Slide 1 The Happy Guest Relationship Management (HGRM) system has seen huge success in its implementation into Hotel Lugano Dante and Hotel Berna’s business operations. The system has allowed for the continued expansion and growth of these hotels, enabling Fontana to provide a five-star customer service experience within a four-star hotel. Through capitalising on technological innovations Fontana was able to achieve these competitive advantages and standout in an otherwise saturated market. The further development of this system will ensure that Fontana is able to sustain this success and promote future growth. Slide 2 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 …show more content…
The economic theory of supply and demand dictates that an excess of supply (hotels) to demand (customers) leads to a lower price consumers are willing to pay. This creates inelasticity within hotel pricing and places substantial pressure on management to meet the pricing needs of customers while providing an attractive and unique service. Hotel services are also intangible in nature, placing increased burden on hotel owners to utilise all available rooms through discounts and deals. Supplier Power Supplier power within the hotel industry is limited primarily due to the abundance of hospitality product providers. Hotel furnishings and amenities are available within a broad market, providing hotel owners with the freedom to choose products that specifically meet their personal standards and requirements. This places the burden on suppliers to increase product attractiveness for hoteliers. Hotels can often also be substantially large and purchase in bulk, making them very valuable customers for suppliers. Slide 4 Threat of New
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.
Because, internet today is enabling web-based suppliers an opportunity to meet a choice of different types of customers (Schoenbachler&Gordon, 2002) and has evolved as a feasible distribution channel for the firms that wish to expand their market penetration (Frazier, 1999; Frazier & Antia, 1995), reduce costs (Payne & Frow, 2004), increase revenues ( Kotler, 2000), spread risks, and strengthen customer loyalty (Kelly, 2002) through its use (Hobmeier, 2001).now most of the hotels are using the multiple channel strategy where they are in partnership more than one sales and distribution channel to serve the same target market and this has grown in the recent years. This is creating higher complexity for the hotel management as the data are coming from different partners. As customers, today are using multiple channels, it is almost certain that the future will remain to contain a mixture of even more complex channels (Balasubramanian , Raghunathan, & Mahajan, 2005). Since now, it is obvious that why hoteliers employing multiple channels including electronic ones, is no different; to maximise customer awareness and market share and reduce costs, this increasingly widespread trend to cooperate with new channels rather than stick to
Companies across the world conduct business within certain market structures. These market structures have been established based on factors such as, the number of sellers within the market, the barriers that exist within the market that create difficulty for new companies to come into the market, the types of products that are being sold, the nature of the competing companies, and the pricing power that the companies within the market have. This paper will examine the different types of market structures organizations operate in and evaluate the differences between market structures. It will also take a closer look at the lodging industry and one of its biggest players, Marriott International, at the market structure in which this corporate giant is operating in.
The external environment of the hotel industry in is very competitive and already well established. Trends in the market include promotional campaigns to customers using the "more bang for your buck," method. There are several different segments of the hotel industry including: luxury, upscale, mid-market with food and beverage, mid-market without food and beverage, economy, and budget. Each different segment offers certain amenities to appeal to consumers depending on what they are looking for in an over night stay away from home. As McDonald's looks at entering the hotel industry they have looked at several important issues dealing with an entry into this market. McDonald's would like to enter the market in the state of Illinois where the company's headquarters is. Illinois leads all other states in money spent on tourism totaling $61.1 million in the year 2000. Illinois also ranked fourth in the nation for leisure person trips in 2000. Hotel industry has several important barriers to entry including cost of entry, ability to differentiate from other hotels, and competition in every hotel segment.
Each year, America’s travel and tourism industry generates approximately $1.5 trillion dollars in economic output, or about 2.6% of the country’s gross domestic product (Select USA, 2016). Nearly 20% of this economic activity is directly related to accommodations, which serve the short term lodging needs of pleasure and business travelers. Unlike other American economic sectors, this lodging industry is a highly fragmented, diversified market with an incredible variety of suppliers. Temporary overnight lodging can range from undeveloped campsites, hostels, and capsule hotels all the way up to mansions and incredibly luxurious five store hotels. Price ranges run the gamut from just a few dollars a night to thousands of
*Problems: How far can management push this branding strategy without undercutting the distinctiveness of each individually branded 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.
The sample represents all U.S. regions and several different hotel location types, including city (47.7%), suburb (15.2%), airport (15.2%), and resort (21.9%). The total data presented here are from hotel managers (N = 98) and hourly employees (N=66) who completed a baseline survey followed by daily diary telephone interviews for eight consecutive days.
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.
Organizational roles and structures are important for hotels and lodges to function efficiently. “The purpose of these structures is to coordinate, communicate, and control individual actions to support the strategy, and to facilitate workflow, permit management control, and create doable jobs” (Enz, 2010). There are many dimensions of organizational structures from hierarchy of authority, degree of centralization, complexity, specialization, formalization and professionalism that needs to be decided upon of being necessary for organizations to operate at best performance. Basic-level structures include functional, project matrix and geographic/customer levels.
Customer relationship management They have determined the key factors in maintaining and building. their relationships with customers are to provide a problem free experience at their hotels and restaurants and to give each customer personal recognition. Their strategies to build these relationships. are the same as those employed to build their business, they are tied. to each other. They are currently developing a Group-wide Guest History network.
fixed costs to total costs. The high level of these costs stem from the fact that hotels must constantly be managed to achieve the most costeffective usage of resources applied to decor, equipment, preoperational expenses and finance. The aim of hotels is to fill their rooms as profitable as possible as a result some of the most important thing that the hotel industry must realize is that it must be able to market themselves and provide quality services so that customers will want to return back to the hotel. The demands of these two characteristics are very high and it requires a lot of effort. In terms of building a hotel, the capital requirements for a hotel project are so high that hotel cannot easily be traded and must remain as a longterm investment purpose. As a result the industry is subjected to large amounts of cost advantages or disadvantages based on the size of the hotel. Furthermore the success of a hotel is also sensitive to the location, management, and the quality and expertise of the staff which is vital to the functionality of the hospitality industry.
The pricing factor is almost hard to match by the hotel industry, as the consumer is becoming more demanding but also exigent in terms of low pricing. Switching costs range from negligible to high, but a factor that motels can’t substitute are the various benefits including spas, restaurants, or a community holiday feel brought with the package of any chosen hotel/motel. But the consumers in the US, for example, see the switch as more of a necessity rather than a choice, this puts them in an affluent position and the threat from substitutes is likely to diminish. The solution then lies in expansion where mitigation usually takes place, and therefore in turn threatens the substitutes by expanding in the new low cost and service field. Some of these low-cost hospitality choices have expanded thanks to technology and brought to life a new era of cost comparison.
Amenities, location, packages, rates, special offers - just a few of the many factors that are considered when choosing the functions of a hotel. I was very curious to see how different types of hotels differ in what they offer, how they offer it, and where they offer it. These services are extremely significant because they are what define a hotel. They define what type of guests they are targeting, what type of hotel they want to be perceived as, and what level of service they want to deliver to their guests. The impression of the hotel left on the guest is essential for the success of the hotel. The idea of adding amenities to keep up with competition or getting creative with services offered is not new. The Journal of Retail & Leisure Property mentioned that starting in the 1970’s, “hotels and resorts tried to gain market share from their competitors by increasing amenities in the guest rooms.” The services and amenities have always been a factor when deciding what approach to take when trying to find the most success. By comparing an average 2-3 star hotel with a 5-star hotel, I was able to gain a better understanding of the different services offered in hotels and the different expectations that certain guests have in their stay.
As international business and trade expand, there is no doubt that international connections will become more and more significant for the hotel industry. According to Zhang Zhen (2005), in the late decades, many hotels have received foreign customers one day or another. However, since the sector evolved, and with the advancement of technology and transportation systems, the industry’s structure has become more and more complicated in regards to management, dependency and ownership. Zhen further states that there are two main reasons why hotel chains started to look for occasions to ent...