International Hospitality Management: Emerging Markets and Strategies

This document discusses the international hospitality industry, with a focus on emerging markets and strategies. It covers the background of the hotel industry, the Crowne Plaza hotel, and the concept of emerging markets. It also includes a SWOT analysis of the hotel, as well as an analysis of the food and beverage services market. Finally, it explores Porter's generic strategies for the hospitality industry.

International
Hospitality
Management

Table of Contents
Introduction: ....................................................................................................................................1
TASK 1: ..........................................................................................................................................1
TASK 2: ..........................................................................................................................................4
TASK 3: ..........................................................................................................................................7
Conclusion:......................................................................................................................................9
REFERNCES : ..............................................................................................................................11

Introduction:
The international hospitality industry is a broad categories of the services industry that
includes the hotels , motels ,food and drink services ,event planning and additional fields of the
tourism industry. It primarily involves the satisfaction of the needs of the customer from time to
time and catering the requirement of the customers. This can also address the issues relating to
the lodging, facilities and travel arrangements. the hospitality industry is break down into three
segments such as accommodation, food and drinks and tourism and travels and which also
contribute in the growth of the hospitality industry. Hotel industry is the section of the service
industry that involves the accommodation of the guests in exchange of money. under this
report, the Crowne plaza hotel will be discussion and apply the various theories and concepts
which will affects the business operations in the target markets. (Altinay, Paraskevas and Jang
2015. )
TASK 1:
Background of international hotel industry
In year 1792 first publicly held hotel developed named with City Hotel which is opened
at NYC. The initial hotel in current sense of world The Tremont House that launched at the
Boston in 1829. This is considered as quite remarkable location which set many firsts for the
sector. In addition to this the initial hotel along with the indoor plumbing as well as indoor toilets
and baths. This hotel is considered as innovator as they come up with an idea of reception as well
as free soaps which is favourite of everyone. In addition to this, another big milestone in
respective industry is first business hotel named as The Buffalo Statler in year 1908. After this
the trends of hotel get increase and radially numbers of hotels around the world get increase. In
respect of this Japan introduce concept of tiny room which include place for sleeping as well as
they provide shared bathroom facilities.
Background of the company
The Crowne plaza is a international multinational chain of hotel services, having the
headquarters in the United kingdom. It is a cuisine to business travellers, to the events meeting
and conventions markets. it is part of the intercontinental hotels and resorts and operates it
business in 100 countries at present and serving various type of customer in lieu earning money,
having more than 3700 hotels at the international levels. Originally it is branded as holiday inn
1

crowne plaza which was open in the 1983 by the Rockville Maryland which was later named as
Crowne Plaza docklands in the London.
Background of emerging markets
Emerging market is considered as economy of the developing nation which is becoming
more engaged with the global market as it grow rapidly. It is also determine as the economy
which is transitioning through the low income, often pre industrial economy in respect of modern
as well as it also include high standard of living. There are numbers of country which are
considered as emerging market nations such as Hungary, Indonesia, India, Korea, Malaysia,
Pakistan, Philippines, Qatar, Russia, South Africa, Mexico, Egypt, China, Brazil and many more.
Emerging market provide unique opportunity for investment as they offer similar section of risk
as well as rewards. There are numbers of investors which can determine the right emerging
market investment at proper time as well as there are some situation arise in which risk are not
understood effectively.
Selection of emerging market
Crowne Planze is consducting their business operations and functions in the numbers of
nations and now they are planning to expand its business at the Argentina. It is a Agrentine
Republic which is located in the southern half of the South America. It is considered as 8th largest
nation around the world as well as it is the second largest country in South America that is after
Brazil. The respective company belive as well as follow their traidition so it will be opportunity
for respective hotel that they may develop or design their hotel accordingly. This is so because
that will help them in attracting more and more customers which leads to increase in sales as
well as profitablity ratio.
SWOT analysis of the hotel:
The SWOT analyses is examine of the internal environment factors which affects the
Crowne Plaza operation activities. This analysis helps to understand the strength and weakness
of the organisation and examine the opportunities which are present in the external environment
in which company works. This analysis provides the intercontinental hotels to match their
strength with the opportunities present in the environment so that they can make best use of
available resource and earn the profits by building their strong brand image in the markets. it
also focus on exploring the opportunities and threads which are in the external environment
where hotels perform their activities. (Ryan, 2015. )
2

Strengths of the hotel :
Global presences: the Crowne Plaza has its presences at the international market places and
expanding their business to different location which helps to them to earn more profits in the
long run. It operates that the 100 countries offering different services to customer to attract them
and retain the existing customers as it is leading organisation in the hospitality industry. Its
presences at the international levels helps them to increase their market share in the target
segment and build their goodwill in the markets places.
Profitability : the Crowne plaza are able to generates the effective revenues by serving their
clients from time to time which helps them to capture the target markets places. By the end of
the 2017 year, the company was able to make profits of the $1784 which was the highest profits
in the hotel industry. The organisation are making the good revenues in the target markets by
satisfying the needs and wants of different customer form time to time.
Effective recruitment strategies: under this company are able to make effective and sound
strategies which helps them to recruit the talented employees so that they can perform their
duties in proper manners which can be done by making effective strategies so that all the
operations activities are performed in the best suitable manners. The hotel company hire good
employees which helps them to perform better in their services. (Chan, and Hsu, 2016. )
Weakness of the hotel:
The crowne plaza also have some weakness which slower their performances in the management
level and decrease the profits in the market places. Some of the weakness of the Crowne plaza
is as follows:
Weak IT security: The hotel lacks the security at their management as personal information of
the customer sometime get leaked such as credit cards details which can damage the brand image
of hotel in the market places.
Accommodation facilities: sometimes customer are looking for the luxury and comfortable
accommodation at the hotel which due to some reasons are not provided upto mark which
affects the brand name among the customer.
Change in management team: the hotel term is changing their staff which affects the
performance at the managing the different things and giving the good quality of services in the to
its customer and clients.
Opportunities :
3

Under this situation, all the opportunities which are present in the environment which can helps
the company to expand their business at the international levels and earn more profits and
revenue by satisfying the needs and wants of the customer on regular manners.
New geographical markets: the company can use this opportunities to expand their business at
different geographical location by opening new branches in the target markets so that they can
earn more profits from their activities. (Lashley, 2015)
Advance technology: the hotel company can implanted the advance technology which will helps
them to perform better in their activities like taking the booking online will help the company
and customer to work fast and use the facilities in the best possible manners.
Increased tourism : the increasing demand of the tourism will increase the demand of the
facilities which are provided by the company at the large scale and serve the large numbers of
customer and earn the profits in exchange of services.
Threats:
Competitors: there are lot of competitors which are offering the same kind of services to the
customer so it becomes difficult for the company to fight the strong competition in the markets.
they are numbers of hotels giving their best services to the clients to attach them and retain them
for longer period of time. (Gursoy,, 2019. )
extraordinary events: hotels works under the climate that keeps on changing from time to time
such as different trends in the economy also affects the business of the hotels and different
government policies which can affects the operational activities of the company at the larger
scale.
Dependencies on the intermediaries: there are lot of intermediaries parties who are involved
at the in offering the serving to the ultimate clients, such parties can be agenise that are linked
with the company to provide best services to its customers.
TASK 2:
Background to emerging market:
Food and beverage services are emerging markets in the hospitality industry as it helps in
increase in the profits of the hotels at the global markets places. With the increase in business
meeting, social events and the requirement of the food and beverages markets keep on increasing
at different location which helps the organisation to earn more profits in the target markets
4

places. It is services which can be defined as the process of preparing, and presenting and serving
the food and beverages to the customers.
Food and beverages services can be of two types which are as follows:
 On premise: under this situation, the food is delivered where it is prepared , he customer
visits the premise and avail the services to satisfies their needs and wants from time to
time. (Deery, and Jago, , 2015)
 Off promises: under this condition, the food is cooked and prepared at different location
from the place of customer premises and where the customer uses such services.
PEST analysis of the food and beverages markets;
The PEST analysis helps in identifying the external environment in which the company
operators its business activities and gets affected by such factors at large. This analysis helps the
organisation to make best use of available resource and make effective strategies which helps to
take competitive advantages in the target markets places. The PEST analysis will helps the
company to face the challenges in the appropriates manners so that they get least affected by the
negative factors.
Political factors: under this factors, all the changes are included that affects the performance of
the company such as government laws and policies which have impact on the outcomes of the
company. It include following points:
 The political stability of the country in which company operates its business
activities.
 It include the corruption levels which affects the food and beverages segment in
dealing with the laws and regulations.
 The trade barriers which can affects the company are restricted by the
government.
 A high levels of taxation which de motivate the food and beverages segment in
the hotel industry.
Economical factors: these are all those factors which are related to the changes in the inflation
rates, foreign exchange rates, interest rates and current condition of economy cycle in the Uk
markets. these factors will lead to aggregate demand and investmengt which affects the
segments in the markets places. some of the factors which affects the foods and beverages
industry mention below: Pizam, and Tasci, 2019. )
5

 The economics system of the foods and beverages are to be examine whether it is
monopoly, oligopoly in the target markets.
 The gross domestic product rates also affects hoe food and beverage segment will
grow in coming few years.
 The interest rates also will affects the decision of the investor whether to invest in
food and beverage segments, which will enhance the growth of this segment in
the target markets.
 The financial markets of the country in which food and beverages are performing
their activities also affect their profitability in the long run.
 The exchange rate of food and beverage also affects the operational activities in
the market places.
Social factors: under this situation , all those factors all included which are directly associated
with the people of the society as whole. The social culture, belief and attitudes of the customer
are examined under this condition. The impact of the social factors on the food and beverages
are evaluated under this situation . some of the social factors which have impact on food and
beverage segment are stated as below:
 The demographics of the population in terms of age and genders that have vast
impact on the product which are available in the market places.
 The class distribution also play important role in food and beverage segment as
premium product can be given to genial people.
 The food and beverages segments needs to be fully aware about the health
standards of the customer .
Technology factors: it is important for the food and beverage segment to keep up to date in
regarding the technology which helps them to improves their performances in the target markets
and become the market leaders by offering innovative product and services to its customer.
 The technology which is used in the place old which can improves the working
pf the foods and beverages helps in gaining the market shares.
 The advance technology helps in taking competitive advantage in the market
places. (Brown, Thomas, and Bosselman, 2015)
6

 The technology can reduce the labour cost of the food and beverage segment
which helps them to achieve more profits in long run.
TASK 3:
Porter’s Generic strategies: the porter has suggested the generic business strategies
which helps them to make effective strategies to gain the competitive advantages in the markets.
these strategies will helps the organisation to expand their business operational activities at
global levels and markets for the emerging food and beverage segment in the target markets
place. the porters provide four strategies which can help the hotel company to take competitive
advantage and provide the markets for the food and beverage segments:
Cost leadership: under this strategies,, the company tries to be low cost producer in the
hospitality industry which offers them to increase their productivity and better utilisation of
resources.
Cost focus: here the organisation who seeks to make lower cost advantage but limited to small
market segments these items are very basic and similar to the average market leading products.
Differentiation leadership: under this strategies, the organisation are trying to make the
product different from another competitors present on the market places to take the competitive
advantages in the market places.
Differentiation focus: here the company focus on developing the product and services but in the
small segment of market places. The special customer are identified and are priced with the
product which are different from the another companies . (Xu. and Gursoy, 2015.)
Ansoff matrix: this matrix helps the hotel company to expand their business to next
levels as well as grow their product and services in the new markets which will generates more
income for the company . the Ansoff matrix also helps the company to make effective strategies
which provide them a way to grow their product and operational activities at the global markets.
Market penetration: under this growth strategies, the company focus on selling their existing
product and services at the existing markets which helps the company to grow their business by
serving the existing customer with the good quality of goods and services. the company uses this
strategy to focus on markets and product which are well known to them.
Market development: under this growth strategies , the focus of the company is on selling the
existing product into the new market places. Here the company are able to expand their market
7

by entering into new market with their existing products and capture the market with product and
services.
Product developments: it is strategy which helps the company the expand their business by
introducing new product in the existing market. This will help the company to place their new
goods to already existing customer as it helps them to attach more customer so that new product
will also gets its market
Diversification: under this growth strategy, the company focus on entering into new market with
the new product and services . it involves high risk for the company as they are entering into new
market with different product and tries to capture the market by creating valuables brand image
in the markets.
Strategies: The Crowne Plaza uses porters generic and ansoff matrix to make growth
strategies at the international levels. The company tries to expand their business at
international level by introducing the product and services which can helps them to grow
their business at next levels . the hotel can tries to use the porters generics strategies to
develop the new market segment for its product and services which helps them to
generates more revenges in the coming years and the matrix helps them to enter into new
market by existing as well as with the new product and services so that they can take the
competitive advantages in the target markets and build their strong image in the eyes of
the customer from time to time and expand their operational activities at the global
levels and restrain the existing customer..( Kandampully, Zhang, and Jaakkola, 2018.)
Practical application of strategies : under this condition, the company tries to examine
that strategies which are form with the help of porters generic model and with the an off
matrix are applicable in the real world of competition. and how they will affects the
performance of the company in the coming 5 to 10 years, these strategies will helps the
company to expand their business at the different geographical location and serving the
vast scale of customer from time to time. This strategies provide them a pathway to form
the way from here they can achieve their goals and objectives in the most effective
manners. This model will guidance them to how to satisfies the needs ands wants of the
customer so that they can earn profits from giving services to its target audiences. The
8

company will able to grow their business at different location and earn brand name in the
coming five to ten years.
The Nykiel’s fourteen hotel strategic
The Nykiel’s fourteen hotel strategic growth decision which pioneer the strategies for
growth wsuch as considering enhancement opportunities. The interest ownership at hotel are
develop to encourage manipulator in order to develop sustainabile income. This will also help a
hotel in enhancing their value effectively. In addition to this reviewing management as well as
branding is also considered as the part of stratgic growth chance. There are numbers of stratgies
which can be opt by Crowne Plaza management on the basis of The Nykiel’s fourteen hotel
strategic growth, from which some are mentioned below: -
 Strategy 1 - Horizontally Expansion – Crowne Plaza will try to expand through the one
line of the hospitality service to the another one in order to entre into new markeplace.
 Strategy 2 – Geographicaly Expansion – Respective hotel will be enhance from the
relatively tiny radius to the great geographical area or location in order to get enter into
new market.
 Strategy 3 – Product Hybridization – Crowne Plaza may enhance their range of business
operation in to whole new market.
 Strategy 4 – Specialisation specialist – Respective hotel may specializarion in the
association along with the upscale growth in price as well as services provided for the
new market.
Conclusion:
According to the above , it can concluded that international hospitality management is
very important part of hospitality and travel industry. The hotels are the part of such industry,
where these company provide the accommodation services, with the food and beverages in
exchange of money and satisfies the needs and wants of the customer which are present in all
around the worlds. The company focus on providing them best services so that they can be loyal
customer of the company in the competitive market places. The company uses SWOT and
PEST analysis which helps them to identify their resources and make best use of it by analysing
their strength and weakness and reducing the impact of the threads which are present in the
external environment. The company also uses the different models which helps them to make
effective growth strategies for the coming few years.
9

10

REFERNCES :
Books and Journals
Altinay, L., Paraskevas, A. and Jang, S.S., 2015. Planning research in hospitality and tourism.
Routledge.
García-Lillo, F., Úbeda-García, M. and Marco-Lajara, B., 2016. The intellectual structure of
research in hospitality management: A literature review using bibliometric methods of the
journal International Journal of Hospitality Management. International Journal of Hospitality
Management, 52, pp.121-130.
Okumus, F., Altinay, L., Chathoth, P. and Koseoglu, M.A., 2019. Strategic management for
hospitality and tourism. Routledge.
Ryan, C., 2015. Trends in hospitality management research: a personal reflection. International
Journal of Contemporary Hospitality Management.
Chan, E.S. and Hsu, C.H., 2016. Environmental management research in
hospitality. International Journal of Contemporary Hospitality Management.
Balanon, J.L.A., Aala, D.A., Cuevas, J.K.M., Festejo, P.L.P., Maravilla, J.M. and Felicen, S.S.,
2017. Feedback on Student Outcomes Among College Students of International Hospitality
Management. Undergraduate Thesis. Lyceum of the Philippines University.
Lashley, C., 2015. Hospitality studies: Escaping the tyranny. Quality Assurance in
Education, 23(4), pp.364-377.
Gursoy, D., 2019. A critical review of determinants of information search behavior and
utilization of online reviews in decision making process (invited paper for ‘luminaries’ special
issue of International Journal of Hospitality Management). International Journal of Hospitality
Management, 76, pp.53-60.
Köseoglu, M.A., Sehitoglu, Y. and Craft, J., 2015. Academic foundations of hospitality
management research with an emerging country focus: A citation and co-citation
analysis. International Journal of Hospitality Management, 45, pp.130-144.
Kandampully, J., Zhang, T.C. and Jaakkola, E., 2018. Customer experience management in
hospitality. International Journal of Contemporary Hospitality Management.
Deery, M. and Jago, L., 2015. Revisiting talent management, work-life balance and retention
strategies. International Journal of Contemporary Hospitality Management.
11

Pizam, A. and Tasci, A.D., 2019. Experienscape: expanding the concept of servicescape with a
multi-stakeholder and multi-disciplinary approach (invited paper for ‘luminaries’ special issue of
International Journal of Hospitality Management). International Journal of Hospitality
Management, 76, pp.25-37.
Brown, E.A., Thomas, N.J. and Bosselman, R.H., 2015. Are they leaving or staying: A
qualitative analysis of turnover issues for Generation Y hospitality employees with a hospitality
education. International Journal of Hospitality Management, 46, pp.130-137.
Xu, X. and Gursoy, D., 2015. Influence of sustainable hospitality supply chain management on
customers’ attitudes and behaviors. International journal of hospitality management, 49, pp.105-
116.
12