MOD006065 - Turnkey and its Effects on Global Hospitality Trends

This report examines the impact of Turnkey, a multicultural hospitality firm, on the global hospitality and tourism industry. It explores the concept of Turnkey within the sharing economy, focusing on its consumer demographics and the trends it has influenced in the accommodation sector. The report discusses how Turnkey provides rental rooms and homes, offering travelers a residential experience with amenities like full kitchens and 24/7 guest support. It also analyzes the strategies that the hotel industry can employ to minimize the potential impact of platforms like Turnkey, including the effective use of innovation and technology, as well as product differentiation. The report concludes that vacation rental homes have gained popularity, segmenting customers based on demographics, and that technological advancements have positively affected the accommodation sector. The hotel industry should adopt strategies like product differentiation and technology to compete effectively with rental home platforms.

GLOBAL HOSPITALITY
AND TOURISM ISSUES

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
QUESTION 1...................................................................................................................................3
Concept of Turnkey......................................................................................................................3
Consumer demographics..............................................................................................................4
Trends within accommodation sector..........................................................................................5
QUESTION 2...................................................................................................................................5
Effective use of innovation and technology-................................................................................5
Product Differentiation-...............................................................................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Hospitality as well as tourism industry is basically the wide sector which mainly deals in
providing the leisure services to the customers like accommodation, lodging services, leisure
travel etc. The main aim of this report is to study the impact of Turnkey on the hospitality
industry. Turnkey is predominately the multicultural hospitality firm which is based in
Downtown Los Angeles and mainly provides the commercial, residential homes to the travelers
providing the great blend of residential and multifamily design.
This report gives a brief overview of concept of Turnkey, consumer demographics, trends
in accommodation sector, product differentiation and technology as well as innovation.
MAIN BODY
QUESTION 1
Concept of Turnkey
Sharing economy is basically the economic model which is referred to as peer-to-peer
based activity for acquiring, sharing as well as providing the access to products and services
which are facilitated by the community-based online platform. The sharing economy has
basically transformed the hospitality as well as travel industry and has taken a drastic turn since
the advent of advanced technology. Since global recession, travel as well as hospitality industry
have become the fertile ground for sharing economy and has affected the industry in a great way.
In this, the Smartphone-equipped travelers mainly rent the apartments as well as rooms through
the various services like Airbnb, getting car from Zipcar and Turnkey (Qian and et.al.,2019).
Within this home-sharing market, Turnkey has become the highly successful as well as popular
platform upon which the people generally relies on to make their travel experience highly
memorable as well as exciting. Turnkey is one of the great platform which provides the people
travelling to various locations the rental rooms and homes for giving them the feeling of house.
Turnkey majorly provides the distinctive as well as professionally cleaned rooms fully equipped
with various facilities like full kitchens, 24/7 guest support, complementary Wi-Fi etc. This has

made the concept of sharing economy highly imperative and thus provides a great place for the
travelers to stop and check-in making the experience of guests unforgettable. Just like the car
companies as well as traditional hoteliers, Customers can book the homes by paying the required
fees and take the feel like they are at their own house. Turnkey has entered into the sharing-
economy act and has invested a huge amount on the vacation rental platforms and has progressed
through the numerous technological advancements. The use as well as biggest benefit of this
sharing economy is that it allows the users to connect with the sellers through the online platform
like Turnkey and thus provides peer-to-peer platform where organizations generally allows
individuals to lend the money at cheaper rates (Jovicic, 2016).
Consumer demographics
The consumer demographics are basically categories of the consumer population which
are relevant to the purpose of business like marketing as well as product design. Demographics is
one of the major aspect of the customer segmentation and thus helps the organizations to
effectively target the market segment in which they want to advertise as well as promote their
products and services. Turnkey mainly segments its customers on the basis of their demography.
The company mainly targets its products as well as services according to the different types of
tourists. Thus, their service ranges from tourist to tourists. In the consumer demographics,
customers are mainly divided on the basis of their gender, age, income, race, education,
disabilities etc. Turnkey mainly relies all its decision as well as activities on this basis which
helps them to gain competitive advantage over the hotels and thus establish position in market.
Talking of the gender, Turnkey mainly targets both the gender and thus their services and
products are focused towards both male and female tourist types (Henderson, 2017). For
example- Turnkey has two divisions of the rental homes where the facilities and services differ
according to male and female. Besides this, Turnkey mainly segments its customers on the basis
of their marital status and thus mainly targets newly married couple and families. For example-
Turnkey provides the range of rooms as well as homes which differ for married couples and
families. Like in case of newly married couples, it has range of honeymoon rooms where their
privacy are given the utmost importance while on the other hand, for large families Turnkey has
premium and ultra premium rooms as well as homes depending on the size of family. Along
with this, another dimension which Turnkey considers while segmenting its customers is income.
Turnkey mainly targets the high class people having a great income to afford its high prices. For

example- the price of its ultra premium homes is around $5000. Thus, as its provides high quality
services thus it mainly targets high income groups (Saner, Yiu and Filadoro, 2019).
Trends within accommodation sector
The accommodation sector has taken a drastic turn and there has been a large number of
trends that has taken place within the accommodation sector
Technological advancements
Since the emergence of globalization there has been the advent of various technological
advancements and these have dominated the accommodation sector to a high extent. Now each
and every hotel as well as lodging services has now equipped themselves with this changing
scenario for gaining the competitive advantage and for establishing position in the market
(Rahimi and et.al.,2017). One of the major step taken by Turnkey towards the technological
development is that this platform has started the use of door codes instead of keys for the rooms.
The major advantage of this technology is that it allows the users to leave whenever and
wherever they want without worrying about loosing the keys. Users have the great freedom to
simply open their rooms through entering the code.
Healthy as well as organic food
This is one of the major trend which has surrounded the accommodation sector. As
nowadays, people have become highly oriented towards leisure traveling and along with this
people has also become highly health conscious and mainly spend large amount of money on
organic food. Thus, in view of this Turnkey has adopted itself by adapting to this trend. Turnkey
is highly equipped with the quality kitchens having trained chefs who are focused towards
complying with food standards and thus delivers the healthy and organic food having natural
elements (Nair and et.al.,2016).
QUESTION 2
The two main strategies that can be used by hotel industry to effectively minimize the
potential impact of the Turkey. This is mentioned below-
Effective use of innovation and technology-
The effective use of innovation and technology is very sentential in the hospitality
industry. It is helpful for them to gain huge consumer toward the hospitality industry. They must

introduced new technologies into their business through which they can have great growth. The
companies under hospitality industry should have several technologies so that they can satisfy
their consumer to the great extent (Fyall and et.al.,2019). This is helpful for industry to render
great services to their consumers and guest who are willing to take services with hotel. This is
helpful for them to gain huge competitive advantage among its rivals. There are several
innovations which are introduced under the industry so that they can let their guest to enjoy the
extraordinary services which are given by them. There many technologies which will be liked by
the guest of the hotel and that must be included by the hotel to satisfy their consumer as whole.
They let their consumer top have applications through which they can operate all of their hotel
services directly they will not need to have any disruption because of it this allowed them to have
an effective impression on the company. They are no rendering nay technologies to their guest
this helps industry to gain interest of their guest towards company and thus they will switch to
have services within the organization under this industry. All the companies need to have
technologies in their operation so that they can easily handle all of their business operation and
conduct their further business activities in smooth flow. Through this they can easily compete
with their rivals into the marketplace. This enhances the brand loyalty of the companies under
the industry and let them to gain a loyalty base for their consumer. The brand loyalty of company
will significantly enhance if they had implemented the innovation and technologies into their
business operation through which they can grow effectively.
Product Differentiation-
The product differentiation is so much attractive to gain interest of consumer towards the
company. Overall the companies and business under the hospitality industry should have
differentiated product range so that they can enhance their consumer interest towards the
particular company or business. For gathering the attraction of tourist towards the hospitality
industry they need to attract the consumer through differentiate products as compare to Turnkey.
As they are rendering the rental vacation services to their guest with the quality services at
vacant homes and thus guest needs to pay the charge with the rooms in the form of rent. Thus,
this had impacted the hospitality industry to great extent so further for diverting the interest of
consumer towards the industry they also need to provide and differentiate product. Further, for
that they can render the appropriate services and quality rooms at minimum pricing so that more
and more consumer can be attracted to visit the hotels rather than going to the rented rooms of

Turnkey (Kasemsap, 2018). They must need to implement these strategy for enhancing their sale
and number of visitors to the industry. As there are many competitions available in the market
each and every business under the industry need to introduce the differentiate product so that
there consumer do not switch to the other company or industry for having or opting eh services.
There are many other sources through which they can have several changes into their company
and enhance consumer's interest towards company under these industries. The company to gain
their objective and enhance the number of visitor should apply these strategies. This is further
helpful in gaining an competitive advantage among their rivals.
Thus both of these strategies are very helpful for the hospitality industry to maintain their
brand loyalty across the market and further compete with rivals effectively. The companies need
to implement these strategies through which they can establish the loyalty base for their
consumer. They must render the effective services to the guest ad visitors so that they are
motivated to visit again the hotel and enjoy the services again. This can only be done by
implementing technologies and innovation into their business as whole and further they also
develop differentiated product and services as compare to their rivals so that the can hugely
satisfy their consumer. By rendering quality services to the guest they can gain their interest
towards industry (Richards, 2018).
CONCLUSION
It has been summarized that the vacation rental homes have gained a great popularity
since past few years and have entered the concept of sharing economy. These rental homes
platforms mainly segments their customers on the basis of various variables but major variable
upon which customers are segmented is their demographics like income, gender etc. The various
trends like technological advancements have helped the accommodation sector to a great extent
and have affected it positively. The hotel industry should use various strategies in order to
protect themselves from the potential impact of these rental homes platforms like product
differentiation, adapting themselves to the recent technology etc.

REFERENCES
Books & Journals
Fyall, A and et.al.,2019. Marketing for Tourism and Hospitality: Collaboration, Technology and
Experiences. Routledge.
Henderson, J., 2017. Global cities, Tokyo, urban tourism. International Journal of Tourism
Cities.
Jovicic, D., 2016. Cultural tourism in the context of relations between mass and alternative
tourism. Current Issues in Tourism.19(6). pp.605-612.
Kasemsap, K., 2018. Encouraging corporate social responsibility and sustainable tourism
development in global tourism. In Operations and Service Management: Concepts,
Methodologies, Tools, and Applications (pp. 1028-1056). IGI Global.
Nair, V and et.al.,2016. How can the tourism industry respond to the global challenges arising
from climate change and environmental degradation?. Worldwide Hospitality and
Tourism Themes.
Qian, J and et.al.,2019. Trends in Global Tourism Studies: A Content Analysis of the
Publications in Tourism Management. Journal of Quality Assurance in Hospitality &
Tourism.20(6). pp.753-768.
Rahimi, R and et.al.,2017. Customer relationship management research in tourism and
hospitality: a state-of-the-art. Tourism Review.
Richards, G., 2018. Cultural tourism: A review of recent research and trends. Journal of
Hospitality and Tourism Management.36. pp.12-21.
Saner, R., Yiu, L. and Filadoro, M., 2019. Tourism development in least developed countries:
challenges and opportunities. In Sustainable Tourism: Breakthroughs in Research and
Practice (pp. 94-120). IGI Global.