A Microeconomic Impact Of The Hospitality Industry In The Hotel Industry

Introduction This report seeks to investigate and analyse the main characteristics of overbooking and the impacts this can have on a hotels management systems and customers. It examines the consequences of both successful and ineffective overbooking management decisions depending on the way in which it is managed and the effect this can have on the hotels profitability of the hotel. It also looks at the effect that overbooking has on customer behaviour and loyalty and legislations that have been passed in the USA. Existing research on yield management analyses’ overbooking and how this can be implemented effectively within hotels, some researchers have then expanded upon this to incorporate effects on profitability, customer service and service recovery. Secondary data was collect through journals, books, hospitality related magazines and hospitality news articles in order to gain framework for the research topic.

The question that needs to be addressed is quite simple. Hilton considers their greatest asset is their frequent guest program. What happens when another company ups the stakes? Jeff Diskin, head of Hilton HHonors, needs to determine if competing with Starwood Hotels and Resorts Worldwide Inc. is the best option? Starwood has implemented a program to increase its customer base within the hotel service industry.

Rational Expectation The idea of rational expectation was introduce by Grunberg and Modigliani (1954) and later by Muth (1961), the main them was that prediction of economic event like, weather forecast can affect the economic event. Similarly the expectation of an increase in prices can affect the most of economic agent decisions. The rational expectation can also affect the customer’s behavior while taking the decision. Since the customers have full information about the hotel and its price and he can change his/her booking decision while found any change in price. For example in vacation the hotel booking price usually increases while off the vacation their price is relatively lowered.

Hotel furnishings and amenities are available within a broad market, providing hotel owners with the freedom to choose products that specifically meet their personal standards and requirements. This places the burden on suppliers to increase product attractiveness for hoteliers. Hotels can often also be substantially large and purchase in bulk, making them very valuable customers for suppliers. Slide 4 Threat of New

Also, the impact that those events and trends will have on your business in terms of cost and revenue changes and the timing of the impact.” (Fedele, 2010) For each of the external environment, it is also to identify what will affect the performance of the business. Economic impacts our hotel industry by paying taxes, by accommodate rooms and by giving jobs to people. The revenue we get from our suppliers, employees, partners and guests gave us a huge effect on our hotel economics and supports our society. It prompts our expenses, providing good jobs, develops great business opportunity in practically all categories and benefits our society to succeed. With the modern technological world today, the hotel industry has come up with room keys, which are distributed at the electronic check-in terminals, where patrons are able to see the hotel’s resident robot keep their valise.

Amenities, location, packages, rates, special offers - just a few of the many factors that are considered when choosing the functions of a hotel. I was very curious to see how different types of hotels differ in what they offer, how they offer it, and where they offer it. These services are extremely significant because they are what define a hotel. They define what type of guests they are targeting, what type of hotel they want to be perceived as, and what level of service they want to deliver to their guests. The impression of the hotel left on the guest is essential for the success of the hotel.

Introduction The hotel or hospitality industry relies on guests who visit their facilities. In order to understand and project revenues it is critical that operators in the industry know how to calculate revenues. On the other hand revenue management in any business not only in the hospitality industry is important. Considering the perishable nature of hotel rooms as the main product under sale, it is important to focus on customer satisfaction in order to increase revenues. Therefore, hotel yield or revenue management is about balancing the demand for hotel rooms and the capacity through proper forecasting in order to maximize effectiveness of resources.

£ - Premier Inn revenue 1.822 mil. £). Managing the rising demand is the main challenge if they want to maintain their leading position and rising popularity in the market. In annual report it has been stated that insufficient reservation system and failure, caused business interruption, process failure and financial loss and taken given place in Principal Risks and Uncertainties section in annual report. ( annual report andreas risks) This essay will mainly focus on the importance of demand forecast and management in Hotels Industry by using Premier Inn Data and concentrate on the possible improvements can be achieved through Advance Booking Methods in Forecasting Hotel Reservations.

2.1 Why the hotel industry The focus is on the hotel industry because; the geographical location of a hotel has a major impact on its operations and profitability (Namasivayam, K., Enz, C. A., & Siguaw, J. A. (2000). Furthermore geographical location of a hotel greatly determines the profile of its visitors, the size of its market and the level of competition that it has to face. These three variables also have a strong impact on the ICT adoption tendency of a hotel.

ESSAY 1 Paragraph 1 - introduction (RevPAR) and (GOPPAR) Room Revenue per available Room (RevPAR) In today’s dynamic scenario and ever changing economies it is necessary to evaluate the revenues and expenses of your hotels and keep track of records in an updated way. For the same, analysis of certain industry ratios like the Revenue Per Available Room (RevPAR), and Average Daily Rate (ADR) becomes quite convenient to make comparisons between several years. Revenue Per Available Room (RevPAR), is certainly the most crucial ratio popularly used to assess the financial performance in hospitality business. It helps in pricing guest rooms tactfully. http://hmghotelsblog.com/2013/05/13/revpar-how-to-maximize-hotel-revenue/ Gross Operating Profit