New Zealand Hospitality Case Study

1199 Words5 Pages
Part A) The New Zealand hospitality industry faces many challenges, including but not limited to; labour, competition and profit margins. Identify three major challenges that you think are important to the success of New Zealand hospitality businesses- define and describe the challenges using data from the sources listed below. New Zealand’s hospitality industry has many challenges to overcome, which I have mentioned in this essay. This industry is one of the main contributing industries to the New Zealand economy (Statistics New Zealand, 2013). In this essay I will identify three major challenges, which I think are important to providing a successful hospitality business. I will describe and define these challenges and use data that I have…show more content…
This can be paid to the worker by wages or salaries (Conn, 2009). I think labour costs is a major challenge for a hospitality business. If you can manage to keep your labour costs low and have it not negatively affect your service or product then you may save a lot of money. In the Restaurant Association New Zealand (RANZ) report 60.8 percent of businesses said that labour costs is one of the biggest challenges that a hospitality business has to address. The labour cost in 2012 was 61 percent for a hospitality business (RANZ, 2013). The reason why it was so high is because it is essential for running a hospitality business. Labour cost will always be a challenge for a…show more content…
Managers and owners need to understand that they need to build a loyal customer base so they can maintain sales. Customer satisfaction should be a focus you the understanding manager. Rishi and Gaur (2012), stated that offering guest superior service over competitors is a great business ethic (Rishi & Gaur, 2012). This will create customer satisfaction and also sales. Managers and owners need to understand that it is not all about profit. The key is to maintain that income by creating customer
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