Hospitality industry is known as one of the most widely diversified industries in the world as it has a broad category consisting of hotels, restaurants, event planning and cruise lines to theme parks worth to the tune of several billion dollars worldwide.
As it has been shown from the above historical perspective, the hospitality industry has reached a stage in its evolution where it requires adaptation and the application of greater flexibility to its existing and new products. This will entail the development of new concepts with inherent ways or means to change content, service or image in an economical way. Service methods can be readily altered as they are primarily based in personnel skills, investment in people will need to increase and retention of staff will require a new approach to human resource management. The more difficult element will be the ability to create flexibility in the physical property
1:1 Description of the Project
“Sea bubble” Overwater wedding package
The initiation of this project would be to refurbish an existing old deck which is located in the shallow waters, away from the island. This freestanding pavilion is accessible only by boat, offering a spectacular view of the sea with a glass-bottomed aisle in a chapel-like venue that is just a few feet over the stunning blue sea. Completion of the “Sea bubble” over water wedding package” will take the common beach weddings to a whole new level, with a Maldivian fusion. to provide memorable experience to the guests.
2. RESEARCH FINDINGS
Survey has been conducted by the resort during the guests stay in the resort. Questionnaire (Refer appendix A) has distributed among 50 young couples and the results has taken to recognize the perception of the over water wedding and its interest amongst the young generation. Analysis shown as below.
According to the survey 84% would prefer to have their wedding in a unique location while 16% would prefer usual location.
Further according to the survey, 54% has stated that they would choose over water wedding pavilion while 46% has stated the location as beach and restaurant.
Further about the food the guests preferred on their wedding day 44% has stated on fusion, while 28% has agreed on sea food 16% Maldivian food, other 12% has agreed on other food verities.
During the wedding ceremony 40% has shown interested on traditional Maldivian Music on their wedding day as they have explained that they loved to experience the music in foreign country , 34% Jazz music, 18% Classical music , 8% has shown interest on traditional church music.
According to the analysis 66 % of them have stated that they are able to spend US$3000-US$3500 amount for a wedding package, while 18% are able to pay higher amount and 16% indicates only able to pay US$2500-US$3000 amount.
According to the facts of the research it was fond 105 resorts are currently operating in Maldives and only 1 resort is currently operating the over water wedding package as all the other resorts promotes beach wedding packages .
According to the survey total analysis upon the guests it was indicated that more than 50% of them preferred to have their most memorable day on a very unique location and experience traditional Maldivian music. As well as mostly the young generation preferred go for a simple elegant wedding with a white wedding theme on their wedding day
. Currently 105 resorts are operating in Maldives and only 1 resort promotes over water wedding package. Considering these factors it was decided to promote the “sea bubble” over water wedding package.
2.1 Market Survey
It is essential to conduct SWOT analysis to identify the current market and its needs.
3. PROJECT AIM AND OBJECTIVES
Refurbishing the existing over water deck and turn it in to a luxurious over water Wedding pavilion and launching as a “Sea bubble” over water wedding package will takes 3 months duration.
“Goals and objectives must be clear statements of purpose. Each with its own purpose that drives the end result of the project. Goals and objectives must be SMART Specific, Measurable, and Agreed upon, Realistic and Time-based.” (Project smart, 2016)
Evaluation was proved that there is a high demand for unique wedding package as many customers had shown interest on unique location with a romantic ambience on their wedding day. Unique features and the romantic atmosphere of “Sea bubble over water wedding package” is ideal solution for their preferences. Further uniqueness of this package will takes beach weddings to a whole new luxury level, creates competitive advantage among the competitors Further as it proves to generate greater income comparing the beach wedding package.(Beach wedding currently US$ 1500 , over water wedding package can estimate at US$ 3000)
Convert existing over water wooden deck to a over water chapel like pavilion
Wood, equipment and other facilities
Well trained staff for the service, Food and beverage and wedding coordinating staff
Advertising and Marketing
a) Operational Objectives - First three years of operation:
Highly control the cost on operational activities
Promotions for the package
Achieve a profitable return on investment.(87%)
b) Operational limitations
Due to the unexpected weather conditions
4. RESOURCES REQUIREMENT AND RESOURCES
“Putting a cost against project resources and mapping them onto a schedule produces a time-
Phased chart or table of project resources, called a 'project budget' or 'cost plan'” (Paul D,2005)
4:1 Resource requirement
As the initiation of this project for refurbishing the existing old over water deck in to overwater chapel alike wedding pavilion cost will be estimated US$ 8520 for procurement servicers such as: renovating the existing wooden deck, recruitment, salary, advertising and promoting and finally launched as a whole new wedding package. Completion of the project will take 3 months starting from 01st Of April 2016 to 01st of June 2016.
Table 4:1 Cost for investment
Components that would be made available in the over water wedding pavilion
20 Guests seating arrangements in the overwater wedding pavilion
Two glass bottom floors
a) Income Sources
The main source of income for this wedding package would be selling over water weddings for European and Chinese customers during the year. Sea bubble wedding package is forecasted to sell throughout the year. But as the Maldives islands get their rainfall during southwest and northeast monsoons it is ideal to sell this package during the best climate in Maldives with clear skies and calm water which is during the time between May and November
There are some newly introduce food and beverage items include for this package. (Refer appendix 3)
Product value additions
Guests will receive a Cold/hot towel on arrival.
Complimentary upgrade to sunset villa on wedding night. (on availability)
Complimentary bottle of champagne on wedding night.
(Refer appendix 3) for wedding package entitlements.
The Maldives is one of the most popular island destinations for weddings and honeymooners, and this year it was named as the world's best beach destinations at the Worlds Travel Awards. (Daily mail, 2016) Renovation of the free standing over water pavilion will create a breathtaking wedding venue, set over the Indian Ocean. This light and airily pillared structure with romantic atmosphere and friendly staff is assured to provide whole new experience for the guests on their blessed day.
4:2 Resource analyses
It is further important to identify the stakeholders of the project for their contribution and expertise at different stages of the project. The level of coordination and efficiency would eventually result the project successful. Following is a summary of its stakeholders. (Digital purview, 2013)
Table 4:2 :Stake holders of project
b ) Project Milestones
Scheduling of activities of the “Sea Bubble Over water wedding package” with an estimated duration should be determined based on resources utilized for each activity as explained in Network Diagram Figure 5.4. Following are the milestones needed to be accomplished.
Table 4:3 : Project Milestones
5. PROJECT TIME MANAGEMENT
Effective time management includes a number of processes required to ensure timely completion of a project. The five steps involved in project time management are introduced as defining project tasks, task sequencing, duration estimating, schedule development and time control. (Timothy J, 1999)
5:1 Work Breakdown Structure (WBS)
The over water wedding package will comprise different stages for the project to be completed as listed below.
5:2 Gantt chart
The Gantt chart has been created for visually monitoring activities and milestones of the project.
5.3 Critical Path of the Project
The Critical path of the project is highlighted in red colored bars of the Gantt chart in Figure
5.4 Network Diagram
Network diagram defined as a graphical presentation of the project of the projects activities showing the planned sequence of work. It required the information only for two items which are list of activities and the logical relationship between the activities. (Rory B.2003)
Figure 5:1 – Network diagram of over water wedding package
Critical path of this project is highlighted in red color arrows as it takes the longest time to complete it – 73 Days.
6. Financial Analysis
The financial assessment is based on the project and descried as follow.
6.1 Project cost
It is estimated that this project will cost US$ 500,000 as a rough approximation, invested by two partners. Cost will include renovating the existing old wooden over water deck, material cost, wages, Boat rentals and advertising and promotions as well. This cost may vary due to the changes of market price.
6:2 Cash flow statement
Table 6:2 Cash flow statements
Above document has taken in to consideration yearly over a period of 5 years. This has shown the income generates from the operation (assumed as 5 wedding packages sell per month at rate of $3000 multiply by 1Year) the income generates is greater than the expenses which confirms the project viable. Indicated figures have shown that sales increase by 10% each year.
6.3 Cost benefit analysis
Analysis will help to determine money value of the benefits and costs to the community of projects to establish whether they are worthwhile.Table 6:3 Cost benefit Analysis
6:4 Payback period
As per the calculations the restaurant will take 2 years period to recover a financial return of the initial investment.
6:5 Net present value (NPV)
NPV has been calculated on the present value of the overwater wedding package and future value with inflation and its return on the project. When the value of NPV is positive the project shows its viability for further consideration of its implementation. By introducing a discounting rate of 20% as shown in table - Appendix 2 – IRR work sheet, shows a positive value of US$ 888,248.83.
6:6 Internal Rate of Return – (IRR)
Further to the calculations made in table - Appendix 2 – IRR work sheet, shows that when the discounting factor is increased the NPV value decrease. Therefore when the IRR is between 60%-70% the NPV value becomes negative,(36,100.97) illustrating the project viable.
Figure 6:6 IRR – Over water restaurant
6:7 breakeven analysis
6:8 Account Rate of Return - (ROI)
In this method first calculate the annual profit, which simplify the total outlay deducted from the total gains, divided by the number of years in investment will run. The profit then converted into a percentage of the total outlay used as following table.
7.Human Resource Objectives
Human Resource Management is the of key and strategic importance to the project-oriented organization. Every time a new project or program is started, the human resource configuration of the organization changes .Within this dynamic environment, different and additional practices are required from the traditionally managed organization.(Project management institute Inc ,2016)
In order to succeed this project of the overwater wedding package it is essential to select and channel the qualified personnel to fulfill the requirements of customer expectations. Qualified wedding planners, chefs, hostess, bartenders and other clerical staff would require at different levels.
Experienced and skilled workforce will make an great impact for the effectiveness of the project. Assigning unskilled, inexperience labor will unnecessarily increase the organizations costs and time for quality training programs.
On job training, HAZARD food standard trainings for the food and beverage staff, customer care training which can be conduct for different levels such as from boat captain to villa hostess and whoever staff involved in the package. At the initiation itself team building training is essential to conduct as it will determine achieving goals of the project.
“ Internal and external factors that stimulate desire and energy in people to be continually interested and committed to a job, role or subject, or to make an effort to attain a goal.”
(Web finance,Inc ,2015)
Maslow‟s hierarchy of needs explains that motivation is an unconscious attempt on behalf of each individual to satisfy certain inner needs that foresee a response. It is therefore the responsibility of the management to apply appropriate leadership styles that could motivate the workforce of meeting with the ultimate objective. (Helen D.2011)
Employee development programs, team building, employee surveys are some of the motivational techniques which can be followed.
In order to attract more number of customers it will be essential use attractive advertising online, and personalize or customize the product (as an example wedding flower arrangements according to guest preferences).
8. Marketing strategies and Objectives
The over water wedding concept will take the typical beach wedding style to a whole new level as it is a very fresh concept to Maldives. Therefore it is essential that a comprehensive marketing plan is implemented to be competitive and mitigate its financial risk. Changes in customer perception cab be change due to market trends and demands.
8.1 Target Markets
“The process of dividing a market into distinct groups of buyers who have different needs, characteristics or behavior and might require separate products or marketing programs”
Adaaran prestige vadoo's current target markets are Asian, Europe, Middle East regions serving their Middle class, Working class populace. Target demographic segments such as Chinese ,European nationalities /Income between$ 5000-10000/ Age 25-35 /Generation-Millennial would be the ideal target markets for cater the product.
8.2 Marketing implementation
“Millennial represent an increasing percentage of the buying power in our economy. They have money and are ready to spend” (Hubspot 2016) In order to succeed the package best suitable marketing strategies should be followed,
Using latest and newest social networks: Via facebook , Twitter, Yangme (China)
Web development : Insert E-Flyers to Adaaran prestige Vadoo website
Package promotions through tour operators and travel Agents
Brand awareness programs : Example “ Tell the story” concept –share customer experience about their magical wedding experiences and share videos through social media networks.
Adaaran prestige Vadoo has identified the requirements of the different customer segments in order to offer satisfied customer service. “Sea bubble over water wedding package “can be a differentiated value addition for their product line. Its unique features provide more value comparing to the competitor products. This able to create competitive advantage and build a stable position in the Market.
While the brand has been position in the market Adaaran prestige Vadoo still require to sharpen their positioning strategies in order to compete in the future. Positioning strategies such as ,
Benefits positioning: focuses on a benefit this product provides to the target audience. Examples – Sea bubble wedding package will provide a “Unique and magical over water wedding experience” which can be unforgettable lifetime experience.
Product Attributes: Highlighting a specific attribute of the product can also be compelling. For example- “ Romantic white wedding theme”
9. Risk Associate with the project
The 2000 edition of the Guide to the Project Management Body of Knowledge (PMI, 2000) states that a project risk is: an uncertain event or condition that, if it occurs, has a positive or negative effect on a project outcome. (Paud D ,P161)
All projects carry some level of risk and how this is dealt with affects project success. Risk management plan includes define objectives, Identify risks, Quantify risks, Develop response, Risk control .
9:1 Factors to consider
During the operation of the project it is important to make changes and adjustments when necessary in order to mitigate risk which can cause in future. Review and report progress of the project, communicating with project team and shareholders, appreciate them during the project will assist successful completion of the project.
10. Forecasting plan
Forecasting plan is an extremely important part at initial stage of planning a project. Forecasting exercises will determine the project's scope, possible constraints, and potential risks.
a. Productivity of over water wedding package
As shown in appendix 3 revenue breakdown analysis of the over water wedding package, revenue has calculated under two seasons. It is important that sales are tracked often. As an example daily, monthly, yearly revenue forecast plans can be made by the management and it has to be monitored regular basis. Further regular updates and discussions on revenue, review customer suggestions, schedule staff according to seasonal and off seasons will make an impact on achieving higher revenue.
b. Project evaluation:
Should be assessed on set goals, timelines and required criteria of stake holder expectations. Project evaluation is necessary before the closure of the project and handing over the project to the management. At the end of the evaluation, evaluator has to present it with brief description of the evolution to the key stakeholders which include process issues, identified mistakes, suggestions on how the evaluation can be improved.
c. Closure of the Project
Project closure essentially combines two processes 'first the commissioning of the project deliverables and their acceptance by the sponsor, and second to document all experiences in the project.' (lPMA, 1999: 40)
Successful completion of the “sea bubble wedding package” would be ,
Close down technical and financial elements of the project.
Conduct project enclosure meeting with management and reconciling the management reviews with the final product about wedding package.
Reward all the staff who involved in the project in various ways.
11. CONCLUSION AND RECOMMENDATIONS
The main purpose of this project to introduce an overwater wedding package in Adaaran prestige Vadoo, catering to the requirement of the customers. , specially targeting the European and Chinese customers. Uniqueness of this concept will take the typical beach weddings to a whole new level. It is therefore considered that attention to detail is an important component when developing a concept like this.
“A project will not necessarily be a success even if it was implemented successfully by the operator and user. There are many projects that failed in its implementation phase which have later proven successful. Further we cannot assume that a project with major failures in terms of time, cost and quality flaws will turnout as failures. For example the Sydney Opera house , was initially to be completed in six years , with a budget of 7.2 Million Australian Dollars. In reality it took nearly sixteen years with 102 million Australian Dollars spent to complete. Today it's got international recognition and has bought in financial gains and has placed Sydney on the international map”.(Dr. Knut Samset-2004)
Cost factor is another agenda that needed to be highlighted and it needed to be tackle thoroughly in order to reduce the unnecessary cost incurs during the project.
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