Contemporary Policy and Practice in Hospitality Management

Contemporary policy and
practice in hospitality
management

TABLE OF CONTENTS
Introduction......................................................................................................................................1
Popularity of 3rd party booking websites.....................................................................................1
Critical analysis of use of internal IT systems to market and promote the business...................3
Critical analysis of discounting strategies...................................................................................5
Pestle analysis of ABC boutique.................................................................................................6
Critically analyse change management issues with competing with third party players.............7
Critically discuss the client groups..............................................................................................8
Conclusion.......................................................................................................................................8
REFERENCES................................................................................................................................9

Introduction
At present, in the hotel industry, 3rd party booking websites have gained so much
popularity. Different types of hotels including boutique hotels are availing the service of 3rd party
companies because of several reasons. The purpose of this research report is to evaluate the
impact of third party online hotel booking websites on the hospitality and tourism industry. It
states how hotel organizations can exploit and compete with the widespread growth of these
websites. At last the report will end in analysing some of the change management issues
associated with the services.
Popularity of 3rd party booking websites
ABC is a finest 4 star boutique hotel located in Liverpool. The boutique delivers an
exciting and vibrant guest experience to the local community. The hotel also takes the service of
3rd party booking websites such as Expedia and hotel.com. These are the bodies which assists the
customers in doing reservation for them on behalf of the hotels. Customers can compare prices of
different types of hotels on these platforms (Acton, 2012). There could be many reasons why
hotels make use of these services.
More customers – One of the best advantage derived from taking the services of these websites
is the ability to gain more customers. By taking the services the boutique can reach to more
number of customers which can increase its occupancy rates. More occupancy means more
profits for the hotel (Anheiser, 2011). It can increase the reputation of the organization in the
local community. Hence in this manner ABC will be able to reach the target customers.
Ease of use – Consumers tries to make comparisons between several hotels before taking a
particular decision. The busy consumer is expected to pull up comparable hotels in one browser
window despite of searching six different hotel brands. Third party sites facilitates the ease of
price comparison for them. It will encourage loyalty in the customers who are looking for ease of
reservation process (Cazcarro, Hoekstra and Chóliz, 2014).
Price – Another reason why boutiques approach to third party services is the price. Consumers
usually get low prices on these websites. The prices are often less expensive as compared to the
listed price on the hotel website. However it is not a profit making situation for the company but
at least they are getting customers for the business.
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Promotion – Through the third party channels, these boutiques get the chance to promote their
services among the masses. The customers can see each and every information about the
boutique on the websites (Falk, 2011). They promote the name and services of the company and
it came into notice for the customers.
Quick payment – Online booking systems requires customers to make prepayment for the
activities and rentals. In this way company can put the money into its pockets quickly and there
is no need to make a request a deposit or wait for payment on the day of the transaction.
Advantages for the consumers
There could be different reasons behind the popularity of third party websites among the
customers. These can be discussed as follows:
Price - The first and the most obvious benefit is the price. The prices placed on the sites are
comparatively less expensive than the listed price on hotel websites. It is evident that price is the
biggest influencing factor for every customer (Fons, Fierro and y Patiño, 2011). They will
definitely drive towards hotels which are offering them better prices. They can also easily
compare the prices between different options and then take a sound decision
A faster booking process – These platforms also offer a faster booking process. It offers ease and
comfort to the customers. They can easily book their accommodation. The process becomes even
faster in case if the individual is a repeat customers and the website is already having all the
details about them.
Infrastructure – The infrastructure behind sites like Expedia, hotel.com etc, is rock solid. It
means booking and payment process can be seen very reliable (Future trends in the tourism
industry. 2012). These things attracts the customers and make them go towards adopting the
services.
Range of options – Another benefit derived by the customers is the availability of wide range of
products and services. On these websites, they can do various types of comparison on the basis
of price, reviews, facilities, food etc. It helps in making their decision making process more
sound and effective.
Easy availability and accessibility – The third party website services are opened for 24 hours a
day (Blanke and Chiesa, 2013). Customers can access at any point of time and it is very useful in
case of emergencies. They do not have to wait to book a tour or boutique.
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