraton Hotel namely Spondon.

To carry the message indicating that Sheraton is the most exciting and comfortable

place to stay in Dhaka because of its service excellence and experience.

28

Press Relation:

Maintaining favorable press relation is one of the major tasks of today’s corporations. The

public relation department of Dhaka Sheraton maintains relationship with the press in the

following way:

Maintain and strengthen the contact with local and trade press to ensure maximum

coverage.

Invite press during the inauguration of newly launched products, openings, cultural

& food promotion, fashion shows and different types of exhibitions to get maximum

exposure.

In occasions of press anniversaries deliver congratulatory cakes and management

wishes.

Whenever possible to assist, participate or sponsor projects undertaken by press

people. For generating publicity in the media these are very good source.

Establishes contact with media guests staying in the Hotel.

Encourages foreign travel writes staying with us to write on the property in travel

magazines mentioning the name of Dhaka Sheraton Hotel in their write-ups.

Whenever it is possible to expose or present the logo or banner of Dhaka Sheraton

Hotel, takes the opportunity.

Develop and writes press releases to local media both on Sheraton Sponsored

projects or events and various moves taken by the Hotel.

Develop features for the media regularly.

Make a gorgeous press appearance while doing any socially responsible activities.

Corporate social responsibilities now get the maximum coverage.

The brochures of the Hotel with attractive pictures should be done.

In order to continue the present trend of media appearance, a balanced and proportionate

advertisement policy should be formulated.

Organization Chart of Sales & Marketing Department:

29Director- Sales &

Marketing

Catering sales:

Dhaka Sheraton Hotel is by far the biggest name in terms of event hosting & catering

various highly important governmental and nongovernmental events, meetings, signing

ceremonies, product launching ceremonies, various types fairs, fashion shows, concerts,

social parties, wedding ceremonies and birthday parties etc.

The catering department generates a huge amount of revenue to the hotel. Outside catering

adds an extra dimension to the excellent service provided by the Catering Department.

The arrangement of programs includes a mixture of works of different departments. Hosting

a big function requires the devoted association of almost every department of the Hotel. The

catering department distributes and instructs the respective departments and co-ordinates

among them. The general tasks of catering department includes:

Preparing daily events and delivering them to every department.

Receiving the booking of functions and arranging them.

30

Asstt. Director- Sales & Marketing

Asstt. Director- Market

Communication

Director- Catering Sales

Sales Manager

Asstt. Sales Manager

Manager-Market Communication

Sales Administrator

Catering Manager

Asstt. Catering Sales Manager

F & B Administrator

It records the function details on a function enquiry form.

Answering customers’ enquires about the facilities to arrange a function.

The full responsibility of arranging function relies on the catering

department.

The department prepares Function Sheets according to the instructions of the

customers and circulates it.

The department indicates which task is to be done by which department. Thus

it eliminates the chance of any confusion.

Organizes meeting with other departments in case of VVIP functions.

Deals with customers interested in arranging functions in Dhaka Sheraton.

Make tele-sales calls to make the customers updated about the facilities and

offers of the Hotel.

Without the dedicated contribution of this department arranging functions in Dhaka

Sheraton would not be possible.

This department recruits excellent people, trains them and them a part of Sheraton and the

champion of the popular brand of the world “Sheraton”. This department manages the

employees work schedule, keeps a record of the hours worked, arranges training sessions,

keep the employees from big bosses to the lower level employees aware and updated about

the new appearance of the brand. The tasks are subdivided as follows:

HR Accounting

Training Management

HR Management & Staff facilities

Medical

31

Human Resources & Training Department:

HR Accounting:

The time keeping department works with it.

Training management:

The primary task of this department is to train up the new as well as the existing employees

about the brand Sheraton, its core values and about the standard of Starwood which should

also be maintained in the Dhaka Sheraton Hotel.

The department hosts the orientation programs for the newly recruited

personnel’s.

Organize training sessions and gives certificates to the trainees.

Give awards to the employees for excellent services.

HR Management & Staff Facilities:

Organizes recruitment activities for different departments.

Evaluates the performance of the associates and reward them.

Organize associate meetings and takes care of the staff requirement and

ensures that they get proper facilities.

Various incentives are given and parties are arranged for the associates

such as “ Birthday parties” of the associates.

Medical:

The medical department takes care of the associate’s health and helps to maintain hygiene,

provides medicine to the associates.

Organization Chart of Human Resources Department:

32

Director- Human Resource

HR Administrator-Accounting

Training Manager

Medical Consultant

HR Administrator

Time Keeper Training Coordinator

Staff Facilities

Sup.NurseSr. Café

AttendantCafé

Attendant

The room division includes the following subdivisions:

a) Front Office

b) Housekeeping

c) Safety & Security Department

a) Front office:

Front office is liable for creating the first impression about the service quality of the hotel.

Front office includes

Reception: Reception records the guest check in check out according to their reservation

status. It also provides other help to the guests such as currency exchange.

Reservation: This department is the key to hotel business. Reservation Department does the

necessary task for reservation of rooms, determine rates for regular & corporate customers

33

HR Manager

Room Division:

in association with the Sales & Marketing Department, keep records of the previous

reservations.

Concierge: The concierge desk of Dhaka Sheraton provides details of hotel services as well

as assists the guests with any request, prepares and arranges tour plan for the guests

according to their direction. The concierge desk prepares the Bulletin Board for functions.

Health Club & Telephone Service: These are the two major sections of front office.

Airport Counter: This part of the front office receives the guests on arrival in the airport,

and supports them until the guest reach the hotels pick up. They also take instant booking

from arriving guests.

Transport: Providing 24 hours transport facility is another major task of the front office.

b) Housekeeping: This department keeps the hotel neat & clean, fresh and always new.

This Section remains connected with each & every guests, always. The provide Laundry

facility to the guests, make the room as the guests wish, and provide every service the guests

may seek for during their stay in the hotel.

c) Safety & Security: Maintaining security & safety of the hotel is another major task of the

room division. It ensures security for the room guests and as well the guest who come to

attend functions. It also co-ordinates with the government body’s that ensures the security of

the VVIP guests when they are invited for functions in the hotel. It is the purpose of the

department to ensure security during any functions, fairs, conferences and any other

occasions.

The Restaurants, Bar, Cigar Lounge, crew lounge, executive lounge, specialty lounge are

very vital parts of the F & B Department. Food & Beverage division consists of

a) Restaurants

b) Banquets

c) Kitchen

34

Food & Beverage:

a) Restaurants: Restaurants include:

The Vintage Room

The Bithika Restaurant

Italia Bar & Bistro

The Lobby Café

Room Service

Balaka Restaurant & Bar

Balaka VIP Lounge

b) Banquets: Dhaka Sheraton has a wide range of banquet rooms and also outside catering

facilities to meet the guest’s needs. The banquet team prepares the meeting rooms as of the

guests’ direction. Some banquet equipment is also available on rent.

c) Kitchen: Kitchen is another important part of the hotel without which no hotel can exist.

The tasks of the kitchen are wide spread. From menu selection to maintaining hygiene, all

are the responsibility of the kitchen. The kitchen department includes:

a) Cold Kitchen

b) Hot kitchen

c) Bakery & Pastry

d) Stewarding

The major duties the kitchen performs are:

Set up menus of various types.

Prepares food.

Maintain hygiene.

Prepare food for different functions as per instruction of the guest.

Follow the HACCP System.

The A & G General section includes the following departments:

a) Accounts

35

A & G General

b) Purchase department

c) Credit department

d) Cost Control

a) Accounts: It deals with all financial aspects of the hotel. The financial controller is

an Ex-com member.

b) Purchase department: This department is liable for all types of purchases made by

the hotel. Every department of the hotel has to fill up a purchase requisition form to

make a request for purchase.

c) Credit department: This department deals with the functions that are arranged on

credit. This department ensures that the credit money is deposited in the hotel after

the function held. The department along with the accounts department set up the

credit policy of the hotel.

d) Cost control: This department takes measures to control the cost of the hotel

operations.

3.13 Corporate Social Responsibility of DSH:

Dhaka Sheraton Hotel does not carry out business only in Bangladesh. It does some very

unique and touching Socially responsible tasks. Dhaka Sheraton and its owner company

‘Bangladesh Services Limited’ is always there any time in hardness and natural calamities.

Donations are made frequently to help the disabled persons and to the associations that

provide help and works with the disable people with a view to make them valuable asset for

the society.

At the very entrance in the hotel there are many pictures gleaming with beauty in the lobby

with the motive to help the children. If any of the pictures are sold the money will go to the

account of the non-profit organization ‘Save the Children’.

Dhaka Sheraton extended its support to the non-profit organization namely Families For

Children (FFC), operating homes that care for hundreds of destitute children. Dhaka

Sheraton helps the organization by raising fund, creating events, providing linen, bedding,

clothing and training to ensure the children a better quality of life.

36

Dhaka Sheraton arranger charity concerts, fashion shows along with other companies. The

often withdraw the space rent for any programs that is organized to help people. In every

Ramadan Dhaka Sheraton organizes ‘Ifter Party’ for the orphans in collaboration with its

owner company BSL. During flood time DSH donates a huge amount to help the victims &

the employees donates their salary of one or two days. Dhaka Sheraton also donates bedding

& clothing to the poor people.

Wherever there is a need for special concern Dhaka Sheraton is always there to make

immediate response.

3.14 Booking Source:

Dhaka Sheraton uses various booking source for reservations of the rooms. In the month of August 4211 rooms of Dhaka Sheraton were sold. The booking sources are given in the table:

Table: 4 Sources of room reservation

Booking source No of rooms Percentage

Hotel reservation 4003 95%Web site 67 1.6%

GDS 0 0CSC 141 3.35%Total 4211

37

4.1 The scenario:

The luxury hotels are being constructed in Bangladesh as increased tourist flow and trade is

giving a boost to the country's hospitality industry. Various types of branded and no brand

but quality hotels are operating in the country for years but recently the industry witnesses

the explosive expansion. The five star hotel industry is not an exception. The five star hotel

industry started its journey with Dhaka Sheraton Hotel as the first five star hotel in

Bangladesh. After the introduction of Dhaka Sheraton and Pan Pacific Sonargaon Hotel the

country has not experienced any new opening until 2001. Then Carlson Hotels Worldwide

came with the brand ‘Radisson’ and Starwood Hotels & Resorts Inc. with another brand

‘The Westin’. ‘Radisson’ is a huge success showing that Bangladesh needs more five star

hotels. Westin has started its journey very recently.

38

Currently Dhaka has four five star hotels – Dhaka Sheraton, Pan Pacific Sonargaon,

Radisson Water Garden Hotel and the new comer The Westin.

Two more hotels, Dhaka Regency and Hotel Sarina also announces them as five star which

do not have any brand name but they are giving tough competition to the world known

branded hotels in Bangladesh. At least two other international chain hotels - Intercontinental

Dhaka and Holiday Inn Dhaka are also waiting to start operation in Bangladesh, showing the

growth of hotel business in the country.

Foreign companies conduct market study to find lucrative areas of business before opening

business in a new country. So, it seems that the foreign business groups which have hotel

chain in their business have seen huge scope to develop business here in Bangladesh which

indicates that the country will soon boom in hospitality industry.

Intercontinental Dhaka-- being constructed adjacent to Zia International Airport will be

opened by the end of next year. IPCO Hotels Ltd, a subsidiary of Bengal Group, is the

developer and lessee of Intercontinental Dhaka. It is also constructing a three star hotel -

Holiday Inn Dhaka-near Zia International Airport.1

Meanwhile, the extension project of Pan Pacific Sonargaon is going on in full swing. The

total cost of the project would be about Tk 666.4 million. The extension project will be

implemented in the east side of the hotel within 2007 on an area of about 1.7 acre of land.

Hotel sources said the project has been taken up by the owning company to make it more

competitive and to offer state of the art services to its guests.

Bangladesh has all the resources to be an attractive destination and now more than ever it’s

easy to move around the world. Some measures are required to woo more foreign tourists in

Bangladesh. San Amalan, the general manager of ‘Dhaka Westin’ from his 30 years of

experience in the hospitality industry said that: "The country (Bangladesh) has lots of things

including its culture to promote tourism. People would love to come and see its culture...the

way of living here. The river cruises, cultural festivals at Ramna Park and even rickshaws

1 http://www.skyscrapercity.com39

will attract tourists. And the Sundarbans is a great spot," added Amalan, who was also the

general manager of Dhaka Sheraton between 1996 and 2000.2

Besides, Bangladesh has a potential to sell it as a popular tourist destination since some

international tourist spots such as Nepal, India, Bhutan, Sri Lanka, Singapore and Thailand

surround the country. These places are not far from Dhaka. People visiting Bangkok might

come to Dhaka for a few days if there are enough tourist facilities.3

Many development organizations, NGOs, multinational companies are working in this

country. These also lead to a huge arrival of foreigner. Trade and business of the country is

also developing very fast. Thus the future of the hotel industry is quite bright in Bangladesh.

Some facts about the five star hotels of Bangladesh are portrayed below:

4.2 Radisson Water Garden Hotel Dhaka

The Radisson Water Garden Hotel Dhaka was inaugurated on February 05, 2006, the hotel

went into full operation on February 11, 2006. The Hotel is part of a major expansion

program being undertaken across Asia Pacific by US based Carlson Hotels Worldwide. The

hotel is owned by Sena Hotels Development Limited (A joint venture of Sena kalyan

Sangstha and Army Welfare Trust). Radisson Hotels & Resorts is one of the leading

upscale, full service hotel brands in the world with more than 400 hotels in 63 countries.

Carlson Companies, the parent company of Carlson Hotels Worldwide, is a global leader in

hospitality services, encompassing more than 1,700 hotel, resort, restaurant and cruise ship

operations in 82 countries and is one of the largest privately held corporations in the United

States. Carlson Companies employs around 190,000 people across its global network.

4.2.1 Location:

2 ‘ The daily Star’, March 21, 2007, Vol 5 Num 997 (Business)3 http://www.skyscrapercity.com

40

Radisson Water Garden Hotel is located on the airport road, only 5 kilometer away from the

main international airport and adjacent to the diplomatic enclave & upcoming blue chip

commercial hub of Dhaka.

4.2.2 Facilities:

Sprawling over 7 acres of manicured grounds and gardens with water features, the newly

opened 8 storied 5 star Radisson Water Garden Hotel in Dhaka offers all the conveniences

of a business hotel with an atmosphere and amenities of an exclusive resort. Three

Restaurants, Health Club, Swimming Pool and an adjacent nine-hole golf course are all what

visitors can enjoy. Dhaka's first internationally managed spa and health club revitalize and

rejuvenate the mind, body & soul of the guests.4

There are 204 comfortable rooms and 5 suites.

Each room is equipped with king, queen or twin size beds, and large work areas with High-Speed Internet, direct control air-conditioning, in-room safe, mini bar, tea/coffee making facilities, ironing facilities and a splendid view.

Plaza Club executive floor. Wireless Internet connection in public areas. 24-hours room service. 3 restaurants, 2 bar lounges, and a café/deli. Internationally managed spa with eight treatment rooms & health club. Two swimming pools, tennis court, access to adjacent golf course & jogging

track on premises. Business center with boardrooms & secretarial service. Conference, meeting & function facilities in the country. Under cover and outdoor car parking facilities. Safety & security equipments including fire & smoke detectors, fire

sprinkler, electronic door locks, CCTV etc.

4.2.3 Dining facilities:

4 www.radisson.com/dhakabd41

Radisson Water Garden Hotel Dhaka has wonderful dining facilities. They include:

Water Garden Brasserie: The brasserie is a superb setting to enjoy causal, relaxed dining

with a la carte or buffets with awesome meals. The restaurant where light & space play a

dominant role is located in the ground floor. Radisson Water Garden Hotel, Dhaka offers the

most exciting weekend dining experience - ‘Family Brunch’. Brunch is very popular in the

western countries. As more of the western people are coming on visit for business and other

purpose, the hotel management took the opportunity to try out such offer at Water Garden

Brasserie – hotel’s all day dining place. At the Family Brunch the buffet will have wide rage

of dishes than any regular buffet. The idea of Brunch came from Breakfast + lunch. When

people are late for their breakfast but early for the lunch and this in between meal is known

as brunch. Check out this excellent opportunity to enjoy with your family. While thinking

about the family, the hotel has also made arrangements for exciting games and entertainment

facilities for the kids. Children can play indoor football and basketball and watch

electrifying cartoon video. Hotel personnel are designated to look after the kids while the

parents enjoy the food.

Sublime: This modern yet elegant restaurant offers a sophisticated dining experience

specializing in modern Mediterranean cuisine.

Spice & Rice: This restaurant gives the opportunity to celebrate the finest of the Asian

Cuisine and a taste of Oriental herbs and spices.

Chit Chat: Adjacent to the pool deck and health & fitness center, the café is the perfect

place to meet with the friends offering refreshments, snacks or a light meal.

Blaze: Blaze is situated in the ground level and has a separate entrance. Blaze is the perfect

place to meet, to enjoy live music & entertainment.

Cigar Bar: It offers the finest refreshments and a range of the world’s most premium cigars

in this exclusive bar.

4.2.4 Meeting & Banquets

42

Radisson Water Garden Hotel Dhaka offers the widest choice of banquet and meeting

facilities in Dhaka. The hotel’s flexible function space is sure to suit any programs. With

creative catering options, comprehensive audio visual services and experienced meeting

staffs any event is sure to be a success.

Table: Meeting /Banquet Capacity of Radisson Water Garden Hotel Dhaka

Meeting/ Event

space

Hollow

Square

U shape Boardroom

Rectangle

Theatre

Style

Classroom Banquet

round table

Grand Ballroom 380 275 275 1200 875 740

South Ballroom 210 150 150 660 485 410

South Ballroom 160 115 115 500 365 310

Banquet Hall 285 205 205 890 655 550

Sharat 40 30 30 125 90 70

Hemanto 35 30 30 115 85 70

Bashonto 40 30 30 120 90 36

4.2.4 A successful first year

Radisson Dhaka generates record revenue for US $ 9,515,500 in first year. In less than 1

year of operation (324 days), the hotel generated highest revenue among the hotels in 2006

in Bangladesh. The hotel generated the largest volume of Credit Card transactions in

Bangladesh within the merchant portfolio of Standard Chartered Bangladesh in 2006. This

amount was US$ 4,293,025 by credit cards. Total foreign currency revenue earned in 2006

was US$ 6.81 million (cash US Dollar and credit cards).5

5 http://www.skyscrapercity.com43

It had been a remarkable start for the hotel both in terms of business performance and

standard of service offerings. From the day the door was opened for the guests, the hotel is

running at full pace. The hotel experienced very high occupancy and average rate in all the

areas of its operation. After opening, Radisson Water Garden Hotel Dhaka maintained its

position as number one in the RevPar Index Ranking among the competitive set (RevPar

ranking is an index used globally to measure business performance within the industry). At

the same time among the Radisson system in Asia Pacific, Radisson Water Garden Hotel

Dhaka is the first hotel to break the record of business performance during the first year of

operation. Dhaka's new hotel Radisson Water Garden has emerged as the best performing

hotel in the international chain's Asia Pacific region.6

4.2.5 Corporate Social Responsibility:

As a part of Radisson's Corporate Social Responsibility, the hotel's Social Committee is

relentlessly working for the uplift of social conditions of the underprivileged people of

Dhaka city. Radisson is regularly sponsoring different charity and fund-raising events with

other partners in the corporate sector.7

4.3 Westin Dhaka

Westin Dhaka is Dhaka’s latest five star hospitality property. The hotel is located in

Gulshan, the prime diplomatic and commercial zone of the city, only 8 km away from Zia

International Airport. Most of the embassies, high commissions, shopping malls, nationals

and multinationals are just at a walking distance Dhaka is among the first 20 countries in

Asia Pacific to have a Westin. Unique Hotel & Resorts Limited, a sister concern of local

Unique Group, is the prime sponsor of 25-storied Westin Dhaka in joint venture with world

famous Starwood Hotel and Resorts Worldwide Incorporated of US.

6 ‘The news Today’ February 6, 2007, Vol # 2 Issue # 15697 http://www.skyscrapercity.com

44

There will be one Presidential Suite on the 22nd floor, one Chairman’s suite on the 21st

floor and 14 Executive Suites, all connected with Specialty Rooms. The Health Club is on

the fourth floor and the swimming poor on the fifth floor. The rooms start from sixth floor.

The room fixtures are from Hong Kong while the bathroom fixtures are from Japan.

Among the 241-rooms Westin have one Presidential Suite, one Chairman suite, 14

executive suites, eight junior suites, 14 specialty rooms and two rooms for disabled guests

on about 17,325 sq. ft (1,600 sq. m.) land area, 3,44,600 sq. ft (32,000 sq. m.) floor area.8

The special features of the rooms are: double glazed one way glass, imported from

Malaysia, to avoid the noise and none from other high-rise buildings can look into the

rooms.

Color scheme of the hotel is very soft. Electronic room keys sport soft illustrations. Pink

marble has been throughout. Even the lifts have pink and black marble. The swimming pool

will be of spa pool type. All of their rooms would be outfitted with high speed broadband

internet facilities, LCD flat screen television with satellite channels connections, direct

dialing system, four-fixture bathroom, heavenly bed and other furniture. The suite are

outfitted with high speed broadband internet facilities, LCD flat screen television with

satellite & cable channels, direct dialing system, an oversized desk and an ergonomic desk

chair, 4 fixture bathroom and the Westin signature products and services that include

heavenly bed, heavenly bath and heavenly crib. The features of the 'heavenly bath' include a

dual showerhead providing guests with a therapeutic shower spa and a curved shower rod

providing eight additional inches of elbowroom in the shower, the general manager

described, adding that the all-white 'heavenly bed' consists of mattress with 900 individual

coils. The rooms are large about 400 square feet in average. The height of the ceiling is also

three feet more than at other properties, ensuring supply of more oxygen. The "Heavenly

Bed" is there as is ergonomic chair that would be of great comfort to one's back.

The "Heavenly Shower" delivers five times the water of a normal shower and the commode

not only cleans itself but also its user. The 'Elsafe' in the room is large enough for

safekeeping of one's laptop. The suites, which are there on every floor, are larger than the

8 www.westin.com45

rooms.

There are Honeymoon Suites for newly wed couples to come here and spend their

honeymoon. The rooms will have LED lighting to suit the moods of the couple. It will be

packaged with many value added things.

There will be six (Spa) treatment rooms - two male only, two female only and two for

couples. There will be two beds in every (Spa) suite, own Jacuzzi and steam bath.

The five-star hotel project was taken in hand primarily to cater to the needs of increasing

number of foreign travelers including officials of aid agencies, multilateral funding

institutions, multinational power, oil and gas companies and the upscale business travelers

and tourists.

The Hotel also has large lobbies, banquet hall, business development centers, health club,

underground parking facilities and all the amenities available in a standard hotel in the chain

of Starwood Hotels and Resorts Worldwide Inc.

Besides the luxury room facility, guests are able to enjoy the unique culinary experiences

from the interactive cooking stations in six restaurants and lounges. Guests can enjoy the

unique culinary experiences from the finest of ingredients to preparation and live cooking

stations. The 6 restaurants and lounges offer distinctive concept and services. The Westin

Dhaka is an ideal venue for meetings, conferences, conventions, exhibitions and any social

event. From a small meeting of 12 people to a large function of 450 people can be

accommodated. The hotel offers Westin Workout facilities with a state of the art recreation

center/health club, fully equipped business center, heavenly spa, ground level car parking

and limousine services.9

The restaurants of Westin Dhaka are:

9 .‘The Bangladesh Monitor’, Volume XVI, Issue no 20, June 1-15, 2007. Page 12

46

Taste: It is a Pan Asia interactive dining complex and the most contemporary restaurant. It

serves Pan Asian interactive spreads and a la carte meals.

Prego: This is an Italian restaurant, serving light meals & entertainment, and a variety of

beverages.

The Living Room: A lobby lounge serving light meals with light entertainment and a variety of beverages.

Treats: It an interactive delicatessen serving a variety of pastries and coffees, Splash, a

poolside restaurant and bar and the Prego Bar, which will provide sophisticated bar and

lounge.

Splash Pool Bar: This allows guests to revitalize with a plate of refreshment and a drink in

the tranquility of the blue water of the swimming pool.

4.4 Pan Pacific Sonargaon

Pan Pacific Sonargaon Dhaka Hotel welcomes the guests with a warm heart to enjoy it's

exceptional five-star facilities; from first class surroundings to world class hospitality in true

Pan Pacific style, right from the airport.

The Pan Pacific Sonargaon Hotel was commissioned in April 1981. In 1997, Overseas

Economic Cooperation Fund (OECF) of Japan originally provided a fund of 4.6 billion yen

equivalent to Taka 330 million to finance the construction of the hotel. Under the condition

of the agreement repayment of the loan was to be made as per value of the yen. The Pan

47

Pacific Hotels and Resorts (PPH&R) is managing the hotel since it’s commissioning under

Management Agreement.

Location:

Pan Pacific Sonargaon is located in the heart of Dhaka city only 15 kilometer away from the

Zia International Airport.

The hotel has 304 luxuriously appointed rooms, including 25 magnificent suites, provide

every five-star facility to make a stay truly unique. Round the clock room service, high

speed broadband internet, medical facilities, laundry etc are available. The rooms include:

Deluxe room, Courtyard room, Executive suit. Pacific Floor rooms include: Pacific Deluxe

rooms, Pacific Suit, Pacific Executive suit, Pacific Bengali Suit, Pacific international Suit.

Pan Pacific Hotels and Resorts is a leading 5 star luxury hotel management company with a

difference. As a global award-winning brand that leads in 5 star luxury hotels in the Pacific

region, Pan Pacific Hotels & Resorts is the brand of choice for both travellers and investors.

Its winning appeal lies in the combination of the beauty and warmth of Asian hospitality and

a passionate desire to exceed international standards of quality service.

Owned by UOL Group Limited and headquartered in Singapore, Pan Pacific Hotels and

Resorts is a leading hotel management company in the Pacific Rim region. It has a portfolio

of 19 of the best luxury hotels with over 7,300 rooms in 11 countries throughout Asia, the

Pacific and North America. Recently, Pan Pacific Hotels and Resorts was recognised as

amongst the top 25 hotel companies demonstrating social responsibility by Conde Nast

Traveller magazine.

Pan Pacific Sonargaon Dhaka Hotel's banquet floors are world-class and the banqueting

kitchen provides modern, 5-star cuisine with individualized menus. Modern audio-visual

equipment is available including interpretation systems and the latest video conferencing.

Pan Pacific Sonargaon Dhaka has everything you need and more to turn any event into a

resounding success.

48

The meeting & event facilities:

The meeting & event facilities include:

Capacity under different seating arrangements

Theatre Boardroom Classroom U shape Cocktail Banquet

Chitra 50 25 35 30 40 35

Grand

Ballroom

1200 120 400 NA 1000 600

Meghna 100 40 50 NA 80 70

Nirala NA 20 NA NA NA NA

Surma 125 35 60 40 80 80

Titas 35 20 30 20 20 20

Data Representation & Comparative Analysis

5.1 Graphical Representation

49

The data that5 are collected from the night manager’s report of Dhaka Sheraton are

represented graphically below. The graphs shows the overview of the five star hotel industry

in Bangladesh for the month of August. The comparative position of the four five star hotels

are analyzed according to the information available.

Table 5: Market shares of four hotels as par room number

Name of Hotels No of rooms

Sheraton 272PanPac 304

Radisson 204Westin 235

Source: Appendix 5

Fig 3: Market share of the hotels

Number of five star hotel rooms in the Dhaka market consists of all the rooms available in

the four five star hotels. The market share of a particular hotel is derived by dividing the

number of rooms of that hotel by the number of rooms available in the market. From the

graph it is obvious that Dhaka Sheraton holds the second largest market share.

Table 6: Month to date ranking in terms of rooms

Name of Hotels Avail Rooms Occupied Rooms

50

Sheraton 8432 4211PanPac 9424 1349

Radisson 6324 4813Westin 4185 707

Source: Appendix 5

Fig 4: Available Vs Occupied rooms

Form the table it is clear that the occupied rooms are much less than the available

rooms in the market. Each of the five star hotels has significant number of rooms

unsold. This is because the market in Bangladesh is not too large. Furthermore, the

political conditions business are discouraged and new direct foreign investments are

not taking place. The economy is passing a hard time also. All the facts affected the

Hotel industry greatly. The new five star hotel Westin has started operation this year.

Some other Hotels are also sharing the market with Five Star hotels with lower price.

Table 7: Month to date ranking of hotels in terms of

occupancy rate

51

Name of Hotels Occupancy Rate

Sheraton 49.94%PanPac 14.31%

Radisson 76.11%Westin 16.89%

Source: Appendix 5

Fig 5: Market occupied rooms analysis

From the graph it is obvious that Radisson Water Garden Hotel has the highest

occupancy rate during the month of August which is 76.11%. Dhaka Sheraton

Hotel has the second highest occupancy rate. The occupancy rate is a determinant

of how well the hotel is doing.

Table 8: Month to date ADR

Name of Hotels ADR (in Taka)

52

Sheraton 5427.92PanPac 7158.67

Radisson 8201.90Westin 11967.27

Source: Appendix 5

Fig 6: ADR Analysis for the month of August

Average Daily Rooms (ADR) is calculated by dividing the revenue by total rooms sold.

RevenueADR =

Sold Room

Here, in the month of August Hotel the Westin has the highest ADR in spite of

its partial opening in the month of July 2007. The reason is Westin has sold

selected rooms to VVIPs. The Radisson Water Garden Hotel holds the second

position.

Table 9: Market share of the hotels

Name of the Hotels Actual Market Share Fair Market ShareSheraton 38.88% 29.73%PanPac 11.97% 33.22%

Radisson 43.28% 22.30%

53

Westin 5.8% 14.75% Source: Appendix 5

Fig 7: Fair vs Actual Market share for the month of August

Market share is the number of rooms in a hotel as a percentage of the rooms in

the hotel’s competitive market set. From the graph it is clear that Radisson Hotel

is leading the market by holding the market share well above their fair market

share. Dhaka Sheraton also holding more than their market share. This graph is

so like because Pan Pacific Sonargaon is undergoing a massive renovation and

The Westin Hotel has not started its operation fully till August. These two factors

have uplifted the graph of Dhaka Sheraton and Radisson quite high.

Table 10: RevPar of the hotels

Source: Appendix 5

Name of the Hotels RevPar (in Taka)

Sheraton 2807.60PanPac 1019.82

Radisson 6296.79Westin 1882.03

54

Fig 8: Analysis of RevPar of Dhaka Market

RevPar stands for ‘ revenue par available room’. In the Hotel industry, the RevPar Index

measures performance. RevPar is calculated in the following way:

Total revenue from rooms

RevPar =

Total rooms

The graph reveals that The Radisson Water Garden Hotel is passing a superior time and

is the market leader. Dhaka Sheraton holds the second position throughout the month.

Table 11: Occupied rooms in the market (daily basis) for the month of August

55

Source: Appendix 5

Fig 9: Dhaka Market Occupied room analysis

This graph shows the number of occupied rooms at the Hotel industry. A comparative

view among the four Five Star hotels’ occupied rooms are exposed in the graph. The

Radisson Water Garden Hotel has the highest occupied rooms everyday which in turn

gives it the highest occupancy rate during the month of August.

Table 12: Occupancy rate of Dhaka Sheraton for last five years

Date

1/8 5/8 9/8 13/8 17/8 21/8 25/8 29/8 31/8

Sheraton 137 160 133 133 109 171 139 111 110

PanPac 62 55 42 50 57 70 25 30

Radisson 185 159 167 188 151 197 101 144 135

Westin 29 16 31 28 19 41 9 22 22

56

Source: Annual report of BSL, 2006

Fig 10 : Trend of occupancy of Dhaka Sheraton

The occupancy rate of Dhaka Sheraton for the last five years remains in the same range of

50-60%. So the profit from room business also remains within a range. The occupancy rate

is quite handsome in the competitive market. But now the competition is growing harder. So

Dhaka Sheraton needs to take some innovative measures to retain this occupancy rate as

well as for strengthening the rate.

5.1.1 Analytical overview of the market:

From the above graphical representations it is clear that the Dhaka Sheraton hotel holds the

second position in the market. Radisson Water Garden Hotel is the market leader at present.

The Westin has started its journey very recently and Pan Pacific Sonargaon is going under

massive renovation work. This has affected the hotel’s business greatly. It can be predicted

that Pan Pacific Sonargaon is going to give tough competition as its renovation started at a

time when the two new hotels are in operation. As time will pass ‘The Westin, will also

position itself in a convenient way in the market. The RevPar of Radisson Water Garden

Hotel in the month of August is almost double than that of Dhaka Sheraton. One thing that

Year Occupancy rate

2002 56.4%2003 59.5%2004 55.3%2005 58.2%2006 50.8%

57

should be taken under consideration is that in the month of August only two hotels -

Radisson Water Garden Hotel & Dhaka Sheraton Hotel was operating with their full

capacity in the market. Because The Westin was not started its operation in full and Pan

Pacific Sonargaon was under renovation program. So it is assumable that competition is

harder than it appeared from the analysis.

The RevPar ranking of hotels as of August 2007 is shown in the following table:

Table 13: RevPar Rank of the five star hotels

Hotels RevPar Rank

Sheraton 2Sonargaon 4Radisson 1Westin 3

Source: Night Manager’s Report of Dhaka Sheraton (Appendix 5)

Radisson Water Garden Hotel maintained the first position during the whole month of

August. From its very beginning it has maintained the leading position. Dhaka Sheraton

was in second position. After Radisson came in the market Sheraton lost its leading

position because of some very prominent reason such as Radisson’s close proximity to the

airport, a brand new establishment, new brand in Bangladesh, and attractive location.

Despite all these Dhaka Sheraton is the most popular, well known and loyal brand in

Bangladesh.

5.2 Questionnaire analysis

A survey was conducted to identify the satisfaction level of the customers. 50 customers

both corporate and individual were surveyed. The results of the survey are portrayed below

with the help of tables and graphs.

58

Table 14: Reasons for preferring Sheraton

Reasons No of guests Percentage

Well known brand 15 30%Better service & loyalty 30 60%Convenient 3 6%Less costly 2 4%

Fig 11: Reasons behind staying at Sheraton

Table 15: Satisfaction Level of the customers

Satisfaction Level No of guests Percentage

Highly satisfied 15 30%Satisfied 25 50%Not satisfied 10 20%

59

Fig 12: Satisfaction level of customers

Table 16: Preferred reservation system

Preferred reservation system No of guests Percentage

Directly to the hotel 15 30%Hotel’s web site 10 20%GDS 5 10%Central Reservation System 12 24%Third party web site 8 16%

Fig 13: Preferred reservation system

60

Most of the customers are happy with the service of Sheraton but want immediate

renovation. Because other hotels are new and are more appealing than Sheraton. Sheraton as

the first five star hotel in Bangladesh has some very loyal customers who feel comfortable

with Sheraton and want to continue staying in Sheraton. But to attract new customers

Sheraton need to do a lot. All five star hotels are doing their best to provide the best service

to the customer and to be in the competition. All customers told about the prompt actions

taken by the Sheraton associates in any problems faced by the guests. The food is also liked

by them. Very few customers were staying for the first time. These loyal customers of

Sheraton suggested that Sheraton should undertake immediate renovation. As the oldest

hotel Sheraton will definitely lack behind the modern facilitates most customers now want.

5.3 Industry Analysis

Industry analysis reviews industry trends and competitive strategies. Analyzing the industry

environment requires an assessment of the competitive structure of the organization’s

industry. It also requires analysis of the nature, stage, dynamics and history of the industry.

Internal analysis serves to pinpoint the strengths and weaknesses of the organization as

company strengths lead to superior performance whereas company weaknesses translate into

inferior performance.

The need is to identify the key emerging factors, trends and threats, opportunities and

strategic uncertainties that can guide information gathering and analysis.

Porter’s approach can be applied where the basic idea is that the attractiveness of an industry

or market as measured by five factors on which firm depends largely.

5.3.1 Porter’s five forces model:

61

Porter’s five forces model is used to describe interaction of external influences, specifically

threats and opportunities that affect an organization’s strategy and ability to compete. These

forces greatly influence a firm’s business strategy.

Fig 14: Porter’s five forces model1

Rivalry among Existing competitors

1 Hill & Jones, 2004

62

Risk of entry by potential competitors

Brand Loyalty Absolute Cost

advantage Economies of scale Customer

Switching costs Government

Bargaining power of suppliers

No. of

substitutes

Threat of

Forward

integration

Switching costs

No. of buyers

Intensity of rivalry among established firms

Industry Competitive Structure

Industry Demand Exit Barriers

Bargaining power of buyers

Threat of backward integration

No. of suppliers Switching costs Buyer Concentration

& size Large quantity

purchase leverage

Threat of substitutes

No of close substitutes

The relative price and performance of substitutes

The rivalry refers to the competitive struggle among the competitors and the growth in the

industry depends upon the intensity of competition. A high amount of competition is

observed in the hotel industry of Bangladesh in recent years. The Five star hotels compete

against each other using competitive weapons such strong brand name, low price, quality of

service, easy and available booking system, lower operation cost, & other unique services.

Risk of entry by potential competitors

Potential competitors are companies that are not currently competing in an industry but have

the capability to do so if they choose. The hotel industry of Bangladesh has two new

entrances recently of which The Westin has started its journey from partially from July this

year. Thus the market has grown and other international brands are also showing interest to

start operation in Bangladesh. Some local companies are also coming forward to capture the

emerging market with low price. Thus the hotel is facing the risk of entry by potential

competitors.

Bargaining Power of Buyers

The third one of Porter’s five competitive forces is the bargaining power of buyers.

Bangladesh is an emerging market. There are four internationally renowned five Star hotels.

All of hotels are offering quality services and excellent facilities with competitive price. In

the geographically smaller market the buyers or customers are getting much options. Some

locally owned three Star and four-star hotels are giving a tough competition to the Five Star

hotels. The buyers have their purchasing power to influence the service providers.

Bargaining Power of Suppliers

The fourth of Porter’s five competitive forces is the bargaining power of suppliers. As there

are many hotels operating in Bangladesh, the bargaining power of the suppliers has reached

a new dimension. They also force the business of a hotel from several perspectives.

Threat of Substitute Products

63

Substitutes- products of different businesses or industries that can satisfy similar customer

needs and the same group of customers are important sources of competition. The local

hotels and restaurants are giving a sturdy fight to the sales and banquet teams of the Five

Star hotels. They provide quality foods at much lower price, ensures excellent service and

luxurious rooms to the customers. Often they do not charge space rent for functions that is

followed by lunch or dinner. Thus many firms and companies prefer those now. Many other

conference halls are also giving a strong fight. The Bangladesh China Friendship

Conference Center (BCFCC) has become the number one choice for hosting fairs and

international seminars etc.

Evaluation of External and Internal Environment of Dhaka Sheraton Hotel:

5.3.2 SWOT Analysis

In real world, executives sometimes end up making business decisions with incomplete

information. That is where common sense and experience come to act. Nonetheless, the

SWOT framework offers a good starting point for analyzing companies, their performance

and outlook. SWOT stand for Strength Weakness Opportunities Threats. SWOT Analysis

refers to the overall evaluation of a company’s strengths, weakness, opportunities, and

threats in the environment. It is one of the essential steps of Strategic Management Process.

Identification of the threats and weakness in the environment and the strengths and

weakness of the firm is the cornerstone for business policy formulation; it is these factors,

which determines the courses of action to ensure the growth and survival of the firm.

The environment might present many opportunities but a company might not have

the strengths to exploit all the opportunities. Similarly, sometimes a firm will not have the

strengths to meet the environmental threats. A company is prudent to give up a particular

line of business if it finds that it do not has the competence to survive is that business and

concentrate on businesses for which the firm is most competent.

64

Fig 15: Flow chart of SOWT Analysis

The comparison of strengths, weaknesses, opportunities and threats is normally referred to

as a SWOT analysis. Its central purpose is to identify the strategies that will best align, fit or

match a company’s resources and capabilities to the demands of the environment in which it

operates. (Hiil & Jones, 2004). The SWOT analysis comprises of the organization’s internal

strength and weakness and external opportunities and threats. SWOT analysis gives an

organization an insight of what they can do in the future and how they can compete with

their existing competitors.

5.3.3 Strength, Weakness, Opportunities & Threats of Dhaka Sheraton Hotel:

65

Formulation of objectives

SWOT Analysis

Strength-

A company’s resources & capabilities that can be used for developing a competitive advantage

Weakness The absence of certain strength may be viewed as weakness of an organization

Opportunities-

The external environment analysis may reveal certain new opportunities for profit and growth

Threats-

Changes in the external environment also may present threats to the firm.

Table 12: SWOT Analysis

Strengths Weakness

Strong Brand Image

Located in the best scenic surroundings in

Dhaka

Proximity to business center

Efficient and motivated sales force.

Qualified & experienced human resources

Efficient & well organized management

body

Excellent Environment

Best quality services

Specialty floor & Club floor facilities

Unique atmosphere combined with

unsurpassed service & facilities

Signature services

High employee satisfaction and almost zero

turnover rate

Old establishment

Located in a very crowdy area

Lack of some modern facilities

Medium size ballroom

Medium Lobby

Small Business Center

It is the sited in the oldest premises among the

five star hotels in Dhaka

Not the market leader

Opportunity Threat

Popular & well known brand

Loyal customers

Well known personals

Has the best positioning in the minds of

customers

Popular Brand of chain hotels

Growing economy & emerging market of

the country.

New & strong rivalries entered the market

Strong brand image of the competitors

Old Premises and old fashioned facilities

More competitors

Smaller market

Less market share

High bargaining power of the buyers

Concluding notes

6.1 Findings66

The Hotel Industry is emerging very quickly in Bangladesh. The market is also expanding

day by day. The Hotels and Resorts companies are getting interest towards this rising

market. By performing analysis some real facts about the performance of Dhaka Sheraton

Hotel are recognized. Existing strengths & weaknesses, and the upcoming opportunities and

threats of the Hotel were studied. This study revealed the current situation and the

performance level of the Hotel and its efforts to satisfy the customers in this highly

competitive market. The upshots are prearranged below:

Competition & challenges:

The competition in the Dhaka market is very high. All the Five Star hotels are giving

their best to capture the market. Dhaka Sheraton is no difference.

Dhaka Sheraton lost its leading position to Radisson Water Garden Hotel from the

very beginning. Now it is struggling to regain its position.

The bargaining power of the buyers is high and the target market is small.

The political & economical condition of the country affects hotel business the most.

Every natural calamity distresses the business in a pitiless way.

Radisson Water Garden hotel is the most vigorous competitor of DSH but other two

hotels Sonargaon & the Westin is going to give a hard competition in future.

DSH now holds the second position among the five star hotel’s RevPar ranking.

Some other non-brand three and four star hotels are also taking away some very

prospective business from Dhaka Sheraton. They are less costly than Sheraton and

do not charge space rent for large programs followed by launch or dinner.

From the context of Bangladesh, the five star hotels are costly. Because the hotels

need to maintain a minimum standard as a five star hotel. The other hotel like Dhaka

Regency, Sarina, Lake Shore etc provides high quality services at much lower price.

Thus the medium size business organizations choose those instead of the five stars.

Customer Service:

Dhaka Sheraton provides the best quality service to its customers. Though it is

loosing its business in the competition.

67

The customers are very choosy as they have more options now. So it is very hard to

please them.

Every person is unique. They have different choice. Satisfying the needs of

individual guests in a customized way is really a hard job.

The guests always want excellence and perfection. They are not at all ready to

consider any sort of lacking.

The Property:

Though Dhaka Sheraton has a gorgeous look, the establishment is much old.

Other five star hotels are comparatively new and have modern facilities.

The Lobby of Dhaka Sheraton Hotel is a very small one & it lack behind in

Charismatic beauties.

The first impression of the customers about the hotel is not very compelling.

The bar is too small to accommodate the staying guests of the hotel, it becomes over

crowded when outside guest also come to enjoy the bar facilities.

Dhaka Sheraton is located in a lucrative location. But because of its location the

Hotel looses business now. As it is situated in the central place, the area remains

busy always and the traffic situation becomes so horrible sometimes that it takes

hours to reach the hotel from the airport.

On the other hand Radisson Water Garden Hotel is situated near to airport and in a

calm and traffic free area.

The facilities:

Dhaka Sheraton has excellent facilities for accommodation, meetings, conferences,

social functions etc. But in this market Dhaka Sheraton is not the only one five star

hotel which has all the facilities.

The rooms of the East Wing of the hotel are not very much impressive in comparison

with the other five star hotels. The washrooms do not have separate shower place.

Only the suit rooms have flat screen plasma TV, while in other hotels most rooms

have the latest technologies.

6.2 Recommendation

68

Dhaka Sheraton Hotel is doing a very good job but the competition is increasing

continuously. Dhaka Sheraton must take some measures to deal with the immense

pressure. It has to try hard and introduce new signature services to hold the existing

customers as well as capture the new potential market. The only viable means for

organizations to achieve their objective is to meet the requirements of their customers by

continually improving the work processes, services and their facilities. Here some

recommendations are made based on the study under the following heads:

Redecoration

Dhaka Sheraton should immediately go for renovation or should shift to another

establishment.

The view of Dhaka Sheraton is not attractive enough to create a position in the

peoples mind.

The interior design, decoration and the overall look should be changed, as the

competitors are new comers.

The Rooms of Dhaka Sheraton Hotel should introduce some new facilities like

home theater for the presidential suit. The rooms should be spotless and clean.

The washrooms should have separate shower place.

The Bar is an important part of a hotel. The Bar of Dhaka Sheraton seeks for

immediate expansion.

The swimming pool of Dhaka Sheraton is the most ordinary one. It needs a

complete reformation straight away.

Facilities:

Every five star hotels provide same facilities with high standard. So Sheraton

must think of some unique facilities and services that may attract new customers.

A kid corner may be introduced to attract the kids who often shape the choice of

their parents.

As there is a very small area to walk around and relax, some in house

entertainment facilities should be introduced.

A Reading room or a small library may be the exquisite place for the travelers

and other peoples during their leisure time in the hotel.

69

Dhaka Sheraton should have a larger Business Center and faster Internet

connection.

Dhaka Sheraton should be watchful and prepared to snatch the business of the

competitors always.

Internal Refurbishment:

Dhaka Sheraton should have an internal database to make sure that the customers

remain updated about the new facilities and services always.

The function entries, booking and the recording system should be computerized

to avoid customer dissatisfaction.

A stronger IT department is essential.

The back house security should be tightened.

The Sheraton authority should reconsider the space rent.

Signature Services:

Sheraton sells experience. It should try to deliver a lifetime experience to the

guest to make him/her a loyal one.

Some other unique services like Starwood Preferred Guest (SPG) should be

launched.

Promotional Activities:

Dhaka Sheraton should involve vary aggressive promotional activities.

Advertisements may be made in the International TV channels as other

hotels of Sheraton brand do to make it known and to attract the

prospective visitors.

70

6.3 Conclusion

As the economy of Bangladesh is expanding, the scope for business is also increasing. The

tourism sector is also getting priority from both Government and Private sectors. Many UN

bodies and other development organizations of various countries, NGOs are working in

Bangladesh. The AID market, Embassies, UN projects lead to inflow of UN delegates,

consultants, experts and foreigners all around the year in Bangladesh. All these opened a

new way for development of Hotel Industry in Bangladesh. Dhaka Sheraton as the first five

star hotel in Bangladesh, is doing a very good job in the competitive market. In comparison

to Radisson and Westin Sheraton is sited in a very old building. In spite of the latest

facilities offered by the competitors Dhaka Sheraton is in the second position among the

four five star hotels. A wonderful team of associates and some very loyal customers

accompany Dhaka Sheraton from its very beginning. The hotels are trying to give the

customer’s added values rather than just an accommodation facility. To stay in the

competition every hotel must be very efficient and prompt in taking decisions, and in

delivering their services. Excellent, warm and dedicated services are the key to success in

the hospitality industry.

71

Appendix 1:

References

Chapter 1:

1. ‘The Bangladesh Monitor’, Volume XVII, Issue no 2, September 1-15, 2007. Page 1

2. http://www.skyscrapercity.com , page 15

3. http://www.skyscrapercity.com , page 13

Chapter 2:

1. http://www.hotelmanagement-network.com/industry/

2. ‘The Bangladesh Monitor’, Volume XVII, Issue no 2, September 1-15, 2007. Page 1

3 .‘The Bangladesh Monitor’, Volume XVI, Issue no 20, June 1-15, 2007. Page 12

4. http://colorsofbangladesh.com/index.php

5. Laudon Kenneth C. ‘Management Information Systems’ 8th edition

Chapter 4:

1. http://www.skyscrapercity.com

2. ‘The daily Star’, March 21, 2007, Vol 5 Num 997 (Business)

3. http://www.skyscrapercity.com

4. www.radisson.com/dhakabd

5. http://www.skyscrapercity.com

6. http://www.skyscrapercity.com

7. ‘The news Today’ February 6, 2007, Vol # 2 Issue # 1569

8. www.westin.com

9. ‘The Bangladesh Monitor’, Volume XVI, Issue no 20, June 1-15, 2007. Page 12

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Appendix 2:

Hospitality Industry: Hospitality refers to the relationship process between a guest and

a host, and it also refers to the act or practice of being hospitable, that is, the reception

and entertainment of guests, visitors, or strangers, with liberality and goodwill.

Hospitality industry is a huge term. It does not only include hotels but restaurants and

others

RevPar: RevPar stands for ‘revenue par available room’. It is one of the most important

performance metric in the hotel industry. RevPar is typically calculated by multiplying

the hotel’s average daily room rate (ADR) by its occupancy rate.

ADR: ADR stands for ‘Average Daily room Rate’. It is considered as a hotel’s base

measurement of success. ADR is calculated by dividing total rooms revenue by total

occupied rooms.

Occupancy Rate: Occupancy rate is the percentage of rooms that remained occupied at

a particular period. It is calculated by dividing the occupied rooms of a hotel by the

available rooms at that time.

Market Share: Market Share is the number of rooms in a hotel as percentage of the

rooms in the hotel’s competitive market set. Market set is the total number of rooms the

hotel is in direct competition with within its area’s market or segment.

Market Penetration: Market penetration is the percentage of demand for rooms

actually accruing to a hotel. It is calculated as the ratio between the total rooms occupied

in a hotel against the total rooms occupies collectively attributed to the hotel’s Market

set.

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Glossary

Appendix 3:

Abbreviation

ADR Average Daily room Rate

BSL Bangladesh Services Limited

BCFCC Bangladesh China Friendship Conference Center

CSR Corporate Social Responsibility

DSH Dhaka Sheraton Hotel

GDS Global Distribution System

HACCP Hazard Analysis Critical Control Point

PanPac Pan Pacific Sonargaon Hotel

RevPar Revenue Per Available Room

UN United Nations

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Acronyms

Appendix 4: Questionnaire ( for corporate guests & individuals)

Country: Date:

1. Why do you prefer Sheraton?

a) Accepted Brand b) Better servicec) Convenient d) Less costly

2. Is this your first stay at Sheraton?

a) Yes b) No

3. Are you satisfied with the service quality?

a) Yes b) No

4. Which reservation system do you prefer?

a) Directly to the hotel b) GDSc) Hotel’s web site d) Third party web sitee) Central Reservation System

5. Are you satisfied with the food quality?

a) Yes b) No

6. Do you get support & co-operation from the hotel authority when you need? Is it satisfactory enough?

a) Yes b) No

7. What is the most important thing that matters to a customer while repeating the same hotel?

a) Service quality b) Convenience & costc) Attractiveness d) Brand name e) Previous experience of stay with the hotel

8. What is the most prominent thing that irritates you at Sheraton?

a) Old premises b) Improper & dirty rooms c) Dissatisfactory services d) Others

9) What should be changed or what initiatives should be taken immediately in Sheraton to stay in the competition?

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