For hotels, rates are the prices that are being offered for the rooms and services that are available in the hotel. The rates of the rooms have many varieties that would depend on the type of room the customer would want to stay in, basically the bigger the room the higher are the prices.
The rates of the rooms for the hotel could also change according to season of the business, whether it is in the peak season or in the non-peak season. They are a lot of type for room rates, the type of room rates are such as:
• Commercial rates
• Cooperate rates
• Membership rates
• Group rates
Hotels nowadays would do a merger with Airline companies as a part of sales techniques. This is where the customers of the airline would be advertised to stay in with the partner company which for this situation would be the hotel. An example would be when Royal Airlines would make a partnership with the Rizqun international hotel.
This technique can only be applied to loyal customers of the hotel, this may also be available for customer that are loyal to the company that is in charge of the hotel. Loyal customer of the hotel might be given benefits that are only available for loyal customer. This will make guests of the hotel to stay loyal to the hotel as they would want to have the benefits as well. The benefits of being loyal to a hotel can include discounted room, free usage of the hotel facilities, discounted price for dining in the hotel restaurant and many more
Packages are a type of promotion where the hotel would want to offer their guest a mixture of products to go along with the accommodation they would want to stay in. For an example The empire hotel and country club is having a package promotion of whoever are checking in their hotel on a Su...
... middle of paper ...
...statistical data are usually used to find out about information of a particular competitor or even to know which company would be best to form a merge with. The same goes for hotel companies, it is called networking where they would want to form a partnership that companies that would help their business. For example a hotel would want to have an agreement with an airline company to advertise about the hotel to their customers, this is so that the hotel could attract more customers, the airline would then be given commission.
In a smaller scale statistical data could be use internally as well, in terms of room division statistical data could indicate that the department is over buying some of their cleaning products and under buying some of their cleaning materials. The department would then be able to adjust their purchasing order in the future to reduce wastage.
47% of Marriott’s rooms are in North American Limited Service, 30% are classified as North American Full Service, and the remaining 23% of its rooms are in the international segment (Marriott, 2015). Recognizing that travelers have a range of budgetary and amenities needs, Marriott operates its properties under a variety of different brand names, 19 in total, each of which has its own “price and service points” (Marriott, 2015). Most of Marriott’s brands are at the high end of the market, which includes such widely recognized luxury brands as the Ritz-Carlton, JW Marriott, Renaissance Hotels, Bulgari Hotels, Marriott Executive Apartments, Marriott Vacation Club, Edition Hotels, Autograph Collection Hotels, Gaylord Hotels, and Marriott Hotels (Marriott, 2015). These properties often command nightly rental rates that can run several hundred dollars a night and offer a wide range of amenities well suited for both business and pleasure travelers. These properties are classified as “Full-Service.” Marriott also offers a range of “Limited-Service” brands that do not contain as many amenities and tend to be much cheaper than the Full-Service line. Examples of these properties include Courtyard, Residence Inn, SpringHill Suites, and Fairfield Inn & Suites (Marriott, 2015). Even though these properties are considered Limited-Service, they do offer considerably nicer accommodations and more amenities than other types of budget motels and hotels. In contrast to many of the other hotel brands, Marriott International does not operate any midscale, economy, or budget
When talking about substitute goods in the hotel industry it is all about the type of hotel that you are aiming for which will determines how high the treats of a substitute good are. For example, when talking about a hotel catering to a niche population of comfort, modern, and good pricing the treat of a substitute good is extremely high because it is easier to get into these types of hotels. However, when talking about more specific and expensive fo...
Rates for hotels may be as follows: Room Only (RO), Bed and Breakfast (BB), Half Board (HB), Full Board (FB), All Inclusive (AL).
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. This step would not only increase the benefits for customers but also increase the expenses incurred by Starwood. Hilton Group has to analyze the situation and act in an appropriate manner by introducing the same kind of loyalty program, competing point for point or by choosing a different tactic as compared to Starwood, which would let Hilton stay diverse.
Supplier power within the hotel industry is limited primarily due to the abundance of hospitality product providers. 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.
Traditionally, the hotel industry has catered to the lodging, dining and other amenities of travellers or guests. The industry operates across the different value chain by offering services and facilities as per the preferences and paying capacity of guests’. Typically, players in this industry own assets and or franchise their brands or manage third party assets. The hotel business is highly capital intensive but at the same time highly competitive, this is due to the presence of a large number of players across the different value chain. The industry being highly regional in nature, the hotel business is directly impacted by overall economic or business activity and tourist movement
Up until recent years Revenue Management was something that has never been heard of. Now days, it is something that hotel managers cannot go without. They spend numerous amounts of time checking their computers for the nightly rates of the hotel. But what exactly is Revenue Management? “Revenue Management (RM) is a scientific technique that combines Operations Research, Statistics and Customer Relationship Management and categorizes customers into price bands, based on various services” (Revenue Management, 2010). In other words someone might reserve a room that is at a going rate of $245 per night while their cousin who reserved a room at the same hotel months in advance only has to pay $105 per night. Now you may ask yourself how hotels can get away with doing this? But what it all boils down to is that someone who reserves a room last minute will end up paying the higher amount because his or her demand for the room is higher.
2. For International Tourists they have special packages which include room charges as well as Sightseeing services. Since Tourists have different economic budget constraints they have different packages accordingly that is from high to medium price.
By implementing the above points, hotels are more likely to achieve and above all, guarantee customer satisfaction.
The luxury hotel industry has become a significant segment of the general hospitality industry and is undergoing expeditious expansions. Hilton’s goal is to create value for its constituents, customers, owners and shareholders, employees, strategic partners, and the communities where each hotel is located-by delivering a consistent value
There is an absolute difference between a 5 star hotel and a 3 star hotel. In which, people tend to see a 5 star hotel as the better, more luxurious, modern, state of the art and has more advanced facilities available, whereas a 3 star hotel would be a standard, convenient, hotel where standard quality and service are provided. An example of a 5 star hotel is Rizqun International Hotel and an example for a 3 star hotel is Brunei Hotel.
Mandatory resort fees of $10-$20 in the lodging facilities have become a huge inconvenience for the customers today. Hotels charges these fees to cover everything from parking, phone calls, use of pool and spa, internet and gymnasiums. Their argument is that it covers the use of all the facilities provided that need constant maintenance by the hotel staff. They believe that the customers don’t want to pay for each service they use separately as it adds to the inconvenience. Also, they can subsidize the cost of all of these services if they charge a resort fee per night for every customer.
The Hotel industry has become very important in the past years due to immense traveling and growth of international business. Hotel industry not only plays an important role in the life of people but as well as the economy of the country. Development and advancement in the Hotel industry have rapidly been taking place and especially since the rapid change in technology, it is very important for hotels to be promptly keeping up to date. When the hotel industry is spoken of, there are many famous hotels but one hotel company that has been outstanding in growth and other aspects of business, like in Leadership, Teamwork (Employee turnover), Motivation (Customer retention and satisfaction, Goals and objectives, (changing the way hotel business has worked), and Change within the company; structurally inside and physically outside, adding elements, like entertainment, gaming, and outdoor activities, is the Hilton Hotel Company.
This report describes the term known as Corporate Hospitality, identifies and describes its role and function within the market. The purpose of the report is to evaluate and explain possible benefits and issues, businesses may face when operate within the industry.
Thanks to these factors, pricing becomes one of the primary uses with which hotels attract customers. However, due to customers’ independent nature, there influence over industry players is limited. In the high-end segment of hotels, price influence becomes even less as hotels find it easier to differentiate themselves from the competition and customers become less price sensitive coming to expect higher prices as a symbolism of superior quality and services. Lastly, corporate business and tour operators can exert more influence due to their large purchases but this affect is of a limited nature and does not extend across the whole