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HOS302A: Resort and Spa Management | Assignment

   

Added on  2020-03-04

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RESORT AND SPA MANAGEMENT 1RESORT AND SPA MANAGEMENT(Name)(Course)(Tutor)(University)(Date)

RESORT AND SPA MANAGEMENT 2 The need and quest for establishing spas and resorts as part of leisure industry have been on the rise in the 21st century. It is evident that there is a boom in the spa industry over the past decade with an increase in the revenues amounting to more than $40 billion. According to the recent reports from the International spa association, it has been said that there are more than 150million spa goers globally. The large size of the market makes it one of the most important leisure segments. Ironically, the spa industry lacks a market leader (Yu, 2016). The appreciation of spa industry due to the wellness and healing by the consumers has made investors develop an interest in the sector making the industry grow by double digits yearly for the past ten years. It is of importance to state that spa industry provides comfort for many coupled with natural sceneriessuch as beaches and parks. Over the past few decades, the hotel and spa industry had witnessed and evidenced tough and challenging times. The challenges are diverse due to the complexities posed by the global markets (Yu, 2016). In the below discussion, some of the challenges that affect the hotel and spa industry are highlighted. Also, the content states how the problems affect consumers.Challenges facing spa and resort industryGlobal financial crisisThe financial crisis that has been witnessed globally is something that has crippled the hotel and spa industry. The declining bargaining power by the consumers as a result of continues inflation makes the prices of goods and services expensive (Asiatech, 2011). The amount of disposable income has reduced something that has, made consumers conscious of their buying and spendinghabits. As a result of a decline in the disposable income among consumers, they have forgone luxuries such as holidays due to the unforeseeable future demands and the unpredictability of

RESORT AND SPA MANAGEMENT 3events. For those that are new in the market and industry of hospitality, they have been forced to close their premises due to the increase in the operating costs as little revenue trickle in yet the running costs due to many employees continue to be a nightmare for many(Asiatech, 2011). It has been witnessed that many companies have lost a lot of money and others are caught up in massive debts in trying to cope with financial crisis. Some spas and hotels are even offering theirrooms at a low price than expected. In fact, the prices are ridiculous so to speak of, 80% of the deal something worrying to the business owners. On the other hand, it is a relief for the consumers as a result of the reduced prices and great offers and deals. For resorts that have operations and business units in other countries benefit the most. It happens that different countries have varying economic phases. In the case that one country is experiencing recession and the other country is experiencing boom then it means that a spa will benefit if it has its operations in a country having a boom. It is through globalization that firms can diversify and mitigate risks. Also, if a resort has several branches in other places, then in the case that some of the units are making continuous losses, then it would be substantial for the parent spa to close the units that are making permanent losses.Competition Before the onset of the financial crisis globally, the hotel industry was experiencing a boom. It was evident that hotels were being opened on a weekly basis across the globe as compared to the past 50 years. With the recent competition for a market domination in a small market has made the industry a risky affair (Brey, 2010). Some reports have indicated the presence of deals that are staggering in particular days in various hotel booking sites. The deals assume various shapes and forms where clients are offered one nit free after booking two nights

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