Economic turns influence almost all industries around the globe. However, if а specific company can deal with economic pressures by marketing their differentiating attributes, а hotel can survive. Furthermore, in order to become successful within this industry one must examine several outlying forces. For instance, the entry barriers to the hotel industry are relatively high. An expensive start-up cost consisting of property, hotel, and staff are just the beginning. In order to compete against many of the corporate leader’s one would need extensive amounts of advertising and marketing campaigns.
(Martin 2004 22-28) However, at this particular time low interest rates and more investors have helped many new entrances to occur in this industry. Although it seems positive for the industry with extremely low interest rates and more financial leverage, it may become а threat as the hotel industry becomes overcrowded. Rivalry that occurs within this industry is becoming more intense as the number of new entries increase. Another contributing factor to the high rivalry within this industry is the fact that there are few differentiating factors between hotels.
Within the different segments there factors such as price, quality, service, and reward attributes, but all of these are easily copied limiting а sustainable competitive advantage. The number of close substitutes are rising due do this increase in rivalry. For each segment there are several competing companies who offer the same attributes making differentiation difficult. The bargaining power of suppliers is severely limited just because the power of the hotel chain buyers is so immense. The switching cost for а hotel chain from one supplier to another is fairly small.
Along with the corporate buying power, the consumer bargaining power is strong as well. Low switching cost are the leading contributing factor to this power because there are many similar hotel accommodations. It should be also noted that immigrants make up almost one-third of the population in large metropolitan areas in the UK These specific Demographics can be helpful to any company trying to target а specific market. (Wearne 2005 151-62) New socio-cultural trends in the UK and other countries should be noted as well in order to gain insight into what consumers want and need.
Specifically in the hotel industry such trends, as а healthier lifestyle could be beneficial attributes to add to а chains marketing arsenal. For instance, low carbohydrate menus offered at hotel restaurants could target the aggressive Baby boomer population. Furthermore, weight and water aerobic instruction could be beneficial as well as the healthy lifestyle of consumers grow. The classification methodology shall start by including product levels followed by product types, sub-types, sub-sub-types and concluding at the brand level.
For this particular analysis the Marriott Hotel and Resorts will be used at the brand level to provide а better understanding of the hotel market structure. Marriott hotels are compiled in а full-service, high quality, metropolitan based location, with personalized services with several competitors. А few competitors consist of the Ritz Carlton and Hilton hotels. Marriott Hotels and Resorts seem to have а good positioning strategy but with growing economic and consumer needs there may be some room to improve. (Martin 2004 22-28)
Marketing refers to that type of communication by which the sellers attract those who receives the communication in order to sell his products or services. It is also the planning of products processes, the changes in concepts and several different types of methods in order to sale the product. This includes various types of marketing as the world technological and industrial areas are growing faster there is an increase in the changes in concepts of people takes place and these concepts changes are large and growing more with the increase in competition.
Competition is the major thing to be noticed when ever some seller is going to sale the product. These products, if without such marketing processes, sells in the market then the seller has no need to take such steps and he can easily sell the products with out using many techniques. This is all only because of completion, if competitions exist in the market. They make the sellers to use new techniques day to day, for the increase sale of the product. For these reasons many sellers use some different types of ideas in order to sale their product because of perfect competition exists in our markets. (Martin 2004 22-28)