Global Hospitality & Tourism Issues: TurnKey's Hotel Impact Analysis

This report investigates the global hospitality and tourism issues, specifically focusing on the impact of TurnKey Vacation Rentals on the hotel industry. The introduction provides context on the challenges of competition within the industry, and the report then assesses the success of TurnKey, examining its business model, the services it offers, and its appeal to travelers seeking alternative accommodation options. The analysis includes a discussion of current trends in the accommodation sector, such as local experiences, healthy food options, technology integration, and sustainability, which contribute to TurnKey's success. The report then explores the impact of TurnKey on the hotel industry, highlighting how it has become a significant competitor by offering personalized services and unique experiences. The second part of the report then provides strategies that the hotel industry can use to minimize the impact of TurnKey, including product differentiation (product positioning, service differentiation, and image differentiation) and fostering long-term consumer loyalty through frequent communication, rewards, and personalized customer service. The conclusion summarizes the key findings and strategies discussed in the report.

Global Hospitality & Tourism
Issues

Table of Contents
Global Hospitality & Tourism Issues..............................................................................................1
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
Success of TurnKey and its effect on the hotel industry.............................................................3
TASK 2............................................................................................................................................5
Strategies of Hotel Industry to minimise actual and potential impact of TurnKey.....................5
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Global hospitality and tourism issues are those issues which affect industry on level at
once. Such issues include various things and one things which affects the most every business is
those competitors which provide similar and substitute solutions and services. One such issue
have been addressed in this report. In this report effect of TurnKey Vacation Rentals' (which
offers a unique service to its customers in form of houses that they can rent for their holidays
instead of hotels) effect on hospitality industry have been evaluated. Later what hotel industry
can do to minimize actual and potential impact of Turnkey on its business.
TASK 1
Success of TurnKey and its effect on the hotel industry
TurnKey which provides the service of vacation rentals in forms of homes and villas.
This is a new and modern approach which allows people to stay at home when they are going for
a vacation instead of traditional idea of living at hotels. In this concept people who are owner of
the property list their property with TurnKey and those who are interested in living at homes and
villas during their vacation can book those from the company (Liggio and Haggerty, 2019). To
do this TurnKey's local hospitality and care team work the technology of TurnKey to deliver the
highest standard of service for every home, every stay, every time. In this form of business guest
and those who book homes for their vacation pays for their stay and home owners get their pay
and TurnKey works as broker and earn its commission. In a very short time TurnKey have joined
thousands of home owners with it across the US which offers more destination and places to
people where they can spend their vacation. TurnKey also employ people from locals who are
well known to the place and they know the locals and place very well this contributes in their
better service to the guests. This team is dedicated for the TurnKey owner which focus on the
success and care of their home. Other than this TurnKey also maintains best housekeepers in al
its markets so house is always clean and al the time ready for the guest.
Current trend in accommodation sector are adding to the success of TurnKey and along
with that current trend also requires that TurnKey keep working on increasing its standards of
service that it provides. Some of the current trends are as follows-
Local Experience- This trend in accommodation sector is increasing day by day and travellers
and guest desire to enjoy local experience. This is a positive factor for TurnKey as in this people

who are on vacation stay at house and local team of TurnKey can manage that the guests have
the best local experience and for that TurnKey employs local people who are well versed with
the place.
Healthy and Organic Food and Drinks- Another trend in accommodation sector is that with
increasing number of people becoming health conscious they want to have healthy and organic
food which do not affect health negatively (Apte and Davis, 2019). It is possible for people to
have healthy and organic food when they stay at home as this provides personalised service to
the guest and along with that local experience of the guest can also include local food experience
of people.
Technology- Growing impact of technology on every sector have not excluded accommodation
sector from this. Technology gives more and better customization, convenience and control than
before. One unique addition in the experience of vacation have been added by TurnKey with
help of technology is that it have introduced door code instead of keys this allows that guest can
leave anytime and eliminates the problem of losing the key.
Sustainability- People are becoming more aware of nature and natural sources and do like to
associate with the companies and services which are ethical in their practices. People when stay
at home during their vacation they do not have to think about such issues as house owner doing
any unethical practice have less chances than big hotels doing so. Along with this TurnKey also
needs to take steps for being more responsible towards environment and society (Mele, Gomez
and Garay, 2019). In this their first step is that they give best services and assistance to TurnKey
owners which are in first contact with the guest and experience and perception of guest is mainly
affected by those only.
Other factor which contribute in success of TurnKey is tourist type. First factor in this is
that the TurnKey operates in US and people of US like to follow their own cultural framework
and that is why they are more likely to visit local places during their vacation so that they can
enjoy authentic local experience. There are various other factors which can include in this such
as decision of tourist depend upon few factors like facilities, electricity, water, proper
accessibility etc. houses of TurnKey do have all such things which is another factor of is success
tough all the hotels do also have such factors but they miss the authentic local experience that
home stay from TurnKey can provide.

In relation with the impact of TurnKey on hotel industry. Existence and success of
TurnKey definitely have added it in the competitors of hotel industry. There are various things
and factors which make TurnKey a preferred choice for the travellers. Important element in this
is increasing people with desire to have authentic local experience (Zavodna and Pospisil, 2016).
TurnKey definitely do this better than any hotel can do. Other aspect is that it is able to provide
more personalised service to guests than hotels. Hotels are concerned about many people at a
time and TurnKey is not concerned about that many people at a time.
In this manner hotels have competition from TurnKey. This is a relatively new experience than
traditional hotel living which is also a factor that attract many people to stay at houses and this is
possible and easy through TurnKey. There are some reasons which make TurnKey a better
option than any other site which offers the same service and which is why TurnKey is a strong
competitor for hotels (Njuguna, Namada and Muchara, 2019). This have impact on its business
as those who are using hotels and its services during their vacation and travels now have a more
choice in their options.
TASK 2
Strategies of Hotel Industry to minimise actual and potential impact of TurnKey
The world is getting more and more competitive with each passing day and reason behind
this is ever increasing number of people who are able to provide same and similar services. This
situation requires that companies are able to increase the sales of their products and services. In
this report TurnKey and its vacation rental services were discussed with the factors which make
TurnKey a preferred choice for the travellers (Sukawati and Astawa, 2017). TurnKey when
provides vacation rentals for the travellers and tourists it affect the business of hotel industry and
to deal with that and minimize the impact of TurnKey on its business hotel industry needs to
develop some strategies which are as follows-
Product Differentiation
Widely used and one of the most effective strategy which can reduce actual and potential impact
of TurnKey on hotel industry. Product of the hotel industry is their hospitality services which is
advantage for the industry that it is very easy to differentiate based on different perception of the
people who are using their service. But though hotel industry need to strategies their product

differentiation for which there are various factors which hotel industry need to consider.
Strategies of product differentiation is as follows-
Product Positioning
This refers to occupying a different place in the market and setting the organisation apart from
others, in relation with this hotel industry includes many organisations which are part of this
industry (Giantari and Jatra, 2019). This includes that all the organisations in the industry adopt
their different positioning strategy which they think is suitable for their organisation. For the
objective of positioning organisation can target a specific group of people, doing one or few
things very well which can set apart organisation. Providing something which every organisation
cannot provide.
Other differentiation strategies are-
Product Differentiation- This refers to differentiation of the product of the company in context
of hotel industry. Differentiation of its services.
Service Differentiation- This refers to differentiation of service which refers to supporting
elements and customer service.
Distribution Differentiation- This refers to differentiation in distribution channel of the
company (Magnini and Simon, 2016). In context of hotel industry this is not possible reason
being it does not provide any type of physical goods which can be delivered by any distribution
channel.
Relationship Differentiation- This includes difference on the basis of company personnel,
employees and associates, team members with customer interface can provide and demonstrate
competence, courtesy and responsiveness.
Image Differentiation- There are various factors which manage and control image of the
organisation such as communication, advertising and media of al types. Organisation can
differentiate its image on the basis of this image.
Price Differentiation- This refers to difference of the price of services which an organisation
charge from its customers. There are various type of price strategy which are low price strategy
and premium price strategy. Hotel can chose suitable strategy which can differentiate it from
other and which can specially compete with TurnKey.
Fostering of long term consumer loyalty

Consumer loyalty is an effective way and strategy using which hotel industry can
minimise the impact of TurnKey on its operations and profitability. Consumer Loyalty refers to
the extent to which consumers are dedicated for a organisations' products and services. This
refers to tendency of consumers which make them chose only one brand from the various
choices available (Vaičiukynaitė and Gatautis, 2018). This is a very effective way which can
reduce and minimise impact of TurnKey over Hotel industry. This is possible in manner that
when consumers are loyal for a hotel organisation even when they have option of TurnKey they
will use services of hotel only. This loyalty of customer is a result of customer satisfaction and
customers who have positive and happy experience at hotel. Significant factor of customer
loyalty is that customers chose one hotel even when TurnKey can give better services. But there
are some strategies which hotel industry can use to build and enhance customer loyalty.
Frequent Communication with Customer
Hotel industry should maintain frequent communication with its customers. To give all the
information to customers even when they do not ask for it. There are various ways in which hotel
industry can do this. Social media, Email are some platforms through which hotels can regularly
contact and communicate with its customers to maintain and enhance their loyalty for the hotel.
Giving rewards to loyal customers
Hotel should reward those who are loyal to the organisation to know about the loyalty of people
who have been loyal for the organisation they can check past records and stay of people. In this
hotel should consider brand loyalty instead of loyalty to a particular hotel. Rewards will enhance
loyalty of the customers of the people.
Know the Customer
This is very important strategy to build and maintain customer loyalty (Bowen, 2017). Hotels
when know their customer they are able to provide more personalized service to their customers
and along with that they are able to make their customers feel special and this can build and
increase loyalty of a customer for a brand and its hotels. This is because everyone likes it when
they are treated differently and specially.
These strategies will help hotel industry to reduce and minimise impact of TurnKey.

CONCLUSION
On the basis of this report it can be concluded that there are various issues that a
company and hotel faces which required to be dealt very effectively to avoid their impact on its
profitability. One such issue is the company who are providing substitute products to customers.
In this report TurnKey which provide services for vacation rentals which affect business of hotel
industry. There are some specific features which make a good choice for the customers that they
can avoid hospitality services and move towards services of TurnKey. This report have included
some strategies using which hotel industry can minimise impact of TurnKey.

REFERENCES
Books and Journals
Apte, U. M. and Davis, M. M., 2019. Sharing economy services: Business model generation.
California Management Review. 61(2). pp.104-131.
Aznar, P and et.al., 2018. Airbnb competition and hotels’ response: the importance of online
reputation.
Giantari, I.G.A.K. and Jatra, I. M., 2019. The Role of Differentiation Strategy and Innovation in
Mediating Market Orientation and the Business Performance. Economic Research. 3(6).
pp.39-60.
Liggio, B. and Haggerty, J., 2019. Mergers and acquisitions: Impact on the real estate technology
revolution. Corporate Real Estate Journal. 9(2). pp.171-184.
Magnini, V.P. and Simon, C.J., 2016. Fostering service quality in hotel chains through a focus on
employee development and performance. In The Routledge Handbook of Hotel Chain
Management. (pp. 331-340). Routledge.
Mele, P. M., Gomez, J. M. and Garay, L., 2019. To Green or Not to Green: The Influence of
Green Marketing on Consumer Behaviour in the Hotel Industry. Sustainability. 11(17).
pp.1-17.
Njuguna, J. N., Namada, J. and Muchara, M., 2019. Differentiation strategy, firm structure and
performance of star rated hotels. International Journal of Research in Business and
Social Science (2147-4478). 8(6). pp.08-14.
Sukawati, T.G.R. and Astawa, I.P., 2017. Differentiation strategy and competitiveness of hotels:
A case study in Ubud, Indonesia. In Enhancing Business Stability Through
Collaboration. (pp. 343-353). CRC Press.
Vaičiukynaitė, E. and Gatautis, R., 2018. How hotel companies can foster customer sociability
behaviour on Facebook?. Journal of business economics and management. 19(4).
pp.630-647.
Zavodna, L. S. and Pospisil, J. Z., 2016. A Model of Sustainability in the Accommodation
Sector. International Journal of Economics and Management Engineering. 10(9).
pp.3174-3178.