Report: Hospitability Business Development in the Hotel Industry

This report provides an in-depth analysis of hospitality business development, particularly within the context of the hotel industry, with a focus on Singapore. It examines the role and impact of loyalty programs, discussing their benefits and drawbacks in attracting and retaining customers. The report explores the competitive landscape, the importance of market research, and the shifting dynamics of consumer behavior, including the influence of online booking and social media. It also evaluates the principles of effective product formulation, market segmentation, and the product life cycle, offering insights into strategic business features, and the need for hotels to adapt to changing consumer needs and expectations. The conclusion emphasizes the importance of customer loyalty and its impact on a company's success, highlighting the shift from customer acquisition to retention and value-added services.

Running Head: HOPITABILITY BUSINESS DEVELOPMENT
HOSPITABILITY BUSINESS DEVELOPMENT
Name of the Student
Name of the University
Author Note

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Table of Contents
Introduction...................................................................................................................2
Discussion.....................................................................................................................2
Conclusion....................................................................................................................6
References...................................................................................................................8

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Introduction
The aim of this topic is to discuss the stances of disloyalty showed by the
loyalty programs members in hotel industry. However, the perquisites and benefit
provided by this cannot be ignored. In context of this, the analysis will be done on the
nature and characteristics of hospitability in relation with the consumer. This will
include concept, unique characteristics, products and services, which are currently
offered within the international hospitability industry, will be discussed. In addition,
strategic business features and its development in context of the hospitability
organization will be discussed. Moreover, nature of demand, consumer dynamics
behavior and their changing needs and wants will be discussed. Therefore,
evaluation of the principles related to the effective formulation and development of
the hospitability products will be discussed.
Discussion
Loyalty programs are the marketing strategic products offered by the
company as a reward program who purchases frequently and it encourages the
customers to buy the products and services. The hospitability industry has become
highly competitive these days, which has changed the way of operations of the hotel
industry (Durna, Dedeoglu & Balikçioglu, 2015). Customer’s loyalty programs have
been implemented by many hotels in order to attract the customers who are new and
the retention of the existing customers. Customer’s loyalty programs are considered
as one of the most important factor, which lure the customers for choosing the
products and services of the hotel industry (Kang, Alejandro & Groza, 2015). Giving
the options of loyalty programs reward is now gained much popularity than providing
incentives and promotions based on standard discount. The marketing team takes

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the data from the current list of the customers to provide best offerings that adds
value to the customers.
Situated in the Southeast Asia, Singapore is not considered as the largest
country but the population density is large there. It is blessed with Flower gardens,
natural tress, food, Buddhist temples, museums and zoo. Singapore is also known
for its Luxurious Hotels. Hence, it attracts number of tourist from all across the world
for business meetings, vacations, gambling and medical procedures. This country
has more than 400 hotels and still the constructions are going on. According to the
current trend, it has been analyzed that Singapore’s hospitability trade has enjoyed
good performance in the last few years (Choo, 2016).
The hotel industry of the Singapore consists of hotels ranging from low to high
in price. In other words, it comprises of hotels of minimum budget to the star rated
which is suitable to all kinds of customers. It is difficult for the customers to
differentiate the services provided by the industry because similarity of the facilities
provided by all the hotels in respect of price, convenience, location (Wang et al.,
2015). It is because of the tough differentiation in the services, hotels are now
involved in the niche market by giving unique facilities to the customers such as
packages on destination wedding, honeymoon, specialist holidays and so on. The
hotel industry of Singapore has experienced high growth rate in the market of luxury
travel, family travel and high-end travelers. There are so many five star hotel &
resorts in Singapore whose strategies have helped in the product development such
as The Fullerton Hotel Singapore and Westin Hotel & resorts. The former hotel in
which it is operating was earlier general post office building and then it has converted
into hotel by the strategies adopted. The latter is known for its highest lobby in the

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hotel (Hargreaves, 2015). Examples of the hotels providing loyalty programs are as
follows:
StayWell’s member The Park Regis Singapore offers the reward point in
which the customers can enjoy dollars off on the future stays. Apart from this, they
also provide time-to-time exclusive deals, gift for member-only and double point’s
promotions. Moreover, StayWell is also the partner of Singapore Airlines, Qantas
Airlines and Virgin Airlines, which is the added advantage for the member of loyalty
programs ("Hotel near Clarke Quay | Park Regis Singapore", 2019).
Another example of the hotel, which provide loyalty program, is York Hotel
Singapore. They provide heavy discounts on the accommodations and late check
out from the hotel with the complementary Wi-Fi, discounts on food and beverages,
treats on birthday and many more ("York Hotel Singapore | Loyalty Program
Singapore | York Loyalty", 2019).
Following are the points, which will discuss the shifting nature of demand and
evaluation of the dynamic consumer behavior and their changing needs and
expectations which results in the ongoing variations in the consumer/products
relationship:
 The hotels spend heavily on their marketing for enhancing the experience of
their customers. The loyalty programs and benefit are provided by the hotel
for capturing the attention of the customers. However, for availing tis benefit,
heavy amount is to be paid by the customers. The customer may avoid
spending amount in getting these benefits (Brooks & Wee, 2014).
 The consumer behavior has been changed in the recent years. Now a days
they prefer to book hotels online as compare to going hotels and then book or

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by calling them to book. Consumers are now social media freak. They book
online hotel by comparing different hotels price. Hence, hotels should now
focus on developing unique features with competitive price (Demangeot,
Broderick & Craig, 2015).
 Consumer’s decision of purchasing is also influenced by the members of the
family and close friends. The consumers act on the recommendations of their
close one. In addition, in the era of social media, everyone post their
experience of the service availed by them at the hotel in which they stayed.
Hence, the hotel industry should must try to overcome the impact of the
influencers (Brooks & Wee, 2014).
The businesses of the hospitability are not easy these days. The rise in the
competition in the restaurants, hotels and other hospitability firms has increased the
multiple challenges. Much hospitability business fails due to inappropriate and
insufficient analysis and research. Hence, effective principles must be taken for
formulation and development of the hospitability products. The current situation of
the Singapore’s hotel industry is growing and expected to grow in coming years
because it is one of the largest revenue maker (Liu, Pennington-Gray & Klemmer,
2015). The hospitability industry provides segmentations based on the market
research. This segmentation has helped to cover the needs of different tourist
according to their different demands (Henderson, 2016). The hospitability industry
can conduct following analysis on the market research in order to serve the
customers:
 Hotels must focus on the choice of the customers. They should provide
personalization in their services to the customers. In the today’s scenario,
business must deliver personal experience to every clients.

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 By staying on the trends of the market, restaurants and hotels can easily
responds to the changing demands of the customers.
 While acting globally, hotels should also provide localized experience to
the customers. They should think global but act as local. Day-to-day
optimizing of operations can be done by identification of the new
opportunities.
 The proper management of the supply chain can improve cost efficiencies.
 The uses of informational technology in the business can help the
organization to be more intelligent in delivering of the services and overall
improving the customer experience.
The life cycle analysis of the hotel is initial, growth, maturity and recession and
regeneration process. The hotel start its operations in the initial stages, then it grow
in the stage where it starts earning profit from their expenses, then it reaches the
stage of maturity in their earning as they earn enough profit, recession occurs when
the revenue of the hotel is decreasing. Lastly, regeneration process occurs when the
hotel starts their operations in new way to generate the profit again (Hu et al, 2015).
Therefore, loyalty programs provided by the hotel industry is that integrated
system in the marketing procedures that help in turning customers more loyal. It is
that strategic tools used by the managers all across the world. It is the tools that are
used in motivating the customers for continuing to be the part of the organizations.
Conclusion
Hence, it can be concluded that the aggressive market has shift the focus
from only gaining new customers to other objectives such as retention, providing
more value added services and so on. The marketing objectives of the hotel

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industries have now given more importance to customer loyalty than the customer
acquisition. The benefit of the retention of the customers directly impacts the
success of the company. The cost of retaining the customers decreases by
increasing the sales from their loyal clients, which is the result of loyal patronage
behavior. In addition, loyalty of the customers also helps in spreading positive things
about the company to their close ones. Hence, in this report discussion has been
done on the nature and characteristics of hospitability products in relation with the
customers. Moreover, the evaluation of the principles in the effective formulating and
developing of the hospitability products. Therefore, it can be concluded that loyalty
programmes given by the hotels have the positive effects on the hospitability sector
as a whole.

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References
Brooks, A., & Wee, L. (2014). Consumption, Cities and States: Comparing
Singapore with Asian and Western Cities. Anthem Press.
Choo, S.S.L., 2016. Fostering the hospitable imagination through cosmopolitan
pedagogies: Reenvisioning literature education in Singapore.
Demangeot, C., Broderick, A. J., & Craig, C. S. (2015). Multicultural marketplaces:
New territory for international marketing and consumer research. International
Marketing Review, 32(2), 118-140.
Durna, U., Dedeoglu, B. B., & Balikçioglu, S. (2015). The role of servicescape and
image perceptions of customers on behavioral intentions in the hotel
industry. International Journal of Contemporary Hospitality
Management, 27(7), 1728-1748.
Hargreaves, C. A. (2015). Analysis of hotel guest satisfaction ratings and reviews: an
application in Singapore. American Journal of Marketing Research, 1(4), 208-
214.
Henderson, J. C. (2016). Local and traditional or global and modern? Food and
tourism in Singapore. Journal of Gastronomy and Tourism, 2(1), 55-68.
Hotel near Clarke Quay | Park Regis Singapore. (2019). Retrieved from
https://www.parkregissingapore.com/
Hu, A. H., Huang, C. Y., Chen, C. F., Kuo, C. H., & Hsu, C. W. (2015). Assessing
carbon footprint in the life cycle of accommodation services: the case of an
international tourist hotel. International Journal of Sustainable Development &
World Ecology, 22(4), 313-323.

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Kang, J., Alejandro, T. B., & Groza, M. D. (2015). Customer–company identification
and the effectiveness of loyalty programs. Journal of Business
Research, 68(2), 464-471.
Liu, B., Pennington-Gray, L., & Klemmer, L. (2015). Using social media in hotel crisis
management: the case of bed bugs. Journal of Hospitality and Tourism
Technology, 6(2), 102-112.
Wang, L., Law, R., Guillet, B.D., Hung, K. and Fong, D.K.C., 2015. Impact of hotel
website quality on online booking intentions: eTrust as a
mediator. International Journal of Hospitality Management, 47, pp.108-115.
York Hotel Singapore | Loyalty Program Singapore | York Loyalty. (2019). Retrieved
from https://www.yorkhotel.com.sg/york-loyalty-membership.html