HAT303 - Hotel & Accommodation Management: Industry Issues Analysis

This report evaluates contemporary accommodation services, focusing on operational management issues within the Australian market. It highlights the impact of technology platforms like Airbnb on the traditional accommodation sector. The report provides an industry overview, noting trends in hotel occupancy, employment, and tourism. It identifies key issues such as rising competition, cleanliness concerns, insufficient marketing efforts, and poor customer satisfaction. The analysis underscores the increasing demand for accommodation facilities and the challenges faced by hotel management in a competitive landscape. The report concludes that while the accommodation sector is growing, traditional services must adapt to compete with alternative options like Airbnb.

Hotel and accommodation management

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Contents
Introduction......................................................................................................................................2
Accommodation management.........................................................................................................3
Industry overview............................................................................................................................3
Identified issues analysis.................................................................................................................4
Conclusion.......................................................................................................................................6
References........................................................................................................................................7

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Introduction
The aim of the report is to evaluate the contemporary types of accommodation services. This is
the way through which the understanding for the different types of operations management
issues that can take place in any of the operational contexts. The accommodation management is
changing with the change in time and needs of the customers. Multi-sided technology platforms
like Airbnb have dominated the global accommodation sector. Airbnb’s rapid growth can be
attributed to the consumers’ willingness to make use of the accommodation services directly
from the property owner. The report will include the current issues that accommodation services
are facing in the competitive market.

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Accommodation management
Accursing to Ettema, 2012, the accommodation means to the room or place where you will stay
or an agreement about sharing something. There are different types of accommodation that are
present it includes hotels, resorts, motels and many others. Along with this, the development of
technology has also brought the Airbnd. According to the author, this accommodation service is
dominating the market with the rise in the competition within the sector.
Industry overview
In Australia, the accommodation association of Australia is the national industry body for the
Australian accommodation industry. The members of this accommodation include hotels, resorts,
motels and many others (Tourism Accommodation Australia, 2013). Considering the viewpoint
of the Australian Bureau of statistics, the average hotel accommodation occupancy across
Australia was 72.7% in the 12 months to September 2010 with an average room rate of $147.65.
In addition, the employment in the accommodation sector is near to the 90,000 people nationally.
In addition, the employment is not limited to the private sector as there are 188,000 employed in
the general pub sector (Australian Hotels Association, 2016). This has been identified that there
are approx. 4279 tourism accommodation established in the market of Australia. Moreover, the
total accommodation rooms that are present in Australia include 227,320 and 640,454-bed
spaces.
According to the report, this has been found that the number of domestic overnight trips that take
place in Australia has fallen by 1.1% on the average each year over the year 2001-2010
(Accommodation Association of Australia, 2018). In Australia, the outbound tourism is growing

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at a much faster rate than the inbound tourism. According to the Bankwest for a business report,
the biggest accommodation state that is available in Australia is New South Wales with the total
of 4,141 accommodation options in operations. Queensland comes second when it is about
offering the accommodation services in Australia with 3,256 and Victory and Western Australia
remain behind with 2,988 and 1,195 respectively (Butler, 2017). This accommodation facility is
not only increasing in the hotel, motel and other element but there is a rise in the business of
Airbnb’s.
Identified issues analysis
The industry analysis of the accommodation reflects that the need of the accommodation facility
has been increased in Australia but this is also true that with the rise in the accommodation
facility there is an increase in the problems that might be faced by the management in terms of
the operational context. Some of the issues are given below: -
Rise in competition: - The accommodation management is becoming difficult due to the rise in
the competition among the accommodation. This is the fact that there are different
accommodation facility is available. In addition, the hotel industry is considered as the ever-
blooming business and the travel keeps growing. In the Australian market, there is a rise in the
demand for the accommodation facility. This is the reason business are expanding their existing
business along with this the entrepreneurs are bringing the new ideas in the accommodation
industry so that they make the profit out of this. Airbnb’s is becoming one of the biggest
competitors of the hotels and different types of accommodation management. According to the
analysis, this has been found that the business of Airbnb's has turned over $5.3 million and it will

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grow by 45% last year in tapping into the increasing demand for a more luxurious alternative to
the internet giant Airbnd (Waters, 2017).
Cleanliness issues: - In the accommodation facility there is a need for the cleanliness because
the visitor will only stay the place if they find it clean. The management also faces issues related
to cleanliness because staffs get to occupy in attaining the other guests due to which they
sometimes face trouble in maintaining the cleanliness at the place. The lack of cleanliness at the
place affects the visitors as they shift to the hotel competitors or towards Airbnb’s (Guttentag,
2015).
Lack of marketing efforts: - The industry of hotel is technology averse to an extent due to
which most of the options are available for the hotels in capturing their market space in the
online market. Though, according to the latest research, this has been found that more than 60% -
70% hotels make use of the old marketing practices due to which they are not able to grab the
attention of most of the visitors in the market of Australia. Further, this is the reason due to
which the other competitors have achieved the success in capturing the market. This is one of the
major issues that are emerging in the accommodation services.
Poor customer satisfaction: - The customer satisfaction is one of the essential determinants that
are required to be fulfilled by the hotels in the Australian market. Though, some of the hotels in
the industry only focus towards the accommodation facility due to which they get fail in offering
the quality foods which exploit the position of the hotel in the market due to which the customers
don’t visit the place (Xiang and Law, 2013). Along with this, the poor quality food is exploring
the customer satisfaction towards the hotel.

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Conclusion
In the end, it can be said that the accommodation facility and services are increasing in the
market of Australia. Though, the hotel accommodation services are facing competition due to the
emergence of different options of accommodation which include Airbnb's. There is a tremendous
rise in the use of the Airbnb's services by the visitors of Australia. The analysis related to the
Australian accommodation industry has been done with the analysis of the current issues that
accommodation services are dealing in the competitive market space.

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References
Accommodation Association of Australia (2018) Future COAG Regulatory Reform Agenda
[Online]. Available from:
https://www.finance.gov.au/sites/default/files/Accommodation_Association_of_Australia.pdf
[Accessed on 18th August 2018]
Australian Hotels Association (2016) Industry Data [Online]. Available from:
http://aha.org.au/industry-data/ [Accessed on 18th August 2018]
Butler, L. (2017) Areas on the rise in the Australian accommodation sector [Online]. Available
from: https://www.accomnews.com.au/2017/09/areas-on-the-rise-in-the-australian-
accommodation-sector/ [Accessed on 18th August 2018]
Ettema, D.F. (2012) Multi-faceted tourist travel decisions: A constraint-based conceptual
framework to describe tourists’ sequential choices of travel components. Tourism Management,
p.9.
Guttentag, D. (2015) Airbnb: disruptive innovation and the rise of an informal tourism
accommodation sector. Current issues in Tourism, 18(12), pp.1192-1217.
Tourism Accommodation Australia (2013) Australian Hotels: Contributing to economic growth
and national prosperity [Online]. Available from:
http://aha.org.au/wp-content/uploads/2013/07/AHA-National-Policy-Platform-2013.pdf
[Accessed on 18th August 2018]

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Waters, C. (2017) Putting the luxury into Airbnb [Online]. Available from:
https://www.smh.com.au/business/small-business/putting-the-luxury-into-airbnb-20171123-
gzrhrz.html [Accessed on 18th August 2018]
Xiang, Z. and Law, R. (2013) Online competitive information space for hotels: An information
search perspective. Journal of Hospitality Marketing & Management, 22(5), pp.530-546.