Hotel Industry Trends and Challenges

The assignment delves into various aspects of the modern hotel industry. It examines recent trends such as sustainability, technological advancements, and changing customer expectations. Furthermore, it explores challenges faced by hotels, including labor shortages, economic fluctuations, and increasing competition. The analysis draws upon a range of academic sources to provide insights into the current state and future prospects of the global hospitality sector.

Running head: HOSPITALITY- MARKETING IN HOSPITALITY
Hospitality- Marketing in Hospitality
Name of the Student:
Name of the University:
Author Note:

2HOSPITALITY- MARKETING IN HOSPITALITY
Table of Contents
Introduction......................................................................................................................................4
Task 1...............................................................................................................................................5
1.1....................................................................................................................................................5
Discussing the concept for hospitality industry in the United Kingdom.........................................5
1.2....................................................................................................................................................6
Assessing the concept of the marketing environment of hospitality industry in the United
Kingdom..........................................................................................................................................6
1.3....................................................................................................................................................8
Evaluating the significance of consumer markets in the hospitality industry in the United
Kingdom..........................................................................................................................................8
1.4 and 2.1......................................................................................................................................10
Discuss the rationale for developing different market segments...................................................10
2.2..................................................................................................................................................11
Evaluating the significance of mechanism of the marketing mix to the hospitality industry in the
United Kingdom............................................................................................................................11
4.3..................................................................................................................................................12
Evaluating pricing strategies and policies in relation to hospitality industry in the United
Kingdom........................................................................................................................................12
4.4..................................................................................................................................................13

3HOSPITALITY- MARKETING IN HOSPITALITY
Evaluating the performance of the marketing plan for an suitable product or service..................13
Task C............................................................................................................................................15
Using the opportunity given by the trade show as it demonstrates the following knowledge......15
Significance of market research to hospitality industry in the United Kingdom..........................15
Undertaking market research for an suitable product or service...................................................17
Conclusion.....................................................................................................................................17
Reference List................................................................................................................................19

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Introduction
This study deals with analyzing the hospitality industry in the United Kingdom.
Marketing plays a significant role that help in understanding the accomplishment level of any
service industry that includes hotels. It is the responsibility of the managers to conduct the
market research as well as analyze ways for developing a planned advertising approach for
business enterprise. The main attribute of hospitality industry is to analyze the needs of
customers and this possible by knowing the segments of market as well as developing the best
marketing tool for increasing the market share by reaching more number of clientele. The study
is about Marriott west India quay based in United Kingdom that aims at providing exceptional
hotel experience to the customer base (Quay, L. 2017).
In present dynamic competitive environment, it becomes essential for any of the
hospitality business enterprise to adapt with the changes depending upon the preferences of the
consumers. The strategic control becomes essential as it ensure that the marketing strategy,
system as it is designed for adapting to the changing external and internal environment. In
addition, the marketing mix elements are used for analyzing the strategy for hotels. Therefore,
creative scheduling as well as effectual advertisements positively guides hotels for attracting
potential customers as well as retaining the old ones.
It is the responsibility of the marketer to understand all the internal as well as external
business environmental factors at the time of designing and implementing the strategies. The 4Ps
of marketing (Price, Product, Promotion and Place) are governed mainly by the external factors
such as social, environmental, technological, economical and legal factors. It is difficult to

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control the external changes and for this reason marketer need to respond positively to the
changing situation by bringing changes within the 4Ps.
Task 1
1.1
Discussing the concept for hospitality industry in the United Kingdom
The hospitality business in the United Kingdom is largely comprised of hotels, pubs as
well as leisure and restaurants and the GDP is around 4% in that country in this industry (Wu and
Ko 2013). It is noted the fact that Marketing in the hotel business in the UK plays important role
as it guide the marketers in meeting the needs as well as expectations of customers by
understanding the wants and demand. There are wide range of products and services that
becomes a part of hotel industry in form of restaurant, accommodation as well as leisure and
dining. There are several customer retention techniques that should be used for increasing the
effectiveness of services. For instance, customer retention process needs to be taken into
consideration as one part of marketing efforts by Marriott west India quay. The five star hotels
(Marriott west India quay) in London have used local advertising conception by incorporating
local voice into entire plans as well as objective that need to be attained by the firms (Vlachos
and Bogdanovic 2013).

6HOSPITALITY- MARKETING IN HOSPITALITY
1.2
Assessing the concept of the marketing environment of hospitality industry in the United
Kingdom
The marketing environment consist of macro as well as micro environments that need to
be considered by the marketers where they study about internal and external environment for
understanding the overall market that they desire to sale their products or services (Riley 2014).
Political factors- The reform actually had created a much better trade setting for the hotel
business expansion. It is noted that the political surroundings which are strongly affected
hospitality industry where the environment is made up of government agencies as well as
regulation and pressure group such as governmental intervention influenced and restrict the
behavior of different business enterprise and humanity as a whole (Parutis 2014).
Regulatory factors- Currently, there are several laws as well as regulations and code that need
to be considered before becoming hotelier. It is because of the fact that there is a minefield of
bureaucracy that needs to be understood and these ranges from licensing rules to food hygiene as
well as fire regulations.
Economic factors- Economical environment mostly include elements such as wage inflation,
price inflation, exchange rates as well as gross domestic per capita. Due to global recession, the
wages of labor might not be augmented as it widely depends on the decision taken by the
manager who can either decide to cut the wages or increase the wages (Nieves and Segarra-
Ciprés 2015). Due to recession, there is the decline in economy and price of commodity rises and
this influences the decision customer make whether to travel or not. The most significant
efficient constituent is the customer purchasing power as well as spending patterns where the

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Gross Domestic Product shows the basics due to total purchasing power that hugely depend on
current income, price and savings where the hotel executive need to be aware of main financial
drift in income as well as altering customer spending patterns (Mok, Sparks and Kadampully
2013).
SWOT analysis
The SWOT analysis had been used in the study as it brings into account internal
environmental factors of hospitality industry in UK. PEST analysis, on the other hand is
explained above by illustrating on the external environmental factors. Both PEST and SWOT
analysis are treated as one of the vital tools that can be used for assessing the marketing
environment of hospitality industry in UK.
Strengths Weakness
United Kingdom has become one of the most
attractive destination for tourists for past 20
years because of rapid economic growth as
they use Open Door Policy (Lockyer 2013)
The hotel industry in the United Kingdom can
be treated as strong and complicated one as
they offer wide range of options to appeal
different customers that include internationally
recognized brands and smaller individual
operators (Li, Ye and Law 2013)
Recession
Lack of a competent activity who can properly
observe the hotel administration companies.
Increased occupancy rates (Lloyd, Warhurst
and Dutton 2013)
Opportunities Threats

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The hotel industry in the UK will have great
prospect to those who actually are planning to
increase their trade in this country
Development of global online reservation
system
Few leisure facilities like restaurants and bars
will be providing extent for extra sales and
opportunity for creating possible sales from
local area to the hotel
Threat of terrorist activities and this could
eventually discourage overseas traveler who
are visiting UK for leisure or holiday purpose
Intense competition
1.3
Evaluating the significance of consumer markets in the hospitality industry in the United
Kingdom
Consumers play an important part in the hotel industry where they are the main key
elements for determining the accomplishment of overall business. Here, the customer society of
hotel business focuses mainly on the sociological as well as emotional impacts after looking at
the buying and spending patterns of customers (Li, Ye and Law 2013). Furthermore, consumer
buyer manners in hotel industry in UK is one of the functions of personal influences as well as
external environment forces that are highlighted by generic model as it imitate the behavioral
patterns of hotel customers as it is the likeness of various types of stimuli.

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“Marketing and other Stimuli”
“Marketing”
“Product”
“Price”
“Promotion”
“Place”
“Buyer’s Black box”
Features of Buyer
Decision-making process of buyer
“Buyer Response”
“Brand”
Relationship with company
Buying attitudes
Preferences
Purchase behavior
Figure: Black box model for consumer behavior
(Source: Legrand, Sloan and Chen 2016)
It is important to trade off between consumer as well as competitor orientation as it helps
in achieving the desired result. Value chain concept is among the consumer to get good value for
price they are paying for. They need good value chain as it help in delivering highest worth at
rational price by providing facilities such as TV, internet connectively and complimentary
breakfast (Lee, Kim and Kim 2014).

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1.4 and 2.1
Discuss the underlying principle for developing different market segments
It is important to understand the fact that market segmentation is considered as one of the
process that differentiates major segments or the company into smaller segments that have
common needs or common features (Kosová, Lafontaine and Perrigot 2013). In addition, the
product range and varieties of Marriott west India quay takes into account various amenities,
facilities, benefits, rewards, online services and product that belong under the Marriot brand.
Here, the cost of one night per individual relies mainly on the location or area of hotel. In case of
Marriott west India quay, this five-star hotel is much expensive. Marriott west India quay spends
huge money on promotional activities such as online advertisements and conducting social
events.
Market segmentation allows Marriott west India quay for identifying various groups into
a market as well the return generated help the hotel for developing the marketing mix for
meeting the needs of the different types of clientele (Kandampully, Zhang and Bilgihan 2015).
Furthermore, segmentation of market actually brings an augmentation to product differentiation
that is used for coping up with the wants as well as needs of various customer groups. As far as
differentiation is concerned, market segmentation help hotels for changing the costs of goods
based on different time frame whether the demand is at peak level or not. Therefore, it helps the
hotel for concentrating mainly on the specific market at the time of deciding to continue with the
plan in the upcoming financial year.

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“Product” “Price” “Place” “Promotion”
Process Physical Evidence People
2.2
Evaluating the significance of mechanism of the marketing mix to the hospitality industry
in the United Kingdom
Figure: Marketing Mix Elements
(Source: Jones et al. 2016)
It is significant to understand the fact that products as well as services of hotel industry in
UK are highly fragile as well as indivisible by nature. It is significant for the marketers to give
proper deliberation to produce an exceptional grouping of marketing mix that is pertinent for
meeting the demands. At the time of formulating the product blend, Marriott west India quay
need to pay attention to the unique selling points as offered by products as well as services (Hsu
et al. 2014). Marriott west India quay need to expand approaches by a controlled testing
advertising process as well as developing concept and brands

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Place refers to how service actually get customers that need to be understood through
usage of efficient distribution channel for delivering the services at right time and right for
guarantee consumer expediency as well as service availability (Hoque 2013).
Marriott west India quay have used online services as there is sales and distribution
channels used for delivering better quality to customers as well as guests through improved
logistics administration. Furthermore, Technology plays an important role in making the
reflective transformation especially in hospitality allotment. Addition to that, innovative models
need to be developed in form of internet based channel as well as franchising as it guides for
online-based reservation network at the time of avoiding the intermediary’s development. Here is
even positive existence of principled issues with respect to use of power especially by Channel
Leader (Gannon, Roper and Doherty 2015). Therefore, it is essential element that needs to be
developed by hotel executive so that the leaders are not forcing the less powerful channel
members for meeting agreed standard in behavioral actions.
4.3
Evaluating pricing strategies and policies in relation to hospitality industry in the United
Kingdom
Based on the pricing theory, there are three attributes that need to be taken into account
such as cost as well as competition and demand. These elements help in setting the financial
objectives that need to be achieved by Marriott west India quay for getting a greater market
shares in relation to competitive firms (FitzPatrick et al. 2013). Marriott west India quay has
used the pricing policies of demand leaning as well as competitive pricing approach. Marriott

13HOSPITALITY- MARKETING IN HOSPITALITY
west India quay is a Five-star hotel that kept their prices higher and makes the prices adjusted
accordingly.
Pricing policies of Marriott west India quay are mainly based on demand as well as
supply situations that make hotel increase or decrease price. For instance, at the time of London
Olympics 2012, most of the hotels in the UK sustained to slash their prices for filling the rooms
on account of domestic buyers. Furthermore, viable situation forces Marriott west India quay for
adopting competitive pricing strategies for tuning with the demand and supply standard and
regulations. There are seasonal fluctuations as well as increased level of competition as it helps
in changing and undertaking activities at the time of decisions, be it strategically and tactically
(Filimonau, Dickinson and Robbins 2014). Therefore, most of the hotels in the UK tend to
follow ethical norms at the time of charging consumers as it plays important role especially in
the brand loyalty aspects.
4.4
Evaluating the performance of the marketing plan for an suitable product or service
It is significant for the marketers to modify the products as well as services by assessing
the present advertising style (Solnet, Kralj and Baum 2015). This particular notion has been used
by most of the hotels in United Kingdom. There are several reasons for expansion in case of
renowned hotels like Marriott West India quay.
As per Porter’s Five Forces Model of hotel industry in the United Kingdom, the
knowledgeable customers can force down pricing structure where the suppliers may restrict
profits by charging high prices. New entrants in this industry may come armed up with capability

14HOSPITALITY- MARKETING IN HOSPITALITY
as well as hunger for market share. Threat of substitutes had to be taken into account that can be
offered to lure consumer’s away (Šerić, Gil-Saura and Ruiz-Molina 2014).

15HOSPITALITY- MARKETING IN HOSPITALITY
Recognize and originate the issue
Decide the research design
Plan the sample and data collection methods
Collecting the data
Analyzing the data
Interpreting, discussing and presenting the findings
Follow-up or feedback
Task C
Using the opportunity given by the trade show as it demonstrates the following knowledge
Significance of market research to hospitality industry in the United Kingdom
Figure: Market research process

16HOSPITALITY- MARKETING IN HOSPITALITY
(Source: Boella and Goss-Turner 2013)
Proper as well as intended market research plays important role for considerate the
services that is offered by rival hotel firms (Benavides-Velasco, Quintana-García and Marchante-
Lara 2014). In addition, it acts as basis of innovation by introducing new service offerings as
well as bringing changes in the existing ones. Marketing research is carried out at Marriott west
India quay by making use of market information system as it plays important role in collecting
facts about prices and other relevant feature. In that way, these information help in analyzing the
present market demand as well as appropriate forecasting activities. Therefore, the market
research procedure here plays important role as it includes collection and data analysis while
deriving at conclusions as well as making proper evaluations (Abdul, Basri and Shaharuddin
2013).
Marriott west India quay has understood the concept as it is developed at business level
through business marketing services. Here, the main goal of Marriott west India quay is to
provide better management of various services for developing better understanding on matters
relating to market and consumers. Marketing research had been used at Marriott west India quay
as it is used as a quality tool for influencing the perception of consumers towards products as
well as services (Amin et al. 2013).
It is important to conduct market research as it help in finding out the customer responses
on matters relating to new fusion menu introduced by Marriott west India quay to lure consumers
in and across the world. It is important to select the appropriate location outlets that are spread all
over the UK. For that, it is essential to conduct primary research method as it is undertaken on
consumers on hotel by conducting interview sessions that include both open-ended

17HOSPITALITY- MARKETING IN HOSPITALITY
questionnaires and closed-ended questionnaires. This method will help in receiving the
feedbacks as it is two-way communication. On the contrary, secondary research will be
conducted by making use of internal records such as government publications newspaper articles
as well as industry journals. By that, the data collected need to be analyzed by use of pie charts
as well as bar graphs that are prepared based on answers given by the respondents. These
answers will be further evaluated for finding out whether the fusion varieties are matching with
the tastes of consumers or not (Ali and Amin 2014).
Undertaking market research for an suitable product or service
Proper marketing plan will help any business and act as a blueprint for the company by
drafting the sales strategy. This plan mainly explain about each details of what need to be done
over the next year and subject to alteration due to frequent changes in the market. Here, the study
is about Marriott west India quay and research need to be undertaken to understand the
viewpoint, tastes and preferences of consumers. The service here is the fusion new menu that
will be offered by Marriott west India quay in order to bring more customers and that will lead to
revenue generation of the 5-star hotel that is based in London. Primary research will be
conducted to understand whether consumers show interest in having fusion menu and then
analyze the outcome results (Abreu, Faggian and McCann 2014).
Conclusion
At the end of the study, it is concluded that the hospitality industry in the UK is highly
fragmented with a huge number of small scale business. This industry contributes more than
3.6% Gross Domestic Product where the UK government had provided funds to several bodies
as it promotes both national as well as international tourism as it attract more foreign investment.

18HOSPITALITY- MARKETING IN HOSPITALITY
The above analysis properly explains about how marketing takes place in hospitality industry in
UK and how it is important in recent times. The study properly discuss about assessing the
impact of marketing environment on hospitality industry in the UK. It explains about how
relevant it is to develop various market segments. Every industry has its own pricing strategies
and policies and these are quite important to understand. The study is about Marriott west India
quay that is based in United Kingdom and provides exceptional hotel experience to the potential
customers.

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