This dinner party game involves the person at the head of the table whispering a short phrase to the person on the left, to pass along until it reverts back to the originator. The results can be hilarious and/or confusing. In most developments the chain of communication can extend to hundreds or thousands of people, therefore the means of communication are critical to success. The Chinese whispers syndrome is a clear illustration of one of the potential pitfalls.
Assumptions
Another pitfall is to remember that it is wise never to rely on assumptions. The development and construction industry can
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provide numerous examples of cost overruns as a result of assump-tions. One classic example is the common assumption that to con-vert a beautiful and historical building into a hotel is cheaper than building new. After all, the building shell already exists, so com-mon sense suggests it has to be cheaper. Unfortunately such build-ings were designed for a different use and do not adapt easily to provide an efficient operational hotel, as many bankrupt develop-ments of this nature can demonstrate.
Examples
The classic example of how an idea can evolve into a hospitality product is Mickey Mouse, a cartoon character originated by Walt Disney, and featured in countless media and films. As Walt Disney’s success grew in the film industry, so did the range of his cartoon characters to which were added a range of successful films based on classic children’s stories. Committed to family entertainment from the early days, Walt Disney envisaged building a theme park based on his now famous characters and films. His vision was to build a theme park to amuse and dazzle children and their parents. That vision was realized in 1955 with the opening of Disneyland in California. His brother Roy later fulfilled Walt’s plan for a similar but grander version on the east coast in 1971, with the opening of Walt Disney World in Florida. The Disney theme parks, now includ-ing one in Paris, France, are the largest example of hospitality devel-opment in the world. These products originated from an idea, were converted into a concept and then, through the determination of two brothers, developed using the same principles and processes of development that are utilized today. Numerous other examples exist, although on a smaller scale, when an individual idea or concept has been developed into a successful enterprise. Similarly, there are examples of a gap in the market being identified, and an appropriate concept or product being developed to satisfy that need. One example, the limited service (or budget) hotel product, was developed to provide a no-frills core accommodation hotel room product to deliver a low price hospitality option into the marketplace. This concept immediately proved successful not least, because it provided an affordable hotel option that served to intro-duce a new customer base into the industry. Indeed, the concept has proved to be so successful and profitable due to its low cost require-ment in capital and running costs that this sector has now started to segment into a range of different hospitality products of different physical quality standards. In catering, the original fast food concepts such as McDonald’s have given rise to a new industry sec-tor covering a wide range of diverse food offers including ham-burgers, chicken and pizzas. Recently, the soft drinks industry has witnessed an explosion in the development of new ranges of coffee, health drinks and other specialized outlets in the western world, Concepts
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while Internet cafés have flourished in even the most remote areas in the world.
Conclusion
This chapter has endeavoured to identify how an idea can evolve into a concept and then be converted into a viable commercial enterprise. The process of changing an idea or concept into a phys-ical entity in hospitality involves following established steps in the cycle of development. The first step consists of putting the idea into a written brief that facilitates a process of communication. The skill applied to originating the brief and communicating its con-tent to a number of contributors or participants normally directly impacts on the financial viability of the project. In turn, managing the process of design, procurement, construction and, finally, oper-ations is dependent on focusing on and maintaining the clear object-ives defined in the brief and communicating them efficiently throughout the process. This is not to say the process is straight-forward. Like the waters of a mountain stream trying to reach the sea, the river often changes its course, but never loses sight of how to reach its objective. Development can be comparable in that it is a fluid process that needs to attain the most efficient route to achieve its objective if it is to provide the required return on investment.
References
Lundberg, D.E. and Walker, J.R. (1993) The Restaurant from Concept to Operation, Wiley, New York.
Rutes, W.A., Penner, R.H. and Adams, L. (2001) Hotel Design, Planning and Development, Architectural Press, New York.
The Concise Oxford Dictionary of Current English (1996). Thomson, D.
(editor), ninth edn, BCA, London.
Review questions
1 What are the main differences between the historical hospitality industry and that of today?
2 Suggest some of the current challenges for concept development.
3 Outline some practical considerations for developing concepts.
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Before developing any property, this fundamental question must be answered:
Is the project feasible?
The word ‘feasible’ refers to whether the project is practic-able, possible or conveniently done (Concise Oxford Dic-tionary 1996: 492).
This chapter explores some of the issues of feasibility in hospitality development, using the following structure:
•
The objectives of a feasibility study•
Feasibility methodologies:– Site appraisal – Market research – Information review
– Financial analysis: volume, price and revenue, costs, income projections
– Reporting – Conclusions.