Factors Influencing Domestic Development: Australian Hotel Sector

This report provides a critical analysis of the domestic development within the Australian hotel service sector, exploring various factors that contribute to its growth and ability to meet customer needs. The analysis focuses on service quality, competitive advantages, and the role of tourism in the hospitality industry, particularly within luxury hotel properties. The report identifies key elements like comfort, safety, cleanliness, customer service, advertising, and cost control, alongside environmental, socioeconomic, political, technological, economic, and legal factors. The study highlights the importance of customer satisfaction, technological advancements, and optimal resource utilization as crucial elements for the industry's ongoing development, emphasizing the hotel's contribution to the domestic economy through employment opportunities and service excellence. It also provides insights into factors that impede the service quality delivery in the context of the luxury hotel including four stars and five star properties in Australia.

ANALYSING THE DOMESTIC DEVELOPMENT OF A
PARTICULAR SECTOR OF THE HOSPITALITY
INDUSTRY WITHIN THAT COUNTRY.

TABLE OF CONTENTS
..........................................................................................................................................................2
ANALYSING THE DOMESTIC DEVELOPMENT OF A PARTICULAR SECTOR OF THE
HOSPITALITY INDUSTRY WITHIN THAT COUNTRY...........................................................3
REFERENCES..............................................................................................................................11
Online........................................................................................................................................12

ANALYSING THE DOMESTIC DEVELOPMENT OF A PARTICULAR
SECTOR OF THE HOSPITALITY INDUSTRY WITHIN THAT
COUNTRY.
The domestic development in Hotel service sector of the hospitality industry in Australia
is critically analysed by the different factors and elements available which representing that how
the development of the hotel sector is increasing and how they are able to satisfy the customers
needs and wants. The purpose of the report is also to identify the key factors which impede the
service quality delivery in the context of the luxury hotel including four stars and five star
properties in Australia(Chen, 2016). Service quality, competitive advantage, Tourism, hospitality
services are some major focus through which development of the service sectors can be
understand effectively.
The hotel industry of the Australia continues to grow at impressive rates and becoming
more competitive and some international hotel groups have expanded their business in growing
number of destinations. Hospitality is basically made up of the two services that is the provision
of overnight accommodation for the people starveling away from their homes and options for the
people to dine outside their hotels. Service is basically the act of the handling the task and is a
intangible good that industries provide including the hotel industry(Cutajar, 2017). Guests and
customer are not only expecting better tangible accommodation but they are also expecting the
intangible experiences which have full capability of satisfying their requirements.
The development of the hotel industry in Australia is one of the reason behind the
growing service sector in particular country. People are now prefer and prioritize the luxurious
environment which helps them to feel comfort ad relief in their engaged life. The complete hotel
industry is focusing towards providing the best and quality products and services to their
customers in order to attain more and more customers so that they can satisfy their need and ants
and it helps hotels in achieving their organisation goal in the form of capturing the larger share of
the market and capturing the major proportion of the service industry(Dzhandzhugazova and
et.al., 2016). Their focus is on benefiting and satisfying the customers at their best.
Hotels provided many facilities to their guests in different ways as they often provide the
in site facilities, on site food and beverages, meeting and conference services, facilities, fitness

centre, spa, health care, restaurants, buffet, rooms with views, pool facilities, park and business
centres. There are large number of service which are generally of hotel they target specific
consumer and will cater the prices, amenities and advertising strategies offered by the hotels to
their customers and guests and they are the only reason for attraction of the large number of
population towards the hotel industry(Hamilton and Webster, 2018). As a result more guests
means more Income and profit margin which is reinvested in expanding the hotel sector and
result in development of the entire sector of the hotels and services. The development of the
hotel industry done gradually but adding on different types of services. The sale of the hotel
room is provides approximately 70% of the total hotel revenues rooms meant to luxurious for the
people as it provided several things:
Comfort: every hotel of the industry spends a lot of the efforts in ensuring that there
must be availability of the quality of beds, mattresses, channels, music, attached bars etc. the
comforts needs to be maintained regularly and should function properly. It is basically the
housekeeping department;s duty to ensure its maintenance.
Safety and security; the most primarily devices which provided by the hotels is to
ensure that safety is restricted entry to the room, double locking system, strict control rooms,
master keys, and safety chain locking systems are some tools used by the hotels to ensure the
safety of the people and their luggage. This facility also ensures and eliminate the thought of risk
from the mind of the customers and became the reason for enhancing the development of hotel
industry.
Cleanliness and hygiene; the housekeeping department is focusing on maintaining the
neat and clean areas and equipments to create a favourable impression on the guest and to make
them retain to the hotel for long(TKöseoglu, Parnell and Doyle, 2015). Hygiene is the most
important thing for which generally people seeks for especially wash rooms, toilets, pools,
changing rooms, health club, restaurants, serving foods, food quality, etc. strengthening the
domestic economy lives in the heart of the growth of hospitality industries.
Customer service: it is the integral part the hotel industry as providing efficient and
effective services will attract the customers at large to the hotels.
Advertising: Australian hotels in intend to promote their hotel they target specific
consumer and will cater the prices, amenities and advertising strategies to this group so that can
attract people at large by various attractive advertising.

Cost control- managing cost is also critical factor of hotel success as providing quality
services and luxury and comfort to the people is not enough for the overall development of the
hotel. They need to manage their expenses, costs of goods which they make available to
customers and many maintenance costs by preparing budgets, and suing all the resources
optimally.
Product differentiation- the companies and hotels thrives for offering the best and
unique experience to guests(Preiser, 2016.). The different types of themes and comfort can be
offered by the hotels which can be the source of attraction for the people.
There are some environmental factors also which affects the hospitality industry and leads to the
development of the hotel sectors are as follows:
Environmental factors – these are some factors which includes the good climate and
beautiful scenery. Good climate is one of the essential feature which facilitates the tourists to
attract towards the hotel of different areas. They boom to the areas having beautiful sceneries.
For example- beach view hotels, fresh water lakes, waterfalls near the hotel sites is also the
major attraction for the people to go for the hotel stays and accommodations.
Socio economic factors are some factors which are directly related with the customers
taste, preference, customers and beliefs(Salvioni, 2016). They always prefer to go to the places
where they can have home lie feels and even more so that they can happily stay there and can
relax at the weekends. Hotels sector nowadays preferring for organising many programmes and
vents through which they give free gifts and coupons to the people and winner received the 2
days stay at hotel which is another promotional technique of the hotels. This is done to give
better experience to the customers in order to attract more guests and capturing larger share of
the market.
All the attraction of the tourist including natural places, hotel and other area must be accessible
by various modes of transportation like roads, railways, air and water. The hotels who are
attracting larger tourist at their places must be capable enough of providing the good
accommodation and catering facilities. Australian hotel are doing so and this is the reason behind
their growth and development.
Political factors- these are the factor which include the government, rule and regulations
which are mandatory by the different organisation to follow . The government lays emphasis on
the hotel sector of service industry as entire hospitality industry is contributing highly in

development if the economy in all way(Smith, 2019.). The foreign exchange, attraction of
tourists,. Are encouraged only because of the service sector. Government keep contributing
towards these organisations in different ways so that they operate their business activities
effectively and efficiently.
Technological factors- new ad advanced technology is also responsible for the
development of the company or organisation in long run as people seeks the products and
services which have the capability of satisfying their needs and wants. Using new and advance
technology will be the reason of attraction for the customers as they consider that the new
product or services might have potential to fulfil their requirements and the hotel sector of the
entire industry focusing ion using the technologies which ate not easily available to the people at
their homes(Chen, 2016). This might be the reason for the people to go and stay at the hotel to
take advantage and benefits of the new technology available at low rates as if they will purchase
the technology it may not be affordable to them that is why the hotels prefer to use advanced
techniques to provides advanced services and it leads to the reason for the attraction of more and
more customers towards their hotels.
People seeks to go to the places where they can relax and rest with more comfort and can
enjoy the new technologies which might they are not able to purchase in general way(Ma, E. and
et.al., 2016.). The advantage which hotel ate giving to the people for letting them using the
technologies at low rates is the reason for growth of the hotel revenue and increasing the market
share in the hospitality industry.
Economic factors are some factors which includes change in growth rate, inflation rate,
foreign exchange rates which leads the tourist to attract the places more as that can easily
affordable by them, ad they are able to attend more guest as their customers and by offering the
high quality services to them hotels can earn higher amount of profit and can increase their
market share in the hospitality industry. The increaser profit as result of increased quality of
product and service is symbols that they are contributing towards the development of the nation
economy and by contributing towards the economy the hotel are benefiting themselves as well,
as government will see for the useful policies for them which guide them towards the path of the
growth and development.
Legal factors-are the factors which included the mandatory policies and guideline which
are mandatory under the act provide by the legal authorities(Dzhandzhugazova and et.al., 2016).

They are required to fulfil all the legal formalities. Being a leading sector, hospitality industry is
completely focusing towards the further growth and development so that they can able to expand
their business internationally. The rules and guideline are strictly following by Australians hotel
so that they can avoid the disruptions in their daily operations as disruptions create difficulties to
operate their business smoothly.
Optimum utilisation of the resources can be considered to be the most crucial and
essential element behind the growth of the domestic industry of Australia(Smith, 2019.). The
service sectors is very sensitive that is a small dissatisfaction among the customers will lead the
customers to move to other that is hotel will lose their customers as customers will prefer to go
with their competitors, customers only seeks for the satisfaction in the complete hospitality
industry. The companies working in the service sector needs to focus on providing the
satisfaction to the customers rather focusing on their profit margins(Chen, 2016). As more
satisfaction , resulting to more and more development. People are the key elements for success of
nay hotel or company and as a result by attracting more customers' hotel are expanding their
market share and earning good amount of profit.
They directly contributes towards the development of the domestic economy as they
seek to providing efficient services and products. The leading sectors require higher umber of
employees in order to full fill the requirements in hotel or organisations as they require the
people for housekeeping department managerial posts, working employees, waiters, security
guards etc. in such a way they customers can attain and benefit with all the luxuries available
there(TKöseoglu, Parnell and Doyle, 2015). For this the hotel require more employees resulting
in creating more employment opportunities which is also the contribution towards the economic
development as by creating larger employment opportunities to the people are able to earn and
can raise the standard of living which directly contribute to the overall development of the
economy.
The development of the hospitality industry is also based ion the customers' preference
that is what they preferring to opt for fulfilling and satisfying their utilities. The hotels having
large varieties of serviced which can be availed by the customers for different purpose starting
from the children playground to the honeymoon sweets all the facilities are provided by the
Australian hotel which is the major and essential reason behind the success and development of
the hotel sectors in complete service industry as they are capable of satisfying almost all the

needs and wants of the customers which directly contributing towards arising the service sector
of Australia and also adding contribution towards the development of the economic growth and
able to achieve the organisational goal effectively and efficiently(Hamilton and Webster, 2018).
According to Marinakou and Giousmpasoglou, (2019) stated that Tourism is increasing
day by day in global world and also cause many impact on environment. Many Hotels and
industries just to expand their business affect the environment badly. But due to this factor they
are increasing their profit sharing ratio. As people are attracted towards the places which carry
the beauty with amazing hospitality. They mostly prefer such places which reduces the stress and
make their holidays memorable. As mostly people prefer to change their routine life and by this
change they prefer to visit that places which in their own country only. Usually they didn't cover
such places which had the best to visit and travel in their own country and they are famous in
many ways in relation to food, services, interiors and had unique concept to bring the hotels in
the market.
Lee and Cheng, (2018) viewed that due to increase in number of hotels, there owners are
spending more to make it at the top among hotels. As there are many competitors in hotel field
and everyone want to attract the customers and expand their business. Mostly hotels use various
strategy to attract the customers. They link their business with tours and travels companies and
also use social media marketing to promote the business. People first choice is to get good rooms
with separate pool and eye catching interiors at low price.
Goh, Muskat and Tan, (2017) suggested that to attract the customers and wants to expand
their business, start giving various scheme or offers to their premium customers and also link
their hotel with various online sites which offer free stay to people. This attract the customers
interest in their hotels and by their reviews they get larger scale of business through domestic
people only. They encourage people to just visit their hotels and they offer good hospitality to
them which helps to make a quick judgement to give good reviews and rating.
Gursoy and et.al., (2019) criticised that hotels misrepresent the customers by providing
authentic interiors and their status in online website which results in arising fraud with the
customers. They attract customers towards their services and by visiting that place they offer
services which results in dissatisfying their interests in that hotels. Usually they apply this

strategy to get more review from customers and they can increase the number of customers by
visiting their place.
As per Prud’homme and Raymond, (2016) examined that to improve the quality of hotels
they provide various facilities which attract the customers interest and that can promote the
services of hotels to other as well. They improve their accommodation facility as people need
break from their routine work and they prefer to visit that hotels which is situated in their country
so to relax and take some free time from their routine life. They also provide separate facility for
the ladies if they are travelling alone and stay at hotels. They use some entertainment program to
encourage the customers interest and their willingness to visit that hotel next time as well.
According to Sarmiento and El Hanandeh, (2018) stated that London hotels are more
famous among the world regarding the services which they are offering to attract the customers
interest. But as comparison to Australia their hotels are most likely by the people and they
mentioned in their feedback reviews that Australian hotels provide good accommodation with
quality services. These encourage them to prefer their hotels as vacation and spending time with
family. People travel a lot to get proper hotel and services but if they find such services in their
own country they feel more relaxed.
As per Opoku and Guthrie, (2018) reviewed that Australian hotels are famous for
providing comfortable and attractive services to disability person and also provide various other
benefits to top star actors or any other person who need some private space to enjoy some
moments from their engaged life. People living in the same country prefer to visit to hotels not
just for staying purpose but also to celebrate their special moments in this life. Usually hotels
also attract the customers by organising the grand celebration in occasion of birthday any family
function, marriage perspective and also their business grow in organising the destination
wedding.
Whelan and et.al., (2018) stated that hotels increase their profits through many ways but
their reputation will grow only if they take care of the customer satisfaction and engagement in
their business. Hotels should distinguish their facilities from person to person. If the students
prefer they hotel they need proper space for their work and also provide quality food so that they
can more dedicatedly engage in their activities. If the pregnant women is staying in the hotels

there priority is to provide proper facility in relation to room service or good quality food. No
bad smell or interiors are also attractive so that they feel relaxed to stay in hotels.
Cook and et.al., (2017) examined that to provide quality services to people give more
business and their reviews and ratings helps hotel to expand this business more in the country.
Hotels provide proper and trained staff to helps the customers and serve them the best. This
strategy encourages the customer interest and also provide chance to visit again. If any newly
married couples enter in the hotel they welcomed in their best way and also provide the best suit
in the hotel. This hospitality usually attracts the customers and that's feel more homely in the
hotels.
Ghadban, Shames and Mayaleh, (2016) argued that due to continuous changes as per
customer demand, affect the environment and economy of the country. As to reconstruct the
same things requires more resource to fulfil the integrity of the hotels and by this if had crucial
impact on environment which reflect the weather changes. Also, there is an impact on pollution
which may be air, water or noise which affects the customer those who are already staying there
or there neighbours staying near that hotels. So to have strong competition and to be famous in
the country, they try new things to attract the customers but it directly causing impact to
environment.

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