HOSPITALITY INDUSTRY

Hospitality Industry

Hospitality Industry

1. What does the modern hospitality consumer want?

The expectation of a modern hospitality of consumers is affected by their past experiences, personal needs and word of mouth. The expectations of consumers are also affected by the market communication activities of the industry. On the basic level, a customer expects quality service from any hotel the customer visits. The more the price the customer pays the more the expectation of quality service rises.

Hotel industry customers comprise of tourists and travellers as well. Tourists may further be categorized as low, medium and high income groups. The income determines the choice of hotel by the customer. For example, high-income tourists and travellers would choose a luxurious hotel whereas low-income groups will not be able to afford it.

Customers earning low-medium income are affected by the rates of air fares. They have a fixed budget for their travelling expenses. If these customers focus more on airfares then their rest of the budget on other expenses would decrease such as spending on hotel rooms, resorts or other services. Business travellers are affected by the economic decline because this economical fall would directly affect their business volume.

Apart from the income level, there are other factors also which determine the expectations of customers in the hospitality industry. Those factors include demographics, changing age composition of population, ethnic diversity, composition of workforce, diversity of the population, working women and family composition.

On the negative side the factors having an impact on the choice of the customers are terrorism, wars, spread of contagious diseases, tsunami, etc. customers either change their travelling location or stop visiting there. This behaviour creates a negative impact on the hospitality industry. Consumers demand booming economy; a propensity to travel; budget for room accommodation, meals and entertainment. Exchange rate also influences the spending budget.

2. How has London's history shaped the modern hospitality industry?

Before 19th century, London had very few hotels. Foreign visitors and numbers of businesses were inadequate according to modern standards. Accommodation was available through lodging houses and coaching inns. Lodging houses were private homes and coaching inns were stage coaches. With the beginning of 19th century, hotels began to build in London. The hotels were generally small. Many large hotels were established in the Victorian period. In 1865 Langham hotel was opened which was largest in the city (Ram, 2004, 11).

In 19th century in London, trend of developing luxurious hotel started. Savoy was built in 1898 to serve the rich and elite customers. This hotel was unique and famous. It was one of the first hotels to en-suite bathroom to every room. So many and various large hotels were built that era was called Grand Period of Hotels. Modern changes were introduced in the hotels. Electricity, bathrooms and telephone in each room were introduced. 20th century saw many changes and advances in the hospitality industry. Casual dining became famous.

The perception of rich and elite customers faded for restaurants. White Castle, TGI Fridays, Chilis dominated the restaurant ...