Chemonics International Inc. USAID Small & Medium Enterprise Activity

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1 Chemonics International Inc. USAID Small & Medium Enterprise Activity SOW _ Trainers for Hotel entrepreneurs Page 1 of 7 Training of Hotel entrepreneurs/managers on hotel management SOW # CE-00XX Scope of Work Summary: The USAID Small and Medium Enterprise Activity (SMEA) requires the services of trainers/consultants to conduct short training sessions for hotel owners/managers of northern areas on Key Hotel Management Practices for improved customer satisfaction and retention 1. Position Title & Department: Consultant for Training on key hotel management practices for improved customer satisfaction and retention 2. General Summary: USAID Small and Medium Enterprise Activity (SMEA) is a five-year project that is supporting Pakistan in small and medium enterprise (SME) led economic growth that will help create jobs, foster entrepreneurship, and contribute to an increased GDP. As a part of the United States Government s long-term commitment to helping Pakistanis secure a more prosperous future by increasing household incomes and employment, nurturing competitive small and medium enterprises, expanding trade and investment and creating more rewarding business opportunities, SMEA is working towards improving the enabling environment for private sector-led growth. SMEA aims to improve the financial and operational performance of SMEs in Pakistan in the information communications technology (ICT), light engineering, textile, hospitality, minerals, packaging, and leather sectors. The Project s strategy entails reaching out to 9,000 SMEs and selecting 6,000 with the strongest potential for growth. These SMEs will receive customized assistance to help them qualify for loans, streamline their production and management process, obtain certifications, and connect with lucrative domestic and export markets. The project has three main components i.e. Business Enabling Environment (BEE), Competitiveness Enhancement (CE) and Challenge Fund (CF). The BEE component identifies opportunities for policy changes needed for a conducive environment for SMEs across Pakistan. Engaging with the private sector to articulate and advocate for their policy needs, the project work with the Government of Pakistan at both the federal and provincial levels to ease out key policy and regulatory hurdles that hamper SME growth and new investments. SMEA has launched its reforms package in some key areas of economic growth. These policy, regulatory and institutional reforms are particularly SME focused with an aim to contribute to their economic wellbeing. The CE component focus on increasing competitiveness of SME enterprises in targeted sectors by facilitating the SMEs through induction of business development services to improve their competitiveness at national and international level. The CE fund act as a facilitator to create and support a functional bridge between SMEs, and business development service providers (BDSPs). To this end project provides financial assistance to acquire BD services from registered BDSPs to address the productivity and competitiveness issues/constraints impeding the business growth and profitability of SMEs. SMEA s Challenge Fund (CF) has a portfolio of grants that supports innovators who are trying to solve challenges and scale solutions. These challenges are identified by the project, specific to SMEA s target

2 Page 2 of 7 sectors (ICT & Hospitality). The CF also provides grants to existing SMEs to resolve issues that are hampering their growth. The Hospitality Sector: Hospitality is one of the priority sector in which SMEA has initiated its implementation. The sector can easily be divided into various sub-sectors e.g. restaurants, hotels, tourism (adventure, historical, religious, cultural etc.), travel agencies, tour operators, guest houses, bakeries etc. keeping in context that their operations and market dynamics differs from each other tremendously. Similarly, the location of the enterprise puts unique scenarios of business environment, business cycles, resource constraints for an SME which can be totally different from another SME of the same sub-sector working in another part of country. Pakistan s northern areas are attractive tourist spots and have their own distinct working environment as compared to other parts of the country. The regions experience high traffic during peak seasons and are mostly overbooked. The market-led survey SMEA not only identified these areas as source of attraction for international tourists, the respondents of the survey also identified districts of Abbottabad, Chitral, Gilgit, Hunza, Murree, Skardu, Swat etc. as the main districts where hospitality sector enterprises exist. Further, due to high tourism activities in these areas, the economy and livelihood has also become dependent on performance of hospitality sector. The literacy rate is generally lower in these areas than the metropolitan cities and human resource development, training and education sector is underdeveloped. Similarly, there is lack of business development service providers. Recognizing the potential of the hospitality business in the northern areas, large number of entrepreneurs have invested in the hotel subsector. However, majority of them are operating on a rudimentary level where they focus on providing accommodation and food services only. The services are unsophisticated and their sale-point is only the location and building infrastructure. Due to high traffic, they do not feel the need to improve their services or deliver quality. While functioning at such a basic level, the only option left for attracting customer is through giving better prices which results in more cost cutting and even lesser focus on improving quality and/or services menu which can be achieved through better management and investing in human resource capabilities. This situation leads to business models based on utilizing captive audiences, weak customer loyalty and retention, limited understanding of customer needs and value and excessive price competition. As a function of these, most of these hotels, over the past decades, have remained individual businesses and have not been able to build brands. This has hampered their growth potential. These hotels on one hand face extreme weather conditions which results in seasonality in their businesses as there is huge influx of tourists in certain segments of the year while complete closure in certain time periods. Also, their business includes service provision to foreign tourists who have experience of touring other countries and expect more than just basic services. These unique circumstances not only build extra pressure on managing their businesses but increases risk of customer dissatisfaction and lack of customer retention. Special focus is therefore required from the entrepreneurs for managing operations and business modelling that can absorb and adjust to seasons as well as supervise untrained employees which lack customer orientation skills. Weather conditions are also changing and apart from focusing on limited season of summers, alternate options of pre and post peak season months like April May and October November can also help hoteliers fetch extra revenues from new customer segments through creative marketing who plan their trips in less crowded time period.

3 Page 3 of 7 Keeping in context that these entrepreneurs also lack professional education in the fields of hospitality and business management, specific and focused interventions are required to shift their business model from basic service provision towards higher focus on quality services and customer satisfaction. With an improved focus on quality and satisfaction, the SMEs can experience greater customer retention which will lead to improved revenues and sustainability of their businesses and eventually building individual brands. Keeping all the above in context, SMEA included extensive training for hotels in the Year 2 workplan. The process of provision of training services through business development services provider model is on-going. However, acknowledging the special requirement of the northern areas and seasonality of their operations, SMEA requires the services of trainer(s) to impart training on short modules on key hotel management practices for improved customer satisfaction and retention. SMEA team has already visited Nathia Gali and received demand for such intervention from 15 enterprises. Similarly, Murree has few of the other busiest tourist spots with a major cluster of hotel enterprises having similar kind of business models. Due to the vast geographical spread, it is proposed that trainings may be conducted in Nathia Gali and Murree under Phase I. On successful completion of Phase I, project may re-award the contract for Swat, Chitral, GB, and Naran based on the performance and achievement of the targets. The content of the training may get modified based on the outcome of phase-i and the type of demand from other areas. 3. Objective of Consultancy: The specifics of the trainings are outlined in the sections below, the overall process of surveying will be guided by the goals and relevant strategic objectives/intermediate results of the project as listed below. Goal: Improve the competitiveness of Pakistani SMEs. Objective 2: Improved Economic Performance of Focus Enterprises Sub-Objective 2.1: Improved economic performance in select sectors. Sub-Objective 2.2: Improved technological readiness and innovation The overall objective of the training is to shift focus from a basic delivery model and excessive price competition to raising awareness on the greater customer value leading to improved customer retention and brand building. SMEA wants to conduct 2-days training for hotel entrepreneurs/managers in Nathia Gali and Murree on the following proposed topics: Day 1 1. Hospitality and Customer Value and Satisfaction: Concept of Hospitality having focus on customer satisfaction 2. Orientation on diversified revenue models: Introducing local attraction and day tours counters, car/jeep rental services, laundry and hair saloon/spa services, local handicrafts, etc. 3. Adoption of technology such as social media and mobile wallet solutions etc.

4 Page 4 of 7 Day 2 4. Managing Front Office Operations and Reservations: Hotel management and how to manage resources in efficient manner 5. Housekeeping: Best practices, customer expectations and how to improve customer experiences 6. Food & Beverage Management: Basic hygiene and food safety and ensuring customer satisfaction Trainings are expected to held according to the following schedule: # Training Training Location Proposed Dates 1 1 st Training Nathia Gali, District Abbottabad, KP June 11 & 12, nd Training District Murree, Punjab June 13 & 14, 2018 Note: Training venue and dates are subject to change. The expected outcomes of the training are: Improved awareness of the importance customer satisfaction for business growth Improved Front End Services through adoption of better procedures, techniques and systems to increase operational efficiency Better housekeeping systems for improved customer experience Adoption of food hygiene standards through implementation of effective controls Introduction of social media for marketing and branding Introduction of mobile payment solution Introduction to diversify their revenue model This activity will contribute to the following performance indicators: Ind : Number of USG assisted SMEs that applied new technologies or management practice as result of USG assistance. 4. Duties and responsibilities: Consultant(s)/trainer(s) will be required to develop/customize the training module and training content as per the requirements and conduct training sessions at various locations proposed by technical teams. USAID SMEA will be responsible for providing following administration and logistics support for the training venue: Reservation the trainings venue(s) Pre-training coordination and registration of SMEs Provision of training supplies (stationary, multimedia, etc.) as requested by the trainer Printing of training material and contents. Arrangements for refreshments (meal/tea) for the training participants Follow-up with facility for the final payment(s) for venue and meals etc. Provide trainings/sme registration form, attendance sheet template and post training evaluation form for use during the trainings

5 Page 5 of 7 5. Specific Tasks of the Trainer: All the activities performed by the trainer must be in line with the awarded contract and scope of work. The trainer will perform the activity by keeping in view the business protocols/scope and quality parameters defined in the contract as per Chemonics policies. The trainer will be responsible to produce and submit all deliverables with supporting documents mentioned in deliverables schedule. Review relevant document including as listed in Annex-1 to familiarize with the project activities. Meet with SMEA, Competitiveness Enhancement Lead and other team members to understand the specific requirements of the scope of work and the project as a whole Meet relevant industry contacts such as local associations and SMEs to understand the needs of these businesses by at least 15 SMEs. Develop/customize training module as per entrepreneurs needs, and share with SMEA team to solicit feedback and get approval. The trainer will suggest handouts, brochures or handbooks (as required). (Deliverable 1) Finalize training plan including session plan and agenda addressing training objective in coordination with the SMEA team (Deliverable-2) Provide input for a pre- and post-training knowledge assessment questionnaire based on the finalized contents of the training. Impart two-days trainings each in Nathia Gali and Murree in accordance to the approved training plan (Deliverable 3 & 4). Facilitate training session in Urdu and local language to ensure maximum impact. Facilitate preparation of post-training action plan through group-work or any other medium for each participant during the training. Ensure that participants complete the required training/sme registration preferably at the start of the training session Ensure that participants fill-in the attendance sheet for each day during the trainings. Ensure participants complete post-training evaluation at the end of each training. Facilitate pre-post training knowledge assessment with the help of prescribed template, if required. Facilitate gathering participants consent, on prescribed template. to use their picture, voice, name of their business for USAID SMEA communication needs Prepare and submit post training report covering all three trainings in English on prescribed template within 7 calendar days finishing the last training. The training report must include a training follow-up plan (Deliverable 5) 6. Job Qualifications: Position Trainer for Hotel Management Person Specifications Master s degree in business administration, hotel management, travel and tourism or related field At least 05 years of experience in hospitality and hotel management Experience in conducting trainings for hospitality sector.

6 Page 6 of 7 Awareness of recent trends and changes in marketing and other business practices Previous experience of working with USAID projects or other donors in economic growth and SME space will be preferred Excellent written and verbal communication skills Excellent presentation skills 7. Duty Station: Consultant should be available to work with the SMEA team out of SMEA s Islamabad office and will be required to conduct other meetings and trainings in northern areas. The costs of travelling and accommodation will be paid according to the standard Chemonics policy. 8. Reporting: The consultants will report to the Component Lead for Competitiveness Enhancement or any other designated staff, and will work closely with other members of the Competitiveness Enhancement team. 9. Duration of the Assignment: This assignment is planned to take place as per a start date of on or around June 04, 2018 and end date of on or around July 15, 2018, up to a total of 17 days level of effort (LOE). 10. Deliverables: The following are the key deliverables and their associated deadlines. The timeline for the LOE assigned for each activity as mentioned in the following table will be discussed and agreed with the technical team and the consultants. No. Activity / Deliverable LOE Required 1 Discussion with SMEA team and reading of background material 2 Day 2 Preparation of training module, meetings with industry contacts, and approval of content from SMEA 5 Days 3 Training session in Nathia Gali 2 Days 4 Training session in Murree 2 Days 5 Travelling to training stations and activity report 6 Days Total 17 Days 11. Application process: Interested candidates should share their CVs detailing past training experience along with daily rate to SMEArecruitment@pakistanSMEA.com by XX May 27, 2018.

7 Annex-1: List of background material: 1. Annual workplan of the CE component 2. Activity Monitoring & Evaluation Plan 3. Sectoral Analysis Report 4. Training/SME registration form 5. Standard ATTENDANCE template 6. SMEA release/consent form SOW _ Trainers for Hotel entrepreneurs Page 7 of 7