Hotel Industry Has A Disclosure
The word-of-mouth is now in app disclosure. Customers believe in feedbacks, to opt for their choice. Internet has come with great advantages for the hotel industry. The website presents the photos for rooms, dining, food, the facilities, and on top of that the pricing. Customers can differentiate and rank and chose the luxury restaurants, they want to go through the restaurant websites. Apps like Zomato, Make my trip, Trip advisors, oblige us with their updates about hotels and restaurants.
The basic service-line competition we find in today’s industry is among the hotels. The strength and weakness of the hotel industry is found on global basis. Like Starbucks’ positioning in India. The feasibility and potential profitability makes one hotel unique from another. The 2 most crucial factors that differentiate one hotel from the other are:
- · A good location for the target market
- · Quality of service.
This two factors mainly influence the rank of the hotel/ restaurant in various apps or Google search. Hotels industry is basically influenced by price, costs and investments apart from:
· New player of the market: Awareness about the new customers in the market is one of the essential to look upon. A primary research with survey data processing and analysis is highly recommendable.
· Customer’s power: Customers bargaining power is highly dependent on the satisfaction level of the customer. The innovative and mobile communication channel introduced by the marketer, will make the customer decide upon your service line. Like, independency of the buyer, price sensitivity, undifferentiated product, various coupons, discounts, attractive buffet, etc. This requires a marketing analysis to understand the customer requirement.
· Supplier’s power: Nowadays society has taken the social work as one of the most important and effective work that every company should do. Most of the hotels and motels make themselves unique by setting a frame for helping society. Be one of them. Supplying food to the street beggars strays; throwing the unwanted in a proper place, etc. Apart from that the importance in quality, the uniqueness in the service is also worth remembering. A hotel has to be a “monopolistic threat” in terms of quality to the market.
· Competitive rivalry: The competitor’s size and engagement in the market, number of players, lack of diversity, existence of similar kind of player, should be looked into. The competitive rivalry is the competitive study that is mostly done by the market research firms, to give a vivid idea.
This 5 force model of Michael Porter’s has helped the hotel industry flourish. Various other models are built on the basis of the circumstance and opportunity that a hotel can achieve. The basic opportunities that the income stream of hotel raises can be noted as follows:
- Special Food and beverage- like, complementary meal service
- Exhibition for localities- because through exhibition you advertise your hotel’s name.
- Entertainment- like banquets in most hotels, or a small orchestra to redefine your place.
- Car-parking service- something that is exclusively required, may it be a roof top car parking or an underground.
The more you play with your model, the more you will come up with innovative ideas. Customers are always ready to explore. Give them a chance to explore your hotel. Give them a chance to choose you through internet.