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Environmental factors affecting hotel industry
Environmental hotel development
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In the hospitality industry, there are several environmental factors that impact hotels. This paper identifies and discusses the three most relevant environmental factors that have an impact on the Accor Hotel Chains in Australia. Additionally, there will be an explanation as to why marketers study buyer behavior. Lastly, when selecting a restaurant to celebrate a special occasion, there are several characteristics that will have an impact on my decision.
The Accor Hotel Chains is a group of several chains of hotels spread across the whole of Australia. There are three most relevant environmental factors that have an impact on the hotels. And these are not physical factors, they are political, cultural and technological factors.
The first
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“Technology is constantly developing. The hospitality industry is affected by these technological changes. As new technologies are made available, companies within the industry are forced to adapt to the changes or get left behind.” (Lewis, 2016) Due to technology, the medium in which the Accor Hotel Chains advertise to have expanded. Advertising through social media such as the main website allows customers to view the whole range of hotels offered and room prices offered in the respective hotels. As social media expands and the variety of choices between hotels increases, hotels and chains such as the Accor Hotel Chains have to work with websites, such as agoda, to increase the number of customers coming to the hotel. However, this has a negative impact on the Accor Hotel Chains because they have to pay these websites, in which they partner up with, to increase sales in the rooms …show more content…
An example would be to buy a product to fit in with a certain social group, such as the latest fashion as shown in Korean Pop culture. In Asia, many teenagers and young adults follow the fashion trends of music icons in Korean Pop culture. This makes them feel as though they belong. “It is human nature to want to have a sense of high self esteem as demonstrated in Maslow’s Hierarchy of Needs, and some people express that in the form of following latest fashion trends to gain respect and recognition from others.” (Gunellius, 2014)
When selecting a restaurant to celebrate a special occasion, there are several characteristics that greatly impact my decision. The type of special occasion also affects the characteristics I look out for. For example, the needs of a large gathering and a small gathering would differ. If it were to be a small gathering, a private space with soft music, and subtle and personal service would be much preferred. However, a large gathering would tend to have a more active crowd and would require a larger space, not necessarily private, with upbeat
Dave Thomas an American restaurateur and a philanthropist once said, “It all comes back to the basic. Serve customers the best-tasting food at a good value in a clean, comfortable restaurant, and they'll keep coming back.” (thomas). Everyone can agree on Dave Thomas, but I have a couple more criteria to add to his idea of a great successful restaurant. If I go out to eat I might as well pick a place that, though may be expensive, has scrumptious food because why bother going to spend money on food you can make yourself? A great restaurant has to meet three of my criteria’s: the Décor and atmosphere, impeccable service and cleanliness, and most importantly the food.
The competition in the hospitality industry is increasing. Hilton and Intercontinental Hotels are of same class, offering same quality services; this is making each hotel to face very high threats of substitute products. For model, in the absents of Hilton, Intercontinental will satisfy the customers’ needs perfectively and the same time, if Intercontinental is absent, Hilton will satisfy the needs of the customers perfectly.
by Gordon Waitt. University of Wollongong, Australia. Tourism management Articles Vol. 17 No. 2. Pg.
Thanks to these factors, pricing becomes one of the primary uses with which hotels attract customers. However, due to customers’ independent nature, there influence over industry players is limited. In the high-end segment of hotels, price influence becomes even less as hotels find it easier to differentiate themselves from the competition and customers become less price sensitive coming to expect higher prices as a symbolism of superior quality and services. Lastly, corporate business and tour operators can exert more influence due to their large purchases but this affect is of a limited nature and does not extend across the whole
This paper will discuss the five environmental factors that influence global and domestic marketing decisions that organizations must make. These five environmental factors are technology, demographics, government, culture and economics. Companies are affected differently by these factors depending on the industry they are in and the size of the organization. I will be using the Washington Plaza Hotel to illustrate how these environmental factors affect the hotel industry's marketing decisions. The Washington Plaza Hotel is a hospitality business located in Washington, DC. They offer services such as lodging, restaurant, bar, catering and meeting space rental. The Washington Plaza Hotel's major customer base is government, tourist, non-profit organizations, local businesses and some corporate clientele. Let's now take a look at how these environmental factors affect the marketing of the hotel.
The Hotel industry has become very important in the past years due to immense traveling and growth of international business. Hotel industry not only plays an important role in the life of people but as well as the economy of the country. Development and advancement in the Hotel industry have rapidly been taking place and especially since the rapid change in technology, it is very important for hotels to be promptly keeping up to date. When the hotel industry is spoken of, there are many famous hotels but one hotel company that has been outstanding in growth and other aspects of business, like in Leadership, Teamwork (Employee turnover), Motivation (Customer retention and satisfaction, Goals and objectives, (changing the way hotel business has worked), and Change within the company; structurally inside and physically outside, adding elements, like entertainment, gaming, and outdoor activities, is the Hilton Hotel Company.
Internet Marketing News and Know-How. Hotel Marketing. 18 Feb. 2011. Web. 19 Apr. 2011. .
The hotel industry performs within a saturated market, driven by customer loyalty and competitive pricing to stand-out. This competitive nature makes it extremely important to capitalise on strengths while improving on
Moreover, the InterContinental Hotels & Resorts is considered the first international hotel brand in the world, as it began operations in the year 1946 (About InterContinental Hotels Group Brands, 2015). Over time the hotel group has evolved to encompass quality hotel rooms not only in North America, but in Central and South America, Europe, the Middle East, Africa, Australia, and Asia-Pacific (IHG – InterContinental Hotels Group, 2015). In addition, they have acquired extended stay facilities and the Hualuxe Hotels & Resorts, which specifically “celebrates the essence of Chinese hospitality” (About InterContinental Hotels Group Brands, 2015). In my opinion, this shows that their target market has changed by expanding their scope of travel, which means they are traveling to farther and farther locations and require the familiar surroundings with equivalent product quality at the final destination. The InterContinental Hotels Group is in the fourth and final stage of the product life cycle, which is the decline stage (Editorial Board, 2014, p. 212). Indeed, the brands lengthy history indicates it has loyal customers, but its addition of innovations indicates the targeting of new customers for the organization, which are clear signs of a business in the decline stage of the product life cycle (Editorial Board, 2014, p.
Tourism Research Australia, Department of Resources, Energy and Tourism. Tourism contribution to the Australian Economy, 1997-98 to 2009-10., [Online. Available at: [Accessed 7 March 2012].
In marketing sector, social media tools impact hoteliers on making decision on marketing strategies. In fact, social media can provide vary of channels to promote and distribute hotels products and services (Rosman & Stuhura 2013). In a word, using social media as a marketing tool can bring many benefits like direct consumer communication and brand awareness, so that to generate revenue as a final
New Zealand’s hospitality industry has many challenges to overcome, which I have mentioned in this essay. This industry is one of the main contributing industries to the New Zealand economy (Statistics New Zealand, 2013). In this essay I will identify three major challenges, which I think are important to providing a successful hospitality business. I will describe and define these challenges and use data that I have
In recent years, tourism marketing has gone through strategic changes with the improvement in new technologies, the chase of a relationship between customers and suppliers as well as the importance of sustainability issues in marketing. Marketing Tourism reconsiders the needs of the tourists but does not overlook on the long term economic, environmental, social and cultural interests of the local population. So, it means that marketing consider both the tourist demand and effect to society as
It was a very nice waterfront restaurant featuring both indoor and outdoor seating. I read Yelp reviews before going and wasn’t sure exactly what to expect as some reviews were great whereas others were absolutely awful. I chose to sit outdoors due to the amazing weather and view the restaurant had to offer, along with live music. I went around noon and had to wait about five minutes for a table which wasn’t an issue but it took approximately ten minutes for a waiter to even come over to my table to offer me a drink, which in my opinion, is not great guest service. The service was overall very slow they were not very well organized and seemed very understaffed. My waiter was a very nice, young gentleman but was very uneducated when I proceeded to ask him a few questions about the menu and what he recommended to eat since it was my first time dining here. I ended up ordering the blackened salmon salad and it was pretty tasty but nothing really exceptional. I asked for a side of dressing and the waiter completely forgot about it and by the time he was reminded, I was already done and ready to get out of there. He apologized and offered me a free desert due to the poor service I was receiving and I decided to decline the offer and told him I’ll just take my check. There were many guests around me who have been waiting for
One of the most essential things for tourism to be successful in a particular place is a quality of the environment both natural and man-made. However the tourism industry involves doing many activities that have a negative effect on the environment.