SWOT Analysis of Resort. A resort is like a hotel and it offers recreation and relaxation services to its guests and customers. The focus of the resort is always to provide accommodation services that people would consider a resort hotel. In short, a resort is a form of hotel that provides more accommodation along with various recreational activities and facilities.
Some of the main products and services of the resort are as follows;
- Entertainment
- Recreational activities
- Shopping
- Sports
- Lodging
- Swimming
- Food and drink
Key statistical facts and figures about the resort are as follows;
- The annual revenue of US resort hotel in 2022 was Approximately 239.7 billion US dollars
- Out of which, the gross operating profit of the company is 73.70 billion dollars
- The labor cost per room was 65.94 dollars
Some of the top resort companies are as follows;
- Tawawa House
- Monte Ne
- Capri
- Baiae
- Westin
- Sheraton
- Ritz Carlton
- Hyatt
Today, we’ll discuss the swot analysis of resort. It is going to focus on the internal strengths and weaknesses; external opportunities and threats to the resort and hotel business. Here’s the swot analysis of resort as follows;
Strengths of Resort
Some of the main strengths in the swot analysis of resort are as follows;
Market Leaders
Resorts have achieved a market leadership position in the hotel and restaurant industry. It is because they own highly valuable property and have great access to capital resources. However, the market leadership position allows them to take on various projects and stabilize their financial position.
Recognized Brands
There are various recognized brands like Westin, Sheraton, Ritz Carlton, Hyatt, and various others. They have got chain network of resort hotels in various countries across the world. In fact, such brands are doing high-value real estate business in the background.
Customer Database
Those resort hotels and companies have been operating their business in the service industry for the past many decades. It has allowed them to establish a strong database of loyal customers in various countries across the globe. They would visit your establishment repetitively.
Customer Service
The thing that differentiates resorts from hotels and restaurant is their customer service and service portfolio. They provide great customer service to their clients and serve in various ways. However, the quality of service and the service experience would make them visit repetitively.
Online Growth
Various resorts provide the facility for online booking. The good thing about online growth and service is that they offer customers a virtual tour of their resort by showing them pictures and videos of their parks, swimming pool, food, and rooms. However, if customers like what they see online, they would book their seat or room at a particular time and date.
Weaknesses of Resort
Some of the main weaknesses in the swot analysis of resort are as follows;
Reliant on Hotel Business
If we study the business of resorts, they are heavily relying on the hotels and restaurant business. In order to sustain their market leadership position and growth, they should diversify their portfolio and include more items in them.
Limited Customer Database
Resorts are much larger in size than hotels and restaurants. They need to keep employees permanently on the payroll for the maintenance of the large establishment. However, customer booking and crowd don’t remain the same throughout the years. But the company should have to carry the employee’s expenses on and off the season.
Opportunities for Resort
Some of the main available opportunities in the swot analysis of resort are as follows;
Alliance with Travel Agencies
In order to increase the inflow of tourists and visitors, resorts should make alliances and partnerships with travel agencies. The best deal is that they should offer them a commission per customer; it allows them to amplify the customer’s volume during in and off the season.
Merger & Acquisition
Resorts should consider acquiring and merging with other hotel and restaurant businesses. There are many growing businesses in various regions across the world; acquisition and merging would increase their growth and profitability in the long term.
Portfolio Expansion
Resorts should consider expanding their products and services portfolio by launching new and creative services. The more unique your service portfolio is, the more it gives you a competitive edge over competitors in the market.
Threats to Resort
Some of the main potential threats in the swot analysis of resort are as follows;
Decreasing Real Estate Value
As I mentioned earlier that various resorts are doing the real estate business in the background; a decrease in the real estate value would negatively impact their business. It means that their property value and market worth would decline.
Natural Disasters
Natural environmental disasters like earth quacks, floods, excessive rainfalls, and tornados would not only jeopardize your property and establishment but also decrease the inflow of customers.
Security Threats
Security threats have become a major concern for the hospitality service industry. Various radical and militant groups target such places where a large crowd of people gather there; the bigger the impact of the attack, the more powerful they become.
Conclusion: Resort SWOT Analysis Example Company
After an in-depth study of the swot analysis of resort; we have realized that resort is similar to the hotel and restaurant business. If you are learning about the business of a resort swot, then you should keep in mind the abovementioned internal and external factors impacting the hotel and restaurant resort business.
Ahsan Ali Shaw is an accomplished Business Writer, Analyst, and Public Speaker. Other than that, he’s a fun loving person.
