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Risk Management and Advertising Campaign

Uncertainty in the economy experienced for the past several years has had a mighty impact on the current functioning and operations of numerous companies. Notably, many of them are accustomed to operating cautiously with the use of deep planning and forecasting. Now it is high time to stop using obsolete business schemes. Therefore, many entrepreneurs implement a new approach in their operations, trying to manage risks. Risk management has been gradually gaining momentum as a supportive and beneficial tool for ensuring the sustainability of the company, though it is not sufficient.

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Making business efficient is also dependent on advertisement strategies that should be oriented toward soliciting customers. An advertising campaign plays a crucial role in the future success of the company, and its role should not be neglected. Therefore, the current paper is devoted to risk management, its analysis, and assessment, along with considering the development of an efficient advertising campaign based on the example of a hotel business plan.

About the Organization

Before starting any business, it is important to decide what field it will belong to, whether it will be providing products or services, and then, choose its location which would also take much effort, analysis, and other corresponding activities. After considering many factors, the decision of launching the Welcome Guest Hotel in Australia has been considered the most attractive and advantageous because the hospitality industry in this area experiences increasing growth and development.

The name of the hotel has been chosen due to the intention to bring satisfaction to the customers in terms of the provided accommodations and relevant services. Welcome Guest Hotel will be a cozy place for every category of visitors starting from lone travelers to large families, who will come to the hotel to make their vacation memorable and with the feeling like they are at home. The hotel will do everything to make an impression by staying the most pleasant and warmest and letting the customers see they are indeed welcome guests.

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The primary activities of Welcome Guest Hotel can be categorized as follows: the first is a property management system (PMS), the second is global distribution, and the last two are web booking systems and revenue management, respectively. Property management refers to the tasks executed regularly. It means reservation processing, room assignment, guest management check-in and check-out procedures, and tracking inventory. Additionally, PMS involves billing and reporting, and therefore, it has to be carried out quickly and easily by using an intuitive interface and user-friendly design. Global distribution warrants long-term effectiveness so that the connection of the hotel to the Global Distribution System (GDS) essentially makes sense. It is conditioned by the availability of different sources such as, Hotwire, Travelocity, etc. that allow broadening the opportunities for marketing provided to global travelers to assist in the process of booking. However, the web booking system or the engine would be more expediential. Firstly, the hotel’s websites would be thankful for the possibility to lodge more comprehensive information, and secondly, this technology would allow transforming the website into a convenient commission-free channel for booking. Moreover, it will draw travelers’ curiosity and thus, ensure revenue enlargement. The last hotel activity item is revenue management, aimed at optimizing financial performance. This function will help a hotelier to adjust the rates and increase revenues when monitoring the impacts on performance metrics with the help of the Average Daily Rate or Revenue Per Available Room.

Broadly speaking, the performance objectives do not differ fundamentally across hotels. In this case, Welcome Guest Hotel will not reinvent the wheel but will meet the needs of customers to the full extent by providing excellent-quality services with the help of friendly and polite personnel and delicious meals. Therefore, the number-one objective is to provide customer service at a high level. Besides providing comfortable accommodation and informing about local peculiarities from a certain meal to local hotels or entertainment, hospitality staff is interested in meeting the needs of guests by conducting different kinds of surveys, which can be encouraged by providing discount coupons or other features. The second objective is closely connected with the first one and can be referred to as the quality of products because it is also oriented toward customer satisfaction. Hotel owners order fresh food to serve it to guests who expect to receive meals that comply with the price or are even better. Moreover, they need comfortable, clean, and quiet rooms and spotless bathrooms with tidy towels. Another important goal is the gradual increase of customer volume. It means that all the tables in the local restaurant should be occupied during any service period. Otherwise, it may result in perishable food being thrown away because of a small volume of orders. The final objective is to ensure the highest rating. Only the first-rate service provision and the full compliance with the tastes of customers can make them leave only positive feedback on the Internet through which information is spread rapidly to different parts of the world thus allowing making the hotel well-known and turning it into the best place to stay during the vacation.

The Internal and External Environments

The environmental analysis is the issue that correlates with risk management most closely. It helps to find out the possibilities and challenges that can influence business operations. The main goal of the environmental analysis is to support and enhance the development of a plan and decision-making. In other words, it is an apparatus used for seeking opportunities and threats to further improve business operations.

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Internal Environment

The internal environment of the hotel includes the factors and causes that can affect its performance. Therefore, every hotelier should consider the micro environment analysis as a way to create the relevant strategy to forecast possible shortcomings and prevent or minimize the issues that might impede the growth of the hotel. In general, Welcome Guest Hotel has the following strengths:

The hotel is situated in a favorable and easily accessible location with relatively high traffic enough to increase the profit.

Welcome Guest Hotel is oriented toward middle and upper-middle-class customers will maintain its popularity and reasonability, and undoubtedly, will place it in the leading position among other hotels of this kind.

The hotel will have all the necessary permissions and licenses to serve alcohol, warrant fire security, etc. This will help to broaden the customer base and increase profitability opportunities.

Welcome Guest Hotel aims at adding some more accommodations and developing a network across other big cities of Australia to attract more customers and raise productivity.

The hotel plans to increase its market value to ensure the prosperity and stability of the business.

Weaknesses exist in any type of entrepreneurship, and Welcome Guest Hotel is not an exception in this sense. The weaknesses are the following:

The current situation of the hotel is characterized by the lack of definite directions for the expansion strategy.

The lack of experienced personnel that has caused the temporary price increase can negatively affect the reputation of Welcome Guest Hotel and lead to customer loss.

Because the hotel is newly-built, accession of clientele may take some time.

External Environment Affecting the Business

The external environment is an aspect that makes the business dependent on a range of factors and sometimes even makes it more vulnerable. However, consideration of the presence of these issues helps to avoid any unexpected problems. Several main factors should be considered during risk management planning.

Political factors

Besides playing a key role in the national economy, these factors also can affect the hotel industry. The main focus of the industry is being attractive to international tourists, especially when speaking about Australia. Moreover, it is the government that helps and supports the industry to raise its sustainability in the world market (Management Study, 2016). On the other hand, any imprudent step of the government can negatively affect the hospitality industry. Therefore, what needs to be remembered is the inevitability of the direct influence of politics on hotels in particular and tourism in general. However, as mentioned above, the stability of the political environment in Australia can be a surprise to any foreigner. In this case, the political factors may pose a minimal risk for Welcome Guest Hotel.

Economic factors

This type of factor includes many issues influencing the situation in the country and the sphere of business, in particular, hotels. Inflation, interest rates, exchange rates, economic growth, and other factors significantly impact the firm and change its behavior (Management Study, 2016). Some travelers go to other countries not only to spend holidays but also to attend various business meetings, conferences, workshops and so on. Thus, hotels try to provide housing to as many guests as possible because they are profit-bringers. Moreover, plenty of tourists are ready to purchase additional services, and it indicates the increasing demand which in turn signifies the development of both the hospitality industry in general and hotels in particular. The economic situation in Australia, promises to be favorable due to a gradual economic growth of close to 3% by 2018 (OECD, n.d.). Additionally, consumer price inflation moves to the 2-3% target band (OECD, n.d.).

Social factors

The shift in social factors affects the customer’s demand and preferences as well as employment conditions, namely the availability of experienced employees. For example, the hotel should have a variety of room types to be able to provide housing to different categories of guests. For instance, single bedrooms are the best option for lone travelers, who travel independently, whether they are males or females. Also, there is a need to have rooms for families with two or more children. Moreover, Australia is a multinational country and many foreigners are constantly arriving there. Thus, the rooms in Welcome Guest Hotel have to be comfortable for every visitor and be fully equipped with facilities.

Technology factors

Technologies and innovations in hotel management are irreplaceable for hotel personnel and customers as well, because they simplify and speed up the working process, and also make the hotel comfortable and modern. Furthermore, the customers will be more likely to choose a hotel with technologies embedded (Management Study, 2016). It gives an impression that guests stay in a secure and safe place. Besides, if the hotel is fitted with technologies, it demonstrates the adherence to constant progress in terms of modern features (Management Study, 2016). Welcome Guest Hotel must provide technology facilities that are considered vital today. It refers to Wi-Fi and security technologies. The Hotel is likely to be attended by different kinds of guests but everyone deserves the most convenient conditions, thus technologies are one of the factors that significantly impact the hotel business.


The objective goals are connected to critical success factors (CSF), which support the achievement of sustainability and prosperity. It should be noted that the CSF in the hospitality industry is constantly changing due to the globalization of competition and the increase in client desires and expectations. In light of this, quality management has to be one of the primary tasks in running a hospitality business because it helps to enlarge the customer base, as has been mentioned before. Moreover, it will enhance the process of risk management planning.

Thus, critical success factors for the hotel are its location, orientation on the global market, quality management, and flexibility. The location of a hotel is still determinative despite the industry changes, and it is a widely known fact (Ranong, & Phuenngam, 2009). Hence, one must take into account the fact that the potential visitors evaluate the dependence of location on the level of provided services, thus, it would be better to establish the hotel in a big Australian city, such as Sydney or Melbourne. As a last resort, the hotel owner can open a hotel in suburbs. In this case, the orientation to the global market will make the hotelier not only rely on intuition and customer reviews but to monitor competitor strategies for attracting visitors and use them in their way to win in the competition (Ranong, & Phuenngam, 2009). The success of the hotel is conditioned by the approach to the customers. Consequently, it entails quality management, which is not limited only to customer service. Another vital component is the satisfaction of employees and their engagement in work (Ranong, & Phuenngam, 2009). The attitude of personnel to what they do influences the customer’s impression. The visitors should feel they are welcome guests, so the employee who does not like his or her work would be unable to suffice the traveler’s positive experience. Hence, it can dramatically worsen the hotel’s reputation. Flexibility is also known as a part of quality management (Ranong, & Phuenngam, 2009). Different customers have different needs, desires, and expectations regarding the hotel. Therefore, managers need to have the authority to adjust themselves and personnel to provide desirable accommodations or facilities to the client because customers are always right. A good manager is a person who can make exceptions to inflexible hotel rules and policies when necessary.

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Goals and Objectives

Accordingly, Welcome Guest Hotel tries to be the most technologically equipped hotel to meet its objective goals, enlarge revenue, and meet the needs of customers. The experience of the past few years shows that hotel apps are considered a standard trend. However, such technology can hardly surprise passionate travelers. Another goal is to give clients the ability to control their rooms via smartphones. Welcome Guest Hotel does not comply with the luxury format but it could try to make such a facility available to middle and upper-middle visitors. Besides unlocking the room’s door with this technology, the hotelier should think of the ability to control the temperature in the room, adapt the lighting, or change the TV channels with the help of a smartphone (Mandelbaum, 2015). Furthermore, such an app will also give an upcoming guest a possibility to personalize the room, including pre-setting light, temperature, and preferable drinks in a fridge (Mandelbaum, 2015). In this sense, there is a need to provide a virtual tour to potential customers to help them make a final decision regarding the choice of accommodation.

As for the development of new products or services in the hospitality industry in general and in Welcome Guest Hotel in particular, one can get confused because the world is already filled with constantly changing issues almost in every business field. Since it is almost impossible to create something new, it makes sense to improve the existing services according to the customers’ desires. Also, the implementation of new technologies can be regarded as a new service because it will be offered to middle and upper-middle-class clients. In any way, it is a huge step forward in terms of the provision of services to the visitors of Welcome Guest Hotel. Moreover, it would be useful to make presentations of the existing services to set the direction of the hotel to make it comfortable for every customer, especially, for families. Firstly, the hotel will have a swimming pool. Besides, a small entertainment center for children can be a winning solution because it would attract families with children. The families visiting the hotel could help to make a higher profit compared to lone guests who stay in the hotel without kids. Furthermore, offering excursions that could be ordered on-site instead of seeking such services beyond the hotel would diversify the experience of the customers and make it more interesting. Besides, Welcome Guest Hotel can entertain the customers with live music played in the restaurant.

Welcome Guest Hotel with its unique family atmosphere has all chances to occupy its deserved position in new markets. Sooner or later, the hotel will face the necessity to expand its activities to other areas. The Australian hospitality market has been chosen with good reason since it has a very favorable environment for foreign business. Welcome Guest Hotel plans to move step by step and enter the market of Singapore where tourism is highly developed and the level of competition is also high. Again, the new competitor acting through the hotel will help to expand the foreign market and guarantee the strengthening of the family-format hotel business, as well.

Everyone knows that hotel organizational structure enhances focusing on specific tasks, thus increasing productivity through coordinated efforts. Welcome Guest Hotel will have two executives controlling the entire operational process. Furthermore, the personnel of the hotel will be divided into several functioning groups. First, three groups will be responsible for housekeeping, front desk and concierge services, and food and drink services. In turn, there will be administrative groups such as human resources, sales, and accounting. Other types of services refer to the maintenance of property surrounding the hotel including general maintenance, security, engineering, etc. Because executives are responsible for general operations, one of them has to be a general manager to oversee financial budgets. Each functional group should have a supervisor, who will report to the general manager.

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Scope of the Project

The Welcome Guest Hotel project is designed to achieve recognition of the brand by customer demand and offer services that could fully satisfy the visitors. Also, technological innovations implemented to enhance the hotel's operational management can make a significant contribution to brand acknowledgment. Besides the issues mentioned above, customer satisfaction depends on a variety of means of entertainment available in the hotel, as well as providing premium-quality food and responding to customer requirements when necessary. A quarterly increase of clientele by 3% can be achieved with the help of the unchangeable first-class service, politeness of the personnel, and excellent accommodation based on the technological regulation. Before expanding to the global market, there is a need to gain high rates in Australia. Therefore, the hotel should do everything possible to receive only positive feedback from the customers. Among others, it can be achieved through the availability of an entertainment center for children. Moreover, such services can be provided by the Welcome Guest Hotel for middle and upper-middle class-oriented prices.

Project Scope Table


Related Goals

Critical Success Factors

Recognized brand in Australia

1. Compliance with customer demand.

2. Offering the corresponding services to satisfy customers

3. Availability of technologies for lower prices



Customer service

100% customer satisfaction

1. A range of entertainment

2. High-quality products

3. Satisfying customer needs any time they need.

Quality management


Customer volume increased by 3% quarterly

1. High-quality services

2. Politeness of the personnel and their readiness to assist customers

3. Excellent accommodation


Orientation on the global market

High rates in the Australian market

1. Positive feedback from customers

2. Possibility to make the vacation more interesting for children

3. Prices for middle and upper-middle class

Orientation on the global market




Role in Process

Stake in process

Owners, executives, personnel


Basis of competitive advantage (Ivanova, 2011)

The hotel’s successful development (Ivanova, 2011)

Respectful treatment of customers (Buchholtz, & Carroll, 2012)

Compliance with consumer rights (Buchholtz, & Carroll, 2012)

Customers, suppliers, competitors


Some of them are the end users or consumers, thus being important for long-term success and development (Ivanova, 2011)

Compliance with consumer rights (Buchholtz, & Carroll, 2012)

Determination of the business success

PEST factors


Can change the strategic direction according to updated policies and regulations, economic fluctuations, demographic situations, etc. (Ivanova, 2011)

The factors play a huge role because they can influence both the internal and external environment of the business.

The Relationship Between each Group of the Stakeholders and the Identified CSF:

Critical Success Factors

Stakeholders' Responsibility and Contribution


Owners decide what place will be the most favorable and beneficial

Customer Service

Personnel provide customer service directly and determine its quality; Suppliers provide means for making customer service unique and valuable; Executives control the quality of the services and make decisions regarding quality management; Customers evaluate the services based on their experience and leave feedback

Quality Management

Executives control and decide.

Personnel acts according to the recommendations of the executives

Orientation in the Global Market

Owners decide what target market to penetrate; executives participate in the strategy development; personnel is those who make effort to accomplish goals.

Communication with Relevant Parties who Can Support

Relevant Parties for support

Methods to communicate

Kind of support required from each party


Mailing, informal and structural meetings, mailing, through websites

Provide all necessary products and means to support the development of the hotel

Digital marketing experts

Formal, informal, and structural meetings, mailing, Public Relations Consultants

Help to make the Welcome Guest Hotel brand recognizable and well-known along with contributing to the business profitability


Formal and structural meetings, mailing

Can support financially in the cases of new offering projects to increase productivity and revenue


Formal meetings, via the Internet, mailing

Provides support in getting licenses and gaining permissions to initiate the hotel business activity.

Environmental Analysis

SWOT Analysis


1. Family-oriented hotel for middle and upper-middle class visitors with a possibility to house single visitors, as well.

2. Technical innovations peculiar to luxurious hotels are available for visitors who cannot afford a very expensive vacation.

3. Employee retention is at a high level.

4. Strong will to enter new foreign markets.

5. A range of interesting means of entertainment for both parents and their children to improve customer experience.

6. Gaining a good reputation due to excellent-quality customer service.


1. Brand development and enlargement of the clientele can take much time due to the presence of already acknowledged hotel brands.

2. Unexpected circumstances related to some external factors can dramatically affect the Welcome Guest Performance.



1. Due to a family-oriented format, there is high potential in entering new markets.

2. The tendency of innovation implementation into customer service.

3. Digitalization and advanced use of technology, which simplifies the working process for employees and meets the needs of customers.

4. Improvement of the entertainment center for children according to the customer needs and desires.


1. Entry of other well-known brands and existence of similar family-oriented hotels in Australia.

2. The risk of having a lack of clientele.

3. Growth can be stagnating because of external factors.

4. Breach of cyber security and related damages.

5. The behavior of the guests can be unexpected.

6. This risk is derivative from the previous risks and consists of staff rudeness in different situations.

PEST Analysis

A range of external factors as mentioned in the paper earlier but now it is important to examine the question more specifically. Any current or future change in a single area will impact Welcome Guest Hotel. Therefore, the PESTEL analysis will help to reveal the main issues in the broad environment where the Hotel is operating.

Political factor includes the regulations concerning Welcome Guest Hotel. Since the Australian Government is interested in attracting investments, it is advantageous for the hotel and would also be beneficial for the Australian economy.

Economic factor implies that Australia is placed in the leading position in the list of growing economies. Subsequently, public spending and GDP are constantly rising along with the purchasing power of Australian citizens and travelers, respectively.

Social factor in Australia plays an important role in business and diversity of demand because the country is multinational. Therefore, the hotel should meet the standards and satisfy its visitors independently according to their preferences.

The technological factor is a milestone in the hotel business, and Welcome Guest Hotel tends to provide the latest technological innovations to ensure safety and comfort using the room-control system via a smartphone. It will certainly attract customers because such a system is available mainly in luxury-class hotels for middle and upper-middle guests.

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Risk Research

The environmental analysis shows that Australia provides very favorable conditions for foreign hospitality businesses. Nothing seems to hinder the development of the Welcome Guest Hotel. However, every hotel owner should take into account the fact that many threats arise when they are least expected. The possible risks have been presented in the SWOT analysis. Firstly, it is unequal competition in which competitors represent well-known hotel brands and little hotels or even guest houses. On the one hand, Welcome Guest Hotel is not threatened much by such circumstances because its offerings are unique. However, potential customers very often are not ready to trust newly-built hotels, thus they can choose cheaper or more expensive options depending on their preferences. Therefore, there is a risk that the Hotel will suffer from the lack of clientele. Besides, stagnating growth of the Welcome Guest Hotel can be impeded by external factors, such as the change in policies, economic crises, etc. Despite the promised national prosperity, anything could go wrong. Another risk poses a more serious threat that is related to cyber security and data privacy. Therefore, the hotel has to care about the prevention of identity theft (Patterson, 2015). Understandably, hotels gather huge volumes of customers’ personal information, including addresses, passwords, card details, social security numbers, and so on (Patterson, 2015). This makes them a profitable target for cybercriminals. Undoubtedly, such situations can lead not only to reputation damage but also large losses because, in case of an emergency, hotel personnel has to inform the customers that their personal information can be compromised. Another risk is related to guest behavior, which can sometimes be rather unpleasant. In any case, it greatly threatens the hotel’s profitability. Firstly, if a guest gets injured by something in the room or if the guest’s child falls in the entertainment center, the accident can end up with a lawsuit (Patterson, 2015). The serving of stale food is even worse. The staff members might be different, thus none can prevent this from happening (Patterson, 2015). Besides, the drunken visitors often prove to be costly. Therefore, internal control should be implemented in Welcome Guest Hotel to provide the visitors with a safe environment and be able to handle their troubles. As was demonstrated above, staff also poses a critical risk. The problem of hiring amateurs is common for all businesses because workers lacking professionalism cannot find any other job they would be fit for, so they try to find a job elsewhere they could be needed. This problem might be solved by re-training the personnel but it is often associated with additional costs. Moreover, hoteliers should keep an eye on the demographic trends, salary level, and employee satisfaction to ensure the personnel remains motivated enough.


The Welcome Guest Hotel is a family-format hotel that can also provide housing to other categories of visitors but as it was mentioned above, it is family-oriented and works for serving the needs of middle and upper-middle class customers. The hotel is going to be situated in Australia, in Melbourne. The project includes building the hotel equipped with constantly developing innovations to ensure a convenient and memorable experience for customers, and it will also be fitted with an entertainment center for children and other options to make the perception of the Welcome Guest Hotel unique, thus differentiating it from competitors. The associated risks are presented in the Risk Assessment Table, Risk Assessment Matrix, and Risk Rating and Treatment Options Table. The risks are related to the existing competition in the Australian hospitality market, possible lack of customers, the risk of stagnation, as well as the cyber security breach, and guest and personnel factors. The tables below show the likelihood and the level of impact, providing a few decisions for each one to be resolved. The Risk Diagram and Risk Management Flowchart are presented below:

Analyzing the Risk

Looking at the operational and functional processes of the Welcome Guest Hotel, it becomes clear that possible risks cannot be excluded. The internal and external environments can pose a threat to the hotel in the form of a high level of competition in the Australian hospitality services market. Although it is likely to occur, such a possibility is relatively low. Such circumstances can be explained by two factors. The first is the fact that despite the numerous hotels in Australia, the grounds for the Welcome Guest Hotel development are stable due to political and economic factors. Secondly, the hotel has much to offer to its customers; therefore it has many chances to win the competition. However, even if failure in the competition happens, it will not drastically affect the hotel’s operations because the hotel can reach the leading position using entertainment offerings for affordable prices and constant innovative processes. The lack of a strong client base, being the second risk, usually happens quite rarely because any hotel will have a certain number of customers in any case. In the worst-case scenario, clients will not visit the Hotel if the services provided are of poor quality, beginning from dirty towels and unclean rooms to rude personnel and boring entertainment. However, if it occurs it can cause a moderate impact on the business, and the recovery will be hard. Thus, as a way out, the hotel can offer discounts to the customers and launch a new advertising campaign, which would demonstrate the improvement of the hotel’s services. The third risk is stagnation, which is directly related to economic and social factors. Again, thanks to the favorable environment in the Australian market, the probability would remain low, if only Australia does not face some serious economic crisis. Anyhow, the impact will be minor because a good reputation of the Welcome Guest Hotel will help it to win the loyalty of clients from other countries. Moreover, if the risk of stagnation increases, the hotel might need to offer some of its services to non-visitors. Then, it would make sense to review the level of customer service quality and improve it. Another matter of concern is the possibility of a cyber security breach because storages of any personal data attract cyber-frauds, who can launch a cyber-attack and steal valuable information. Such risk is possible, especially when attacks are frequent enough. The level of impact reaches the extreme level because it stands for a reputation drop, loss of client’s trust, and huge expenses. The cyber security breach has to be carefully and urgently prevented through the data protection plan development and training of the employees to handle necessary operations to ensure the information is protected. Guest factor risk depends on the visitors themselves and the ability of the personnel to cope with such situations. Since the Welcome Guest Hotel is intended mainly for families, there is a low probability that it will have big problems with such clients however, the possibility still exists. The guest factor can negatively affect the reputation of the hotel because a few negative customer reviews can persuade potential clients not to stay there. The prevention of this risk is based on training the skillful personnel, who will know how to handle unpleasant situations with customers. Moreover, it is important to identify how to reduce the possible causes of harm and damage to visitors and their children. Finally, the personnel factor is not less crucial than the previous factors. The hotel is likely to face problems with the staff due to the careless hiring procedures. In this case, the staff members will not be able to do their work well due to the lack of professionalism. Undoubtedly, such a situation has extremely negative consequences because customer service will be at a low level. Therefore, it is essential to create an approach for hiring the new staff, control their re-training according to the updated requirements, and motivate them with bonuses.

Associated Risks

Table 1:

Risk Assessment Table

Associated Risks



1. Relatively high level of competition



2. The lack of clientele



3. Risk of stagnation



4. Cyber security breach



5. Guest factor



6. Personnel factor



Table 2:

Risk Calculation / Risk Assessment Matrix

Risk Matrix





(3) possible


(5)Almost certain


(1) Insignificant



(2) Minor





(3) Moderate


Lack of clientele


(4) Major



Guest factor


(5) Extreme



Personnel Factor

Cyber security breach


Table 3:

Risk Rating and Treatment Options

Risk in the order of Priority

Treatment options

1. Cyber security breach

a) establishment of a protection plan

b) education of employees in handling and protecting data

2. Personnel factor

a) financial encouragement

b) re-training

3. Guest factor

a) polite and ready-to-help staff

b) minimization of issues likely to cause injures

4. The lack of clientele

a) discount offerings

b) a new advertising campaign

5. Risk of stagnation

a) making some services available for non-visitors

b) service improvement

6. The competition level

a) unique offerings for decent prices

b) implementation of innovations

Table 4:

Team Feedback Report

What are the hazards?


Who might be harmed and in what way?


What are we already doing?


Do we need to do anything else to control this risk?


Action by whom?


Action by when?





Personnel is more threatened than customers

Safety announcement and making working environment safer, especially in the kitchen; healthcare delivery practice in the cases of emergency

Supervisor controlling the fulfillment of requirements

Supervisors and personnel


Slips and falls

Personnel and customers, especially their children

Safety announcement for the personnel, warning parents to look after children, hiring the experts to look after the little children if parents are absent

Supervisor control

Supervisors and personnel


Harmful chemicals

Personnel and customers

Safety announcement; careful use of cleansers while washing dishes and the kitchen equipment

Supervisor control

Supervisors and personnel


Scalds, cuts, burns

Personnel and customers

Safety announcement, escape plan for serious fire hazards

Executive and supervisor control

Executives, supervisors, and personnel


Advertising Campaign

Nowadays, any business, whether it is an online shop, a new product by an already famous company, or a resort requires getting acknowledged. Hence, it does not matter whether it is a necessary item for the household, an article of luxury or status indicator, or just a new trendy toy. Advertising serves an ultimate purpose in business activity because it enables sellers to compete with each other to draw the buyer’s attention. Moreover, one review or a single announcement cannot warrant a constant stream of customers. Therefore, advertising is a crucial external factor necessary for taking decisive actions as well as internal reinforcement of the sales team.

The Campaign Objectives

The first objective of the Welcome Guest Hotel’s advertising campaign is to demonstrate its benefits, price, and satisfaction by devoting time to it. Additionally, mentioning the price will also make sense because potential clients should see the complete image of the Hotel and compare its advantages to their previous experiences. Accents on the variety of entertainment mean combined with the cozy, comfortable rooms and approachable staff must be a winning variant. Another objective is to encourage visiting the Welcome Guest Hotel. Firstly, it is important to emphasize why families should stay exactly in this hotel. Furthermore, one of the great motivators is to make a discount for the first booking. It will attract numerous customers which is essential for the new hotel (Business Study Notes, 2016). Besides, reminding of satisfaction is the third objective (Business Study Notes, 2016). Generally, the objective should refer to the hotel’s strengths and make stress them. For example, one may say that the hotel breaks stereotypes in terms of the equality of price and quality and it is currently affordable to spend a vacation for a decent price. Increasing profitability is the primary advertising objective for all businesses (Business Study Notes, 2016). However, advertisement partly determines the level of revenue (Business Study Notes, 2016). The advertisement can be extremely eye-catchy compared to the rest of the hotels worldwide but if the services there do not comply with the promises listed in the advertisement, the potential clients will not trust the hotel anymore. The last objective is aimed at changing the perception of the customers (Business Study Notes, 2016). In the beginning, the advertisement should tell about the new experience waiting for customers in the Welcome Guest Hotel because it would be the place not only to stay for a night but also to listen to live music. When the Hotel becomes more popular, advertising a new range of dishes will attract not only travelers but even those people who would like to try some never-eaten meals.

Advertising Budget

Some independent hotels are sometimes forced to spend more money on advertisement in comparison with those hotels that are branded and already have a respectable image and reputation. Hoteliers have to be conscious about the ways they choose to use, especially when new opportunities are continually entering the advertising field. When the return on investment is lower than desirable, it indicates the possible risk of wasted input and fading reputation (Halpern, & Carmichael, 2015). However, there is nothing to worry about because the digital marketing approach builds a powerful foundation for the hotel’s online presence improvement, thus giving the possibilities for revenue optimization strategy development.

Online investment can bring the best results for the hospitality business. Moreover, to carry out this activity well, it would be better to delegate it to an electronic marketing firm, instead of making the local personnel responsible for it. Everyone must have their place and do the work they are best at (Halpern, & Carmichael, 2015). Firstly, this option is cost-effective and secondly, it warrants increased visibility and revenue. Such consulting should take approximately 8-10% of the advertising budget (Halpern, & Carmichael, 2015). The revenue optimization is directed to the maximization of profits with the help of digital marketing development.

Additionally, search engine optimization (SEO) and search engine marketing (SEM) take closely up to 29% of the digital marketing funds of the hotel (Halpern, & Carmichael, 2015). Nowadays, SEO is vital for meeting business and search engine standards. Although it requires constant rejuvenation of web content, it allows penetrating the area crowded with competitors and strives for remaining a memorable and recognized experience for potential customers. SEM approach costs up to 22% of the advertising budget and also requires a strong time commitment to achieve significant results (Halpern, & Carmichael, 2015). Besides, SEM serves as a much more beneficial feature for independent hotels because they do not need to utilize key brand phrases.

Email marketing is not expensive in comparison with SEO technologies and website enhancement. It will cost no more than 5% of the hotel’s advertising budget (Halpern, & Carmichael, 2015). As a matter of principle, such an advertising option appears to be very beneficial for potential visitors because of utilizing personalization (Halpern, & Carmichael, 2015). When viewers visit the website, the results of their search are transformed into personalized letters. Moreover, it will be more effective if combined with the presence in social media, which in its turn, would take from 2% to 4% of the budget. Consequently, the Welcome Guest Hotel can be visible to users through different communication tools.

Proposed Advertising Activities

In the epoch of inseparability from the virtual area, social networks, and smartphones together with laptops, a modern hotelier may find advertisement positioning in magazines and newspapers a little obsolete, however, this option cannot be abandoned. Still, it is quite unacceptable to make a good advertisement cheap. As far the target market is an average family, they spent at least some portion of their time on social networks such as Facebook or Twitter. Therefore, putting some effort into the advertisement on the Internet can be a brilliant and highly beneficial idea. For instance, 90% of the Welcome Guest Hotel presence will be on the Internet, 3% on TV, another 3% in paper media, including newspapers and magazines, 2% can be devoted to billboards, and another 2% can vary according to circumstances. In any case, it would be more relevant to discuss the main way of advertising. Firstly, a modern-looking website providing the possibility to book online can be a winning solution. Essentially, there is no need to make it complicated. The interesting design combined with user-friendliness appears to be much more advantageous than a not elaborate one. Moreover, it is a great opportunity to show potential guests that they are welcome even online. Secondly, when it comes to first-class advertisement, it leaves nothing else to do but provide high-quality commercial photography. Without any doubt, it will require relatively much cost but it is still a worthy activity to prove the hotel’s reputation and customer orientation. Furthermore, the photos can increase the rates of bookings without increasing the website traffic. Another activity that is beneficial for the hospitality business is the SEO strategy that is based on organic search and can increase organic traffic to incredible figures. Here, one can use such services as Google Places, Tripadvisor, On-Page SEO technology, and many others. Additionally, social media strategy plays an important role in the prosperity of the hotel business. For example, Facebook is a hugely helpful tool to make the Welcome Guest Hotel recognizable as it will be enough to update the information at least a few times a month. Moreover, the abundance of photos on the social network will certainly attract clientele.


Running a hotel business reminds a puzzle. To have a nice-looking picture, the hotelier has to connect all the factors, environments, possible changes, and many other issues in a way they could not break apart. Welcome Guest Hotel in Australia is a cozy place ready to provide housing to any guest regardless of whether it is a lone traveler, a couple, or a big family. Besides the input in the form of money, facilities, and software, it is important to develop a risk management plan because the hospitality market is full of hidden agendas. Risk management is based on the analysis of internal and external factors, which significantly influence the hotel. Even insignificant changes in one of them can drastically affect the operational performance of the company. Additionally, the advertising campaign is considered an external issue that determines the further development of business, and therefore it is a vital aspect to be considered at the initial stages of running a hotel. Moreover, one of the primary objectives is increasing profitability, which in turn, is directly related to the internal factors affecting the hotel.

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