Address 107, Kazi Nazrul Islam Avenue Karwan Bazar, Dhaka , Bangladesh Telephone +880 2 811 1005 Fax +880 2 811 3324 Nature of Business Commercial, Residential Hotel Website http://www.panpacific.com/en/Dhaka/Overview.html https://www.panpacific.com/hbs/checkAvailability.html Organizational Profile The Pan Pacific Sonargaon Dhaka hotel is a lush hideaway in Dhakas exciting downtown, offering a calming respite from the city. It provides all the modern amenities of modern life while maintaining every facility enabling guests to relax 2
and rejuvenate with state-of-the-art facilities, and an outdoor pool set amidst lush greenery. Guests are given a unique opportunity to take in the culture of Dhaka, where interesting sights abound within close proximity of the Pan Pacific Sonargaon Dhaka hotel. This 5 star hotel is part of the Pan pacific Hotels and Resorts, which is a leading brand in Asia and the Pacific Rim that continuously exceeds global standards of quality. The Pan Pacific brand is synonymous with personalized care and encompasses a culture of subtleness, delicate service and attention to detail. Each year, Pan Pacific Hotels and Resorts is recognized with prestigious global accolades for consistent delivery of luxurious accommodation, high quality amenities and service excellence. Offering a distinctive value proposition in hotel management backed by 30 years of success in managing hotels, Pan Pacific Hotels and Resorts has been recognized by Cond Nast Traveler magazine as amongst the top 25 hotel companies demonstrating social responsibility.
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Pan Pacific Hotels and Resorts takes pride in balancing the needs of all of its stakeholders: owners, guests, associates and the local communities in which it operates. The groups goal is to maintain this as it continues to create further returns and enhance asset value of the hotels.
The fast expanding hotel group is owned by Pan Pacific Hotels Group, the listed hotel subsidiary of UOL Group Limited which is one of Asias largest hotel and property companies with a diversified portfolio of investment and development properties. Headquartered in Singapore, Pan Pacific Hotels and Resorts has a portfolio of 17 upscale hotels, resorts and serviced suites representing over 5,850 rooms in 10 countries across Asia and North America. It has offices in Hong Kong, London, San Francisco, Singapore and Tokyo. Pan Pacific Hotels & Resorts is a founding member of the Global Hotel Alliance, the worlds largest alliance of independent hotel brands. In Bangladesh, Pan Pacific Sonargaon is owned by a subsidiary holding company, which in turn is owned by the Govt. of Peoples Republic of Bangladesh. This governmental holding gives this hotel a 4
unique and competitive advantage when it comes to recruiting and retaining clientele. Location Pan Pacific Sonargaon Hotel is ideally located in the heart of Dhaka City close to Motijheel Commercial Area, Diplomatic Zone, Gulshan, Baridhara, Parliament House and Prime Ministers Office. 15 kilometers from Hazrat Shahjalal International Airport Shuttle transportation service from/to airport Chauffeur driven Mitsubishi Gallant and Mercedes Benz available for exclusive use Mitsubishi Gallant at U$35 per car per way - US $35 Mercedes Benz at U$50 per car per way - US $50 Hotel counter is located at the Hazrat Shahjalal International Airport arrival lounge. Airport officers are available round the clock at the counter to welcome our guests and escort them up to the car. 5
Distance of important offices from Corporate Office: World Bank (WB) 4 km Asian Development Bank (ADB) 4 km United Nations Development Program (UNDP) 4 km World Health Organization (WHO) 1 km Bangladesh Garments Manufacturers and Exporters Association (BGMEA) - 0.25 km Key Business Sources Being a country struck with poverty, Bangladesh lacks modern five-star facility enabled hotels within the country. Pan Pacific Sonargaon fills this void by offering top notch modern facilities right in the heart of the capital, minutes away from the business district of Karwan Bazar. It serves an important role by catering to international clients in dire need of a facility capable of rendering services of five star standards. Also benefited are local high net worth individuals with similar needs. Domestic corporate houses are also a regular client base for this hotel. 6
A site visit at the hotel premises suggest that contracts of headline-making meetings, press conferences, AGMs, company conferences, seminars, interviews and other activities are businesses that the hotel management and ownership consider to be prime objectives to attain. Other popular businesses the company sets an objective to attain are seasonal parties and balls which reign in good sales and advertizing revenue. Special events and occasions such as concerts and live or recorded musical performances are also a regular attraction and a vital company focus. The hotel itself owns several restaurants within its premises and a round- the-clock catering services, which provides another steady stream of revenue. Company Objective A conversation with Mr. Eldridge J Mac Ewan III, General Manager of Pan Pacific Sonargaon, revealed some interesting insights into the objectives of companys top level management. The excerpt of our conversation with him, highlighting the key objectives, are as follows: 7
To ensure running a profitable and professional company, while building relationships with customers, suppliers and investors, and developing the business as a whole. No compromise on ethics for sake of returning high revenue. Setting a trend for high standards in the hotel industry. Secure hotel management contracts and successfully manage the hotel investments, underpinning asset values. Further reinforce Pan Pacific Sonargaons position in the market place as a recognized and trusted Hotel Management Company. Achieve levels of profit sufficient to provide for reinvestment and suitable returns to stakeholders, investors, and chief owner, Govt. of Peoples Republic of Bangladesh. Within each hotel operation, provide complete satisfaction to clientele in terms of facilities and service standards, food and beverage related products, at a fair price. Manage hotels by human resource policies which encourage and rewards individual and unified effort and achievement. 8
Provide training and personal development opportunities and create a working environment in which staff can feel a real sense of job involvement. Market the hotel through recognized and trusted brands, selected agencies and direct marketing initiatives from the hotels to high standards of ethics and taste. To achieve high profitability. To promote Bangladesh as a tourist destination. Adopt best commercial practice and ethical standards in dealing with clientele, suppliers of goods and services and other contacts. Seek to comply with all statutory legislation and other external relevant authorities. Define and keep under review Company policy, allowing flexibility for local requirements. To attract FDI (Foreign Direct Investment) and play the role of a catalyst in energizing Bangladeshs economy. Management Team 9
Mr. Eldridge J Mac Ewan III General Manager Email: ejmacewan@panpacific.com Mr. A. K. M. Morshed Director Technical Services Email: amorshed@panpacific.com Mr. M. A. Awal Director of Sales Email: mawal@panpacific.com Mr. Asif Ahmed Director of Finance Email: aahmed@panpacific.com Mr. Mohd. Oliullah Assistant Director Food and Beverage Email: moliullah@panpacific.com 10
Mr. Quazi Elias Hossain Assistant Front Office Manager Email: ehossain@panpacific.com Mr. A. N. M. Anwarul Azim Senior Catering Manager Email: aazim@panpacific.com Mr. Fazlul Haque Shikder Reservations Manager Email: fshikder@panpacific.com Services Offered 1. Rooms a. Standard Room Located in the Courtyard Building. Suitable for single occupancy, offers in-room broadband internet, cable TV and direct dialing telephone service.) 11
b. Deluxe King Located on the 5th - 7th Floor, our Deluxe King rooms are luxuriously appointed and offer in-room broadband internet access, satellite and cable international television channels, electronic safes and door locks, bathrobes, slippers, marble bathrooms, extensive mini bar selection, large desk area, hairdryer and television.) c. Deluxe Twin Located on the 5th - 7th Floor, our Deluxe King rooms are luxuriously appointed and offer in-room broadband internet access, satellite and cable international television channels, electronic safes and door locks, bathrobes, slippers, marble bathrooms, extensive mini bar selection, large desk area, hairdryer and television.) d. Premier King 12
Located on the 3rd and 4th floor, Premier King rooms are luxuriously appointed, newly renovated. Premier King rooms offer free in-room broadband internet access, satellite and cable international television channels, electronic safes and door locks, bathrobes, slippers, marble bathrooms, rain shower, extensive mini bar selection, large desk area, hairdryer and wall mounted LCD television.) e. Premier Twin Located on the 3rd and 4th floor, Premier Twin rooms are luxuriously appointed, newly renovated. Premier Twin rooms offer free in-room broadband internet access, satellite and cable international television channels, electronic safes and door locks, bathrobes, slippers, marble bathrooms, rain shower, extensive mini bar selection, large desk area, hairdryer and wall mounted LCD television. 2. Suites 13
a. International Suite Located on the top floor, our largest and most prestigious suite spanning both sides of the hotel with pool and city views. The International Suite is fit for royalty, with an expansive bedroom, King size bed and luxurious marble bathroom. An entertainment area incorporating leather lounges and dining table for up to eight guests is adjacent to a large guest bathroom and formal entrance area, in-room broadband internet access, satellite and cable international television channels, electronic safes and door locks, bathrobes and slippers. b. Bengali Suite Located in the top floor, Bengali Suites are extremely spacious incorporating three main areas, king-sized bedroom, 14
dining area for 6 or more guests, kitchenette and bar, plus lounge and adjacent guest bathroom, in-room broadband internet access, satellite and cable international television channels, electronic safes and door locks, bathrobes, slippers, marble bathrooms, extensive mini bar selection, large desk area and hairdryer, access to the exclusive Pacific Lounge including: Breakfast and evening cocktails canaps Laundry and dry cleaning International newspapers Local calls All-day tea/coffee facilities c. Executive Suite Executive Suites are large suites with views of the city or pool area, including king sized bedroom and an additional guest bathroom adjacent to the lounge and dining area, in-room broadband internet access, satellite and cable international 15
television channels, electronic safes and door locks, bathrobes, slippers, marble bathrooms, extensive mini bar selection, large desk area and hairdryer, access to the exclusive Pacific Lounge including: Breakfast and evening cocktails canaps Laundry and dry cleaning facilities Local phone calls International newspapers & magazines All-day tea/coffee facilities d. Junior Suite Junior Suites provide a large king sized bedroom with separate lounge area perfect for business meetings or small formal gatherings. Offering in-room broadband internet access, satellite and cable International television channels, electronic safes and door locks, bathrobes, slippers, marble bathrooms, 16
extensive mini bar selection, large desk area and hairdryer, access to the exclusive Pacific Lounge including: Breakfast and evening cocktails canaps Unlimited laundry and dry cleaning International newspapers & magazines All-day tea and coffee at the Pacific Lounge 3. Pacific Club a. Pacific King Located on the 7th and 8th Floor, Pacific Deluxe Rooms are luxuriously appointed, and offer in-room broadband internet access, satellite and cable international television channels, electronic safes and door locks, bathrobes, slippers, marble bathrooms, extensive mini bar selection, large desk area, hairdryer. Access to the exclusive Pacific Lounge includes the following complimentary privileges: 17
Seamless check-in service, incorporating being immediately escorted upon arrival, to your choice of the Pacific Lounge or your guest room, by passing all front desk formalities. Fruit basket in your room upon arrival. Personal butler service. Choice of breakfast daily, either in Lounge or Room service. Evening cocktails at the Pacific Lounge. Daytime tea, coffee, soft drinks and snacks at the Pacific Lounge. Laundry, dry-cleaning and pressing. Extended check-out until 6:00 pm (subject to availability). Business magazines, local and international newspapers. Complimentary use of Business Center Meeting Room for 1 (one) hour. 18
Complimentary local telephone calls from your guest room or the Pacific Lounge. b. Pacific Twin Located on the 7th and 8th floor, Pacific Deluxe Twin rooms are luxuriously appointed, and offer in-room broadband internet access, satellite and cable international television channels, electronic safes and door locks, bathrobes, slippers, marble bathrooms, extensive mini bar selection, large desk area, hairdryer, access to the exclusive Pacific Lounge including the following complimentary privileges: Seamless check-in service, incorporating being immediately escorted upon arrival, to your choice of the Pacific Lounge or your guest room, bypassing all front desk formalities. Fruit basket in your room upon arrival. Personal butler service. 19
Choice of breakfast for 2 (two) daily, either in Lounge or In Room Evening cocktails at the Pacific Lounge. Daytime tea, coffee, soft drinks and snacks at the Pacific Lounge. Laundry, dry-cleaning and pressing. Extended check-out until 6:00 pm (subject to availability). Business magazines, local and international newspapers. Complimentary use of Business Center Meeting Room for 1 (one) hour Complimentary local telephone calls from your guest room or the Pacific Lounge. Special Deals 1. Preference by Pan Pacific Sonargaon 2. Supersaver (20% discount) 20
3. Singapore Airlines boarding pass privileges 4. American Express Selects Shopping Arcade Areas include: Jewellery shop Souvenir and handicraft shops Art gallery Carpet shop Bookstall Photography shop Private Tours Tour One - Tour of Historical Dhaka (three to four hours) This tour includes visits to Parliament House, the Satmasjid, Lalbagh Fort and the National Museum 21
Tour Two - The Sights of Dhaka (four to five hours) This tour includes visits to the Baitul Mukarram Mosque, a Buddhist temple, Baldha Garden, Bahadur Shah Park, Sadar Ghat, Ahsan Manzil, the Armenian Church and the Star Mosque Tour Three - Sonargaon Old City (four to five hours) Tour Four - Savar Memorial including the National Monument (four to five hours) Tour Five - Shopping South (minimum three hours) Shop in places such as Elephant Road, Banga Bazar, Eastern Plaza, Aarong Tour Six - Shopping North (minimum three hours) Shop in places such as New Aarong Gulshan, Kumudini Carpet Centre, Ideas, Westecs, Gulshan Market On-demand Facilities Concierge Medical centre 24 hours room service 22
Laundry service Limousine rental Business offices Savvy Beauty and Barber Salon - Beauty packages, bridal make-up, skincare, haircuts, facials, manicures, pedicures and other beauty treatments are available on the 3rd floor of the Courtyard building. Guests are provided with complimentary tea and coffee. For those seeking a healthy lifestyle in a relaxing surrounding, our Health Club offers a fully equipped gymnasium including sauna, steam room, professional massage treatments and personal trainers. Recreation enthusiasts will enjoy the impressive Swimming Pool and Health Club. Pan Pacific Sonargaon Dhaka offers extensive fitness facilities at Health Club including: Fully equipped gymnasium Sauna Hot bath jacuzzi for both male and female areas 23
Open air hot bath jacuzzi Hot / cold showers Steam room Swimming pool Kids swimming pool Massage service Personal training sessions Swimming lessons for children and adults are conducted by our professional and skilled instructors. Dining In addition to accommodation, Pan Pacific Sonargaon offers dining facilities to its guests all year round. An array of world-class cuisine abounds this culinary haven, with varied flavours tempting the palate of guests around the world. The restaurants under this branch of services are provided in the following: Jharna Grill 24
Our signature restaurant, offering imported meats and local freshly caught seafood, Jharna (in Bengali, translates to "fountain"), boasts a world-class menu and 5-star service set amongst the hotel's distinctive and elegant water features. Location: Located on lobby level Cuisine Type: Grill Signature Dishes: Dress Code: Smart Casual Operating Hours: Lunch : Saturday - Thursday 12:00 noon until 3:00 pm Dinner : Daily 7:00 pm until 11:00 pm Telephone: (880) 2811 1005
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Ciao Bistro Ciao Bistro offers traditional Italian cuisine. Using the freshest of imported and local ingredients, Ciao Bistros menu is ever changing; combining traditional favourites with modern cutting edge dishes. An extensive wine and beverage list is also available. Location: Second floor, mezzanine level. Cuisine Type: Italian Dress Code: Smart Casual Operating Hours: Dinner : Daily 6:00 pm until late Telephone: (880) 2811 1005 Caf bazaar Located on the lobby level, Cafe Bazar offers ever changing contemporary international selections with an extensive buffet or a- la-carte menu for breakfast, lunch and dinner. Caf Bazar also offers a Global Taste buffet with a selection that changes daily, and is based on a particular region of the globe. 26
Location: Lobby Level Cuisine Type: International Dress Code: Smart Casual Operating Hours: Breakfast Lunch and Dinner : Daily 6:00 am until late Telephone: (880) 2811 1005 Aromaz Aromaz offers the best snacks and pastries in town, featuring freshly baked breads and oven fresh cakes with a wide range of variety. Cuisine Type: Drinks and snacks Signature Dishes: Dress Code: Smart Casual Operating Hours: Daily 10:00 am until 9:00 pm Telephone: (880) 2 811 1005 Balcony Bar 27
Relax and enjoy a drink from our extensive list and catch all of the latest sports action on the big screen. Balcony Bar, located at Second Floor - mezzanine, has a wide range of imported beers and spirits, food and drink specials all week. Location: Located at Second Floor mezzanine Cuisine Type: Drinks and snacks Dress Code: Smart Casual Operating Hours: Nightly 6:00 pm until 12:00 midnight Telephone: (880) 2 811 1005 Lobby Lounge Enjoy the finest coffee made by internationally trained baristas, tea and freshly baked treats in Dhaka's premier meeting place, accompanied with live flute and tabla music every evening, Lobby Lounge is a luxurious treat. Cuisine Type: Drinks and snacks Dress Code: Smart Casual 28
Operating Hours: Daily 7:00 am until late Poolside caf Located on the pool side, this restaurant and bar serves healthy adaptations of South Indian favorites. Location: Pool side Cuisine Type: Indian Signature Dishes: Dress Code: Smart Casual Operating Hours: Daily 10:00 am until 10:00 pm Telephone: (880) 2811 1005 Reservation System Hotels that allow for internet booking are worldwide chains, thus the whole transaction occurs outside of Bangladesh, despite the fact that the service will be performed in Bangladesh. At Sonargaon Hotel, subsidy of Pan Pacific, an person can make reservations through a secure server that is protected by an independently certified Secure Certificate. So that a browser can verify such 29
certificates, the browser contains details within its preferences of the various Certifying Authorities. These details are known as Root Certificates and for security they all have expire dates. The hotel's Certifying Authority is Thawte Certification. In order for Mozilla Firefox and Internet Explorer browsers to connect to the hotel's secure server (and the estimated 20% of all secure servers using Thawte certificates), a user needs to go through a "rollover" process. When the procedure is complete, the user can then return to the Pan Pacific reservation page.
Transaction System 30
The processes involved in a transaction system are: Select Hotel & Date Room Availability & Rates Add-ons Guest Details Confirmation Typically, in order for a transaction to begin, the customer has to sign up for an account with Pan Pacifics global system. Based on that, the user creates a profile which stores personal information such as contact details, name, addresses, phone number, fax number, mobile number, e-mail addresses, preferred method of communication, etc. It also stores the users favourites and offers customizable options to make the clients browsing more convenient. It also suggests saving options so that the user can take advantage of various discount schemes from time to time based on spending habit. 31
Payment System 32
The websites accepts secure payments through various internationally accepted cards. Included among these are VISA debit and credit cards, Mastercard, Diners International, Discovery and American Express. Once all the necessary information is entered, the data is sent to a secure server which communicates with online banking systems which are affiliated with Pan Pacific groups global systems. If the payment is verified, the reservation and booking goes through. The system also guards against fraudulent activities. Credit card payments which are suspicious or customers whose identities cannot be reasonably substantiated, are 33
reported to the appropriate authorities. In some cases, the credit cards are flagged and blacklisted, especially if repeated offenses occur. Business Model
Value Proposition Create value for the customers by offering them convenient transaction and payment opportunities through online booking. Market Opportunity There is plenty of opportunity available to offer online booking, checking-in and checking-out facilities in Bangladesh, since rest of the industry is lagging behind in terms of IT literacy and technological services. Competitive Environment Though the hotel industry is extremely competitive, the e-commerce aspect of it is not so rampant in Bangladesh yet. Pan Pacific Sonargaon is considered to be one of the market leaders in this section. Therefore the management tries hard to retain this position at all costs. 34
Revenue Model Pan Pacific Sonargaon makes use of most of the recognized revenue models to further their revenues. As a matter of fact, according to their Director of Sales, Mr. A. K. Awal, the hotel posted record profit ever in its history in the financial year of 2010. The management, upon reviewing the reasons behind this success, estimates and has set a target for all its employees to increase net profit by a minimum of 3% compared to 2010 in the year 2011. Below, a concise outline of the revenue models employed by Pan Pacific Sonargaon is outlined. Competitive Advantage As explained above, Sonargaon Hotel is presently the market leader. However, one unique advantage they have over their competitors is that they are part of a Global Alliance, which lets them enjoy increased clientele compared to local rivals. Market Strategy The management strategizes regularly, holding meetings, offering development and training sessions, and often hires consultans to improve the effectiveness and efficiency of its Online Booking systems so that it comfortably holds on to its market share and performance. Organ. Develop. Foreign teachers, motivation speakers, faculty from local universities and colleges frequent the Sales, Marketing & IT teams on a regular basis to develop the personnel. This helps Sonargaon's employees to maintain and increase the standard of services they offer continually. 35
Advertizing Revenue Model Pan Pacific Sonargaon advertizes on various travel and booking websites to attract more customers. It also advertizes for its sister companies within the Pan Pacific Consortium, as well as Grand Alliance (Worldwide) group. As a result, not only Sonargaon gets customers recommended by its partners and allies, it also gives them the opportunity to get more business from their very own clientele when they travel. Subscription Model As detailed above in the transaction process and its related images, a subscription is necessary to access the booking, reservation, and payment privileges. This makes the whole process convenient, time and cost-effective for both the customers and the hotel. This saves expenditure, which increases revenue, and creates increased value for the client. Transaction Fee Model 36
At present, no transaction fee based revenue generating system is in practice for this hotel, although credit card transactions often incur such charges. Sales Revenue Model The e-commerce site of Pan Pacific Sonargaon accounts for a small part of the revenue the hotel generates. Bulk volume of its transactions take place in the conventional offline way. Hence, we can assume that Sonargaons revenue model is aggressively Sales Revenue oriented. Affiliation Revenue Model Pan Pacific Sonargaon participates in an affiliated revenue model by being sponsors, media partners, and accommodation partners for various organizations (e.g., Bangladesh Cricket Board, Air Atlanta, formerly Air Arabia), events (e.g., British Education Fair), and competitors (e.g., offering accommodation in conjunction with Hotel Sheraton during SA Games). Also available is a cooperation (privilege) program for 37
travel agencies and bookers. Pan Pacific Privileges for Bookers is for professionals that make corporate bookings on behalf of organisations. Their choice of Pan Pacific gives rise to the opportunity to enjoy Sonargaons unique brand of personalised care and unrivalled attention. Each booking earns Privileges Points, which can be exchanged for a range of exciting rewards. Simply quoting membership number while making reservations at the participating properties will add points automatically. This Pan Pacific Privileges program for Bookers is only available to residents of the respective countries.
Product Demonstration Our research team visited the Pan Pacific Sonargoan Hotel premises on Thursday, February 3 rd , 2011 to witness a first hand experience of how the E-commerce website works. Our gratitude goes to Mr. A.K.M. Morshed, director of Technical Services, for giving a live demonstration of the reservation system in real-time. 38
We also got to see how credit card transactions, verifications and booking takes place. We were also fortunate to see how loyalty program clients get extra privileges for their continued use of services offered by the hotel. This proved to be a mutually beneficial arrangement where both the hotel and clients offer each other high valued business. Suggestion While our team was generally impressed with the efficiency of Pan Pacific Sonargaons electronic reservation system, it lacks a personalized view and options for residents of Bangladesh. It appears that the website is engineered for the sole purpose of attracting foreign clientele. The truth remains, Sonargaon is a very exciting and happening five star oasis in the country. There is a great level of latent demand and interest in the services and products offered by this establishment. Due to lack of advertizing and promotion of these aspects, local residents are generally in dark. We also noticed a lack of enthusiasm among the top level management to use Bangla in their website. It almost feels as if the hotel is not part of Bangladesh. 39
The website not only makes no use of Bangla, it also doesnt allow reservation forms to be filled out in Bangla. For a chain company that boasts to be global, it definitely lacks a local touch. Conclusion Finally, we would like to thank our instructor, Mr. Sajib Saha, for providing us this stimulating and exciting opportunity to study the inner workings of an e- business enterprise first-hand. We hope and believe that this experience will enable us to understand the mechanisms and structures of incorporating online technology to existing businesses and hence increasing its profitability.