Курсовая работа: Marketing in tourism
- Reaction of consumers.
Profitability is driven by efficient operations mainly, as many costs are fixed in nature. Several recent changes in the industry causing profitability pressures. Growth in internet reservation channels has helped improve the industry occupancy rate of hotels. However, it has caused a cost pressure too. Increased sales through these intermediaries has allowed them to charge higher amounts of commissions and degraded the ability of the players to control pricing or the presentation of their products. Indirect competition through alternative forms of holiday accommodation, are increasing. Holiday homes, timeshare accommodation and such other shared accommodation schemes are biting into the shares of the mainstream hotel and motel industry.
The outlook for the hospitality market in England is optimistic and will continue to remain so, in my opinion. The economy’s buoyancy, initiatives to improve infrastructure, growth in the aviation and real estate sectors and easing of restrictions on foreign direct investment will fuel demand for hotels across star categories in the majority of markets. Several international chains have been established or enhanced their presence here. England is one of the world’s fastest growing tourism markets.
External environment
Economic Environment
Positive forces include the generally prosperous economy that is currently in place, full employment, rising wages, and low inflation, leading more people to be able and willing to spend money and to get away for some time. The Grande Bretagne Hotel offers an affordable alternative to a flyaway destination. There are conference, banqueting and leisure facilities.
Geographical/Competitive Environment
The Grande Bretagne Hotel has:
- The brasserie/coffee shop seating 120 people and open for all day dining and an a la carte restaurant seating 70 people opens every day for lunch and dinner only; a 50 seat bar adjoining the a la carte restaurant open in the evenings and providing light entertainment (piano music).
- A lobby/lounge bar seating 120 people open from 1.00 a.m. until midnight, seven days a week, suitable for informal business meetings and rendezvous.
- A ballroom - 400 square metres allowing for 260 people classroom style. Eight syndicate rooms between 30 and 50 square metres.
-A small swimming pool, sauna and steam rooms.
-A gym with a selection of exercise equipment and a small room for aerobics, yoga lessons.
- A business centre.
These surroundings will attract and retain guests who appreciate such refined environments.
Legal/Political Environment
As faced by all businesses, the proper insurance needs shall be met and all operations and policy manuals shall be reviewed by appropriate legal experts. The facility will obtain all the necessary building permits prior to construction. Present facility zoning allows for this proposed use, including bars, restaurant, and business centre.
Technology Environment
The Grande Bretagne Hotel utilizes the existing software packages available in the hotel industry, including: room and facility management database, controlled bar and inventory measuring systems, and room key cards that allow patrons to charge directly to their room account, this technology shall assist management in controlling costs, reducing cash management, and maximizing revenue.
«Networking within business and civic groups is important; even if the business results are not immediately felt, it is an excellent public relations opportunity» (www.hotelinteractive.com). Live piano, or jazz style trio, on the weekends will add excitement to the hotel and draw community residents and guests from other properties.
Social Environment
Smoking Ban may have an affect on businesses in the future. The implications of an overall ban would have on the industry would be more so in the pub sector, hotels having a more family orientated and diverse market segment could relish the smoke free environments.
Consumer’s behavior
Buyer behavior is focused upon the needs of individuals, groups and organizations. To understand consumer buyer behavior is to understand how the person interacts with the marketing mix. As described by Cohen (1991), the marketing mix inputs (or the four P's of price, place, promotion, and product) are adapted and focused upon the consumer.
The psychology of each individual considers the product or service on offer in relation to their own culture, attitude, previous learning, and personal perception. The consumer then decides whether or not to purchase, where to purchase, the brand that he or she prefers, and other choices.
People today are looking for prevention rather than just cure. In 1994, 32% of New Zealanders took some form of supplement and in the latest study in 1997 this figure has increased to 74%. Each different product market consists of buyers, and buyers are all different in one way or another. They may differ in their wants, resources, locations, buying attitudes and buying practices. Because buyers have unique needs and wants, each buyer is potentially a separate market.
Consumer involvement is the perceived personal importance and interest consumers attach to the acquisition, consumption, and disposition of a good, service, or an idea. As their involvement increases, consumers have a greater motivation to attend to, comprehend, and elaborate on information pertaining to the purchase. (Mowen & Minor, 1998, p.64). In the case of low involvement, consumer views a purchase as unimportant and regards the outcome of his or her decision as inconsequential. Because the purchase carries a minimal degree of personal relevance or identification, the individual feels there is little or nothing to be gained from attending to the details of a purchase. (Hanna & Wozniak, 2001, p.290). High involvement purchases are those that are important to the consumer either from a financial, social, or psychological point of views. The purchase is characterized by personal relevance and identification with the outcome. (Hanna & Wozniak, 2001, p.291). An individual anticipates a potentially significant gain from expending time and effort in comparison-shopping before buying. For example, a girl purchasing an expensive ball dress has a high degree of personal identification. Therefore, a high level of felt involvement can increase an individual’s willingness to search for, process, and transmit information about a purchase.
The most important factors influencing a consumer’s involvement level are their perceived risks. The purchase of any product involves a certain amount of risk, which may include:
- Product Failure – risk that the product will not perform as expected.
- Financial – risk that the outcome will harm the consumer financially.
- Operational – risk that consists of alternative means of performing the operation or meeting the need.
- Social – risk friends or acquaintances will deride the purchase.
- Psychological – risk that the product will lower the consumer’s self-image.
- Personal – risk that the product will physically harm the buyer.