Hospitality Industry: Challenges and Trends

This assignment examines the current state of the global hospitality industry. It delves into key challenges such as work stress, financial difficulties, and the need for effective technology integration. The role of human capital in overcoming these obstacles is explored, along with emerging trends shaping the future of the industry.

RUNNING HEAD: INTERNATIONAL HOSPITALITY MANAGEMENT
1
International Hospitality Management
Marriott Hotel West India Quay
Submitted by:

International Hospitality Management 2
Contents
Background of the International Hotel Industry.............................................................................3
Background of the Hotel................................................................................................................4
SWOT Analysis..............................................................................................................................4
Strengths....................................................................................................................................5
International Market leader.....................................................................................................5
Strong presence over social media and Internet....................................................................5
Innovative Technology...........................................................................................................5
Location based Advantage.....................................................................................................5
Weakness..................................................................................................................................6
Local market centric...............................................................................................................6
Competition............................................................................................................................6
High standard.........................................................................................................................6
Opportunities..............................................................................................................................6
Growth opportunities in emerging market..............................................................................6
Implementation of technology based services.......................................................................6
Environment friendly strategy.................................................................................................7
Threat.........................................................................................................................................7
Entry of international hotel brands..........................................................................................7
Political and Economic unsteadiness.....................................................................................7
High fluctuation Rate..............................................................................................................7
Background of the Global Hotel and Tourism Industry in the emerging market............................7
India as an Emerging Market for Marriot West India Quay............................................................8
PEST Analysis...............................................................................................................................8

International Hospitality Management 3
Political Environment..................................................................................................................8
Economic Environment..............................................................................................................9
Social.........................................................................................................................................9
Technological.............................................................................................................................9
Analysis of SWOT and PEST........................................................................................................9
Porter’s generic strategies...........................................................................................................10
Cost leadership strategy..........................................................................................................10
Differentiation strategy.............................................................................................................10
Ansoff Matrix................................................................................................................................10
Product development...............................................................................................................10
Market Penetration...................................................................................................................11
Market development................................................................................................................11
Nykiel’s fourteen growth options..................................................................................................11
Justification of strategy................................................................................................................13
Practical purpose of policy – 5 and 10 years ahead....................................................................14
Conclusion...................................................................................................................................14
References..................................................................................................................................14
Background of the International Hotel Industry
Tourism industry plays an important role in contributing towards the global economy.
The basic function of hospitality and tourism industry depends upon the customer
relationship and guests who works in coordination with each other. The international
hotel industry is expected to grow at a fast pace in coming years. The industry is
developing at a fast pace creating opportunities not only in the local market but at
international market as well. The hospitality market is important from the point of view

International Hospitality Management 4
of Employment opportunities, growth and development. The global hotel industry
revenue in 2016 was predicted as $550 billion US dollars. The total amount of revenue
earned by the industry in the year 2011 was worth $457 billion US dollars. This
represents an increase in the revenue of almost $100 billion US dollars. There are
many countries emerging out to be beneficial from the business point of view. The
number of customers is expected to increase in the coming years. This indicates that
the hotel industry will experience an immense growth in coming years creating with
widening opportunities. The hotel industry is doing explicitly well looking onto the
existing market state of affairs. This is effective in dealing with the existing market
situation and to provide with diversified opportunities in the market (Andrew, Schmidgall
and Damitio, 2007). With the changing business trends in the international market, big
hotel chains are moving to Asian countries due to diverse business. In such a scenario
it is relevant to manage the opportunities in foreign nation. The change in lifestyle and
increasing business opportunities has accompanied in growth and development of this
sector. In a decade this industry has witnessed tremendous changes. It is only possible
because of the business activities and responsibilities available in this sector for the
people. This industry is been providing with employment opportunity. The advancement
toward Asian Countries is improving the overall scope hence helping in gaining market
competencies.
Background of the Hotel
The London Marriott Hotel, West India Quay is a magnificent 5-star hotel in London,
England. The hotel is located at 22 Hertsmere Road, Canary Wharf supervising the
West India Quay Marina. The hotel is operated by the Marriott Hotels group,
furthermore it has 301 rooms. The property is owned by the billionaire property
developer John Christodoulou. The hotel is giving an enthralling experience to the
customers due to its primary location in the heart of Canary Wharf. The rooms are
designed to give a perfect setting to the business travellers and leisure activities. The
extravagance hotel provides all the amenities, like large room, mini-bar, flat screen TV
and floor- to-ceiling windows. Interestingly there is a direct view to the London
Dockland. The hotel is providing with various amenities like a fitness centre for the

International Hospitality Management 5
guests and n supplementary amenities like: business centre, multipurpose event
spaces. The location is centrally located from the famous places like Olympic Park and
O2 Arena that makes it easily accessible (Overview, 2017).
SWOT Analysis
It is a technique that focuses on the internal and external factors related to the business
organization. This tool helps in analysing the Strength, Weakness, opportunity and
Threats of an organization. These factors are important for analysing the success and
growth factors.
Strengths
International Market leader
The hotel chain is the largest hotel group across world. The hotel is pioneer of change
and management and sharing a value of 5 percent in the market presence. This gives
them an opportunity to expand the business across the world through its dynamic
market presence. The brand does understand the effective way to meet the end results
(Boella and Goss-Turner, 2013).
Strong presence over social media and Internet
The hotel group is largely present over the internet and social media website. It is an
important part of the company marketing strategy. The official website of the company
guarantees better options to the customers. Online booking and discounts are provided
by the website in order to attract customers (Brotherton, 2012).
Innovative Technology
The hotel is using innovative technology in managing day-to-day functions. This allows
business in gaining competencies in current scenario. They are using innovative
technology in meeting the organizational targets. This motivates the guest in different
manner while adopting innovative functions (Buhalis and Crotts, 2013).

International Hospitality Management 6
Location based Advantage
The hotel is located at a favourable place that is easily accessible. The central location
of the hotel helps guest in reaching out to the other places. The hotel is currently
expanding its activities by accommodating new functional operations. This helps a
business in improving the guest experience in distinct way (Holcomb, Upchurch and
Okumus, 2007).
Weakness
Local market centric
The hotel is presently focused on the UK market. The global reach is restricted and to
the UK market. There is a need to expand the business in order to gain worldwide
recognition.
Competition
The rate of competition in the UK market is very high. There are various local and
international hotel chains. They are posing competition to the hotel regardless of its
brand image. The economic brand present in the market is favoured by the foreign
tourists.
High standard
The cost of hotel rooms is very high. These rooms are difficult to be affording for people
of a lower income group. At present they are only targeting on higher income group. In
contrast there are other hoteliers providing with similar services at a lower price.
Opportunities
Growth opportunities in emerging market
The hotel chain can plan to expand its business by deriving better expansion plans.
Marriot can plan to expand its business in the global market that will in return help in
gaining market competencies. It can expand its business at the place where they do
not own any hotel.

International Hospitality Management 7
Implementation of technology based services
The advancement of technology in the recent scenario has helped in managing the
organizational competitiveness. By implementing a concrete innovative strategy, it will
be easy for the hotel chain to gain competency. By offering an effective technology, they
can gain maximum customer base.
Environment friendly strategy
There is a necessity to focus on environment friendly strategy in order to meet the
climatic issues. This will circulate a good message in the surrounding. In this way they
can attract more customers. The number of guests will gradually increase and the
overall operational cost will decrease. Through these market opportunities, they can
create better opportunities for the brand.
Threat
Entry of international hotel brands
The entry of international brand in the UK market is creating threat to the company. The
lower cost international hotels are posing strict competition affecting its market position
(Jin-zhao and Jing, 2009).
Political and Economic unsteadiness
The downturn in the economy and the Brexit referendum has a direct impact on the
revenue. The change in the economy pattern has largely affected the business revenue.
This has affected the business in lest one year. The government policies play a vital role
in influencing the growth mechanism. For the reason, the organization needs to be
proactive in decision making process.
High fluctuation Rate
The rate of fluctuation in this industry is very high followed by intense competition. This
is affecting the pricing policies of the hotel. This will indirectly affect the revenue of the
hotel (Law, Leung, Lo, Leung and Fong, 2015).

International Hospitality Management 8
Background of the Global Hotel and Tourism Industry in the emerging market
The international hotel industry is facing challenges in the recent time due to the social,
political and economic changes. In the meantime the hotel industry has come across
different barriers in the industry. The last decade has seen a tremendous growth in the
hotel industry. The changes in hotel industry have created wide opportunities. The
concept of tourism has developed over the years creating significant opportunities in the
market. The growth of international hotel group like Hyatt, Radisson, and Marriot has
incorporated significant changes in the market. The changes in the hospitality industry
have created changes in the international market. Among all the facilities the
organization is able to gain competencies. Indian market has ample of opportunities to
manage the function. The purpose of the market opportunities helps in gaining market
consistent (Mok, Sparks, and Kadampully, 2013).
India as an Emerging Market for Marriot West India Quay
In order to expand the business globally, Marriot can look For Opportunity in Indian
market. Asian market has ample of business opportunity in terms of growing business
opportunities. This sector has a fastest growing sector with long-term growth
opportunities. Indian market is a fastest growing economy. The exotic and diversified
climatic condition has created better opportunities. The Indian government is making
ample of efforts helping in creating a better opportunities for the international
companies. The political and economic policies are favourable instigating tourism
sector. These favourable conditions are important in gaining market competency.
PEST Analysis
This tool is used to analyse the external factors like political, economic, and social and
technology factors. These factors are important to manage the business. This will allow
in analysing the business opportunities in India. In order to analyse the business
opportunities in India, it is evident to do the necessary market investigation.

International Hospitality Management 9
Political Environment
The political environment in India is favourable in terms of the FDI policies. These
factors are important for Marriot to make possible intervention. The country has strict
rules and regulation related to political stability in the country. These types of factors
are important for meeting the targets. The purpose of the business function is to
manage the macro environment factors. The easy licensing policies allow the
international business organization (Paryani, Masoudi and Cudney, 2010).
Economic Environment
The economic policies of the country play an important place in meeting the business
goals. The economy of the country is growing at a fast pace creating lot of opportunities
for the international business organization. Though there are certain factors like
Unemployment, a high inflation rate. But there are ample of growth opportunities in the
country. India has the second largest population in the world. With such an effective
market situation the company can gain effective market capabilities (Pizam and Shani,
2009).
Social
India is dominated by the middle class population. In the recent time, the growth of
upper middle class has created a scope for the international brands to penetrate in
market. There are diversified social trends with a changing lifestyle in Indian culture.
This will create better opportunities for the foreign company (O’Neill and Davis, 2011).
Technological
From technology point of view, the country is performing extremely well and creating a
wider scope for the international companies. The company can make innovative
engagement through implementation of effective policies. In India there are majority of
business opportunities helping in gaining innovative capacity. There are advanced
market capacities that will allow in gaining effective market growth and capacity. In this
way it is possible for the business to gain competency in the era of growth and
development (Nyheim and Connolly, 2011).

International Hospitality Management 10
Analysis of SWOT and PEST
The above section analyse the advancement of the company in relation with the
external and internal environmental factors. This help in allaying the strengths,
weakness, opportunities and threats. In order to gain market competencies it is
important for a business enterprise to gain the effectiveness. By analysing the market
opportunities it is possible to understand the diversified opportunities in the market. This
gives them an opportunity to expand the business across the world through its dynamic
market presence. The brand does understand the effective way to meet the end results.
From the Analysis it is easy to understand the growth opportunities and various
opportunities in a well-defined way. In this way the company can perform well in the
foreign land (Tranter, 2009).
Strategy of the hotel is important to understand he growth opportunities while entering
into the international market.
Porter’s generic strategies
The porter generic strategy helps in gaining market effectiveness and allow in
developing cost leadership and differentiation strategy. This is an effective way to deal
with the competency (Walker and Miller, 2009).
Cost leadership strategy
India is a huge market with lot many opportunities. With cost leadership in the market
helps in promoting growth, The purpose of the company is to provide with a better
opportunities as compared to the other Local and international hotel. In India, the hotel
will provide with effective services in order to motivate the customers.
Differentiation strategy
Apart from the Cost leadership, the organization will gain the differentiation strategy. In
India, it is suggested to incorporate effective differentiation strategies. This will help in
meeting the target it is possible to achieve the market segment. Marriot will provide with
high quality hospitality arrangement by attracting customers in an effective way ((Smith
and Puczkó, 2014). Marriot can plan to expand its business in the global market that will

International Hospitality Management 11
in return help in gaining market competencies. It can expand its business at the place
where they do not own any hotel.
Ansoff Matrix
Product development
The growth strategy related to a product depends upon the effective services and
capacity. This will help the Indian hotel to compete in an effective way. Business
expansion is only possible through better and effective market opportunities. They can
add other tourism activity likes fun, culture, game and after sales services. This will
allow the business organization in dealing with the upcoming market challenges (Nieves
& Quintana, 2016).
Market Penetration
The hotel group is known for an effective service. Market penetration is important for a
business enterprise in order to gain a strategic position. This strategy will help in gaining
effective growth. Market penetration will help to gain competencies in the Indian
market. This is an effective way through which an organization can gain better policies
(Solberg and Durrieu, 2008).
Market development
The Indian market has developed largely creating vast opportunities. It is one of the
reasons to expand in the Indian market. The development of better market development
opportunities will allow in expanding the customer base. In this way, the hotel can take a
competitive advantage in the Indian market. This will circulate a good message in the
surrounding. In this way they can attract more customers. The number of guests will
gradually increase and the overall operational cost will decrease
Nykiel’s fourteen growth options
There are 14 strategies under the Nykiel’s strategy to understand the growth
opportunities available in the market.

International Hospitality Management 12
1. Horizontal expansion
The Marriott West India has to make efforts in order to expand their service line from
one service to another. This will allow the business organization to develop the avenues
in the coming years (Chand and Katou, 2007).
2. Geographical expansion
Indian market is vast in comparison to the other Asian countries. In terms of expansion,
it will gain competitive advantage.
3. Product Hybridization
They have to increase the ongoing facilities in the hotel and hospitality services for
inflowing in budding market (Jauhari, 2012).
4. Specialization-Specialist
The organization is known for giving services to the high-end customers. There is a
necessity to think from the point of view of pricing policies while going to new market
(Kang, Stein, Heo and Lee, 2012.).
5. Product Tiering
They have o handle the process of people growth, economic and demographic changes
and an increased market segment in Indian market.
6. Franchising
They will be following well-known business strategy by outsourcing the promotional
activities to the PR agency in India. This business strategy will help in aiming
competitive advantage (Sin, et al 2005).
7. Brand Collection
The brand is known for serving eminent facilities that will distinguish them from the
existing market competitors.

International Hospitality Management 13
8. Management Contracts
They will sign a contract with the management and the other agencies in order to gain
competitive advantage.
9. Product Re-Branding
The company will expand the business opportunities in terms of hospitality services of
Marriott West India Quay while entering into Indian Market (Verma, 2014).
10. Non-Franchising
The hotel will own all the services and practices in order to gain market competencies.
They are known for providing effective services to the customers directly
11. Vertical and Horizontal Integration
Marriott is a part of more than one hospitality segment in order to gain competitive
advantage. Through an effective market strategy it is possible to gain distinguished
market goals. The brand does understand the effective way to meet the end results. It is
easy to understand the growth opportunities and various opportunities in a well-defined
way (Sanjeev, Gupta and Bandyopadhyay, 2012).
12. Singleness
Marriott will expand single service policies that will help in managing the ownership and
control on management while entering into Indian market.
13. Value related Products and Services
The introduction of new service will help in fulfilling precise leaning and values amid
customers while entering into the emerging market.
14. Global Positioning

International Hospitality Management 14
All these growth strategies will help Marriott in expanding globally. With these market
tactics it is possible to motivate the guest in different manner while adopting innovative
functions (Singh and Arora, 2014).
Justification of strategy
Marriot has multiple reasons to make advancement to the Indian market. They are
adopting product differentiation strategy for communication and cost risks. This sector
has a fastest growing sector with long-term growth opportunities. Indian market is a
fastest growing economy. The exotic and diversified climatic condition has created
better opportunities. The Indian government is making ample of efforts helping in
creating a better opportunities for the international companies. In order to meet the
expectation of the market it is important to grow in a manner that is able to deliver good
result (Manhas and Tukamushaba, 2015). By applying the strategies it is possible to
gain competitive market advantage in Indian market. The goal set by the company can
easily be met through a distinguished market objectives hence helping in improving
scope. The implicating of market strategy is important in gaining competitive advantage
in the market.
Practical purpose of policy – 5 and 10 years ahead
There is excessive competition in this industry. Under such an immense competition it
is important to develop the growth strategy for the coming years. There are so many
hotels in the industry similar to Marriot. They have a similar strategy to grow in the
market. For business expansion, it is vital to develop better relationships with the
stakeholders. On a long run it is important to focus on developing stakeholder interest.
Marriott will focus on this for the next 5 years to be able to increase its customer base in
India. For the next 10 years it should focus on improving revenue. This plan will help
them to achieve strategic growth in coming years.
Conclusion
To conclude, the report focuses on the expansion strategy of Marriott West India Hotel.
It analyse the opportunities in developing the business in Indian market. This will assist

International Hospitality Management 15
in gaining market competitiveness. Indian market is growing at a fast speed creating
ample of opportunities for the international hotels. The economy of the country is
growing at a fast pace creating lot of opportunities for the international business
organization. Though there are certain factors like Unemployment, a high inflation rate.
But there are ample of growth opportunities in the country.
References
Andrew, W.P., Schmidgall, R.S. and Damitio, J.W., 2007. Financial management for the
hospitality industry. Upper Saddle River, NJ: Pearson Prentice Hall.
Boella, M. and Goss-Turner, S., 2013. Human resource management in the hospitality
industry: A guide to best practice. Routledge.
Brotherton, B. ed., 2012. International Hospitality Industry. Routledge.
Buhalis, D. and Crotts, J., 2013. Global alliances in tourism and hospitality
management. Routledge.
Chand, M. and Katou, A.A., 2007. The impact of HRM practices on organisational
performance in the Indian hotel industry. Employee Relations, 29(6), pp.576-594.
Holcomb, J.L., Upchurch, R.S. and Okumus, F., 2007. Corporate social responsibility:
what are top hotel companies reporting?. International journal of contemporary
hospitality management, 19(6), pp.461-475.

International Hospitality Management 16
Jauhari, V., 2012. Strategic growth challenges for the Indian hotel industry. Worldwide
Hospitality and Tourism Themes, 4(2), pp.118-130.
Jin-zhao, W. and Jing, W.A.N.G., 2009. Issues, challenges, and trends, that facing
hospitality industry. Management Science and Engineering, 3(4), p.53.
Kang, K.H., Stein, L., Heo, C.Y. and Lee, S., 2012. Consumers’ willingness to pay for
green initiatives of the hotel industry. International Journal of Hospitality
Management, 31(2), pp.564-572.
Law, R., Leung, R., Lo, A., Leung, D. and Fong, L.H.N., 2015. Distribution channel in
hospitality and tourism: Revisiting disintermediation from the perspectives of hotels and
travel agencies. International Journal of Contemporary Hospitality Management, 27(3),
pp.431-452.
Manhas, P.S. and Tukamushaba, E.K., 2015. Understanding service experience and its
impact on brand image in hospitality sector. International Journal of Hospitality
Management, 45, pp.77-87.
Mok, C., Sparks, B. and Kadampully, J., 2013. Service quality management in
hospitality, tourism, and leisure. Routledge.
Nieves, J., & Quintana, A, 2016, Human resource practices and innovation in the hotel
industry: The mediating role of human capital. Tourism and Hospitality Research.
Nyheim, P. and Connolly, D., 2011. Technology strategies for the hospitality industry.
Prentice Hall Press.
O’Neill, J.W. and Davis, K., 2011. Work stress and well-being in the hotel
industry. International journal of hospitality management, 30(2), pp.385-390.
Overview,2017. Online. Available at: http://www.marriott.com/hotels/travel/loncw-
london-marriott-hotel-west-india-quay/ Acceseed on:21 September 2017
Paryani, K., Masoudi, A. and Cudney, E.A., 2010. QFD application in the hospitality
industry: A hotel case study. The Quality Management Journal, 17(1), p.7.

International Hospitality Management 17
Pizam, A. and Shani, A., 2009. The nature of the hospitality industry: present and future
managers' perspectives. Anatolia, 20(1), pp.134-150.
Sanjeev, G.M., Gupta, K. and Bandyopadhyay, R., 2012. Financial challenges in the
Indian hospitality industry. Worldwide Hospitality and Tourism Themes, 4(2), pp.163-
173.
Sin, L.Y., Alan, C.B., Heung, V.C. and Yim, F.H., 2005. An analysis of the relationship
between market orientation and business performance in the hotel
industry. International Journal of Hospitality Management, 24(4), pp.555-577.
Singh, K. and Arora, R., 2014. The changing face of the Indian hospitality
industry. International Journal of Advanced Research in Management and Social
Sciences, 3(8), pp.26-36.
Smith, M. and Puczkó, L., 2014. Health, tourism and hospitality: Spas, wellness and
medical travel. Routledge.
Solberg, C.A., Durrieu, F., 2008, “Strategy development in international markets: a two
tier approach”, International Marketing Review, Vol. 25, No. 5.
Tranter, K.A., 2009. An introduction to revenue management for the hospitality industry:
Principles and practices for the real world. Pearson Education India.
Verma, A.S., 2014. Sustainable Supply Chain Management Practices: Selective Case
Studies from Indian Hospitality Industry. International Management Review, 10(2), p.13.
Walker, J.R. and Miller, J.E., 2009. Supervision in the hospitality industry: Leading
human resources. John Wiley and Sons.