The practicality and potential benefit of a hotel can be resolved for the Ritz- Carlton as follows: The purchaser power in the Hospitality business is moderate. As the Ritz‐Carlton has solid brand recognition, it can draw in new guest effectively with little effort of marketing and advancements. Ritz‐Carlton is giving quality service reliably and giving the best experience to its guest at all level (Kirby, 2007). The supplier power is moderate for Ritz‐Carlton. Property owners, designers, planners, real estate organizations, advertising firms, law offices and information technology service and equipment suppliers are some case of supplier in the business.
Literature review: Hotels today are much more than just a place to sleep or take a rest. Many travelers see them as an integral part of a gateway experience with the recent boom in luxury hotels, travelers can choose a hotel that is much a selling point as the destination itself. The hotel industry alone is a multibillion dollar sector, its driving enough for people to work in different areas of interest and still be employed within the hotel industry. Nowadays hotels are providing great services to their customers or guests. Some researchers have defined “hotel” as a place where an establishment providing accommodation, services, facilities, meals and others for tourists and travelers.
According to a hotel brand study developed by the American Customer Satisfaction Index (ACSI), in 2013, Marriott hotels and resorts ranked high on the chart of customer satisfaction survey (Appendix 2). Moreover, Marriott’s loyalty and rewards program gave the most satisfaction to their customers. The loyalty and rewards program received more good reviews from the guests as compared to other competitive programs such as Hilton Hhonors and Hyatt Gold Passport (Appendix 3). Marriott hotels and resorts have offered many benefits to people who join with them. For examples, the members can enjoy free in-room Wi-Fi, earn points or airline miles, use free hotel stay, etc.
Airbnb has challenged this model by facilitating online market place that allows the large-scale rental of spaces from one ordinary person to another. This has enabled ordinary people to compete with hotel operators without major overhead or investment which threatens traditional hospitality sector. Ultimately the rise of these informal accommodations has led to serious economic, social and legal
Airbnb is commonly seen as cheaper than hotels (Nguyen, 2014) and likewise, Airbnb lodgings are also usually less costly as compared to traditional accommodation (Guttentag, 2013). Since Airbnb provides benefits like staying in a local’s home and providing a local cultural experience, travel agencies can easily capture a large segment of cultural tourists looking for authentic cultural travel experience. Additionally, it can appeal to more cultural tourists as it helps them save on travelling costs and possibly open a new market for budget conscious cultural tourists. Hence, WTS travel should form a partnership with Airbnb to provide cheaper and localized places to stay instead of just working with expensive and commercialized
First, the guests will have a higher satisfaction leading to positive word-of-mouth. For example, Hotel Equatorial have a marketing team whereby they understand the hotel very well from the hotel mission, vision, goal to the products or services offer to the customers. Hence, marketers would able to explain well and with confident to the customers. Thus, it would able to attract customers as customers will feel more confident with the hotel services. When customers feel comfortable and confident with their services, they will continue come to hotel for next time tourism or trip and recommend it to their family and friends.
It helps tourists and local people who wanted to travel with a cheap price. Convenient and easy, you can always check your destination and book a seat. It makes profits for both client and the company when it saves time and money for customers (Economy, 2016). According to blablacar.com, you can also register to be the driver or a passenger. It is becoming a favorite transport of local people when it offers a chance to experience a ride with strangers, also it can promote the tourism industry when tourists can communicate and travel by a special way.
Ever since the 1980s, Information Communication Technology (ICT) had been transform hospitality industry globally. Progress in ICT has transformed business practices, strategies and industry structures dramatically (Porter, 2001). ICTs provide a powerful tool that can bring advantages in promoting and strengthening the tourism industry’s strategy and operations. ICTs not only enable customers to search for and purchase customized hospitality and tourism products, but also benefit suppliers by developing, managing, and distributing their products without any time limits and geographical constraints to support the globalization of the industries by providing effective tools (Buhalis and Law, 2008). Since it is convenient to use the internet and the cost of using it is relatively inexpensive, many hospitality businesses have started to use web-based training.
The threat of substitutes With the video conferencing facility available to all corporates at affordable rates, it is a substitute to MICE (Meetings, Incentives, Conferencing and Events), which constitutes to a large chunk of business for hotels. Also many large companies and Government having their own guest houses and conference facilities deprives hotels of some business on that front. Holiday homes, home stays, self-service apartments etc in the cities and tourists destinations are cheaper option for travelers and substitutes for hotel rooms. Example in Mumbai, Pune, Goa and Coorg many tourists prefer such accommodations for long
Hospitality also involves showing respect for their guest, treat them equal and providing what they need when they are in the hotel or requesting on a thing such as need a tourist to bring go around the town, need transportation and other. The hospitality industry basically provides lodging or accommodation to people who travel and needs shelter for the day. Today, the hospitality industry is providing more choices for its consumers all around the world from hotels, resorts, inns, hostels and many more. Hospitality industry is one of the industries that provide service so it is basically focused on customer satisfaction because customer who is the main major to pay us. In different kind of hotel will get a different type of service because it is depend on how the hotel functioning.