Unit 12 International Hospitality Management in TT Sector Assignment

Introduction

This unit 12 international hospitality management in tt sector assignment is associated with the International Hospitality Management that will be covering many aspects of the hospitality industries. The concentration will be on current factors and as such the precise content will vary from year to year. The aspects that will get discussed here is related to the impacts of globalization, strategic hospitality management, change management in the hospitality industries, international marketing and branding and many more.

Background to International Hotel Industry (and tourism)

There have been a lot of trends that are taking place in respect of the International  Hospitality Industry. These are associated with the rapid growth in vacation ownership, integration and globalization as well as new management. Let us now discuss the matter in detail.

Rapid Growth in Vacation ownership

Vacation ownership is considered as the fastest developing segment of the hotel industry and will be continuing to grow in the future. The World Tourism Organization has referred timeshares to be one of the fastest growing sectors of the industry associated with travel and tourism. Brand power is being added by the hospitality organizations to the concept with corporations such as Marriott Vacation Club International, Hilton Hotels, and Hyatt Hotels taking part in an industry that had a rapid growth in the current years. (Jenkins, 2011). For instance, Resort Condominiums International (RCI), considered as the largest vacation ownership exchange is having more than 2.8 million member families that reside in 200 countries. North America is considered as the international leader with almost half of all the participating resorts as well as more than 2 million owners. Next comes Europe having approximately 22 percent of owners internationally as well as more than 1,000 resorts. There is the presence of the timeshare resorts internationally in well-known places for vacationing like beaches, lakes, rivers, mountains as well as important cities.

Integration & Globalization

Few years ago, a trend had begun that is considered as vertical integration. Hotel companies had the realization that need for accommodation of the guests were not just at one level, to a certain extent, they seemed to fluctuate by price as well as conveniences. Majority of the well-known hotel companies at present are having properties in every market segment. (Jenkins, 2011). Globalization is the key to the future of the hotel industry. There is no possibility for the organisations to develop unless they are venturing outside their own country. Therefore, it can be stated that the at the very core of the globalization of international business there   is the presence of the hospitality industry. The hospitality organizations, as a result, require considering the propositions of the international context where they are functioning and should be ready for addressing the questions arising from the environment that is susceptible to change. Globalization will finally be touching almost every scenario of the hospitality industry. There will be a growing competition in respect of customers, processes of management, staffs, products as well as sources of capital and will be moving across national boundaries. (Page, 2012) In the future, competition will be coming from international establishments with the beneficial aspects that will be brought by globalization.

New Management

There is a requirement of a future management cadre in respect of the factors associated with the complex forces of controlling the capacity, safety as well as security, capital movement and technological aspects for adapting to changes that are rapid-paced across every traditional management functions. There is a growing complication between the communication within the customer as well as staff, which is driven by the technological aspects for shaping the future requirements related with  human resources.  The customer, having additional information will be expecting frontline as well as other employees working for the hospitality industry to have the required knowledge regarding the offerings of the organisation. (Kozak, 2010) But, this is considered to be challenging in an industry that is exemplified by personnel who are low-skilled as well as low-paid and also possessing an increased level of diversity that is cultural as well as behavioural within its staffs. Therefore, taking into consideration the future, the significant forces that will drive change in the hospitality industry will be taking into consideration seven aspects that are crucial for the industry’s future development which are known as assets and capital, health and safety, new management, management associated with distribution and capacity, marketing, technological aspects, sustainable development as well as factors associated with social matters.

Background to Hotel Company

The Hotel Company that is being taken into consideration is the Marriott International. And the particular hotel for the assignment is Marriott Hotel West India Quay. This luxury hotel is considered to be perfect in respect of business or leisure. The hotel is situated in a posh location in London’s business district known as Canary Wharf and guarantees a very amazing stay. The hotel boasts of guest rooms that are spacious as well as stylish that have outstanding facilities, which includes a large flat screen TV, a mini-bar, as well as floor to ceiling windows that is offering remarkable sights of London Docklands. The hotel is also having 20 sophisticated event rooms for people who seek a venue for conducting a meeting or wedding. In addition to that the hotel also offers excellent services associated with catering.

                        Marriott Hotel West India Quay

Marriott International is considered as one of the largest hospitality organisation globally having a large number of hotel properties. Marriott inaugurated its first hotel, Camelback Inn, in Arizona, USA in 1967. They started expanding outside US in 1969 for the first time by opening their hotel in Acapulco, Mexico. The hotel company had their expansion to Europe by 1975 with the inauguration of the Amsterdam Marriott hotel in the same year. Marriott International is a multinational diversified hospitality organisation that is managing as well as franchising a broad assortment of hotels as well as associated facilities for lodging. Globally, they are operating 19 brands. (Iqbal, 2011) On January 27, 2015, Marriott did the acquisition of the Canadian hotel chain named Delta Hotels. Marriott did the announcement of acquiring the Starwood Hotels and Resorts Worldwide on 16 November, 2015 for $12.2 billion. This deal created the largest hotel company in the world. This acquisition will be assisting Marriott in having a larger presence outside US since approximately 75% of the revenues of Starwood are coming from the international markets.

SWOT analysis of selected hotel company

Strengths (S) – In the market, Marriott Hotel West India Quay is having a positive brand image. Marriott Hotel West India Quay can take the local market position. This Marriott Hotel has gained more popularity and has become famous with the help of their targeted customers. The hotel is having an internal control system that has a lot of efficiency as well as effectiveness. This Marriott hotel is conducting their functioning with the help of the management skills which is very dynamic and forceful style of leadership. There is a positive reputation associated with Marriott Hotel West India Quay’s management that they have the ability of fulfilling the needs as well as level of satisfaction of their targeted customers. Along with this they have a high brand recognition as well as recall. They are having continuous technical innovations for improving t experiences of the customers as well as constantly upgrading for processes associated with business. (Iqbal, 2011)

Weaknesses (W) – As the Marriott Hotel West India Quay is a very costly brand it is missing out on many customers. This Marriott hotel is working for individuals who are belonging only to the business class and as a result the needs and satisfaction of the middle class customers are getting ignored. This is the reason why they are functioning with limited number of customers and are also having a reduced size of the market. This is the also the reason why,  Marriott Hotel  West India Quay is not able to do the diversification of their service.

Opportunities (O) – A study has revealed that Marriott International is functioning in more than 73 countries. This will assist the Marriott hotel’s management in building of brand loyalty as well as brand awareness. This will assist Marriott Hotel West India Quay in increasing their current revenue and for the achievement of the opportunities related with the growth of the business. Moreover, this Marriott hotel is conducting their business with the help of policies that are associated with sustainable development as well as eco-friendliness. This assists Marriott Hotel West India Quay in creating the scope for the enhancement of their present business that will help in bringing international tourists. Marriott Hotel West India Quay is constantly innovating in services related with customers. (Jenkins, 2011)

Threats (T) – The threat associated with terrorism as well as political unrest in certain nations is also considered to be a major threat in respect of Marriott Hotel West India Quay. Moreover, significant increase in competitors in the domestic as well as international market is becoming a major concern in respect of Marriott Hotel West India Quay. Another threat is associated with the competition in respect of price points.

Background to Global Hotel and Tourism Industry – developed and emerging markets

Developed Markets: There are various trends that are taking place in respect of the global hotel and tourism industry in the developed market. These are associated with customer service, expectation of more international visitors, booking more profitable business, innovative technology, sharing economy, political uncertainty, reputation management, real time marketing, as well as trends associated with health and wellness.

• Customer Service – Through the creation of a better, exclusive guest experience that will be exceeding all anticipations, the global hotel and tourism industry in the developed market will be having the ability for capturing the customer whether it is in the presence of technological support or in the absence of technological support.
• Booking more profitable business – This is considered to be an essential aspect in the global hotel and tourism industry in the developed market as increased profits are resulting from strong developments in the level of occupancy, average rates as well as profits for each room that is available. (Iqbal, 2011)
• Innovative technology – In the current scenario, there is the use of the mobile apps for most of the things associated with the hotels in the global hotel and tourism industry in the developed market, since taking into consideration the changing perspective associated with the customer in the present scenario, technological innovation is of supreme importance. (Horner, 2012)
• Real time marketing – This will be taking place on a continuous basis and will be incorporating guest-generated content particularly with the help of the social media. This is considered to be an essential element of the marketing mix for the global hotel and tourism industry in the developed market.
• Trends associated with health and wellness – This will assist in continuously driving the decisions of the customers in the global hotel and tourism industry in the developed market. For catering to this trend, healthy food options are considered to be one of the easiest means.

Emerging Markets

There has been an expansion in the emerging global hotel and tourism market due to the increase in connectivity in the world where people are travelling to many underserved locations. This might be various African countries or places in Southeast Asia in which although there is the emergence of business as well as economies, the cities are having insufficient accommodation for hotels. Studies have stated that the emerging markets can be considered having increased volatility. There is a need to invest time as well as money for entering these markets and also there is a significant amount of risk associated but with the insight of the landscape for the domestic business, building of traditions, as well as authentic interest in the people as well as cultural aspect, mitigation of the risk can be done. Africa is considered to be one of the emerging markets for the global hotel and tourism industry. And, within Africa, the most exciting emerging market is considered to be Nigeria.(Grundy, 2013) The reason for this is that they have stable government, have economic stability from oil revenue, as well as have highly educated elite having business enterprises that are very large. There are an increased number of individuals, who travel to Nigeria for conducting business from across the world and although it is not a tourism economy, the increasing number of business travellers stimulated by an economy that is strong as well as growing assists in the creation of some interesting tourist location. Presently there are very limited hotels for serving the modern business traveller, and for catering to the expectations of the modern business traveller, there are almost no hotels that are a combination of great restaurants, shopping as well as spas. Morocco is considered to be another emerging market in the  global hotel business  and tourism industry offering exciting scopes. In comparison to Nigeria, the place has a strong establishment as a destination for tourists for quite some time and the development in the past decade did the elevation of the market to an extravagance standard. (Evans, 2013) Another fastest emerging market in Latin America is Colombia. There is the balancing of the urban centres as well as resort destinations in Colombia. Also, Colombia’s topography is providing a huge scope with growing development in relation with the Pacific as well as Caribbean coasts and also there is better security, steadiness as well as a natural environment that is having diversity. With the increase in tourism, there will be hotel, restaurants as well as entertainment that will be following.

Background to Emerging markets

• There has been an expansion in the emerging global hotel and tourism market due to the increase in connectivity in the world where people are travelling to many underserved locations. This might be various African countries or places in Southeast Asia in which although there is the emergence of business as well as economies, the cities are having insufficient accommodation for hotels.
• Studies have stated that the emerging markets can be considered having increased volatility. There is a need to invest time as well as money for entering these markets and also there is a significant amount of risk associated but with the insight of the landscape for the domestic business, building of traditions, as well as authentic interest in the people as well as cultural aspect, mitigation of the risk can be done. (Evans, 2013)
• Africa is considered to be one of the emerging markets for the global hotel and tourism industry. And, within Africa, the most exciting emerging market is considered to be Nigeria. The reason for this is that they have stable government, have economic stability from oil revenue, as well as have highly educated elite having business enterprises that are very large. There are an increased number of individuals, who travel to Nigeria for conducting business from across the world and although it is not a tourism economy, the increasing number of business travellers stimulated by an economy that is strong as well as growing assists in the creation of some interesting tourist location. Presently there are very limited hotels for serving the modern business traveller, and for catering to the expectations of the modern business traveller, there are almost no hotels that are a combination of great restaurants, shopping as well as spas.
• Morocco is considered to be another emerging market in the global hotel and tourism industry offering exciting scopes. In comparison to Nigeria, the place has a strong establishment as a destination for tourists for quite some time and the development in the past decade did the elevation of the market to an extravagance standard. (Kahn, 2012)
• Another fastest emerging market in Latin America is Colombia. There is the balancing of the urban centres as well as resort destinations in Colombia. Also, Colombia’s topography is providing a huge scope with growing development in relation with the Pacific as well as Caribbean coasts and also there is better security, steadiness as well as a natural environment that is having diversity. With the increase in tourism, there will be hotel, restaurants as well as entertainment that will be following.

PEST of selected emerging market

• Political (P) – Political features are indicated by precise areas like labour law, tax policy, tariffs, limits associated with trade as well as environmental laws. These issues are signifying the means as well as the extent to which a government is influencing the economy as well as a specific business related to the hotel and tourism industry in the emerging market.
• Economical (E) – It is accounting for the Foreign Direct Investment (FDI) liable on the hospitality industry that is having an experience of this analysing scenario on the hotel and tourism industry in the emerging market. Economical issues take into consideration interest rates, foreign exchange rates, designs related with economic development and so on. These attributes are issues of an economic performance that influences an organisation in a direct manner as well as have lasting influences. (Kahn, 2012)
• Social (S) – This is associated with the travelling trends in the emerging markets for the hotel and tourism industry where the demand for tourists is increasing. These issues does the examination of the social environment related with the hotel and tourism industry in the emerging market and does the measurement of the issues such as trends associated with cultural aspects, demographics, population analytics and many more.
• Technological (T) – These factors are associated with mechanization, inducements, rate of technological change as well as activity related with research and design. These attributes significantly impacts areas like limited effective level of production, quality, costs, as well as delegating decisions for the hotel and tourism industry in the emerging market.

Strategies to be adopted and implemented  

Porter’s Generic Strategies

In respect of the hotel strategic growth options for Marriott Hotel West India Quay, they will try adopting as well as implementing this strategy as they will be trying to gain entry into the new market, trying to seek development as well as long term maintenance of their share of the market. There are three types of strategic aspects in this regard which are Cost Leadership Strategy, Differentiation Strategy and Focus Strategy.  

• The Cost Leadership strategy calls for being the low cost producer in the hotel and tourism industry for a specified quality level. Marriott Hotel West India Quay will be selling its services either at an average industry price for earning a profit more than the competitors or below the average prices in the industry for gaining market share. (Freeman, 2010) In case of price war, Marriott Hotel West India Quay will be maintaining certain profitability while losses will be suffered by the competition. Certain ways by which Marriott Hotel West India Quay will be acquiring advantages related with cost are through the improvement of the efficiency of the methods, achieving exclusive accessibility to an increased source of lower cost items, and making decisions associated with vertical integration.
• Marriott Hotel West India Quay will be having success with differentiation strategy since they will have the accessibility to leading scientific research, have a highly efficient as well as creative team, and have good standing in respect of quality as well as innovation.
• The focus strategy will be concentrating on a contracted section and in that section, there will be efforts for actualizing either differentiation or cost advantages. Marriott Hotel West India Quay will be using focus strategy for enjoying an increased level of customer loyalty. (Frydman, 2013)

Ansoffs Matrix Strategy

In respect of the hotel strategic growth options for Marriott Hotel West India Quay, they will try adopting as well as implementing this strategy as they will be trying to gain entry into the new market, trying to seek development as well as long term maintenance of their share of the market. There are four different strategies for growth associated with Ansoff Matrix which are Market Penetration, Market Development, Product Development and Diversification. (Fernando, 2011). In respect of market penetration it can be stated that Marriott Hotel West India Quay is seeking for actualizing growth with existing services in their present market segments focusing on developing its share of the market. In respect of market development, it can be stated that Marriott Hotel West India Quay will be seeking development by aiming its available services to new segments in the market. In respect of product or service development, it can be said that Marriott Hotel West India Quay will be developing its services aimed at available segments in the market. (Freeman, 2010). In respect of diversification, Marriott Hotel West India Quay will be growing through diversification into new businesses through the development of new services for new markets.

Nykiel’s fourteen Strategy

• Strategy 1: Horizontal Expansion – Marriott Hotel West India Quay will try to expand from one line of hospitality service to another for entering into the new market.
• Strategy 2: Geographic Expansion – Marriott Hotel West India Quay will be growing from a relatively small radius to a greater geographical location for entering into the new market.
• Strategy 3: Product Hybridization - Marriott Hotel West India Quay will expand their range of service for entering into the new market.
• Strategy 4: Specialisation-Specialist –. Marriott Hotel West India Quay will be specializing in associating with upscale growth in pricing as well as services provided for entering into the new market.
• Strategy 5 : Product Tiering - Marriott Hotel West India Quay will be dealing with forces associated with population growth, demographic and economic changes as well as increased segmentation of market for entering into the new market.
• Strategy 6: Product Re-Branding – There have been too much proliferation of the services of Marriott Hotel West India Quay for entering into the new market.
• Strategy 7: Non- Franchising - Marriott Hotel West India Quay will be wishing to keep control over their services, quality ownership as well as management of services for entering into the new market.
• Strategy 8: Franchising – Marriott Hotel West India Quay will be following a highly established  business strategy  for development that is being followed inside the hospitality industry for entering into the new market.
• Strategy 9 : Brand Collection - Marriott Hotel West India Quay will be seeking to take benefit of comparatively limited stock for purchasing branded functions that are assumed to have potential for growth.
• Strategy 10: Management Contracts - Marriott Hotel West India Quay will be specializing in managing hotels for owners for entering into the new market.
• Strategy 11 : Vertical and Horizontal Integration - Marriott Hotel West India Quay will be part of more than a single hospitality segment with the scope for gaining a competitive edge through the investment in various elements of the industry for entering into the new market.
• Strategy 12: Singleness - Marriott Hotel West India Quay will be developing a single service having total ownership as well as management control for entering into the new market.
• Strategy 13: Value Related Products and Service - Marriott Hotel West India Quay will be launching new service for satisfying particular value or trends within the consumers for entering into the new market.
• Strategy 14: Global Positioning - Marriott Hotel will be expanding their market internationally taking into consideration reasons for investment, levels associated with risk, strategies and reasons to expand for entering into the new market.

Conclusion

This case study is associated with the selection of emerging markets of the world in respect of Marriott Hotel West India Quay for seeking an entry in that market and finally seeking medium and long term growth in the market. This has taken into consideration SWOT analysis, PEST analysis, as well as other strategies such as Porter’s Generic Strategies, Ansoff Matrix as well as Nykiel’s fourteen.

Reference

Evans., N and Campbell., D. (2013). Strategic management for Travel and Tourism. Routledge
Freeman, R (2010). Stakeholder Theory: The State of the Art. Cambridge University Press.
Frydman, R (2013). Rethinking Expectations: The Way forward for Macroeconomics. Princeton University Press.
Grundy, M. and Moxon, R., (2013). The effectiveness of airline crisis management on brand protection: A case study of British Airways. Journal of Air Transport Management, 28, pp.55-61.
Horner, S. (2012). Business Travel and Tourism. Routledge
Iqbal, T (2011). The Impact of Leadership Styles on Organizational Effectiveness. GRIN Verlag.
Jenkins, D (2011). Managing Empowerment. Random House.
Kahn, K. B. (2012). The PDMA Handbook of New Product Development. John Willey & Sons
Kozak, M (2010). Managing and Marketing Tourist Destinations: Strategies to gain a competitive edge. Routledge.
Page, S.,( 2012). Tourism management. Routledge.

This unit 12 international hospitality management in tt sector assignment is associated with the International Hospitality Management that will be covering many aspects of the hospitality industries,  Locus Assignment Help  in UK posting free units solutions so scholars can explore assignment help and get review the quality of our work.