This website uses cookies to ensure you have the best experience. Learn more

International Hotel Management Essay

1557 words - 7 pages

1. Barrier to Entry
According to Michael Porter (1980), threat of new
entrants are determined by barriers to entry which include
economies of scale which include size and scope of
operations required to achieve viable cost structure;
product differentiation, switching costs and customer
loyalty created by quality, reliability and brand image;
capital requirements which involve size of cash and
financial resources required to establish and run a
business; cost disadvantages independent of scale as
opposed to advantages held by existing competitors such
as location, patents and experience; access to distribution
channels which include means to reach customers;
government policy ...view middle of the document...

If the products and services purchased by buyers lack
differentiation or switching costs, they can easily find
acceptable alternative sources of supply. Buyers can pose
a threat of backward integration as large group of buyers
can acquire the supply source.
Certain buyer groups exercise bargaining power as a
result of their concentration or bulk purchases of hotel

rooms. These groups would include tour operators,
domestic or international airlines and large customers,
such as convention organizers.
The bargaining power of buyers varies significantly
within the industry, depending upon a hotel’s target buyer
group, but this factor becomes acute in a situation of
oversupply or where buyers of hotel rooms are
Threats of Substitute Products
There is no major threat of substitute products specific to
a hotel’s product and service. A hotel may not appear to
be particularly vulnerable to intense rivalry because of the
fragmented nature of the competition in its strategic group
and the potential growth rate of its target market.
Bargaining Power of Suppliers
However, the only supplier which might exercise power
over any company would be labor, which is in great
demand in the Hotel Industry all over the world. In
relation to other industries, hotels are not significantly
subject to the bargaining power of their suppliers and
suffer low levels of indirect pressure on their

competitiveness from this source.
Jockeying for position among current competitors
The rivalry for market share becomes intense when
product differentiation and switching costs are low.
Rivalry becomes more intense in fixed costs such as the
Hotel Industry in most metropolitan cities. There are
strong pressures to sell capacity by price-cutting except
weekends and holiday seasons. Capacity augmentation
exists as large additions to capacity can disrupt the
demand and supply balance and leads to intense rivalry.
Despite low or negative profitability and diversity,
companies and industries may have different origins,
goals and strategies and an overlap in target customers.
2. PEST for global and local trends
Political Environment
Government charges huge amount of tax and has a huge impact
with the political changes that occur. The hotel industry is
getting huge incentives and the state governments are supporting
the development of the hotels and their growth.
(The politics in the USA is very stable. Several policy initiatives
will positively contribute to the continued expansion of

America’s travel and tourism exports. First, any extension of the
visa-waiver program to additional countries will add to arrivals.
Second, a number of bilateral initiatives between China and the
U.S. )
“These include interest rates, taxation changes, economic
growth, inflation and exchange rates.” The economy will grow
and inflation rate will not be hight enough to prevent people
spending money.
(The US has many foreign...

Other Papers Like International Hotel Management

Management Strategic Essay

644 words - 3 pages families (Martin Roll, n.d.). Banyan Tree’s award winning in-house training and development academy has provided them with manpower to further extent their services into providing “a Sanctuary for the Senses” experience for consumers. Management team of Banyan Tree consists of highly qualified personnel who has past working experience with various top companies such as, Hilton International Hotels, Amara Hotel Saigon Company Ltd, LG Group, etc

Cmba Essay

2612 words - 11 pages International Business & Economics Research Journal – August 2009 Volume 8, Number 8 The Franchising Decision: The Perspective Of The Franchisee In The Hospitality Industry Ramon Diaz-Bernardo, Instituto de Empresa Business School, Spain ABSTRACT Franchising is a major trend in the hotel industry. Despite the fact that almost two-thirds of branded hotels in the U.S. are franchised, there is a lack of empirical research on franchising


7564 words - 31 pages Hotel Radisson management to give me the opportunity to complete my internship in their organization. I would like to express my gratitude to my supervisor Afreen Ahmad Hasnain for providing me detailed feedback and advice on this report. He always gave me his suggestions in making this study as flawless as possible. I also want to render my special thanks to the employees who spared their time generously, and took the trouble of answering a

Global Issue

2528 words - 11 pages . Additionally, it offers educational support in some undeveloped areas (Marriott International, 2012). Specifically, it includes: * Marriott is partnering with Akilah Institute for Women to educate and train 15 young women in Rwanda to open the Kigali, Africa Marriott Hotel as supervisors in late 2013. * Marriott International annual “Spirit to Serve Our Communities Day” is annual day of service that benefits local nonprofits, schools, parks

Human Resource Management

3320 words - 14 pages emerging trends are a) Value Chain. b) B) Filling gaps in Price & Service value chain through: • Service Apartments – A Home Away From Home • Spas • Budget Hotels Critical Success Factors in the Indian Hotel Industry are the following; a) Site and Location: b) Positioning and Guest Profile c) Financial Strength d) Brand Recognition e) Yield Management f

Singapore Hotel Industry Analysis

8199 words - 33 pages levels in the industry. For example, in 2010 the SHA led the industry in the Hotel Transformation 2010 (HT2010) Productivity Pledge. Working with other industry related associations, 72 hotels had planned to increase productivity levels through five key principles: company policy, human capital management and development, productivity improvement measures, contributing to the common effort and sharing the fruits of productivity. In 2011 it focused

Marketing Mix

9345 words - 38 pages Riverview Hotel, Notown has 35 exclusive rooms and is targeting corporate guests with a two to three night stay requirement. Target business segments include the IT sector, due to the proximity of the property to Silicone Hill, USA; the automotive industry in order to capitalize on the strategic location of the hotel in relation to the Overall Motors Plant and HQ in Notown and travel trade guests attending National and International Travel


2960 words - 12 pages Beacon International College Course: Pearson BTEC Level 5 HND in Hospitality Management Unit: Finance in the Hospitality Industry Assignment No: 1 Name: Yau Chiu Wai(Sam) Submission: 4/12/2014 1. Identify and review the possible sources of funding that can be used for SEAFRONT hotel new business venture. Explore variety of options, discuss the advantage and disadvantages to assist you to derive the best possible approach. For


862 words - 4 pages should be done first before specialisation subjects Specialisation Subjects Legend 702LEAD = Leadership 703SMGT= Strategic Management 705MMGT = Marketing Management 710OMGT = Operations Management 711SHRM = Strategic Human Resource Management 712FMGT = Financial Management 713ENT = Entrepreneurship 714NVC = New Venture Creation 715IB = International Business Jan 30-Jan-14 29-Jan-15 28-Jan-16 26-Jan-17 711SHRM 702LEAD 712FMGT 713ENT 730ILOG 737SUPL

Caesars Entertainment

7310 words - 30 pages Caesars Entertainment Case 33 The Desert Palms Hotel & Casino Final Term Project COURSE: Strategic Management INSTRUCTOR: SUBMITTED BY: DATE: December 2, 2013 Disclaimer: Since The Desert Palms Hotel & Casino is not a real company, we have done an analysis of Caesars Entertainment where unknown figures were needed. TABLE OF CONTENTS Topic and Purpose ………………………….……………………………………………...1 Scope

Human Resource Management

1531 words - 7 pages Award: Module Title: Assignment Title: International Advanced Diploma in Business HR Management Unifit Examination Cycle: December 2008 Candidate Name: NCC Education Candidate No: Submission Date: Important Notes: Plagiarism – using the thoughts or writings of others as though they were your own without acknowledgment – is an offence. It is your responsibility to familiarise yourself with the NCC Education Academic Dishonesty and

Related Essays

Competitions In The International Hotel Industry Is Increasingly Intensified And Globalized As Hotels Seek New Ways To Grow And Target Markets And Potential Customers Have More Alternative To Choose...

539 words - 3 pages 1. Competitions in the international hotel industry is increasingly intensified and globalized as hotels seek new ways to grow and target markets and potential customers have more alternative to choose from. Explain in detail this issue. Over the past two generations, the hotel industry has evolved in a continued boom to accommodate explosive growth and radically changing consumer demand, and has adjusted itself to a substantially different

Narrative Essay

822 words - 4 pages I. Company Profile HISTORY/BACKGROUND The Hotel was built in the year 2005 and was formerly known as Rainbow Pacific Suites Hotel. It was acquired in the year 2012 under new management and under the new name of V Hotel. The 10-storey Hotel has 58 rooms, a roof deck pool, Café, and Travel Agency. V Hotel is the ideal lodging choice for travelling business people as well as avid travelers. Conveniently located in Malate, Manila, V Hotel is

Methodology Essay

3329 words - 14 pages discounts etc. It is necessary for the stuff to act polite and to be always ready for help, as it gives the visitor the feeling of being important and it makes their visit pleasant. This treatment of the customers can attract them to visit the hotel again, therefore making profit for the company 14. 13 Management and Organisational Behaviour, 2 European edition, Maslow´s hierarchy of needs, page 199 nd 14 Residence hotel, available

Case Analysis

742 words - 3 pages organizational culture is quite friendly and supportive. There is a lot of team work and projects are assigned to teams. The success and achievement of Jabel Ali Beach Hotel proves that the employees have great understanding and good relation with each other because working in team is not possible if the team members don’t have the understanding or have issues with each other. The senior management does a lot to ensure that there is no organizational