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Impacts of GLobalization on HOTEL industry
Effect of globalization in international business
Globalization and its impact
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Recommended: Impacts of GLobalization on HOTEL industry
CHAPTER 1
INTRODUCTION
1.1 Introduction
Globalization has incurred dramatic transformation to commerce practices around the globe. Corporations like Intel, Apple, and IBM have begun to outsource experts from different parts of the globe, reasoning variation in firm’s structures and work shifts (Bernstein, Kripalani and Engardio, 2004). Consolidation between airlines (e.g., sky alliances, world members & star alliances) is further instances of variations caused due to this phenomenon. According to Jean de la Croix (2011), as many other industries, hospitality and tourism sector has also been affected by the globalization. Hence, this dissertation peruses the impacts of globalization on the five star hotels in Geneva city, Switzerland with a specific concern on how it impacts the hotels marketing strategy and also their business performance. In this etude, “globalization” reflects on the procedure of augmenting cultural and social relationship, economic, and political interdependence, market and financial accretion that are due to the advancements in transportation technologies, communication, and business liberation (Lenway and Eden, 2002)
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...
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...ats and opportunities on the 1) overall performance of Geneva’s five star hotels, & 2) global marketing strategy.
2.3 Globalization & companies’ performance
As there are not many literatures written regarding the affects of worldwide market threats and opportunities on the performance of the five star hotels in Geneva and as well as their marketing strategy, this dissertation tends to explore the relationship between these two impacts on company’s performance and how globalization has affected their marketing strategy. In one hand, it is believed that worldwide market gives an opportunity to the companies to have global resources and therefore enhancing the performance of the companies (Eng, 2001; Fawcett, 1983). However, on the other hand, it results in more intense competitive environment, which creates more uncertainty in the market (Jones, 2002; Levitt, 1983).
Globalisation is having a significant impact on marketing. This is because a business, by distributing itself across international borders makes its product more readily available to international customers and creates employment opportunities in the country it has moved to. To understand the impacts, globalisation, marketing (particularly market segmentation), global marketing strategies and general history of Qantas need to be examined.
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.
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
Hilton Worldwide carries out business through three segments: (1) management and franchise; (2) ownership; and (3) time-share. These business segments enable management to capitalize on strengths like brand recognition and economies of scale. The company focuses primarily on the management and franchise segment which consist of 3,918 hotels with 610,413 rooms. Managing the properties, rather than owning them, allows the company t...
The Hyatt core brand offer’s the highest hospitality services to a targeted market consisting of business travelers and upscale vacationers. Competitors There are many 4 and 5-star hotel chains in the world that are the Hyatt’s competitors, and three of the largest in the industry are the Hilton, Starwood, and the Marriott. Although it is bold and ambitious as an enterprise, it does not address the three most critical components that a mission statement is set to do. Their mission statement could apply to numerous hospitality companies and many other companies as well.
International Hospitality Management Journal, 17.2, 111-124. Porter, M. E. (1986). The. Competition in global industries. Harvard: Harvard Business Press.
As tourism industry has been increasing dramatically during the last two decades, hotel industry is at war. In global competition, hotel chains are required to offer not only standardized facilities, but also standardized services. To meet the different needs of customers in each individual country while maintaining the same standards of services, global marketing strategy plays a critical role. Being a leader in upscale hotel chain industry, The Ritz-Carlton Hotel took a unique path to compete with its rivals.
Not only western hotels introduce these new technology, but also Chinese hotels. Although the application of the new technology is late in China comparing with western hotels, it rapidly develops in most of Chinese
Gruner, Axel Dipl.-Betriebswirt, Dev, Chekitan Prof.Dr. Globale Marketing Trends und ihre Auswirkungen auf die Hotellerie", abseits.de. 2 Febr. 2000.
The classification of hotels helps to guide the guest’s choice, and to make a distinction between small and big hotels. In this type of classification the size of the hotel is widely taken into account. Some other factors also count, such as amenities, and quality of the services. Most of the five stars hotels, are big and modern hotels. The quality of the services is one of the most important aspects. In general, all the big hotels offer high level services to their guests. “ The World Hotel Rating project seeks to standardize hotel ratings throughout the world, adding intern...
The competitiveness of the international hospitality industry in the context of globalization is impacted by different factors. One of these factors includes the globalization drivers, which are mainly, cost, market, government, and competitive drivers. Market drivers for globalization are very much based on common customer need, and are also based on global market channels and global customers (University of Kentucky, n.d). The strength of market drivers are evaluated from a range of multi domestic sectors to the global market. For example, the market for specific foods or cuisines would likely find greater success in the local or domestic setting; however, the market for automobiles, computers, and hotels, fast food chains can be high on the global scale (University of Kentucky, n.d). Cost drivers are also drivers for globalization and include elements which relate to global-sized economies, including source efficiencies, production differences, high production development costs, as well as rapidly shifting technologies (Jager, 2009). The Science Initiative Group Institute for Advanced Study (2007) discusses that globalization is driven by cost which is largely based on the economic conditions of organizations. The persistent pressures on the “economies of scale, advances in technology, and increasing cost of product development are factors that are relevant in this grouping” (Summers, 2005, p. 284). The emergence of innovations adapted by those involved in the hospitality industry determines the costs incurred, and thereby impacts significantly on the call for globalization. In this case, advances in the manner of doing business, including internet availability and advertisements impact on trade ...
Globalization can not only affect a company opening an office in another country but it can affect a small local business as well. As the internet brings the world closer together it becomes far more likely that a business that opened with no intention of selling internationally will have customers form different parts of the world asking for their product. For instance a steel company located in Pennsylvania may suddenly find orders coming in from South American factories. How the steel plant chooses to handle this new international customer could mean ...
Globalization encourages worldwide business. Globalization is an efficient process by which all the nations of world will commonly try to set regular universal standards & regulations (both created & recommended) which will encourage business around different nations. Business around nations or elements crosswise over different fringes is called universal business.