HOSPITALITY INDUSTRY OF UK

Executive Summary

The hospitality industry is considered as an amalgam of businesses, public agencies and non-profit organizations that make an effort to provide quality services to its customers away from their homes. The Inns in the Provinces (UK barring London) are appreciating a decent year. Taking after on from 10.4% income for each accessible room development in 2014 and expect a further 6.3% development this year and 4.2% in 2016.There are different aspects of hospitality business that needs to be addressed before making a move in the industry. The customer analysis for commencing a hospitality business is one of the building blocks.  The portion of customer analysis deals with customer segments that firm will serve. It is considered as an important practice to identify the target market before starting a business (Berry, Carbone and Haeckel, 2002). This report discusses the specifications and needs of the target market selected by British Hospitality Association (BHA). The target market for this study is the generation who born during early 1980s to early 2000s. This generation is more confident, self-expressive and more knowledgeable so the association is targeting this segment of market. There are certain challenges that are being faced by association in terms of its customer’s retention and internal management. In the customer and product analysis section, different challenges have been discussed whereas in conclusion, there are certain suggestions being provided in order to overcome the challenges. The SWOT analysis of BHA has been mentioned in the product analysis.

Customer Analysis

 

The British Hospitality Association has been working intimately with individuals to urge them to utilize manageable palm oil in their store network. Their canvas of the business has demonstrated that most organizations are now finding a way to move toward maintainable palm oil items, or are occupied with doing as such sooner rather than later (Brown et al., 2005). Over the previous year, under the protection of the BHA, a group of Food Safety and Risk specialists from over the neighborliness business have been working with the Food Standards Agency in England and Wales, to overhaul the Industry Guidance on Food Safety. Taking after open conference not long from now, the amended direction is required to be issued to industry in mid-2016. The affiliation lauds the Food Standards Agency for their cooperative way to deal with overhauling the direction for industry.

 

At current, there are certain challenges being faced by British Hospitality Association and hospitality industry. Some challenges are old, some are recurring and some are new but in all they are affecting and reshaping the market. The customers are demanding outstanding and customized experiences. The firm needs to understand the needs and demands of the customers. In order to retain a position in the market, company needs to develop value proposition strategy that directly addresses the customers’ needs. Considering the generational influences, individuals born during the early 1980s to early 2000s are becoming the generation of influences. Their consumption and travel behaviours have the taste of both older and younger generations. The British Hospitality Association needs to address these evolving customers. Such type of customers is considered as open-minded, confident and self-expressive generation. The British Hospitality Association needs to understand the psychology of these customers as they can be considered as source of positive word of mouth(Caruana, 2002).

 

In order to fulfil the demands of the evolving generation, tourism companies need to access and leverage the right information at the right time. In present era, most of the companies have rich technological information but they are poor in analyzing the customers’ trends. There are certain laws regarding data sharing under practice in different countries around the globe. The British Hospitality Association is facing the challenge of determining the correct information from the primary data and how to distribute it to internal and external stakeholders. There are other times when company was unable to analyze the insights and innovations that can create measurable and sustainable return on investment (ROI) (Anderson and Mittal, 2000).

Another important challenge is developing and implementing effective recruitment strategy for the companies. When employees of a company are not motivated then company will lose its loyal customers so retaining skilled and motivated employees is also a tough job. According to the Bureau of Labour Statistics, hospitality industry has the highest turnover rate in the past year. The studies suggested that employees do not see any career advancements in hospitality industry. The association should work on retaining the employees by offering motivational trainings and career counselling workshops.  If an employee is not motivated then he cannot provide quality service to the customers and in turn the association can lose its loyal guests. If customers are happy then they will generate positive word of mouth which will be considered as one of the opportunities to increase the profits. The customers always look for best quality and it is also one of the key components to motivate them and make their minds for second trip to the same destination (Gilmore and Pine, 2002).

Product Analysis

The product analysis is considered as a requirement for satisfying the changing needs and demand of customers. The product analysis also helps in maintaining the profit figures high on the graph at the end of each fiscal year. In an ideal condition, tourism products meet demands of marketplace, are cost-efficient and composed of cultural and natural resources of the destination (Binkhorst and DenDekker, 2009).

Client experience consolidates company–customer communication that incorporates both utilitarian and passionate pieces of information created through various touch focuses. Consumer loyalty impacts both brand faithfulness and informal, and the backhanded impact of consumer loyalty on verbal exchange through brand devotion is much solid. A hotel classification system is being operated by British Hospitality Association (BHA). This system has a data of around half of all accommodation units and around 70% of all hotels have been classified. With the help of the system, the association is being able to analyze the saved data of guests. The data helps association to design new strategies in order to attract new customers.  The operators have identified a need to improve the quality standards to stimulate the demand. The increasing rate of online review sites continues to be considered as an open opportunity in terms of marketing of services to the target market (Garbarino and Johnson, 1999).

The competition has been raised in the hospitality industry so the entry barriers are being more rigid. The new entrants have to pass couple of hard barriers in order to come into the market. The existing companies have to maintain its competitive advantage to survive in the marketplace. Late cases incorporate Marriott's declared takeover of Starwood Hotels and Resorts Worldwide for $12.2 billion, and AccorHotels' expressed arrangements to get Raffles, Swissôtel and Fairmont by issuing 46.7 million new Accor shares and paying $840 million in an offer to reinforce its position in the extravagance section. The opposition nature is additionally being changed as new business techniques need to address the necessities and requests of the advancing clients. For example, the world's biggest convenience supplier, Airbnb, does not possess a solitary lodging room. The biggest chauffeured auto administration, Uber, does not claim a solitary auto. What's more, the biggest feasting reservation booking administration, OpenTable, does not claim a solitary eatery (Gentile, Spiller and Noci, 2007).

The team of British Hospitality Association (BHA) comprises of specialists with point by point learning of all divisions of the buyer markets industry, including shopper merchandise, retail, clothing, neighborliness, and media. The affiliation conveys this center to its customers and has the extra favorable position of having the capacity to accomplice crosswise over areas and with practical specialists to convey imaginative answers for the human capital needs of its customers. The experience of British Hospitality Association with noteworthy rising ability needs, for example, computerized advertising, client experience, e-trade, item development, and online frameworks has provided keen insight to the association in order to understand its target market. Now a day, customer is more knowledgeable so the companies are facing hard times in the market to retain their loyal customers. The association can utilize the expertise of its skilled team in favor by updating its customers regarding changing trends by introducing an application for smart devices.  The online application for smart devices will help customers to keep themselves updated regarding the prices and services of the association. It will also help customers to make online reservations for their trips. The business organizations will book their official trips online and association can also offer them discounts. Individuals are more knowledgeable than before. With the help of online application, the association can update its customers regarding new vacation plans and new trends in the hospitality industry.                              

Strengths

Hotel Classification System of BHA keeps the record of guests that help association to analyze the staying trend of guests and to design new strategies to improve services

Weaknesses

Retention rate of employees as motivated employees will keep your customers happy and make their minds for second trip

Opportunities

Confident and self-expressive customers and technological advancements in the market

Threats

New government laws for cyber security and high quality standards for food quality

  Conclusion

There are certain key steps that association can be considered to provide more personalized experience to its customers and develop its services. The association should embrace the new sharing economy. The concept of sharing can be practiced in different manners;

The association should encourage guest connections. Such as Marriott had worked with the Mobile Experience Lab of Massachusetts Institute of Technology’s (MIT) in order to develop six degrees application. This application can be used by the guests with common interests and who are staying in the same hotel. Other hotels can configure the common location for guests to organize gatherings. The association can help hotels to receive direct feedback from guests which will provide first hand data for analysis (Hartman, Meyer and Scribner, 2009).

The affiliation ought to consider utilizing talk stages to connect with clients and address needs and issues all through their adventures. For instance, some friendliness organizations have utilized the universal WeChat stage in Asia to advance their sustenance and drink offerings, with visitors ready to right away book reservations.

The customers use social media to raise positive or negative word of mouth in terms of their travel experience. Now a day, visuals are becoming more popular among customers rather than writing a review. Individuals use different platforms to share their stories such as Instagram and 360 degree feature of Face book. In such manner, hotels and restaurants need to provide quality services and also establish a clean environment (Brakus, Schmitt and Zarantonello, 2009).

The millennial-generation employees understand and identify the needs and demands of the influential customers. In order to retain a highly skilled and experienced employee, association needs to empower employee with sense of ownership. Management should consider the opinions of employees during the decision making process. The employees should be provided with training on relationship building techniques and methods. The management should motivate employees by acknowledging them with reward for their quality performance (Gentile, Spiller and Noci, 2007).

The British Hospitality Association has been facing certain challenges but these challenges can be addressed by following the suggestions addressed above. The British Hospitality Association is also working with certain government agencies to develop its services and to provide personalized experience to its customers. Now a day, customers are more demanding than before and tourism is considered as one industry in which customer wants to pay more and more if his first experience was memorable. The needs and demands of the customers are changing with each passing day so the association needs to analyze the changing trends to retain its position in the market.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

References

Anderson, E.W and Mittal, V. (2000). Strengthening the satisfaction-profit chain. Journal of Service Research, 3 (2), pp. 107–120.

 

Berry, L.L, Carbone, L.P and Haeckel S.H. (2002).Managing the total customer experience. MIT Sloan Management Review, 43 (3), pp. 85–89.

 

Binkhorst, E. and DenDekker, T. (2009). Agenda for co-creation tourism experience research. Journal of Hospitality Marketing & Management, 18 (2–3), pp. 311–327.

 

Brakus, J.J, Schmitt, B.H and Zarantonello, L. (2009).Brand experience: what is it? How is it measured?. Does it affect loyalty?Journal of marketing, 73 (3), pp. 52–68.

 

Brown, T.J., Barry, T.E., Dacin, P.A. and Gunst, R.F. (2005).Spreading the word: investigating the antecedents of consumers’ positive word-of-mouth intentions and behaviours in a retailing context. Journal of the Academy of Marketing Science, 33 (2), pp. 123–138.

 

Caruana, A. (2002).Service loyalty: the effects of service quality and the mediating role of customer satisfaction. European Journal of marketing, 36 (7), pp. 811–829.

 

Garbarino, E. and Johnson, M.S. (1999).The different roles of satisfaction, trust, and commitment in customer relationships. Journal of Marketing, 63 (2), pp. 70–87

 

Gentile, C., Spiller, N. and Noci G., (2007).How to sustain the customer experience: an overview of experience components that co-create value with the customer. European Management Journal, 25 (2), pp. 395–410

 

Gilmore, J.H. and Pine, B.J. (2002).Differentiating hospitality operations via experiences: why selling services is not enough. The Cornell Hotel and Restaurant Administration Quarterly, 43 (3), pp. 87–96

 

Hartman, K.B., Meyer, T. and Scribner, L.L. (2009).Retail and service encounters: the inter-cultural tourist experience. Journal of Hospitality Marketing & Management, 18 (2–3), pp. 197–215.

 

 


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HOSPITALITY INDUSTRY OF UK

Executive Summary

The hospitality industry is considered as an amalgam of businesses, public agencies and non-profit organizations that make an effort to provide quality services to its customers away from their homes. The Inns in the Provinces (UK barring London) are appreciating a decent year. Taking after on from 10.4% income for each accessible room development in 2014 and expect a further 6.3% development this year and 4.2% in 2016.There are different aspects of hospitality business that needs to be addressed before making a move in the industry. The customer analysis for commencing a hospitality business is one of the building blocks.  The portion of customer analysis deals with customer segments that firm will serve. It is considered as an important practice to identify the target market before starting a business (Berry, Carbone and Haeckel, 2002). This report discusses the specifications and needs of the target market selected by British Hospitality Association (BHA). The target market for this study is the generation who born during early 1980s to early 2000s. This generation is more confident, self-expressive and more knowledgeable so the association is targeting this segment of market. There are certain challenges that are being faced by association in terms of its customer’s retention and internal management. In the customer and product analysis section, different challenges have been discussed whereas in conclusion, there are certain suggestions being provided in order to overcome the challenges. The SWOT analysis of BHA has been mentioned in the product analysis.

Customer Analysis

 

The British Hospitality Association has been working intimately with individuals to urge them to utilize manageable palm oil in their store network. Their canvas of the business has demonstrated that most organizations are now finding a way to move toward maintainable palm oil items, or are occupied with doing as such sooner rather than later (Brown et al., 2005). Over the previous year, under the protection of the BHA, a group of Food Safety and Risk specialists from over the neighborliness business have been working with the Food Standards Agency in England and Wales, to overhaul the Industry Guidance on Food Safety. Taking after open conference not long from now, the amended direction is required to be issued to industry in mid-2016. The affiliation lauds the Food Standards Agency for their cooperative way to deal with overhauling the direction for industry.

 

At current, there are certain challenges being faced by British Hospitality Association and hospitality industry. Some challenges are old, some are recurring and some are new but in all they are affecting and reshaping the market. The customers are demanding outstanding and customized experiences. The firm needs to understand the needs and demands of the customers. In order to retain a position in the market, company needs to develop value proposition strategy that directly addresses the customers’ needs. Considering the generational influences, individuals born during the early 1980s to early 2000s are becoming the generation of influences. Their consumption and travel behaviours have the taste of both older and younger generations. The British Hospitality Association needs to address these evolving customers. Such type of customers is considered as open-minded, confident and self-expressive generation. The British Hospitality Association needs to understand the psychology of these customers as they can be considered as source of positive word of mouth(Caruana, 2002).

 

In order to fulfil the demands of the evolving generation, tourism companies need to access and leverage the right information at the right time. In present era, most of the companies have rich technological information but they are poor in analyzing the customers’ trends. There are certain laws regarding data sharing under practice in different countries around the globe. The British Hospitality Association is facing the challenge of determining the correct information from the primary data and how to distribute it to internal and external stakeholders. There are other times when company was unable to analyze the insights and innovations that can create measurable and sustainable return on investment (ROI) (Anderson and Mittal, 2000).

Another important challenge is developing and implementing effective recruitment strategy for the companies. When employees of a company are not motivated then company will lose its loyal customers so retaining skilled and motivated employees is also a tough job. According to the Bureau of Labour Statistics, hospitality industry has the highest turnover rate in the past year. The studies suggested that employees do not see any career advancements in hospitality industry. The association should work on retaining the employees by offering motivational trainings and career counselling workshops.  If an employee is not motivated then he cannot provide quality service to the customers and in turn the association can lose its loyal guests. If customers are happy then they will generate positive word of mouth which will be considered as one of the opportunities to increase the profits. The customers always look for best quality and it is also one of the key components to motivate them and make their minds for second trip to the same destination (Gilmore and Pine, 2002).

Product Analysis

The product analysis is considered as a requirement for satisfying the changing needs and demand of customers. The product analysis also helps in maintaining the profit figures high on the graph at the end of each fiscal year. In an ideal condition, tourism products meet demands of marketplace, are cost-efficient and composed of cultural and natural resources of the destination (Binkhorst and DenDekker, 2009).

Client experience consolidates company–customer communication that incorporates both utilitarian and passionate pieces of information created through various touch focuses. Consumer loyalty impacts both brand faithfulness and informal, and the backhanded impact of consumer loyalty on verbal exchange through brand devotion is much solid. A hotel classification system is being operated by British Hospitality Association (BHA). This system has a data of around half of all accommodation units and around 70% of all hotels have been classified. With the help of the system, the association is being able to analyze the saved data of guests. The data helps association to design new strategies in order to attract new customers.  The operators have identified a need to improve the quality standards to stimulate the demand. The increasing rate of online review sites continues to be considered as an open opportunity in terms of marketing of services to the target market (Garbarino and Johnson, 1999).

The competition has been raised in the hospitality industry so the entry barriers are being more rigid. The new entrants have to pass couple of hard barriers in order to come into the market. The existing companies have to maintain its competitive advantage to survive in the marketplace. Late cases incorporate Marriott's declared takeover of Starwood Hotels and Resorts Worldwide for $12.2 billion, and AccorHotels' expressed arrangements to get Raffles, Swissôtel and Fairmont by issuing 46.7 million new Accor shares and paying $840 million in an offer to reinforce its position in the extravagance section. The opposition nature is additionally being changed as new business techniques need to address the necessities and requests of the advancing clients. For example, the world's biggest convenience supplier, Airbnb, does not possess a solitary lodging room. The biggest chauffeured auto administration, Uber, does not claim a solitary auto. What's more, the biggest feasting reservation booking administration, OpenTable, does not claim a solitary eatery (Gentile, Spiller and Noci, 2007).

The team of British Hospitality Association (BHA) comprises of specialists with point by point learning of all divisions of the buyer markets industry, including shopper merchandise, retail, clothing, neighborliness, and media. The affiliation conveys this center to its customers and has the extra favorable position of having the capacity to accomplice crosswise over areas and with practical specialists to convey imaginative answers for the human capital needs of its customers. The experience of British Hospitality Association with noteworthy rising ability needs, for example, computerized advertising, client experience, e-trade, item development, and online frameworks has provided keen insight to the association in order to understand its target market. Now a day, customer is more knowledgeable so the companies are facing hard times in the market to retain their loyal customers. The association can utilize the expertise of its skilled team in favor by updating its customers regarding changing trends by introducing an application for smart devices.  The online application for smart devices will help customers to keep themselves updated regarding the prices and services of the association. It will also help customers to make online reservations for their trips. The business organizations will book their official trips online and association can also offer them discounts. Individuals are more knowledgeable than before. With the help of online application, the association can update its customers regarding new vacation plans and new trends in the hospitality industry.                              

Strengths

Hotel Classification System of BHA keeps the record of guests that help association to analyze the staying trend of guests and to design new strategies to improve services

Weaknesses

Retention rate of employees as motivated employees will keep your customers happy and make their minds for second trip

Opportunities

Confident and self-expressive customers and technological advancements in the market

Threats

New government laws for cyber security and high quality standards for food quality

  Conclusion

There are certain key steps that association can be considered to provide more personalized experience to its customers and develop its services. The association should embrace the new sharing economy. The concept of sharing can be practiced in different manners;

The association should encourage guest connections. Such as Marriott had worked with the Mobile Experience Lab of Massachusetts Institute of Technology’s (MIT) in order to develop six degrees application. This application can be used by the guests with common interests and who are staying in the same hotel. Other hotels can configure the common location for guests to organize gatherings. The association can help hotels to receive direct feedback from guests which will provide first hand data for analysis (Hartman, Meyer and Scribner, 2009).

The affiliation ought to consider utilizing talk stages to connect with clients and address needs and issues all through their adventures. For instance, some friendliness organizations have utilized the universal WeChat stage in Asia to advance their sustenance and drink offerings, with visitors ready to right away book reservations.

The customers use social media to raise positive or negative word of mouth in terms of their travel experience. Now a day, visuals are becoming more popular among customers rather than writing a review. Individuals use different platforms to share their stories such as Instagram and 360 degree feature of Face book. In such manner, hotels and restaurants need to provide quality services and also establish a clean environment (Brakus, Schmitt and Zarantonello, 2009).

The millennial-generation employees understand and identify the needs and demands of the influential customers. In order to retain a highly skilled and experienced employee, association needs to empower employee with sense of ownership. Management should consider the opinions of employees during the decision making process. The employees should be provided with training on relationship building techniques and methods. The management should motivate employees by acknowledging them with reward for their quality performance (Gentile, Spiller and Noci, 2007).

The British Hospitality Association has been facing certain challenges but these challenges can be addressed by following the suggestions addressed above. The British Hospitality Association is also working with certain government agencies to develop its services and to provide personalized experience to its customers. Now a day, customers are more demanding than before and tourism is considered as one industry in which customer wants to pay more and more if his first experience was memorable. The needs and demands of the customers are changing with each passing day so the association needs to analyze the changing trends to retain its position in the market.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

References

Anderson, E.W and Mittal, V. (2000). Strengthening the satisfaction-profit chain. Journal of Service Research, 3 (2), pp. 107–120.

 

Berry, L.L, Carbone, L.P and Haeckel S.H. (2002).Managing the total customer experience. MIT Sloan Management Review, 43 (3), pp. 85–89.

 

Binkhorst, E. and DenDekker, T. (2009). Agenda for co-creation tourism experience research. Journal of Hospitality Marketing & Management, 18 (2–3), pp. 311–327.

 

Brakus, J.J, Schmitt, B.H and Zarantonello, L. (2009).Brand experience: what is it? How is it measured?. Does it affect loyalty?Journal of marketing, 73 (3), pp. 52–68.

 

Brown, T.J., Barry, T.E., Dacin, P.A. and Gunst, R.F. (2005).Spreading the word: investigating the antecedents of consumers’ positive word-of-mouth intentions and behaviours in a retailing context. Journal of the Academy of Marketing Science, 33 (2), pp. 123–138.

 

Caruana, A. (2002).Service loyalty: the effects of service quality and the mediating role of customer satisfaction. European Journal of marketing, 36 (7), pp. 811–829.

 

Garbarino, E. and Johnson, M.S. (1999).The different roles of satisfaction, trust, and commitment in customer relationships. Journal of Marketing, 63 (2), pp. 70–87

 

Gentile, C., Spiller, N. and Noci G., (2007).How to sustain the customer experience: an overview of experience components that co-create value with the customer. European Management Journal, 25 (2), pp. 395–410

 

Gilmore, J.H. and Pine, B.J. (2002).Differentiating hospitality operations via experiences: why selling services is not enough. The Cornell Hotel and Restaurant Administration Quarterly, 43 (3), pp. 87–96

 

Hartman, K.B., Meyer, T. and Scribner, L.L. (2009).Retail and service encounters: the inter-cultural tourist experience. Journal of Hospitality Marketing & Management, 18 (2–3), pp. 197–215.

 

 


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