Analysis of Strategic Business Development and Hotel Industry Changes

This report provides a comprehensive analysis of the evolving hotel industry, focusing on strategic business development and key drivers of change. It examines the shifts in hotel ownership and operating models, including asset management strategies, the growth of online reservation systems, and the proliferation of lodging alternatives. The report delves into the impact of these changes on the industry, considering factors such as customer expectations, technological advancements, and socio-cultural influences. Furthermore, it assesses the quality of labor within the hotel sector and its implications. The report concludes with a synthesis of the benefits of these changes and the overall impacts on the hotel business, offering insights into the future of the industry. It also explores the influence of political and economic factors on the hotel business.

Changes in Hotel Industry
Report
Student name

Executive summary
In this report, strategic business development and key driver of change will explain in details and its
benefits to companies with the help of theories. This report will describe about the changes in business
of the hotel industry in terms of ownership and operating models. This report is based on the hotel
business and its changes in present era. It will consider three points, which are asset management,
online reservation system, and proliferation of lodging alternatives. It will provide different benefits of
assets recycling to hotels and advantage of development of online marketing and reservation systems.
In conclusion, it will conclude with benefits of changes in the hotel business and impacts of ownership
and operating model.

Contents
Executive summary.....................................................................................................................................1
1.0 Introduction...........................................................................................................................................3
1.1 Authorisation and purpose of the report...........................................................................................3
1.2 Hindrances and limitations encountered...........................................................................................3
1.3 Scope of the report............................................................................................................................3
2.0 Strategic Business Development...........................................................................................................3
2.1 Theory of change and expectations...................................................................................................3
2.2 Key drivers of change.........................................................................................................................4
3.0 Current Changes in Hotel Ownership & Hotel Operating Models..........................................................5
3.1 Changes in hotel’s asset strategy.......................................................................................................5
3.2 The growth and development of online reservation systems............................................................5
3.3 The proliferation of lodging alternatives...........................................................................................5
3.4 The quality of labour..........................................................................................................................5
4.0 Analysis..................................................................................................................................................6
4.1 Hotel’s Asset Strategy Changes.........................................................................................................6
4.2 The growth and development of online reservation systems............................................................6
4.3 The proliferation of lodging alternatives...........................................................................................6
4.4 The quality of labour..........................................................................................................................6
5.0 Conclusions............................................................................................................................................6
5.1 Hotel’s Asset Strategy Changes.........................................................................................................6
5.2 The growth and development of online reservation systems............................................................6
5.3 The proliferation of lodging alternatives...........................................................................................6
5.4 The quality of labour..........................................................................................................................7
References...................................................................................................................................................9

1.0 Introduction
1.1 Authorisation and purpose of the report
Many industries are successful because of its services and satisfaction of customers. This report will
provide strategic business development using theories and expectations and key drivers of change.
Companies make many changes to grow their business at global level in their business models and
business processes. It provides benefits to customers and companies in terms of cost (Smith, 2018).
This report will include current changes in ownership and operating models of hotel industry. It will
analyse three things, which are hotel’s assets strategy change, growth and development of online
reservation systems and proliferation of lodging alternatives.
1.2 Hindrances and limitations encountered
This report will provide external and internal impacts on hotel industry through current chnages of
ownership and operating model only. It will cover onnly three changes in the hotel business.
1.3 Scope of the report
This report will provide critical analysis on current changes in the hotel industry including ownership and
operating models. It will provide key drivers of changes in the hotel industry. This report wills analyses
different factors of hotel industry.
2.0 Strategic Business Development
Customers of any industry want changes in assets most of the time with latest improvement in facilities
provided by organization. It is a big challenge in front of organizations that provide changes in services
and products with innovative innovations. It is cost effective and time taken process.
2.1 Theory of change and expectations
Technologies make huge impacts on business of an organisation. Artificial Intelligence (AI) provides help
to create innovative innovation, which is used in the business and society improvement and
development (Benjamins, 2006).

AI makes replaces legacy systems with new systems, which are enable to increase performance of
companies. Most of the companies use information system to manage their business processes. AI
provides innovative ideas to improve those operations of companies (Castelluccio, 2017).
According to (Dwyer, 2009), communication skills are highly required in most of the businesses. Effective
communication makes a strong relationship between clients and companies, which is beneficial for
business of a company.
Business model can be used for managing different operations and functions of a company. Therefore,
most of the companies follow a business model to improve and grow in the marketplace ( Franken,
2014).
2.2 Key drivers of change
2.2.1 Political influence
Business affects from political changes in national and international market. Government changes tax
rates and it will make huge changes in the business of most of the companies. There are many changes
in the business because of political changes in a country ( Wozniak, 2019).
2.2.2 Customer expectations
Customers are always expecting changes in products and services with high rate of changes. There are
different types of expectations based on the customers, such as implicit, explicit, situational, and
technological (Smith, 2018).
2.2.3 The changing economic environment
Economy of a country makes huge impact on the business of companies, as it is directly make huge
impact on inflation rate, interest rate and tax rates. Therefore, it is necessary to manage changes in
economy of a country. Investors make their decisions based on the economic conditions of companies
( Chen , 2018).
2.2.4 Technological changes
A technological change makes huge impacts on the business on an organization. Technologies make
better performance of different functions of company, which is good for the business ( Petersen, 2019).
In market, new technologies are occurred in frequent basis. Therefore, it is necessary to implement
them to increase business of hotels and take competitive advantages, such as Cloud ERP, data analytics,
inventory management, CRM, HRM, and many others.

2.2.5 Socio-culture changes
Companies face cultural diversity and social issues in their working processes especially in international
organizations, which makes huge impacts of business of organization (Hill, 2008).
2.2.6 Environmental changes
Environment affects business of many companies of different countries because of their environment
conditions, such as heavy rainfall, heavy cold, and many other things. Environment makes changes in the
working time of companies ( Kramer, 2013).
Climate change is a huge issue in front of whole world. Therefore, it is necessary to consider by hotel
industry as well. Sustainable development is highly required to reduce pollution from their different
business processes.
3.0 Current Changes in Hotel Ownership & Hotel Operating Models
Hotel managers have competencies because of different changes in ownership and operating models. It
makes huge impacts on the growth of hotels (Bharwani & Talib, 2017). Ownership makes a huge impact
on growth and development of hotel. In addition, most of the hotels are successful in the market
because of their ownership (Turner & Guilding, 2014).
3.1 Changes in hotel’s asset strategy
Asset management provide huge returns to the hotel industry, which is beneficial for expending their
business in international market. Qualities make impacts on the business of hotel industry (Arbelo-
Pérez, et al., 2017). Asset management strategy makes a huge impact on profit of hotels. It saves extra
cost of recycling infrastructure and other things in proper way.
3.2 The growth and development of online reservation systems
The hotel industry can grow using growth and development of online reservation systems, as it provides
huge business to the industry rather than offline systems (blog.staah.com, 2017).
3.3 The proliferation of lodging alternatives
In present era, many alternatives are available of lodging, which makes business of hotel industry low
and it makes huge losses in term of revenue. Therefore, hotel’s owners reduce services and innovations
from their facilities (Yamada-Hosley, 2014). Hotel operators manage different processes in low cost and
cheap labour, which makes satisfaction in customers (Whiteling, 2010).

3.4 The quality of labour
The hotel industry is based on the quality of labour, as customers get different services from employees.
It is a reason of high cost of labour in the hotel industry (Mandelbaum , 2016). Labour is costly in
selected areas also because of high demands and less supply, such as tourist destinations. The hotel
industry makes more changes in the selection process of the labour and provides different benefits to
them to reduce retention rate.
4.0 Analysis
4.1 Hotel’s Asset Strategy Changes
Asset management provides huge benefits to the hotels, as asset recycling requires a huge amount and
asset management can provide better returns from legacy systems and different things at proper time.
The hotel industry makes many changes in their interior and exterior designs based on the innovations
and customers’ requirements.
4.2 The growth and development of online reservation systems
Online reservation systems provide benefits in term of number of customer’s visits hotels. It is the best
way to attract customers, provide best services, and make a good relationship with them to visit again,
which is good for their business. Marriot takes feedbacks of customers and change required things in
their system, which makes huge impacts on their business ( Solis, 2018).
4.3 The proliferation of lodging alternatives
The hotel industry is highly influence from alternatives of hotels, such HomeAway, and other rental
services of different vendors. Customers change their thoughts from hotels to its alternatives because of
many reasons, such as cost, services, and availability.
4.4 The quality of labour
Labour is too costly in the hotel industry, as it required highly educated workers, as compared to other
businesses. Therefore, it is necessary to manage huge cost of labour from other business processes.
Labour is a huge factor in the hotel industry and it is tough task to manage labour cost in this industry.

5.0 Conclusions
5.1 Hotel’s Asset Strategy Changes
In conclusion, asset management will provide benefits to the hotels as well as it will beneficial for many
things, such as environment, economy, and many more. Asset management is a huge process and it can
manage different things of hotel, which can provide profit to the hotel.
5.2 The growth and development of online reservation systems
Offline systems are not feasible and less effective in present era. Therefore, the hotel industry should
grow and develop online reservation systems to enhance their business in international market. Online
reservation system is user friendly and it makes easier different processes, such as bookings,
reservations, and many other things.
5.3 The proliferation of lodging alternatives
Lodging alternatives develop because of few reasons, such as high rent, less services, quality of
products, and many others. Hotels can provide better service to their customers and take feedbacks of
them. Hotels make changes based on customers’ requirements, which can divert customers to towards
hotels.
5.4 The quality of labour
Labour has required huge cost in between other expenditures of hotels. Owners make this factor in their
consideration and it will provide better benefits to them. Employees make customers satisfied with
many services and products of hotels. Therefore, it is necessary to different services in better way and
provides flexibility and scalability of services to make customers satisfied.

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