This could be in form of the airlines offering their customers a travel package which includes accommodation and air tickets. The loyalty formed between these two parties would allow the airlines to negotiate room rates . An example of this would be with the Air Asia airline. When the passengers purchased tickets online, Air Asia often includes special offers of accommodations at the destination chosen and with the loyalty programme conducted by Air Asia, hotels that are associated with such offers would be more confident as it ensures a steady stream of potential customers. As for the bulk purchases or tour groups, their side would certainly be booking a handful of rooms making them eligible to negotiate prices and obtain lower hotel tariffs.
3. Assumption: Franchising Franchising presents are set of special considerations for brand management. According to Keller 1993 favourable, strong and unique brand are stored in memory when the consumer possess familiarity with the brand. Therefore the extension of the familiar brand names such as Hilton developing the Hilton grand inn brand should find themselves in potential guests. The financial advantage of brand extension is that it provides forms not only with higher profit but with savings in marketing expenses.
There are seven vital characteristics that seem to get the substance of the belonging to the company which are: 1. Innovation and risk taking: Since the aviation industry is getting more and more competitive. Etihad airways aims to shin in the industry by making the best profits and providing the best service and product to the customer, therefore they have to start with their employees and make them as creative as possible. They recently built a new department that, which is called “Innovation Center”. It’s an examination focal point of greatness, where new thoughts are enlivened as “one of a kind items” and amazing encounters.
Lufthansa leveraged big data in order to manage the entire customer engagement cycle by predicting and meeting the customers’ needs beyond their expectations from pre-travel to post-travel experience. CIO of Lufthansa stated that “Travel is a trigger for the opportunity to provide services to customers. We are competing, in this way, with Google and Amazon”. Aside from personalizing the passenger’s experience, big data is also used to improve operational efficiency and disruption management (handle irregular situations and predict departure delays and proactive recovery), discover innovative service provision and operational optimizations (predictive and preventive aircraft maintenance). By utilizing big data Lufthansa was able to predict what their customer is going to need or want and to do or buy.
Normally, acquisition risk is lower when the valuation risk is higher; the acquisition risk is higher when the valuation risk is lower means that sometime the consumer like to purchase the service in advance to secure the service to consume but they uncertain of can con consume or not; but at least they no need to worries about unavailability. The first risk that the potential customer will be face during the acquisition risk is unavailability of the service due to fully occupied or hard supply of company or boutique hotels. For example, the guest wait until last minute for the special rate to enjoy the stay at the boutique hotels; but unfortunately the time the guest go for book the room, all the room was fully booked and no rooms available on that day; which this showing of the high acquisition risk that unable to consume due to planning of purchasing on spot of consuming time. The following risk that the guest might be face in boutique hotel due to acquisition risk is that the price of the room will be higher compare to the beginning; which normal hotel practice that they will increase the price depends on the demanding of the business or market. For example, the guest would like to see the crowd of the consumer towards the hotel during the peak season period and buy after that; unfortunately the price of the Boutique Hotel’s room is getting higher due to the number of booking and reservation is higher.
According to Michael E Porter (1980), substitutes are able to provide lower costs, higher quality, better value, which is caused by technological innovation. Substitute products are an indication of existing or potential products and services, which provides the same function (Michael Porter 1980). Firstly, video conferencing is a growing trend that it will replace a physical meeting in a hotel’s conference rooms sooner or later. Moreover, there is a new merging online-service in hotel industry. Take the booming business-Airbnb, for example; which provide an innovative platform for customers to select the services and prices they want when landlords are renting out their houses and rooms through the platform.
1. Introduction The quality of service in hotel industry is an important factor of successful business. The existing trend of complete quality management in hotel industry ensures the achievement of competitive edge and advantage among hotels. An increase in travel and tourism sector accounts for the increase in number of travellers and thereby encourages the growth of hotels. In hotel industry, the aspect that differentiates one hotel from another is the satisfaction level of its customer, which is higher when service quality is above expectations.
Hotel RM research up to now has been overwhelmingly focused on the Rooms Division and its related problems – most notably price discrimination and overbookings, among others. However, it is important that the hotel’s RM system includes all revenue centres, not only the rooms, because they can significantly contribute to hotel’s total revenues and bottom line. For some types of properties, rooms might even be a secondary revenue source. The fact that besides the rooms the hotel can have additional revenue centres complicates the RM process. Instead of maximizing room revenues only, the revenue managers must now focus on the revenues of the hotel as a
The companies which generally pay a lesser dividend then they really can, would be underestimated by this model. Two stage Dividend Discount Model: This model tries to address the concerns which were there in the first model, this model has 2 stages one an initial high growth period and then the company stabilises to stable growth rate which is expected to continue forever. The companies which do not do well in the beginning and then attain maturity after some time may also employ this model successfully. Since this model is based on 2 stages hence the value of the stock relation has to be modified to incorporate this change, conceptually the relation can be described as under: Value of Stock=PV of dividends in extraordinary phase+ PV of terminal value. The mathematical relation would look like as
The exchange process allows one party, a business, to exchange a product or service for money with another party, the customer, for example in travel and tourism includes hotels, airlines and restaurants providing services to customers in exchange for money (Bennett and Strydom, 2001). Relationship marketing has developed from an exchange process, into on establishing long term relationships with customers through providing beneficial products and services, quality pre and aftercare service and customer retention (Bennett and Strydom, 2001). Customer orientation, provide a satisfying quality service, from research and development through to after-sales care, by making the customer the central focus in the business’s operations, satisfying