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Aspects of the hospitality industry
A report on the hospitality industry
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In regards to the industry sector of external environment, The Hilton Hotels Corporation operates within the Hotels and Motels industry. Hilton is the top leader of this industry surpassing its competitors which include Marriott International Incorporated and InterContinental Hotels Group PLC. The Hilton company holds 14% of the market share in this industry and is one of the largest privately owned companies in the United States. Hilton is the dominate company within the Hotel and Motel industry, but Marriott closely follows its lead with 13.3% of the market share. InterContinental Hotels Group PLC follows Marriott with 8.8% of the market share and Starwood Hotels and Resorts Worldwide Inc. and Wyndham Worldwide Corporation trails with and estimated 4.9% and 4.1% of the market share. The industry size is directly correlated to the top companies within this industry and their percentage of the market share. Together these companies hold 41% of the market share within this industry and constitute “The Big Three” of the Hotel industry and compete primarily with one another. Related industries within the Hotel and Motel industry include Non-Hotel Casinos, Casino Hotels, Bed and Breakfast and hostel accommodations, Campground and RV parks, and bars and nightclubs (IBISWorld, 2014) . This industry operates in a dynamic and changing accommodation market and competition in this industry is high with the trend steadily increasing. “The Big Three” hotel companies are relatively matched in terms of competitiveness because they dominate this industry and as a result face little competition from other firms outside of “The Big Three”. Because these three companies dominate the industry primarily and face little competition from other firms... ... middle of paper ... ...cline during the recession caused significant discounts on room rates in an attempt to maintain cash flows which caused a 35% dip in operating profits. However because the demand for all forms of travel has increased, Hilton’s revenue is steadily on the rise. Because it is projected that the unemployment rate will decrease over the next 5 years, consumers will have more money so spend freely on recreational activities such as traveling (IBISWorld,2013). In 2010, the company began to see steady incline in revenue due to the upturn of the economy and this trend is expected to continue at an average rate of 2.5% over the next 5 years. With the demand for Hotel rooms steadily increasing as the economy continues to improve, room rates are steadily on the rise and many companies are hiring thousands of new workers in order to service the increasing number of consumers.
Companies across the world conduct business within certain market structures. These market structures have been established based on factors such as, the number of sellers within the market, the barriers that exist within the market that create difficulty for new companies to come into the market, the types of products that are being sold, the nature of the competing companies, and the pricing power that the companies within the market have. This paper will examine the different types of market structures organizations operate in and evaluate the differences between market structures. It will also take a closer look at the lodging industry and one of its biggest players, Marriott International, at the market structure in which this corporate giant is operating in.
If you are interested in a management career in hospitality industry it is good to research the management position that you may be interested in. Find out what the different positions are is a good way to start your research. The two different industries within the hospitality industry are the Hotel and Lodging industry and the Restaurant industry. The different top management position in the Hotel and Lodging are: General Manager, Director of Human Resources, Director of Food and beverage, Director of Rooms Division, Director of Sales and Marketing, Director of Engineering, Director of Accounting. The different top management for the restaurant industry are: General Manager, Kitchen Manager, Bar Manager, and Dining Room Manager.
Hilton Worldwide carries out business through three segments: (1) management and franchise; (2) ownership; and (3) time-share. These business segments enable management to capitalize on strengths like brand recognition and economies of scale. The company focuses primarily on the management and franchise segment which consist of 3,918 hotels with 610,413 rooms. Managing the properties, rather than owning them, allows the company t...
Founded in 1919, Hilton Worldwide has remained a beacon of innovation, quality, and success. What Hilton Worldwide calls their mission statement imposes its worldwide high status: “We will be the preeminent global hospitality company - the first choice of guests, team members and owners alike.” Fierce competition, however, does currently exist among hotel corporations within the market. Marriott International, Hilton’s main competitor, currently stands as the third-ranked world leader within the industry (according to hospitalitynet.org), coming in after Hilton. Other competition faced by Hilton comes from Wyndham Worldwide, Starwood Hotels and Resorts, and Best Western, to name a few. Affiliated with ten different hotel brands, Hilton Worldwide provides its guests with the advantage of choosing from any one of their 4,000 operating hotels located throughout 90 different countries. This has evidently contributed to Hilton Worldwide becoming one of the top leaders (ranked second to be exact) in the hospitality industry, despite their competition. The vision of Hilton Worldwide is “to fill the earth with the light and warmth of hospitality.” As the modern luxury hotel, Hilton has created a prestigious heritage with a modern attitude. The values of Hilton Hotels are stated uniquely, giving one value to each letter that constitutes the word for the hotel brand. “H” stands for Hospitality– “We are passionate about delivering exceptional guest experiences”; “I” stands for Integrity– “We do the right thing, all the time”; “L” stands for Leadership– “We are leaders in our industry and in our communities”; “T” stands for Teamwork– “We are team players in everything we do”; “O” stands for Ownership– “We are the owners of our actions and dec...
The hotel industry performs within a saturated market, driven by customer loyalty and competitive pricing to stand-out. This competitive nature makes it extremely important to capitalise on strengths while improving on
The most prestigious name in the industry, Hilton Hotels & Resorts stands as the stylish, enthusiastic and global leader of hospitality. With over 92 years of experience, Hilton continues to be synonymous with hotel because of innovative approach to products, facilities and service. They help make traveling easier with smart design, innovative restaurant concepts, authentic hospitality and assurance to the global community.
For this assignment I have carried out a job study for the Hotel Management industry.
Executive summary I have chosen to use PESTLE as part of my investigation, I feel PESTLE is the best way to discuss the different factors affected both (positive\negative) of the hotel industry. Hotel industry is part of the hospitality business which according to www.bha.org.uk, United Kingdom has the highest Hospitality employment and recently contributed the sum of £57 billion to the United Kingdom (GDP) Gross Domestic Product.
2. Demand-supply gap : Indian hotel industry is facing a mismatch between the demand and supply of rooms leading to higher room rates and occupancy levels. With the privilege of hosting Commonwealth Games 2010 there is more demand of rooms in five star hotels. This has led to the rapid expansion of the sector.
The lodging industry has seen improvement since the economic downturn of late 2007. There are factors beyond the industries control that could stifle growth in the industry, including but not limited to the still weak global economy and governmental breakdown. Since 2010, the industry has seen steady growth in average daily room rate (ADR), revenue per available room (RevPAR), revenue and net income. The have either reached or almost reached pre-downturn (2007) rates. Room construction in much of the United States has also started to rise again but at a slower rate than the financial indicators.
The external environment of the hotel industry in is very competitive and already well established. Trends in the market include promotional campaigns to customers using the "more bang for your buck," method. There are several different segments of the hotel industry including: luxury, upscale, mid-market with food and beverage, mid-market without food and beverage, economy, and budget. Each different segment offers certain amenities to appeal to consumers depending on what they are looking for in an over night stay away from home. As McDonald's looks at entering the hotel industry they have looked at several important issues dealing with an entry into this market. McDonald's would like to enter the market in the state of Illinois where the company's headquarters is. Illinois leads all other states in money spent on tourism totaling $61.1 million in the year 2000. Illinois also ranked fourth in the nation for leisure person trips in 2000. Hotel industry has several important barriers to entry including cost of entry, ability to differentiate from other hotels, and competition in every hotel segment.
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
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.
The hotel industry is an important component of the tourism industry. The fortunes of the hospitality industry have always been linked to the prospects of the tourism industry. Tourism is the foremost demand driver of the industry. Along with the tourism industry, the Indian hospitality industry has also emerged as one of the key industries driving the growth of the services sector and, thereby, the Indian economy.
Whitla, P., Walters, P., Davies, H. 2007, Global strategies in the international hotel industry, Hospitality Management, vol. 26, pp. 777–792.