Holiday Inn is a world wide chain and its international functional strategies will always yield profitable returns. The potential customers are from all over the world. It has been noted that the holiday inn company has given the market such as Europe, Asia, America with regards to their social-cultural needs. Holiday Inn, like all other hotels has established a good system in determining the needs of the market. The company uses the concept of product, personality, behaviour of the customer and purchasing to its advantage. Social Growing competition and capacity amongst airlines, lower air fares and more relaxed travel restrictions in many regions have made international travel a viable option for an increasing number of people coming to …show more content…
The Five Competitive Forces of Industry will influence prices, costs and investment (Porter, 1980). The potential retaining of customers, profitability of a holiday inn can be determined by being aware of the strengths and weaknesses of the hotel industry. (Figure 2.2: Porter’s Five Forces Model (Source: Adapted after Porter,2008) Porter’s 5 model helps in success of Holiday inn between suppliers and buyers. Giving customers the service they are looking for, acquire customers, retain customers and looking externally how the competitors are doing is very important. To ignore the power of customer relationship is not an option. This model is considered as the most potent and useful tool and is widely used by organisations. This model deals with external factors that influence the nature of completion and internal factors how firms compete effectively to be more profitable. Porter’s 5 forces is used. Industry Rivalry : Porter (1980) reiterated that intensity of rivalry is dependent on number and size of direct competitors as numerous and/or equally balanced competitors may lead to intense competition. The rivalry for market share becomes intense when product differentiation and switching costs are …show more content…
By reducing rivalry, Holiday inn came with the strategy of delivering high quality revenues at a lowest possible cost. This has helped Holiday inn in maintaining customer loyalty and growing sales. It is not easy for a customer to switch to the competitor when they are loyal to a specific brand. Since Holiday inn is one of the best hotels, its competitors are represented by four stars lodging offering equally attractive product as the one Holiday inn is offering. Since Holiday inn hotel has so many competitors, and they offer equally attractive products and services, then the establishment will most likely have little power in the situation. Holiday inn uses switching costs by offering differentiated services like stay connected with free high-speed internet access, fax, photocopy services, extras like fitness centres, sport lounge, etc without going out of the
The demand for travel by air depends on the price of the ticket and the income of the consumer. Both price and income elasticity are taken into consideration, while the price elasticity measures the effective change in the quantity demand and income elasticity deal with the demand of the product due to its change in the income of a consumer. As per the studies, the overall median price of elasticity is -1.1, indication that the demand for air travel is relatively sensitive to price changes (Elasticity of Demand for Air Travel, 2017). According to this article, traveling by air has become a trend.
Moreover, the hotel that include every for the guest also the good service and facility, they will have a good reaction from the guests such as the positive feedback or comment for the hotel after they use the
It doesn't look good for a company to have establishments that are not similar to the other ones. Customers expect to have the same quality each and every time they stay at the different hotels. One critical success factor for Outriggers Hotels is to "maintain the business image" (2). It is always good to be thought of by the customer as a good company. It helps with business in the long run too.
Introduction In today’s hospitality competition reached critical levels, as more and more successful organizations appear, each offering a more unique and innovative service for its customers. Therefore hospitality companies are on a constant struggle and focus on improving the existing service, or even developing new services that could better appeal to their targeted customers. One of the prosperous companies that controls a large share of exquisite properties is MGM Resorts International. In any resort or company, managers should be aware of their strengths; weaknesses, threats and opportunities in order to became better each year.
1 What is Outrigger Hotels and Resorts’ strategic position? What are the firm’s Critical Success Factors (CSF)? Outrigger Hotels and Resorts are currently using geographical and product diversification strategy. The firm expend their firm around Pacific Ocean and diversify its product portfolio by adding condominiums resorts and OHANA hotels.
When considering whether to spend money on a flight, need and want are considered by consumers and whether they will spend extra money for the convenience and time saved by flying instead of alternate options available. The flexibility and time saved
SOUTHWEST AIRLINES The United States of America is a top destination for tourism, and according to the Readers ' Choice Awards, it is the third best country to visit. The wide variety of attractions and activities spread in the innumerous cities of this large country, created the need of an efficient transport network to facilitate travel within the US. One of the offers is the flight connections, mainly through low-cost companies.
After the first successful flight of an aircraft in 1903, passenger air travel evolved into one of the most innovative and convenient forms of transportation to date. In the early twentieth century, the commencement of passenger airlines swept the nation, attracting thousands of customers and companies to the newly formed industry. Over time, more airlines joined the unique and thriving business, building one of the most iconic industries in the world. Nearing the twenty-first century, the industry displayed signs of deterioration, with carriers constantly entering and leaving the market. Nonetheless, the purpose of this paper is to analyze the fluctuating variable costs and slowing economy that have severely impacted the airline industry,
One of the categories of GDP is net export, which is equal to exports minus imports. When the trade increases, it increases the exports of Canada that leads to a growth in Canada GDP. Since the technologies of aircrafts are getting advanced, the travel time is getting shorter. It encourages people travel more often, which increases the amount air passages. Canadian Airports Council (2013) stated “ a total of 7.5 million visitors to Canada spend almost $7.5 billion in Canada in 2012, the large majority (72%) by overseas visitors” (p.28).
The Sawmill Hotel wanted to have a greater focus when it comes to customer satisfaction. Because of this, top management decided to provide customer satisfaction surveys which allowed customers to rate their experience at the Sawmill Hotel. After reviewing the surveys, the Sawmill Hotel had several complaints from clients that involved Spanish speaking personnel. As a result the top management decided to impose an English-only policy. Under this policy, employees were only allowed to speak English unless requested otherwise by management or customers.
More specifically, it is mentioned that the author made a combination between the qualitative and quantitative methods. There is an analytical description of their theoretical background and it is explained in detail the advantages of using mix quantitative and qualitative methods, since there is a better understanding of the different aspects of the main issue and the research questions and also, there is a better and deeper data analysis and evaluation. So, the final implications are more valid and credible, too. The researcher makes a presentation of the sample of the research, which is the population described in the articles and reviews on hospitality of the past twenty years from 1994 to 2014.
According to Florida Statute §509.111(1), The owner of the hotel is not responsible under any condition to be liable for guest’s, money, securities, and jewelry. If the owner of the hotel decides to keep the items for safekeeping under the rights of the guest, the hotel is still not liable for the loss of the items unless it was the hotels fault. The owner of the hotel is limited to $1,000.00 for the loss items if, the hotel gives a receipt for the property which the valued item price is listed. The receipt also must state that the public lodging establishment is not liable for any loss over $1,000.00 unless it was the lodges fault. Mr. Binion did not give David Wilson, the front desk clerk, his wakeboard for safe keeping.
Transports Due to the geography of Chile, a functioning transport network is vital to its economy. With the decline of the railway network, now buses are the main means of transportation in Chile. [162] the bus system covers the entire country, from arica to San Diego (30 hours), from San Diego to Punta Arenas (about 40 hours, in Osorno change).(Olaverri C. 2017) Chile has 372 tracks (62 paved and 310 unpaved).
Significant developments in the transportation facilities, inventions and innovations in the field of communication, ll}.ying of a strong foundation for industrialisation and urbanisation and further development of tourism as an industry paved ways for the development of hotels and motels. Besides, the growing significance of foreign trade, internationalisation of culture and civilisation and the need for setting the foreign exchange balance became instrumental in the organised development of classified and unclassified hotels. The officials on deputation, the business dons on trade promotion mission, the foreign representatives on peace mission, the domestic or foreign tourists interested in visiting a place for pleasure or for enriching their knowledge bank can't perform; if we don't work towards the development of hotels, motels, restaurants and cafeterias. The fact cannot be denied that the world of the hospitality industry has witnessed'multidimensional transformation from traditional to the modern age, In the past, the hospitality was due to religious and superstitious
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