AIRPORT VIEW HOTEL BUSINESS PLAN (BP)

Our product / service comprises of accommodation, meals and drinks, conference facilities, internet and other secretarial services, hosting wedding parties and other social functions.

Pricing is based on cost plus a margin; due to high demand for our products / services, guests are not quite sensitive to our rates.

Facilities are constructed and furnished using locally available materials such as building sand, bricks, cement, iron bars, timber etc.

Meals are prepared from locally produced fresh food items (supportive of organic farming) and drinks from agents of multinational beverage companies.

We use skilled and semi-skilled labour; 20 people in construction and 24 staff in production and delivery. 75% of employees are semi-skilled and (25%) professionals. Women make about 35% of the total workforce, it is our intention to increase on this number to atleast 50% in two years.

Target market is the middle tier of the hospitality industry comprising of local, regional and international travelors who transit through Entebbe Airport.

Target group includes:
(i) short stay business travelers looking for decent / affordable accommodation and efficient services and who are attracted by price and location (significant target group for the hotel).

(ii) Local residents reserving accommodation for in-coming visitors / relatives.

(iii) Aircraft crew on scheduled /unscheduled flights as well as UN personnel.

(iv) Foreign investors looking for hotel accommodation before getting permanent accommodation.

(v) Expatriates on short and medium term assignments

(vi) Leisure tourists visiting Kampala / Entebbe for a few days or transiting to other destinations. Because of the more personalised style of this hotel, these are likely to be independent travelers or small groups.

Current business patterns show that market demand is predominantly for single / double occupancy rather than family occupancy. This fits well within our room designation.

Supply chain comprises of local food items such as beef, chicken, rice, potatoes, bananas, vegetables, fruits etc. from peasant farmers, local traders; Soft and alcoholic drinks from distribution agents, laundry and sanitary items from supermarkets. The food items are fresh and available throughout the year.

Suppliers of building materials are local Ugandans working individually / in groups (cooperative societies) as well as established wholesale / retail outlets.

There is demand for our products / services due to heavy traffic transiting through Entebbe International Airport.

We reach our customers through advertisements in the print and electronic media and by word of mouth.

Our competitors are in two groups;

1. 4/5 star hotels - Imperial Resort and Botanical Beach Hotels and Windsor Lake Victoria (in different market niche and pose no serious threat to AVH).

2. 2/3 star hotels (Golf View Hotel, Sophie's Motel, Anderita Beach Hotel).

AVH's ambience and quality of service give it an added advantage over those in the same category (2).

We monitor our competitors' level of customer service, product innovations, staff relations and evolve strategies of out competing them.

Our products / services are cheaper compared to those in category (1) and about the same as those in category (2). Our average room rate for a single room is about 50% less.

Our prices are better because most of the items are purchased locally, from our usual suppliers, and by efficient use of energy and water.

Our products / services are better because we use good quality materials, excercise a high level of professionalism in construction, production process and service delivery.

The uniqueness of our product / service is derived from our original concept of a hotel - simple architechural design with a homely appeal that blends nicely with the environment (not just another high rise box); provision of decent / affordable products / services especially to the low / middle income clients.

Promoters have travelled widely, lived in different types of hotels and appreciate decent and affordable hotels.

Main promoter is a retired banker and some of the clients he dealt with were hoteliers. His close interaction with them while appraising their loan applications, enabled him to understand their products and target market.

Skills and knowledge gained over the 24 years the promoter worked with the bank which resulted into customer satisfation, retention and growth, have been extended to the hotel industry.

Based on this experience; the bank and hotel require clear identification of the market niche, products and services, appropriate product mix, packaging and delivery.

Businesses that have been successful are those that have adequate capitalisation, good products / services, ideal target market, dedicated management and staff coupled with conducive economic environment.

Businesses that have not been successful are those that have lacked the above especially the 3Ms (Money, Market and Management).

Impact of Product/ Service on:

(a) Direct / indirect local Employment: 23 employees (60% locals) were recruited with basic academic qualifications. They have since been trained in hotel and catering on job, in designated colleges by proffessionals from reputable hotel training colleges especially the famous Utaali College in Nairobi.

Staff have improved on their knowledge and skills and it is our intention to expose them to further training. Even when staff leave our employment, they are able to find jobs elsewhere.

38% of hotel staff are women and it is our intention to promote affirmative action by recruiting more qualified ladies especially in departments as front office and house keeping. As the old adage goes "Train a woman and you train a Nation".

By keeping employees in service, we have sustained their livelihood and those of their family members and generally improved their living standards. This has also checked the level of crime as idle and unemployed youngsters tend to resort to crime.

Staff who perform well are recognised and rewarded accordingly through promotions, and salary increaments.

(b) Direct and indirect local income: Staff earn salaries and wages and they in turn employ support staff such as helpers, and their immediate family members.

Hotel purchases various items from the local suppliers including prepared food for its employees. The vendors are assured of a steady income.

(c) Earned income enhances their purchasing power and are able to buy the day-to-day essential items, pay school fees for their children, meet their medical bills.