BX772102 Contemporary issues in Hotel Industry Name: Ranveer Singh Student ID: Critiquing Published Article: Hotel Brand Strategy 1 .Assumption: Brand management A hotels brand drives the operating ratios that are co related with a hotel property market value. Some brands consistently have strong net operative incomes than do others while other brands report consistently strong average daily rates than others do. (Oneill and Mattila 2006) Our study indicates that consumers are typically willing to pay a price premium for brands they view as high in quality. (Oneill and Mattila 2006) Hotel brands first create value for guests by helping to assure them of a uniform level of quality. (Oneill and Xiao2006) • Reasoning & evidence : The hotel
2.0 Environmental Analysis In order to better evaluate the business environment in which this business is involved, a Porter’s Five Forces analysis is conducted. This analysis would be able to give a clear view of the competitiveness and profitability of the hotel industry. 2.1 Threats of New Entrants- Barriers to Entry For an industry, the threat of new entrants is mostly determined by barriers to entry. The barriers of entry could be made of financial and non-financial factors as well as the competition already present in the industry. The hotel industry in characterised as an industry with high capital costs which would include the costs of construction, furnishing and equipment, pre-operational expenses and finance.The two most important
In the hospitality industry, quality standard is the most prevailing value for a company in its delivery in reaching the high standards towards a great guest experience. It is essential for the management to examine what the customers are after and look for as to achieve the best quality standards. Service is the difference-maker for and to the guest. Generally hotel firms target a wide choice of clienteles from vacation to business travellers. One of the biggest challenges to the hospitality marketing is satisfying the different mind-set customers.
Market segmentation has been the positioning strategy for Intercontinental Hotels, and it is important that it is done well to consider critical features of each segment adequately. Moreover, market differentiation must promote the difference between the different brands so as to create awareness to each target consumer of the most appropriate brand. For instance, the strategy must inform the market of the difference between the Holiday Inn brand and the Holiday Inn Express brand. This differentiation is important since it will encourage business travelers to opt for Holiday Inn Express while those looking for recreation chose Holiday Inn. Consequently, each consumer will get the best service that is suited to their needs and hence create customer satisfaction in the varying
The hotel industry is an intense competition industry. That requires the manager to drive their company with higher revenue, margins and profitability to survive and develop sustainable. Revenue management, the most important strategies must be concentrated, is an evaluative tool that allows the front office manager to compare potential revenue with actual revenue for maximum revenue. This study is to explain the concept of revenue management and the methods used for revenue management. Revenue Management Overview The concept of revenue management originated in the airline industry and populated to other industries by its successful.
Here, customers are willing to pay a premium for a better product. This strategy encourages specialization. The focus here is on superior product features and unique design (Li, 2016). Also, differentiation is ‘the process of developing particular attributes which set a product, service, brand or organization apart from its competitors, while at the same time presenting a positive image to customers. According to Caroll and Gillen (1987), differentiation is one of the strategies outlined by Porter that attempt to develop products that are unique in the industry.
On the one hand, there are different categories of suppliers of products and services in the hotel industry. Thus, they are segmented and having a lower power by themselves. On the other hand, the suppliers have a strong connection with luxury hotels- Intercontinental, Hyatt, Starwood, and Hilton, due to the reason that they are essential to the provision of food and beverage, as well as well-trained services in luxury hotel business. It refers to the high quality of catering and tourist operators’ services. This is influential to hotels’ competitive advantages in price and services, which is a variable factor of reducing the customers’ sensitivity to the price.
Globally the tourism industry is distinguished by high capital requirements and strong brand identity. Barriers for hotel market are medium or high because it depends on the size of financial resources, service quality, and chain of hotels worldwide with a strong brand image. The Marine Hotel is positioned as a luxury hotel with a high proportion of fixed costs to total costs. In hospitality area one of the most important goals is to have economies of scale because it makes things more efficient by increasing the operational size. It considers the resources used for construction, pre-operational expenses, and the cost of equipment.
This essay argues that CSR initiatives tend to have a positive correlation with company performance, which underpins further practices that cater for the society and environment in the cosmetic industry. In the following paragraphs, the external influence of CSR, mainly the enhancement of brand image and consumer loyalty, will be analyzed, followed by the investigation of the internal influence including the reinforcement of employee commitment, and subsequently the discussion of the limitations of the practices under various circumstances. It is widely believed that CSR is a farseeing marketing strategy and has significant influences on brand image and consumer behavior. Two reasons contribute to this advantage. For one thing, most consumers show preferences for socially reputed brands when evaluating similar products; for another, a firm could sharpen its competitive edge by focusing on non-economic factors.
ADVANTAGES OF BRAND EXTENSION: Some of the advantages of brand extension are as follows: • new product acceptance in a market is easier by brand extension as it reduces the risk which customers thought off regarding new brand • it helps in increasing the brand image • New product extension enhance the consumer interest and its willingness to try new product of a similar brand name. • Promotional cost and marketing cost is reduced • new product development need cost which is reduced by brand extension • Varieties of products are available for consumer to make