INTERNATIONAL HOSPITALITY MANAGEMENT

International Hospitality Management

Abstract

Organisations continually seek new ways to acquire, retain and increase business, since the cost of losing customers is rising. Service organisations such as hotels need to put in place competitive marketing strategies to improve their competitiveness and thus retain customers. Once demand is created, a hotel needs to manage this demand as well as its capacity to deliver. This study investigates the importance that hotels attach to executing competitive marketing strategies, as well as managing supply and demand. The study also determines whether or not hotels of different size and ownership type differ in their view of the importance of carrying out these functions. An interviewer-administered in-office survey was used to collect data from hotel managers in Gauteng. Hotel managers across the board consider all competitive marketing strategies as important. Significant correlations exist, however, between the importance attached to certain competitive marketing strategies and the size of hotel - as well as the hotel ownership type.

Table of Content

INTRODUCTION4

HISTORY OF ACCOMODATION AND HOTEL CHAINS5

OBJECTIVE7

LITERATURE REVIEW7

COMPETITIVE BENEFIT AND SUSTAINABLE COMPARABLE ADVANTAGE8

Positioning10

Managing provide and demand11

THE ACCOMMODATION SECTOR AND THE ECONOMIC, ENVIRONMENTAL AND TECHNOLOGICAL IMPACT13

THE MARKETING STRATEGIES OF THE FOUR LEADING INTERNATIONAL HOTEL CHAINS14

GROWTH STRATEGIES ADOPTED BY THE FOURLEADING INTERNATIONAL HOTEL CHAINS17

THE FUTURE OF THE ACCOMMODATION SECTOR AND SUSTAINABILITY18

CONCLUSION19

REFERENCES21

International Hospitality Management

Introduction

In most developed countries, about 80% of the workforce is employed in the service sector. Service sector industries include education, retailing, tourism and hospitality, medical and hospital services, as well as communications and construction services (McColl, Callaghan & Palmer 1998: 43). By the early 2000s, it was estimated that services already accounted for 72% of the gross domestic product (GDP) of developed economies, and 52% of the GDP of developing economies (Hill 2007: 245). The hospitality industry was expected to grow by 6.2% and the tourism industry by 4.1% in 2007 (Economist Intelligence Unit 2005: 107-110). The hospitality industry has grown phenomenally since 2001 and has been driven by both leisure and business demand (Kloppers 2005: 28).

Tourism assists about 5% to the GDP (Dikeni 2001: 519) and can therefore assist to lift the worldwide earnings, the grade of paid work, the balance of payments and foreign exchange rates. Hotels disagree in method and dimensions, some having up to 800 bedrooms. There are full-service establishments and medium-sized business-class inns, while other ones manage enterprise in the allowance sector. Finally, there are the little homeland inns (McManus 2000: 131). Hotels accounted for 37% of total places to stay sales in Europe in 2004 (Euromonitor International 2005). Organisations constantly request new modes to come by, keep and boost enterprise, because the cost of mislaying clients is rising. Service is an significant component in keeping clients. The function of service is more significant than ever, and is anticipated to become even more critical with time (Choi & Chu 2001: 289). Hotels that have the proficiency to appeal, persuade and therefore keep clients are more probable to endure than inns that manage not manage so. Successful clientele keeping permits the inn to construct connections ...