Core problems & considerable suggestions
1. The accommodation can’t meet the market demand. According to Sales Manager, cik Normah, the management tends to loss their guest due to the lack of room availability especially when there is a dire need from the mass group of guest. For instance, the total numbers of room is less than 100 whereas guest numbers are two or three hundreds more. Therefore, it’s hardly or impossible for them to fix their guest into the room. The only solution would be increased the numbers of room for the mass group of guests. However, the only argument would be is it necessary to increase the room or expand the village? The sales team has then to analysis the actual market demand. Meanwhile does the mass group exist only at certain period or there is always demand from that group? For my personal point of view, by considering the cost of building luxury for the particular group, I preferred the standard rooms, like the flat type that require less land use rather than those luxury conceptual rooms that cost more space/land use which is not so environmental friendly because sacrifice more trees and not economic as well. A brainstorm concerning how to make the Jerejak resort for sustainable tourism purpose would be good enough for long term profit.
2. Price is not compatible with the package in the highly competitive market. Meanwhile, the management team trying to sell theirs products in high price in the hope to gain the maximum profit? However, it turns out to be failure to attract international tourist especially those from western countries in their first intention. Since then, the sales team sells their product by focusing to local market, still with the high price charged. Bear in mind that, price must be set according to the targeting market group (local vs international), seasoning changes and the extra values (money paid with the value) in order to achieve the long term profit. There are two possible ways to do it. First, reduce the price (either spa or room rate) to attract more tourists, especially local market. Second, maintain the price but add extra values. For instance, SPA that charge high price but with extra drink serving (eg: tea or wine) or relaxing music. From the consumer behavior of view, the customer/guest nowadays, are getting smart in the sense that they want not only the products and services but they want to see the value they pay for theirs money. Thus, sales manager should pay attention to the market need and product value, a win-win situation should be achieved in a sustainable tourism.
Secondary problems & suggestions
- 3. Less activity by the resort. The basic infrastructures like swimming pool, canopy walk (hanging bridge) and other outdoor facilities such as Detention Camp do actually favor certain groups of guest. However, the management should considered more attractive activities such as water sport, creating fishing site or build more camp sites with natural based consideration. Reason is because we should create a more lively or joyful environment. The sales team can promote their activity to the schools. The advantages are mainly educating student about our nature (part of the contribution to society) as well as let the school pay the fees for the usage of their facilities. In long run, I believed it can cover the cost of these infrastructures. I am trying to convince that since the management cannot gain much profit from these outdoor activities, why not use it as a “tool” to promote it to other party to cover their cost and maintenance of these facilities whereas, on the other hand, to create the reputation visually and verbally by visitors about the “virgin island” nature?
- 4. High class resort with the basic function facility support in conference room. The biggest ball room can accommodate maximum 550 guests. It seems pretty fine with the basic need from the guests. However, a 4 stars resort should provide excellence or at least same standard facility. Meanwhile, the management team should consider putting in advanced facility such as Wi-Fi (wireless connection to the internet) services to fulfill the needs of businessmen. Everyone needs internet for certain purpose like communication. That would be great if someone could have connection with their friends or family even in the trip(away from the city) or wheresoever’s.
Other comments:
- 5. Brand personality and destination marketing. I am curious about what is the significant element in this island? According to the information from the internet (http://www.jerejakresort.com), this island known as “Virgin Island” with its glamorous nature. The problem is what exactly is virgin island mean? What is the characteristic of this island compare to others in terms of tourism destination? For instance, Tioman Island and Redang Island well known with its rich marine ecosystem (with famous activity of scuba diving for interest groups). Therefore, what is it special about Jerejak island? From the name of Jerejak resort & Spa, we knew that it’s more like a relaxing style of place/resort, however, what does this related to the virgin island? Thus, there is no identity of this island and not even mentioned the brand personality. Building a destination brand image essentially means identifying the most relevant association for the destination and strengthening their linkages to the destination brand (Keller 1993). In addition, it has been proposed that consumer decisions are often based on whether or not a product fits into their lifestyle and/or whether it offers a desirable experience (Morgan, Pritchard, and Pride, 2002). Such arguments have also been made with respect to destination marketing. Therefore, if we put the scope into local market, how big the potential (in term of long term profit) by offering Spa in the resort(bear in mind the competition with the Balinese Spa in Bali)? Meanwhile the destination marketing organizations need to place more emphasis on the creation and promotion of holiday experiences that link key brand values and assets to the holiday aspirations and needs of customer. Therefore, it is essential to find out the characteristic of this island and identify the significant element. Then, create a brandy island by putting astute efforts, by hook or by crook. For example, Genting Highland knows as “City of Entertainment” with famous casino and themepark, Bali Island famous with its Spa and beaches.
- 6. My other suggestion would be the possibility to turn into Jerejak resort into the village for the training purpose. Reason is because, most of the infrastructures have already been there and it can actually used for the government or private company to train their staffs and holidays at the same time. Accommodation problem can be solved by expanding or build more standard rooms (flat type)for normal company staffs. From the economic side, the concept of Jerejak Island as “training paradise” for company might give the positive impact for the long term profit to the investor because the risk of losing guest or less guest during low season has been reduce solely with right marketing strategy.
Summary
Jerejak resort & Spa has its exotic facility especially the Spa village and of course the natural environment. The internal problems occurs when the management level actually lack of an astute plan of how to manage the resort in that island and fix it according to the market demand. An investigation regarding market segmentation and marketing strategy is very much crucial at the current stage because it concerning about the future investment. External problem can be easily solved once they have a better management team or plan. However, they should more concerning on what they want to turn the island to be due to their customer needs and wants.
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