Category: Tourism

Given the past and anticipated growth of tourism, it is strongly endorsed as an imperative element in decreasing poverty strategies and development funding (Hall, Scott and Gössling 14). The quick growth of tourism in Asia in recent years has produced concern about the socio-cultural, financial, and ecological effects on Asian culture and community. In some Asian destinations, such as Thailand and China, their Asian visitors significantly outstrip Caucasian visitors and local tourists critically outnumber intercontinental tourists (Hall and Page The Geography of Tourism and Recreation 45). The result is a necessity to re-hypothesize socio-cultural transformation ascending from tourism, and to re-examine a number of the principal stereotypes about the impacts of the leisure industry.

One of the marketing strategies entitled to sparkle the interest to the Asian tourist destinations might be the popularization of family-based travel. Leisure time and the partaking in spiritual events would be practiced with friends and family and become more than just a tourist attraction (Porananond and King 10). Asian tourism should be founded principally on the multivalent charm of the perception of heritage, the expansion of the discourses of the past, and continuous building of heritage. The tourism sector in Asian countries should do some work on the cultural origination, individuality, and genuineness. Another strategy might be keeping local tourists in the core zones of parks so that tourists could understand local ethos and lifestyle. On the other hand, this particular strategy might result in a number of complex issues, even being beneficial to the development of the rural economy. When creating a marketing strategy, one should be aware that Asian tourism is considerably predisposed to the Anglo-American periodicals and study (Hall and Page Tourism in South and Southeast Asia 11).

Of particular interest is how increased attention to Asian tourism will unavoidably bring a new inspection of the demand and stock of heritage-themed souvenirs (Cave and Jolliffe 191). Increasing interest in these heritage resources might be another marketing strategy for most of the Asian countries. One should also remember that the cultural tourism in the area is changing away from that established primarily to service Western cultural and sightseeing visitors as this market declines in figures. Another factor that is also declining is the length of the visit of European tourists (Cochrane 82). This may replicate a tendency where more than a few shorter holidays during the year are taken, and a smaller number of younger people are visiting the Asian countries. This is why one should take into account the domestic sector when working on a marketing strategy. Leisure activities within the country would help to boost the tourism economy and reallocate wealth from urban to rural zones.

Under the present world trend of maintainable development, it would be reasonable to pay close attention to the ecotourism as a means of creating and sustaining the marketing strategy aimed to provoke the Asian tourism growth. Nowadays, it is the most noticed sector in tourism, and three elements are well connected by it. These are the protection of nature and culture, the profit of local people, and the growth opportunity for tourism. It is advised to continue on embracing the Asian cultural heritage as it is (and will always be) one of the main tourist attractions. The focus should be made on the tourists from Europe and numerous tourists from local destinations. The socio-cultural values should be well-looked-after and persistently promoted all across the globe among the tourists of all age categories in order to bring to the world’s attention the spirituality and uniqueness of the Asian tourist destinations.

Works Cited

Cave, Jenny, and Lee Jolliffe. Tourism and Souvenirs: Glocal Perspectives from the Margins. Bristol: Channel View Publications, 2014. Print.

Cochrane, Janet. Asian Tourism: Growth and Change. Amsterdam: Elsevier, 2012. Print.

Hall, Colin Michael, and Stephen Page. The Geography of Tourism and Recreation: Environment, Place, and Space. London: Routledge, 2014. Print.

Tourism in South and Southeast Asia: Issues and Cases. London: Routledge, 2012. Print.

Hall, Colin Michael, Daniel Scott, and Stefan Gössling. “The Primacy of Climate Change for Sustainable International Tourism.” Sustainable Development 21.2 (2013): 112-21. Web.

Porananond, Ploysri, and Victor T. King. Rethinking Asian Tourism: Culture, Encounters and Local Response. Cambridge: Cambridge Scholars, 2014. Print.

The essay is a summary of the article, ‘Tourism Policy, Tourism Organisations and Change Management in Alpine Regions and Destinations: A European Perspective’ by Harald Pechlaner and Paul Tschurtschenthaler. The essay endeavors to answer the question, what are the factors responsible for the development of the European East Alpine Regions as a tourist destination? The literature review starts by giving a brief account of the development of Alpine Tourism. Tourism development in Alpine started as early as the late 18 century to the beginning of the 20th century. Alpine region is characterized as being less developed, a situation that is often associated with the prevalent low wages for Alpine Tourism. The European Alpine area covers regions such as parts of Italy, Germany, Austria, France, Switzerland, Liechtenstein, and Slovenia.

This area accounts for approximately 11% of the overall worldwide tourism and 17% of Europe tourism. The following discussion concentrates only on those Alpine regions that are members of the ARGE ALP association that were founded in 1972 to address common problems experienced in these regions. These challenges entailed issues to do with the environment, tourism management, and traffic. Among the named Alpine regions, France and Italy are members of the ARGE ALP association. The development of the Alpine region entailed a series of stages that comprised the reconstruction of the infra and superstructures destroyed in World War I and World War II. Within four years the reconstruction had finished which was responsible for transforming the tourism industry to become a very significant economic activity in the Alpine and in particular the corresponding nations.

One of the factors that enhanced the success of the Alpine region as a tourist niche is its favorable location. The alpine region is believed to be strategically geographically located in the heart of Europe. The presence of good infrastructure in the region that comprises a railroad junction from the north to south and from east to west makes it very accessible from any part of Europe and in particular the highly populated and economically developed European regions such as UK and Germany. Summer tourism was noted to stagnate in the 1970s due to the stagnation of summer tourism, but the booming of winter tourism in the region has helped to compensate for the revenues lost during the summer season. The existence of good infrastructures such as good roads, rail networks, and air travel has greatly enhanced the growth and development of Alpine tourism in the region.

Moreover, the privatization of international air travel companies in Europe has greatly reduced airfares which greatly promote more people from far countries to visit the Alpine region.. During the early 1970s, the Alpine region was characterized by low productivity since it was not as developed as another region outside the Alps. This made it possible for the Alps tourism industry to offer competitive products at a more affordable price compared to suppliers in other more developed regions. The differential in wages greatly enhanced the development of the Alps tourism since an investor could make more money to extend the services to attract more visitors. The development of winter tourism by the inclusion of winter sports such as skiing was a very instrumental opportunity for the growth of the Alps tourism.

The presence of good natural features such as beautiful landscapes has greatly enhanced the growth and development of the Alps tourism. In addition, the Alpine region is associated with a favorable culture that is characterized by the high hospitality of the local people that facilitate the tourism industry in the area greatly as foreign visitors feel appreciated. In addition, ecological factors such as the presence of the summer and winter seasons greatly favor the prevalence of the tourism industry in the region. The summer season facilitates activities such as swimming and sunbathing from the beach, while the winter season is conducive for winter sports such as skiing.

The presence of Tourism organizations in the Alpine region also greatly helped to enhance tourism in the region. They started as places for offering public goods free of charge. The existence of these organizations and the extensive expansion of the Alpine tourism region has also faced several problems that include degradation of the environment and many social problems that are prevalent in many tourist destinations worldwide. Such challenges require the implementation of appropriate regulations and policies to curtail them.

The study used a survey method to collect the required data for this study. The data collected was analyzed quantitatively and appropriate graphs that illustrated the effects and growth o the Alpine tourism being generated.

The discussion highlighted several recommendations which are aimed at improving the tourism industry in the Alpine region. The suggested strategies comprised of change of business approach and reengineering processes adapted. The discussion suggests an improvement of Alpine tourism from the current prevalent small-scale-oriented businesses to attract bigger multinational corporations to invest in the region. There is still a need more the management of the tourism region in the region to formulate appropriate curricula to equip the employees that work in the tourism region in the area with relevant skills so that the tourism industry in the area can improve the quality of its services/products to attract more visitors.

Similarly, the concerned governments opt to support the industry accordingly through enacting appropriate policies to regulate the tourism industry in the area aptly. In addition, other issues that require to be addressed in the future include; offering the employees that work in the tourism industry better remunerations to attract a more competent and experienced workforce. The existing tourism organizations in the region need to be transformed to be more competent in addressing the underlying issues in the industry. Lastly, the issue of environmental degradation needs to be tackled so that to preserve the favorable environment in the region to sustain a long-term and vibrant tourism industry in the region.

A hotel simulation game is a game established to know the potential of hotel and management students or rather to gauge the potential of a hotel staff. However, this game is also used by hotels in the recruitment of new staff in order to raise a team that will develop criteria which encourages profit maximisation of the hotel through team power. These teams should comprise of three to six participants and should not exceed four teams for easier supervision (Lundberg1979, p.20). The game itself should take three to four hours plus the debrief; however, there is no limitation on the number of times this game can be used (Lundberg 1979, p.22)

At the end of this game, a participant should have learnt: accurate matching of a business to the market, analysis of financial reports, maximisation of business opportunities, keeping costs under control and rationality and logicality (Saunders 2000, p.45)

The overall performance was above average since the main objective of establishing this team was team building, and by the end of the game, all the team members had developed a rapport and were working co-operatively with each other. However, there were various setbacks due to different priorities and interests among the team members. Two of the members had good leadership qualities, and so with time, they had taken over the decision making of the team, and the rest of the team members followed suit.

In the first four rounds, the net profit of the hotel was increasing cumulatively by two percent, but a drastic change was experienced in the fifth round where by the net profit rose by thirteen percent. In the sixth round, a drop of two percent was experienced. The outcome was not as expected since the team was highly promising. The average outcome was due to fair decision making rather than the expected good decision making.

The good decisions made were; minimising the cost of production in terms of using the provided working materials sparingly and not wastefully which ensured the effective use of finances; identification of the customers’ tastes and preferences and their implementation in the hotels policy; branding of the business’ name, objectives, motto, and slogan in a way that matched the market demand so as to attract the immediate market; outsourcing of some of the hotels activities which helped in the concentration of the hotels prime objectives and to improve on the quality of service; informed rational market demands and their implementation so as to satisfy them.

The bad decisions made were; recruitment of cheap staff with the aim of maximising profits which led to poor service in the hotel; bad policy on the mode of payment that should be administered which discouraged customers since it look unreasonable to them but to the team members it was implemented to eliminate any chances of losing finances through fraudulent activities among the staff; introducing a method of shift working, which mostly, led to a misunderstanding among the staff on who should work when and how this was to be supervised to avoid biasness.

In the conclusion of the set out plan it was inevitable that for a hotel management to achieve a consistent improvement in the cumulative profit there was a great need of building a team spirit among all staff. Moreover, a good communication system has to be established for easier functioning and running of the hotel. All in all the purpose of the game was to help in setting out a plan to run the hotel so as to ensure maximum profit realisation and the only assumption was reality but, on the other hand, the game signified what happens in a real sense.

References

Lundberg, D. E. (1979). The hotel and restaurant business (3d ed.). Boston: CBI Pub. Co..

Saunders, D. (2000). Simulations and games for transition and change. London: Kogan Page.

Introduction

Adaptation, Aggregation, and Arbitrage are the major directions of global development. Effectively combining these ways of international operation is essential for the company’s success. This analysis will focus on InterContinental Hotel Group and IBIS Hotels to discuss the use of these strategies in the hospitality industry.

Adaptation

Adaptation is a key aspect of the hospitality industry. The cultural specifics of each country and region need to be taken into consideration when designing hotels. The IBIS adapts by changing the format of their hotels to fit the demand. While the company is owned and centrally operated by the Accor Hotels Group, each hotel is unique and answers the demands of the local market. Accor marketing is also market-specific. Each region has a separate team ready to operate in a specific environment. InterContinental Hotel Group (IHG) approaches the adaptation differently. The company itself owns less than 1% of the hotels they manage (IHG, 2012). Most of the locations are franchised and operate by the set corporate standards. At the same time, each owner can adapt by utilizing their knowledge of the local market and audience.

Franchising is an incredibly effective form of adaptation if it is correctly maintained. The franchisees can both fine-tune the overall corporate strategy and provide valuable feedback for the central governing company. These mutually beneficial relationships allow the company to respond to the varied demands of the global market incredibly efficiently (Brown and Dev, 1997). Since the IHG is one of the most efficient franchising companies in the hospitality industry, it is safe to assume that they have mastered this strategy. Compared to it, the customization of the individual hotels is a much weaker approach that does not offer the same level of flexibility. Accor Hotels will likely benefit from utilizing the franchising model for some of its facilities. At the same time, the IHG can further its advantage by strengthening the bonds between the franchisees and the central company even more.

Aggregation

Both companies are using aggregation to create a competitive advantage for themselves. Currently, one of the most effective forms of aggregation in the hospitality industry is a centralized online service that both firms utilize. The IBIS is a part of Accor’s online booking system which allows the holding to effectively manage and analyze the orders (Accor, 2014). The IHG is using a set of mobile applications combined with the roomkey.com search engine which allows the company to direct the users towards the hotels they are most likely to enjoy. As the research shows, aggregation is an effective strategy for countries with similar cultures (Szymanski, Bharadwaj & Varadarajan, 1993). Since the hotel companies operate worldwide and deal with guests from a diverse set of cultural backgrounds, implementing a relatively low degree of standardization is a viable approach. However, other researchers note that the power of the brand name can be a major advantage in struggling for the customers in the global market if it is backed up by consistent quality standards (Whitla, Walters & Davies, 2007). The online markets are universal and can be effective at centralizing the booking process and directing customers no matter what their country of origin is. That makes them an ideal solution for both IBIS and the IHG. At the same time, both companies set consistent requirements for all their hotels which allow for customization while ensuring that the brand name remains strong. All these factors combined contribute to the efficient aggregation strategies utilized by the companies.

Arbitrage

Using the arbitrage strategy in the hospitality industry is somewhat problematic. Each hotel needs to be mostly self-contained, and the ability to distribute the production chain is limited. The IHG uses arbitrage by maintaining several qualified professionals in the First World countries who provide management advice for the franchisees. That allows the company to take the fullest advantage of the high-quality education those specialists have without hiring them for each separate hotel. The IBIS is a more centralized company without significant franchising projects. Each hotel is using only certified suppliers. That assures quality but prevents the company from effectively utilizing the arbitrage strategy for their supply chain. The IBIS can make better use of this approach to acquire a competitive advantage. That can be achieved by developing a more flexible company structure and allowing the hotel directors to seek out local suppliers who might offer more lucrative deals while still satisfying the company standards.

Conclusion

The hospitality industry calls for an adaptive and flexible approach to global operations since the hotels invariably deal with people of all social standings and cultural backgrounds. At the same time, standardization allows the companies to offer a consistent quality of service all around the globe. From the two companies analyzed, the IHG is more efficient at utilizing the AAA strategies. They use the method of aggregation similar to IBIS while implementing much more effective adaptation and arbitrage methods. On the other hand, the strategy focused mostly on aggregation which is employed by the IBIS is much easier to manage and carries fewer risks and expenses as a result (Ghemawat, 2007).

References

Accor 2014, Registration Document and Annual Financial Report, Web.

Brown, J & Dev, C 1997, ‘The Franchisor-Franchisee Relationship: A Key to Franchise Performance’, The Cornell Hotel and Restaurant Administration Quarterly, vol. 38, no. 6, pp.4-38.

Ghemawat, P 2007, ‘How to Choose Your Global Strategy’, Notes on Globalization and Strategy, vol. 3, no. 9, pp. 4-5.

IHG 2012, Annual Report and Financial Statements, Web.

Szymanski, D, Bharadwaj, S, & Varadarajan, P 1993, ‘Standardization versus Adaptation of International Marketing Strategy: An Empirical Investigation’, Journal of Marketing, vol. 57 no. 4, p.1.

Whitla, P, Walters, P & Davies, H 2007, ‘Global strategies in the international hotel industry’, International Journal of Hospitality Management, vol. 26, no. 4, pp.777-792.

Abstract

The paper examines the financial performance of a five star hotel located in the Perth CBD. There is high competition in Perth CBD because none of the hotels have exclusive features. What one hotel offers can be found in another within the same city. The hotel follows the trend in the market. Occupancy rates start to peak in June and extend until December. There is a slight drop in the occupancy rate only in October and November. The paper refers to Fraser Suites for prices and estimates. Fraser Suites Perth is also examined for competitive advantage. Most of the five-star hotels in Perth are global brands. There is a lack of absolute competitive advantage because most of the hotels share a lot of similarities. Customer service can create a distinction among other hotels. The report develops weakness from the fact that five-star hotels present their financial statements as a group. The estimates would be more accurate if the subsidiary would present its departmental financial statement.

Financial Performance

The hotel performs moderately in the rooms department. Profitability in the rooms department exceeds $3 million annually. The F & B department has poor financial performance. The income returns in the F & B department does not match the income returns in the industry. A hotel performing well should have a return rate higher than the industry rate of 9.3% within the Perth CBD (Colliers International, 2013).

Prices change according to the market demand. Demand changes according to seasons. There has been a high demand for accommodation in Perth since 2006. The accommodation prices rose by about 31% between 2007 and 2009 (Access Economics, 2010). The return on new hotel investment increased from 4.6% to 5.4% within the same period. A hotel has to charge an average rate of $450 per night and have an average occupancy rate of 80% to yield a capital return rate of 5.4% (Access Economics, 2010).

High construction costs and the high cost of land put pressure on hotels to charge higher rates to make high returns on investment. Currently, the income return for all hotels is estimated at 8.2%. In 2012, hotels within CBD areas gave an investment return rate of 9.3% (Colliers International, 2013).

Perth is considered a hub for other cities in Australia. Estimates indicate that 70% of international visitors use Perth as their arrival place (Access Economics, 2010). Passenger movements are also facilitated by the Perth airport. It is estimated that 695,000 international visitors came to Western Australia in 2009. It represents a rise of 3.2% annually in the number of visitors. Interstate visitors constitute 83% of all domestic visitors to Western Australia. Out of these, 68% may book hotels.

Most hotels in Perth have an average occupancy level of about 85% during the peak season. The occupancy rate is about 85% in December, about 70% between June and September, and less than 70% in January. Interstate visitors per night expenditure are estimated at $685, and international visitors at $2,264 (Access Economics, 2010). In 2012, Perth City reported an occupancy rate of 85.0% for all hotels. It has the highest occupancy rate in Australia followed by Sidney at 84.5% (Colliers International, 2013).

Current Hotel Facilities Budget

The budget, profit & loss accounts, and cash flow take the trend described by Access Economics (2010) and Colliers International (2013). Hotel occupancy is at peak in December, June, and July at about 80%. The occupancy falls to about 50% between January and April. It is about 70% in October and November.

The calculations use 200 rooms for estimation and Fraser Suites Hotel rates for rooms, food and beverages. The expected occupancy during seasons with low demand is about 50%. It is 80% when demand is high. The following are the room estimates per night. These are higher rates. Sometimes the hotel sells rooms at rates lower than $300.

The pay award for cleaners, caretakers, and security guards are about $660 weekly (Cleaners and Caretakers WA Award Summary, 2013). The award rates from level 1 to 6 range from $1,291.90 to $ 1,611.20 a fortnight for hotel and tavern workers (Hotel and tavern workers state award summary, 2013). The hotel will need to pay slightly higher than the minimum wage rate to retain experienced employees. The hotel employs from 20 to 30 workers per department.

Financing Options

Contractors may work with their funds during the project. However, contractors are considered high-risk borrowers attracting higher rates of interest. The company can finance part of the project during the operations and complete the payment balance at the project completion (Halpine & Senior, 2010). The company will issue $1,200,000 to the contractor at the beginning of February 2014 for the purchase of materials. It will issue additional monthly payments to cover part of the direct labour costs. The contractor will charge cost and a 25% markup price at the end of the project. The firm expects the project to incur about $6.5 million. The firm needs to raise an additional $4 million to cover the cost of the project and operational needs.

The project will close two floors for renovation at one particular period. The firm expects the closure of two floors and the renovation activities to reduce revenue by about 30%. Part of the finance raised will be used to cover the reduction in cash inflow.

Financing of debts will require the firm to pay the debt and interest. The debt will affect the cash flow of the firm through large amounts that are paid out as principal repayment (Frederick & Terjesen, 2006). Commercial banks are one of the good sources of debt financing. Finance companies that lend using assets as securities may charge 2% to 6% above the rate charged by commercial banks. Commercial banks in Australia may charge about 7.5% for long-term loans. Debt provides a good option for the firm because the interest rates are likely to be lower than the income return rate of the hotels which is at 8.2% (Colliers International, 2013).

A loan that exceeds one year repayment period is classified as a long-term loan. Long-term loans have higher interest rates than short-term loans. The high-interest rate takes into account the high demand for long-term loans, risk of inflation, and variations in the market interest rates (Megginson & Smart, 2009). Lenders also evaluate the risk associated with the borrower. The borrower’s debt ratio or interest-earned ratio may be used to assess the borrower’s risk.

Bank overdrafts are charged a rate of 7.83% p.a. on the amount that is withdrawn. The interest is calculated on a daily basis. The interest rate increases as the repayment period increases. It may be 5.75% p.a. for a one-year loan and 6.71% p.a. for a five-year loan (Business Loans rates, 2013). The firm had a net income that exceeded $3 million in the year before the project. It will be able to pay back the interest and principal. Using finance from loans may deny shareholder dividends for a long period.

Corporations can also use term loans which may have a repayment period between 5 years and 12 years. Megginson & Smart (2009) explain that “a term loan is a loan issued by an institution to a business with a maturity period that exceeds a year” (p. 532). The interest rate for term loans may be higher or lower than the market rate depending on the risk that the hotel poses.

Equity allows the company to pay dividends only when the firm has made a profit. One disadvantage of equity is that it allows new members to share the ownership of the firm. They are entitled to make decisions through voting. They must be given their portion of dividends each time profits are shared (Frederick & Terjesen, 2006). Frederick & Terjesen (2006) explain that a company that can afford the principal repayment and interest should consider using debt before equity.

Corporate bonds also provide a source of financing in the form of debts. Corporate bonds pay a coupon rate each year and the face value at maturity of the term. Floating-rate bonds have their coupon rate adjusted periodically to match market lending rates. A debenture is a type of corporate bond. Frederick & Terjesen (2006) explain that “convertible debentures are unsecured loans that can be converted into shares” (p. 23). The lender and borrower agree on the conversion rate and interest rate when the deal is settled. Debentures provide the firm with the flexibility to change them into shares if the renovation project fails to meet revenue target results.

Market and Competitive Position

Customers recognize Fraser Suites Perth for its stylish features. Customer service is also highly rated (Fraser Suites Perth reviews, 2013). Customers recognize Hyatt Regency Perth for large rooms for a relatively lower rate. Customers have complained that Hyatt Perth has outdated bathrooms/washroom facilities (Hyatt Regency Perth reviews, 2013). However, their cleanliness has been recognized.

Most firms change their prices according to demand. The prices may start at $150 minimum during low-demand season and $300 during high-demand season. Different hotels offer different rates in Perth CBD. Fraser’s full rate ($700) is moderate among the Perth five-star hotels when comparing prices. The Richardson Hotel & Spa ($675), Parmelia Hilton Perth ($630), Pan Pacific Perth ($630), Hyatt Regency Perth ($650), Duxton Hotel Perth ($499), Crown Metropol Perth ($1,000), The Terrace Hotel Perth ($360), Beach Manor B&B ($245) (Perth hotels, 2013). These are some of the prices that were advertised on a website in the month of October 2013. All hotels in Perth offer competitive prices. Fraser Suites Perth offers moderate prices compared to its competitors.

Most five-star hotels in Perth are subsidiaries of global firms. Fraser Suites and Hyatt Regency Perth are examples of hotels with a global brand. Hotel performance may be influenced by the performance of the group. The hotel brand gives it a competitive advantage. The firm also needs intensive advertising to maintain the influence of the brand.

Reference List

Access Economics. (2010). Perth hotel economic impact study: final report. Canberra: Access Economics.

Business loan rates. (2013). Web.

Cleaners and caretakers WA award summary. (2013). Web.

Colliers International. (2013). Not enough beds? Investor demand and room supply on the increase. Canberra: Colliers International.

Fraser Suites Perth. (2013). Web.

Halpin, D., and Senior, B. (2010). Construction management (4^th ed.). Hoboken: John Wiley & Sons.

Hotel and tavern workers state award summary. (2013). Web.

Hyatt Regency Perth reviews. (2013).

Megginson, W., & Smart, S. (2009). Introduction to corporate finance. Mason: South-Western Cengage Learning.

Perth hotels. (2013). Web.

Terjesen, S., & Frederick, H. (2006). Sources of funding for Australia’s entrepreneurs. Raleigh: Lulu Press.

Abstract

It has been suggested that marketing has evolved from the early days of production orientation to today’s societal marketing concept (Kurtz, MacKenzie, and Snow, 2010). However, not all companies have adopted the marketing concept, let alone the societal marketing concept (Kurtz, MacKenzie, and Snow, 2010). This research paper critically assesses why some of the major companies in the hospitality industry have still been operating under the old school production, product or selling orientations. As well, the paper gives an overview on some of the ways through which these orientations have been impacting on the companies’ profitability and how they have been able to satisfy their customer and retain them as well (Quester and McGuiggan, 2006).

Introduction

Over the past years, it has been noted that marketing has evolved from the early days of production orientation to today’s societal marketing concept (Kotler and Armstrong, 2005). However, not all companies have adopted the marketing concept, let alone the societal marketing concept (Kurtz, MacKenzie, and Snow, 2010). For instance, the hospitality industry is one of the industries which have the greatest need in adopting the marketing concept towards maximum realizing its goals and objectives towards meeting the needs of the clients and customers (Bowie and Buttle, 2004). With the hospitality industry, it shall be seen that it consists of a wide category of specific fields which operate in lodgings, event planning, cruise lines, restaurants, theme parks, and transportation, and sometimes the tourism industry (Tesone, 2010).

Generally, the hospitality industry has been a multi-billion dollar operating industry which is aimed in providing leisure to individuals (Richard, 2007, p. 27). This would therefore mean that there should be management, application of human resource applications, and marketing as well (Kotler and Armstrong, 2005). In this paper I shall critically assess why some companies in the hospitality industry have still been operating under the production, product or selling orientations and come up with the impact which this kinds of orientations might have on the profitability of the companies and customer satisfaction and retention (Greenwalt, 1995). This would be done provision of examples on specific companies that have been operating currently under these different orientations.

Justification for my Selection of the Hospitality Industry

To be specific, all industries have a reason for operating within different orientations towards improving their performance and meeting the requirements and the overall needs of the clients of the companies. However, I feel that the hospitality industry should be keenly analyzed in monitoring the marketing and product orientations which are applied in the industry due to some of the unique characteristics of the industry (Smith, 2001, p. 30). For instance, the industry will be noted to have direct linkage to the customers towards the provision of services and goods. The hospitality would be seen to cover an industry which has wide range of companies and organizations which offer food-related services as well as accommodation to their clients (Timothy, 2003).

The hospitality industry has been divided into a number of sectors depending on the kind of services and goods made available to the clients. All these sectors include the ones offering accommodation services, beverages and food, events and meetings, gaming activities, recreational facilities and entertainment, tourism services and visitors’ information (Chataigner, 1992, p. 53).

Methodology for the study

Since this is a research study that was aimed in finding why some companies had not adopted the new orientations of societal marketing, we needed to come up with a methodology that would help in gathering the appropriate results from the study for analysis. The first kind of approach was to dig deep into the websites of specific companies within the hospitality industry to understand some of the measures and selling orientations that were being put in place.

This would assist in getting the relevant information from the companies for effective discussions. Also, the use of questionnaires was employed in a number of companies with the hospitality industry to get the relevant data on what was being done and the different orientations that were being employed. The questionnaires had open ended questions and were distributed evenly for effective data capture that would not be biased. This kind of study approach was also done by ensuring that there were a number of objectives that had been set before the research study.

Why do some companies still operate under the production, product or selling orientations

In the past days, the kind of business operation which had been practiced had rotated around production and selling orientations which were not quite involving since the approach was only between the company and the customers of the business. Looking at this kind of orientation, the amount of income which would be earned by the company would be low, and the benefits would as well below.

However, the fact of the matter is that this kind of approach had just been fit for the level of technology and human development. However, as years went by, there came different approaches which had been aimed in ensuring that business operations would be done in a more advanced manner hence improving customer-business relationships hence resulting in better gains and revenues for the company (Cannon, 1992, p. 24). Because of this kind of approach or orientations, many more companies in the hospitality industry have been able to change accordingly hence improving their business performance (Paul, 1994, p. 35).

However, very many companies in the hospitality industry have not been able to adopt this new kind of technology which has seen them unable to earn the necessary revenue hence keeping their profitability down on the low (Hsu and Powers, 2002). Some of these companies include Casino Royal and Crown Corporate operating the United States and Canada, and part of the hospitality industry (Quester and McGuiggan, 2006).

There are a number of factors that have been causing these companies not to adopt the new societal marketing orientation (Lees & Yuen, 1991). For instance, the lack of enough capital and resources has been making the companies unable to put all the necessary measures in place towards the new orientation. As well, the technological aspects have also been playing a major role in hindering the paces in which the new measures are to be put in place. Due to this, the companies have continued to rely on the old methods of marketing and management (Mawson, 2000). There is also the need to have new human resource which would as well translate to increased financial requirements which the companies might not be willing to adopt (Jones, 1997, p. 56).

Due to this kind of approach, there has been reduced profitability on the companies due to decreased revenues (Quester and McGuiggan, 2006). It has also been hard for the companies to attract new clients and customers while at the same time seeing the customers of the company leaving. It would therefore be necessary that new measures are put in place within the management of company so that the greatest gains and profits can be realized in the industry (Sheela, 2005).

Overall management should be addressed through putting in place the necessary measures and decision support systems which would improve how new marketing strategies would be incorporated in the hospitality industry (Altinay and Paraskevas, 2008). This new kind of approach would result in the greatest profitability for the companies in the hospitality industry (Chataigner, 1992, p. 121).

Once a company has been unable to adopt the new orientation, the result is that there would be decreased performance since very few clients and customers shall be reached. This would as well kill the positive performance and relationship between the company and the customers. Continued poor performance would result in customer loss. This is because a small number of customers shall be reached.

As well, very few customers shall be retained in the company hence showing threatened performance of the companies in the hospitality industry (Cannon, 1992, p. 24). This has been the reason why companies and all businesses operating within the hospitality industry come up with the necessary measures in ensuring that there is the adoption of proper business management and marketing orientations which would have improved performance on the business (Mawson, 2000).

Specifically, due to the present nature of current societal marketing orientation, it shall be noted that a number of companies in the hospitality management have been unable to get the necessary gains and profits in their operations. This has seen them unable to achieve their goals, and the reason it would be suggested that they adopt the new approaches towards improved productivity. Because of this, it would be something appreciable that the current hospitality companies adopt the new approaches so that they can achieve the greatest revenues (Hu & Duval, 2003, p. 76). As well, the hospitality industry is more or less involved in direct business with the customers, and therefore it would be necessary that there adoption of the present societal marketing operation which would result in provision of the necessary services to the customers and clients of the business (Childs, 2006).

Present Societal Marketing Orientation

Due to this new kind of approach, a number of companies have been seen to effectively change with the system towards societal marketing orientation (Wood and Brotherton, 2008). This has been done in SYSCO International which is a reputable company in the United States and other parts in the world. Another company which has adopted this is Hilton hotels which have been in operation in very many countries in the world.

Upon adoption of this orientation, there have been a number of advantages that have been noted as a result. This has seen the companies being able to achieve greater gains through reaching out to the specific target clients and customers who would bring better returns on the company (Goode, 1995). This has also been improved through the application of business advertising strategies and approaches which are oriented towards reaching the greatest customers (Nashima, 1994, p. 46). This has seen these two companies in the hospitality industry being able to achieve the greatest gains in terms of profits and retaining their customers as well (Quester and McGuiggan, 2006).

However, as we have seen above, there are a number of issues that have been making majority of the companies unable to utilize the present societal marketing orientation. For instance, there have been a lot of cost implications which means that the individual companies would have to incur greater expenses towards the new adoption. As well, there has been the issue of having an overall change in the management.

Because of this fact, it has been something hard for a number of modern companies in the hospitality industry to adopt the new technology. There would be the need of have change management in which people with modern training in the marketing field would be required. Because of this, different companies have been seen not willing to adopt the new orientation despite the benefits that would be expected from the kind approach. Therefore, it would be needed that there is new management, adoption of new operational structures, monitoring of current marketing trends and the incorporation of decision making strategies which would eventually result in improved business performance hence improving the revenue for the company (William, 2009, p. 45). This way the hospitality industry would be able to grow and as well provide the best services to all the people whom it serves.

It is through appropriate adopting of this new orientation towards selling and marketing that a given company, firm, or business can be able to realize all its overall goals, mission and objectives. The most common approach that has been on the use of the adaptive selling strategy through which the sales personnel would be required to acquaint themselves with the market situations and the needs of the customers to provide them with the best selling advantage (Jackson, 1997). With this kind of approach, it would be easy for any given company in the hospitality industry to reach the greatest number of customers and as well retain them. This would result in overall economic development and sustenance (Lees & Yuen, 1991, p. 53).

Ethical and Social Issues with the Orientation

To achieve proper selling orientation within the societal marketing practice, it would be necessary that there is the ethical consideration put into consideration. For instance, how advertisements are made should not cause any societal harm or alarm. As well, human interaction should be done in a proper manner in accordance with the ethical theories and principles (Wolfe, 2001, p. 55). Different industries and companies in the hospitality industry have to offer materials such foods and drinks without going beyond the specific age limits through which specific drinks and foods have to be supplied. This shall guarantee legal proceedings against the given industry if the social and ethical issues have not been greatly addressed. Once this has been done positively, overall economic development and sustainability shall be realized.

Conclusion

As we have seen, it will be seen that the best way through which we can be in position of having the companies in the hospitality industry providing the best services to the customers and gaining the greatest revenue is through the adoption of this new approach. This will end up ensuring that there is societal marketing orientation in which the client is reached one on one and given the given needs which he or she required (Wolfe, 2001, p. 56).

It has been a true and worth suggestion that marketing is something that has been able to evolve from the early days of production orientation to the modern societal marketing concept which has been noted to provide the company and the individual customers with the best services which are of high quality and provide the best needs. However, not all companies have been noted to adopt this new marketing concept, let alone the societal marketing concept.

Therefore, it would be a good thing that the companies that have not yet adopted the system in the hospitality industry do so towards the achievement of the greatest gains. This new kind of orientations will result in positive impacts which have improved overall profitability and the satisfaction of customers and overall retention. This would see more and more customers attracted into the business, and as a result bringing in the greatest gains to the company and in the long run retaining them.

Reference List

Altinay, L. and Paraskevas, A., 2008. Planning research in hospitality and tourism. Amsterdam: Butterworth-Heinemann.

Bowie, D. and Buttle, F., 2004. Hospitality marketing: an introduction. Amsterdam: Elsevier Butterworth-Heinemann.

Cannon, K., 1992. Food and health: the experts agree. London: Consumers’ Association Press.

Chataigner, J.,1992. ‘Simultaneous growth and diversification of rice consumption in Europe and the Asia.’ Verona, Italy: Rice Consumption in Europe Symposium.

Childs, N., 2006. Business backgrounder. Oxford: Oxford University Press.

Goode, J., 1995. ‘Dietary dilemmas: nutritional concerns of the 1990s.’ British Food Journal, vol. 97, 3-12.

Greenwalt, B., 1995. ‘The industrialization: Implications for the Arkansas industry.’ Arkansas Business & Economic Review, vol. 28(1), p. 1-6.

Hsu, C. and Powers, T., 2002. Marketing hospitality. New York: Wiley.

Hu, J. & Duval, Y., 2003. ‘Qualitative Analysis and Implications of Chinese Expatriates’ Food Consumption Behaviour.’ Journal of Food Products Marketing, 9(1), 31-46.

Jackson, F., 1997. Positive selling strategies. New York: Penguin Books.

Jones, E., 1997. ‘Consumer Demand for Carbohydrates: A Look across Products and Income Classes.’ Agribusiness, 13(6), 599-612.

Kotler, P. and Armstrong, G., 2005. Principles of marketing. Beijing : Qing hua da xue chu ban she.

Kurtz, D., MacKenzie, H. and Snow, K., 2010. Contemporary marketing. Toronto: Nelson Education publishers.

Lees, M. & Yuen, W., 1991. ‘The Chinese Speaking Asian: The effects of Time Purchase Behaviour.’ Asian Journal for Business Performance, 13(2), 23-89.

Mawson, S. 2000. The fundamentals of hospitality marketing. New York: Continuum.

Nashima, M., 1994. ‘Food shortage puts pressure on food laws.’ Japan Times Weekly International edition, 34(17), 10-11.

Paul, U., 1994. ‘Hospitality Industry Management.’ Business as a Science, vol. 34(2), 1151-1157.

Quester, G. and McGuiggan, L., 2006. Marketing: creating and delivering value. Sydney: McGraw-Hill.

Quester, P. and McGuiggan, R., 2006. Marketing: creating and delivering value. USA: McGraw-Hill.

Richard, M., 2007. Business management and administration. Oxford: Oxford University Press.

Sheela, A., (2005). Economics of hotel management. New Delhi: New Age International Publishers.

Smith, K., 2001. Marketing orientations. Cengage Learning.

Tesone, D., 2010., Principles of management for the hospitality industry. London: Elsevier.

Timothy, H., 2003. Future with the hospitality industry. Cambridge University Press.

William, G., 2009. Business management: a concise approach. London: Penguin Books.

Wolfe, T., 2001. Towards business performance in the hospitality industry. London: Allyn and Bacon.

Wood, R. and Brotherton, B., 2008. The Sage handbook of hospitality management. London: Sage.

Tax payment plays a critical role in all industries and, therefore, should be regulated by set policies. Taxes are very crucial in governance in many ways, as will be outlined in the paper. Failure to comply with the terms spelled in tax systems will lead to problems in the governing process. The present economic situation of the Caribbean is unstable, and cities are in a collective search for the best solution. The tourism industry has been considered as a possible solution to the economy of Caribbean governments. The Caribbean has beautiful scenery which attracts tourists from all over the world. The tourism industry will have positive impacts on the economic, social, and political sectors in the Caribbean. There are many other industries that are linked with tourism. For example, an increased rate of tourism in the Caribbean would mean increased chances of investment and profitability in the hospitality business in the region (Dwyer, Douglas & Zelco, 2004). However, the whole plan by Caribbean governments is a whole burst of a burble because their economy is even worse. This paper will discuss how Caribbean governments have invested in the tourism industry along the cruise lines. In addition, various ways in which cruise lines have benefited from the investments by Caribbean governments will be outlined.

The Caribbean governments have invested in the cruise lines with the hope that the tourism industry will boost their economies. On the contrary, the benefits are being enjoyed by cruise lines with minimal returns to Caribbean governments. In what Caribbean governments perceived as being a help to their economic situation, more doom is spelled. Deterioration of the Caribbean economy is a result of cruise lines failing to perform their duty in payment of taxes. The cruise industry has been successful due to the huge contributions by Caribbean governments. The industry has registered rapid revenue growth over the past two decades. Consequently, the industry has been expanded through the establishment of infrastructure that is related to its activities. For example, in 1998, Caribbean governments spent $ 2 billion in establishing the six cruise lines. Studies show that 60% of the profits made by the Cruise industry come from the surrounding cities. As a result of the enormous contribution by Caribbean governments in increasing profitability margin, the tourism industry in cruise lines is now a booming business. People from cruise lines access the islands frequently and freely as most of their activities are onboard. Cruise lines further suppress the benefits of Caribbean governments as they purchase tourist slots from them and resell them at higher prices ashore (Dwyer, Douglas & Zelco, 2004).

The cruise lines are reaping all the benefits brought by the tourism industry in the exclusion of Caribbean governments. Tourism has a lot of profitability in the cruise industry, which should be shared evenly in the Caribbean. The doubling of the revenue profit in the cruise industry between 1997 and 1998 manifests its prosperity (The Associated Press, 2003). It should be noted that at the time when profits in the cruise industry are in escalation, the economic situation in the islands is critical. Related industries like hospitality are also not exempted. Studies and interviews conducted among the Caribbean residents pointed towards high taxes as being the cause of economic deterioration. Caribbean governments led cruise lines to economic prosperity by investing in them. The industry should, therefore, contribute to the reinstatement of economic stability in the Caribbean by paying taxes. However, the industry completely refuses to yield to strategies organized to increase tax. To ensure that governing process is not affected, the Caribbean governments have increased their share allocation of tax (Braun, Xander, James & Kenneth, 2002).

Despite the investments by Caribbean governments, benefits are being enjoyed by cruise lines. In addition, Caribbean governments are at peril of a worse economy than before. Caribbean governments are investing more in cruise lines while they are getting little revenue from them. For example, by 1998, Caribbean governments had spent $28 billion in both expansions of terminal cruise and tourism promotion. Notably, the overall tax contribution by cruise lines in 1998 was only $ 1.9 million. In addition, only 7% of employees in the Cruise industry come from Caribbean cities. Out of the tax paid by the employees in the cruise industry, only 1% gets to Caribbean governments (Sheller, 2003). Cruise lines are using the scenery to their own advantage while the key investors in the industry get nothing in return. Efforts to get cruise lines to pay higher taxes have been unfruitful. The people in cruise lines threaten not to come to islands in case taxes are increased. The Caribbean governments that had organized the strategy disintegrated after failing to convince the cruise industry of the need to pay more taxes. In addition, the interviews revealed that the cruise lines were charging their customers at a higher rate than Caribbean cities. For example, a tour to cruise lines would be charged at $64 by carnival cruise taxi while that from the islands charged $20 (Barry, Beth & Deb, 1984).

Caribbean cities are on the verge of losing their market share as they will not be able to match the competition. Even with the increased profits in the shipping and tourism industry, other related businesses in the Caribbean will collapse if the trend is not rectified. The present condition has been triggered by unbalanced payments of taxes. Even with high tourism rates, hospitality businesses will not flourish due to the imbalanced operational costs. This could be felt later by cruise lines because when the supply fails to meet demand, there will be crises. If the related industries like hospitality were to collapse due to heavy payment of taxes, tourists would also stop visiting cruise lines. It cannot be denied that Caribbean governments do not enjoy the benefits that are associated with the beautiful landscape. According to the Caribbean governments, the investment in cruise lines has been one of the many failures in the efforts towards reinstating economic stability. It is also regarded as a strategy with the most devastating effects on Caribbean governments (Robert, 2000).

The investments by Caribbean governments bring not only capital loss but also instability of the individual businesses. The cruise industry operates in almost a free tax system and competes with Caribbean businesses that are taxed heavily. Caribbean governments would only enjoy the benefits of their investments if the cruise industry paid higher taxes than they are doing. Payment of higher taxes by the cruise industry would reinstate a stable economy in the Caribbean. It would ensure the profitability of related businesses and the collective economic boom in the region. The cruise industry should be aware of the existing threat in an imbalanced economic environment. Despite economic prosperity, the industry cannot exist in a vacuum for long. If the businesses that are related to the tourism industry in the Caribbean are not matched with the number of tourists, a long-term negative impact is likely to be realized. International intervention should be considered in this case so as to prevent undesirable effects and at the same time save the situation in the Caribbean. Policies that will regulate the payment of taxes will play essential roles in correcting economic crises in the Caribbean (Dwyer, Douglas & Zelco, 2004).

References

Barry, T., Beth, W., & Deb, P. (1984). The other side of paradise: Foreign control in the Caribbean. New York: Grove Press.

Braun, B., Xander, M., James, A., & Kenneth, R. (2002).The impact of the cruise Industry on region’s economy: A case study of Port Canaveral, Florida. Tourism Economics. 8(3), 281-288.

Dwyer, L., Douglas, N., & Zelco, L. (2004).The economic contribution of a cruise ship visit. Tourism in Marine Environments. 1(1), 5-16.

Robert, E. (2000). Caribbean cruise tourism: Globalization at sea Annals of Tourism Research. 27(2), 345–370.

Sheller, M. (2003). Consuming the Caribbean: From Arawaks to Zombies. New York. Routledge.

The Associated Press. (2003). Caribbean cruises leave wave of bitter merchants in ports.Massachusetts Live. Web.

Introduction

This report presents a Revenue Management Plan for Swizz Hotel in Switzerland. The Plan would help Swizz Hotel to determine the best room rate and allocation at the right time. It would ensure that all rooms are sold at optimal prices to guarantee the highest revenues. Some economic principles are used for room capacity management, discount allocation, forecasting, and pricing. The Plan will assist Swizz Hotel in three critical areas related to demand and yield management decisions. With the structural decisions, the Plan will assist the team to decide on the selling format, differentiation strategies, and discount terms. On pricing strategies, the Plan will help the team to determine appropriate prices, offer prices, and reserve prices, as well as pricing for a given period across products, and the most effective discount model to prevent revenue loss. Finally, the Plan will also focus on quantity management decisions. Specifically, room quantity allocation to various consumer segments would be important. Moreover, it would be appropriate for the Hotel executive to determine when to reject or admit guests and the most effective time to withhold services and sell later.

Revenue Management Plan for Swizz Hotel

Location and Positioning

Swizz Hotel will be located on the shore of Lake Geneva to offer spectacular views of the Mont Blanc, the Jura Mountain, and the Alps. It will be conveniently located near the airport, train station, and the city center.

Swizz Hotel will be positioned as a luxurious hotel with high-end services, including 24 hours room service, laundry service, business center, and concierge service for business travelers, tourists, and leisure visitors among others.

Marketing

Different marketing strategies will be used to reach various market segments. Swizz Hotel will consider marketing publications in the local dailies, magazines and other traditional channels. Pricing promotion will be applied during low seasons to increase demands and sales volumes. Swizz Hotel will rely on modern tools of communication such as social media to conduct wide marketing campaigns globally while advancing the promise of e-commerce in the industry. In addition, Hotel executives will attend tourism exhibition programs to network with industry peers and competition.

Target Market

Swizz Hotel will only target high-end clients consisting of business travelers, tourists, world political leaders, and leisure visitors, backpackers and solo travelers, couples, and families.

Market Targeting

Swizz Hotel will adopt a differentiated marketing strategy by focusing on different market segments with various services.

Market Penetration

To penetrate the market, Swizz Hotel will use its highest level of services, modern multi-purpose auditorium with large capacity, meeting rooms, and in-house conference/congress and exhibition facilities.

Market Strategies

Only effective channels will be used. For instance, Swizz Hotel will use cost-cutting channels to reach its market segments. It will heavily rely on data from competition and leisure and tourism authorities to understand market conditions and consumer behaviors. All these channels will be coordinated to increase revenues.

Type of Market

Swizz Hotel will operate in a highly competitive market with limited differentiation among established hotels.

Pricing

Swizz Hotel will apply Yield Management strategies to determine what to charge its customers and ensure that services are sold to the right clients, at the most appropriate time, and price (Kimes, Barrash, & Alexander, 1999).

A dynamic pricing method has been adopted for Revenue Management. This pricing strategy would optimize total revenues for Swizz Hotel. It takes into account nights, the pricing factor of a given night and the reserved rooms for the night (Aziz et al., 2011). No reservations for a given night will exceed the capacity for the night.

The pricing model looks into pricing categories consisting of low-priced rooms and high-priced rooms. Low-priced rooms will be left for early bookings. The dynamic pricing model recognizes that more rooms for the low-priced group will result in an increased reservation, but with the possibility of losing significant revenues from high-priced rooms. This implies a lost opportunity for the Hotel. Conversely, when several rooms are reserved in the high price groups, there are possibilities that many rooms could be left vacant. In addition, room pricing is dynamic and could fluctuate across time.

Hence, to overcome this optimization challenge, the pricing model relies on effective forecasting for room future demands. As such, the Hotel will have various scenarios for room demand forecast and determine percentile differences. Every percentile will be used as an estimate figure for demands during price analysis. The dynamic pricing model will assist the Hotel to determine various prices for a given day during the forecasted period. The price reflects the demand. That is, a low demand will have low prices while higher demands will attract higher prices. This pricing model requires multiple demand forecasts to enhance accuracy.

Revenue Management Processes

The Revenue Management Plan will focus on demand management strategies, pricing, discount allocation, capacity management, and duration control (Aziz, Saleh, Rasmy, & ElShishiny, 2011).

Forecasting

Swizz Hotel will focus on demand forecast as a component of Revenue Management. Initial data for forecasting would be obtained from various agencies in the sector. The approach is based on the notion that demands are seasonal in the hotel industry. Demand forecasting will help Swizz Hotel to determine approximate number of rooms it can hold back for the most profitable booking during weekends and other popular days. It is certainly impossible to determine the precise demands during such periods. Nevertheless, reasonable assumptions based on data will assist the Hotel to be realistic about its forecasting and revenue projections (Verret, 2004).

First, Swizz Hotel will use historical data to identify consistent trends to predict possible future patterns. For instance, data for daily, weekly, and monthly bookings will be used to predict future demands. Data obtained from bookings driven by specific events such as poor weather and impulse reservations among others should not be included in data for analysis. Swizz Hotel will use the best data analytics tools to identify patterns, interpret the data, and use information for decision-making on demands. Second, data for demand forecasting will include room types, room rates of occupancy, length of stay, advance bookings, and any other relevant information. Finally, forecasting will be done after every three months and with possibilities of short-term demand forecasting to enhance accuracy.

Capacity Management – Inventory and Optimization

Swizz Hotel will use capacity management to control and restrict room supplies while balancing risks associated with overselling rooms. Data for room booking will be reviewed regularly to determine optimal reservation.

It will also help in identifying the possible number of walk-in guests to accommodate during a given day.

In this case, the primary goals of yield management are to optimize room rates and occupancy rates. Consequently, Swizz Hotel will maximize mean revenue for each available room at any given moment.

Swizz Hotel aims to ensure high profit booking rather than high volumes of occupancy (Boahen, Quansah, & Sarpong, 2013).

Time and space reflect services provided by the Hotel, and unsold space and time lead to a loss of revenue. Various demand forecasting approaches will be used to determine the most appropriate time to increase or reduce room rates. It also helps to determine when to accept or reject room reservation with the aim of maximizing incomes.

While the overall objective is to optimize the dollar amount, it would be difficult to achieve this by relying solely on increased room rates because of various factors that influence room demands at any given period. Thus, the Yield Management strategy strives to determine the best approach for balancing costs, room rates, and rates of occupancy for optimal revenues.

Discount Allocation

Swizz Hotel will restrict the period and product and service mix offered at discounted rates. Further, it will restrict discounts based on the type of room while encouraging sales as a reaction to customer behaviors (Donovan, 2005).

Length of Stay

During concerts, sporting activities and any other festivals, the Hotel will benefit from the increased demands by curtailing discounts on room rates or insisting on lesser length of stay and maximum length of stay to restrict large discounts of rooms.

Monitoring

When the low occupancy rates increase and become unavoidable particularly during low seasons, Swizz Hotel will focus on low rate customer segments, concentrate on price-sensitive guest, promote special discounts for various groups, and review new rates to boost revenues (Bartnick, 2014).

Conclusion

This Revenue Management Plan will assist Swizz Hotel, a luxurious hotel to ensure a sustained revenue growth, control costs, and manage inventory. In addition, it would ensure that Swizz Hotel establishes itself among the most competitive hotels in the country.

References

Aziz, H. A., Saleh, M., Rasmy, M. H., & ElShishiny, H. (2011). Dynamic room pricing model for hotel revenue management systems. Egyptian Informatics Journal, 12(3), 177–183.

Bartnick, F. (2014). Changing With the Times: The Need for Hotel Marketing and Revenue Management to Converge.

Boahen, O., Quansah, E. K., & Sarpong, O. K. (2013). Assessing the Benefits of Yield Management in the Hospitality Industry in Kumasi Metropolis of Ghana. International Journal of Business and Social Research (IJBSR), 3(19), 17-25.

Donovan, A. W. (2005). Yield Management in the Airline Industry. Journal of Aviation/Aerospace Education & Research, 14(3), 11-19.

Kimes, S. E., Barrash, D. I., & Alexander, J. E. (1999). Developing a Restaurant Revenue-management Strategy. Cornell Hotel and Restaurant Administration Quarterly, 40(5), 18-29.

Verret, C. (2004). The Revenue Management.

Introduction

For a long time, British Columbia has been a leading tourist destination for both international and local tourists. Its main attractions are attributed to its wide variety of urban and cultural diversity in a number of areas such as performing arts, visual arts, sports, shopping and a variety of other fascinating activities in outdoor set ups (Church, 2007, p. 125). British Columbia’s economy therefore thrives on tourism as its main economic driver and the government, with the help of the community has gone to extreme levels to ensure the location is safe, clean and attractive for all tourists willing to visit the area (Shangaan, 2010, p. 1).

From 2007, tourists have been streaming into British Columbia and since 1999; room occupancy rates in the province are at an all time high (Shangaan, 2010, p. 1). Most of the zones in the province like the North coast, Nechako, Kootenay, Thomson, Vancouver, Caribou and the Mainland now record high tourist levels with indicators of growth linked to increased revenues in hotels, fishing lodges, motels and hotels (Shangaan, 2010, p. 2). Other indicators of increased tourism levels are noted through an increase in airport travel but increased growth in tourist numbers is projected at an approximate 6.6% per year (Dowling, 2006, p. 157).

Part of this growth is attributed to the magnificent and breathtaking natural features of British Columbia, such as its beautiful parks, ecological environments, state of the art recreational facilities, campsites, boat launch areas, among others. In fact, a significant portion of the province’s parks provide a good wild/jungle setting which creates a perfect ground for hiking. Mountaineers and hikers are therefore very common in such like designations. British Columbia’s magnificent beaches and marine parks have also been identified as some of the major attractions for marine tourists while its abundant marine wildlife attracts many nature lovers. In general, British Columbia stands out as a fantastic tourist destination and this study explains this fact through the analysis of Vancouver Islands and Southern Coast, which are popular tourist destinations in the province.

Vancouver Islands

Vancouver has a diverse mix of rich cultural heritage that’s preserved in museums and in conventional seasoned events taking part throughout the year (Shangaan, 2010, p. 10). Vancouver is therefore popularly known for its vibrant natural environment because of the emphasis locals place on nature preservation; but its endowment of recreational facilities and cultural enrichment cannot to be ignored either. A popular location in the Vancouver islands is Saturna Island. Saturna Island has a very unique climate which is exclusive to the locality and closely resembles the Mediterranean climate (Shangaan, 2010, p. 13). The summer period is very warm and conducive for surfing while the winter season is normally milder than most places around the globe. The mountainous topography of the adjacent zones therefore provides good ground for skating during winter. Common activities in the locality include whale watching, diving, and kayaking but another common activity is wine production (Shangaan, 2010, p. 13). The best wines can therefore be found in the region and curious enthusiasts interested in wine brewing can learn a lot from the place. This can be a good blend of business and pleasure, especially for wine lovers.

The gulf islands provide spectacular scenery of a 60 acre vineyard which harbors classic European grape varieties which grow from the ideal weather conditions of the area (Shangaan, 2010, p. 13). Visitors are commonly known to purchase wine from the wine shop but a number of merchandises are also sold to compliment the most common activity in the island: wine tasting (Shangaan, 2010, p. 13).

A couple of miles away from the gulf islands is the Quante Salmon stewardship centre which is commonly known to give visitors a chance to see and learn about salmon life; an opportunity very few people get to have (Shangaan, 2010, p. 13). The centre has a magnificent gallery that incorporates a fun-filled display of salmon habitats; partly constituting wood debris. Visitors here can get to know more about ocean environments and the challenges that face salmon life while they get a tour of the hatchery. The fish culture is also conspicuous at the centre and fish lovers can get to learn a lot about the art. These attractions are open to tourists at a low cost fee of $5 for adults and $2 for people below the age of 18 (Shangaan, 2010, p. 13). However, for tourists visiting as a family, they only need to pay $10 only. This is a good location for families touring British Columbia because children can get to learn a lot about salmon life and parents can also enjoy the breathtaking features of the centre.

For eco-lovers, Vancouver provides a good ground for bird watching, bear watching, whale watching, hot spring tours and the likes at the whale centre, located in Rofino (Shangaan, 2010, p. 13). For ordinary visitors, this place provides an unforgettable personal experience with wildlife while institutional tourists can find the centre very interesting because of its educational value. The whale centre provides an opportunity for tourists to watch a number of animals including grey whales, humpbacks, ocas, sea otters and the likes. The experience is greatly facilitated by the friendly staff at the centre (Shangaan, 2010, p. 13).

Sports lovers can also be able to take a look at the world’s largest hockey stick designed by Douglas Fir at the Cowichan community centre (Shangaan, 2010, p. 18). The Guinness book of world record recognizes the Vancouver hockey stick as the world’s biggest, after a 20 year contention, especially by the state of Minnesota which has an equally big hockey stick of 21meters (Shangaan, 2010, p. 13). In comparison, the Vancouver hockey stick is 40 times larger than the ordinary hockey stick (Shangaan, 2010, p. 13).

Apart from sports, Vancouver visitors can indulge in cultural artifacts by orienting themselves with British Columbia’s rich culture which is preserved at the Hatley Site prehistoric Museum. The Museum is located at the Southern tip of the Vancouver Islands or a 25 minute drive from downturn Victoria (Shangaan, 2010, p. 7). The museum sits on a 5675 acre land and stands as one of Canada’s largest prehistoric site built in 1908 by a former British Columbian premier, Carl baron (Shangaan, 2010, p. 13). The Museum is now a huge castle and home to the most diverse cultural artifacts in present day Canada. The biggest attraction to the museum is its authenticity in representing the British Columbian culture.

At the Hatley Site Prehistoric museum, visitors can get to learn about past happenings in British Columbia which links them to present day adventures they enjoy. In a day, visitors can enjoy private tours of the castle taking between 30-60 minutes and also indulge in a nature walk or picnic at the Heritage garden, Japanese garden, Italian garden or the rose garden (Shangaan, 2010, p. 13). Of late, there have been a number of visitors’ programs started to keep visitors entertained but mostly they include participation in seasonal events (Hudman, 2003, p. 62). At the same time, visitors can get to sample exquisite British Columbian dishes at the famous Hatley park restaurant. One of the greatest attractions to this location is its intimate garden setting which is quite suitable for wedding events while its indoor setting is also good for conference meetings, corporate team building events, motion picture filming and other events of a similar nature. The place is usually open to visitors during summer from 10:00am-5:00pm (Shangaan, 2010, p. 7).

While visitors indulge in all the fascinating activities at Vancouver Island, accommodation is guaranteed at the Lilac house bed and breakfast. The lodge is located as the foot of Sook hills overlooking Veitch Greek which is an infamous romantic site for couples (Shangaan, 2010, p. 9). Here, visitors normally have the opportunity to unwind and enjoy the beautiful natural scenery of Vancouver islands, with a guaranteed experience of being at home; but away from home. The reason why many visitors enjoy the place is because of its highly furnished guest rooms (Shangaan, 2010, p. 13). Basically, the rooms are furnished with classy antiques and breathtaking artifacts which provide the visitors with a unique experience that’s only characteristic of Lilac. Ideally, honeymooners can be able to enjoy the excellent room service which is privately offered by lilac’s staff at the honey moon cottage but other visitors can also enjoy the same five star treatment at the comfy bed and breakfast rooms which among others offer an array of food varieties like fresh fruit salad, yoghurt, blue berry and banana pancakes among other delicacies (to suit different visitor profiles across the globe). As an additional attribute to the Lilac lounge, visitors can either prefer to relax and enjoy the facilities of the hotel or alternatively, engage in a nature walk across the vast five acre woodland surrounding the lounge. The current rates at the hotel are diverse, depending on the type of services visitors need. However, for the Lilac house, bed and breakfast, visitors pay $80 a day for pre-Raphaelite rooms while suite angels go for $90-$120 a day, depending on the services a visitor wishes to enjoy. The cottages go for about $100- $150 per day but for three nights and weekly accommodation, the charges are $349 and $750 respectively. For visitors wishing to bring a partner along, they need to pay an extra $15 (Shangaan, 2010, p. 9).

Sunshine Coast

The Southern Coast is located to the south of the mainland coast of British Columbia; encompassing regions predominantly known to be part of the Sunshine coast district (Hein, 2010, p. 9). Accessing the locality is rather adventurous because access roads have not been built yet, but ferries provide a good access into the location because of the steep terrain of the area (Hein, 2010, p. 9). The major establishments at the sunshine coast are the Gibson’s, Sechelt, (the region’s commercial hub), and the Pender harbor (which hosts rich people in the society and is dotted with magnificent water front homes, next to the beach) (Hein, 2010, p. 9). The area is home to the world’s biggest tidal marine rapids which acts as a narrow waterway for the ferries and attracts droves of tourists every year (Hein, 2010, p. 9). At Sunshine Coast, there are a number of hotels currently in operations but the main types of accommodation available are cottages and bed and breakfast lounges. The most probable places visitors can seek accommodation is the historic Lund hotel, the Dome, and Sevilla Island resort. The rates are variable but a minimum of $75 and a maximum of $225 can sufficiently provide one with a decent accommodation while touring the Southern coast (Hein, 2010, p. 9).

Fishing is a common activity in the Southern coast because of the variety of salmon animals dominant in the region although golfing, camping, kayaking, canoeing, hiking, and scuba diving are quickly picking up as popular recreational sports (Hein, 2010, p. 9). Sunshine Coast is home to world renowned musicians and artists whose works have been evidenced the world over; apart from local galleries and stages. Aside from these dominant characteristics at the Sunshine coast, there are a number of “must visit” places in the region.

Firstly, the Desolations sound is a common place for visitors because it hosts one of the biggest marine parks in the greater British Columbia region. The marine park is therefore the most dominant feature at Desolation sound and stretches about 61 miles along the shores of Sunshine coast (Hein, 2010, p. 9). In addition, Desolation sound, hosts a number of small islands of the sunshine coast which are protected by bays and Coves. Visitors can also indulge in swimming and scuba diving in the warm park waters but those who’d wish to engage in nature walks can also do so at the forested highland of the park, which leads to hidden lakes within the vicinity, but hosts adventurous nature trails (Hein, 2010, p. 9). However, accessing Desolation sound can be quite a challenge for most visitors because it can only be accessed by air or water (Hein, 2010, p. 9). Nonetheless, this poses an opportunity for visitors to enjoy a trip by cruise boat to the area.

The second place visitors would find very adventurous is the Earls Cove. Earls Cove is a popular spot for canoeing, or kayaking because it leads to Sakinaw Lake (Hein, 2010, p. 9). This spot can be very adventures for visitors wishing to engage in the above activities but even those who don’t, would find the place very interesting by watching the buzz of activities going on. Canoeing and Kayaking can also be done at Egmont which also leads to Ruby Lake. However, unlike Earl’s cove, Egmont provides a nice environment for hiking. In fact, nature trails lead to Roland point which is also an attractive place to hear roaring, bubbling and boiling tidal waves (Hein, 2010, p. 9).

Thirdly, visitors always throng at Garden bay, located 29 miles, North of Sechelt, but along the Southern Coast (Hein, 2010, p. 9). Here, visitors can unwind because the place is a bustle of activities as popular restaurants and pubs in the South Coast are located in the same area. The place is also accessible by water and tourists can enjoy a ride from South coast cruises. Finally, visitors would find Sechelt quite fascinating because of its rich entertainment service to most tourists. Sechelt is therefore the cultural centre of the Southern coast where visitors can interact with the region’s artists, musicians, actors and the likes as they are entertained. The area is dotted by huge mountains but festivals and fairs are more dominant because visitors like to sample south coast entertainment events, a lot (Hein, 2010, p. 9). However, Sechelt is not only known for its cultural heritage because it also has the best summer environment for camping and golfing as well.

Conclusion

The South Coast is a rich tourist destination for all types of visitors. Practically all types of activities can be held in the various locations discussed in this study. More notable is the diversity in events that visitors can engage in. For starters, Vancouver Island is the best location for family events and is very educational when trying to explore the history of British Columbia. This provides a good destination for many institutional visitors such as schools and colleges. The Southern Coast on the other hand, is best for holiday lovers who want to make merry and take part in a number or marine sports like swimming or canoeing. The area’s wild nature trails and limited transport inject an element of adventure when touring the place and therefore, many visitors would find the place very exciting especially during summer. All these facilities can be enjoyed at minimal costs; throughout the year. This makes British Columbia a very interesting tourist destination for all age groups.

References

Church. A. (2007). Tourism, Power, and Space. New York: Routledge.

Dowling, R. K. (2006). Cruise Ship Tourism. Ontario: CABI.

Hein, C. (2010). Sunshine Coast. Web.

Hudman, L. E. (2003). Geography of Travel and Tourism. New York: Cengage Learning.

Shangaan. (2010). Attractions. Web.

Disneyland

• Entertainment for all ages.
• Opened since 1955.
• More than 60 attractions.
• Seasonal events and festivals.
• Several days are needed to visit all parts of the park.
• Rides and experiences for small children, teenagers, and adults.
• A variety of on-site accommodations.

Disneyland Park is one of the most famous theme parks in the world. It opened in 1955, being created under the supervision of Walt Disney. The park is separated into several lands, each of which has a certain theme – fantasy, critters, adventures, the future, and others. Moreover, several areas are devoted to popular media such as Star Wars and Mickey Mouse. Disneyland is notable for its original characters and fully immersive experiences where all staff stays in-character during interactions with visitors. The park offers accommodations and has a wide variety of dining locations. The size of Disneyland and its separation into lands calls for longer trips and full-day exploration. It should be noted that the prices of tickets change depending on the guests’ decision to park hop – visit several areas during one day. Therefore, it is advisable to plan the trip in advance to decide whether park hopping is necessary to see all the desired attractions.

Universal Studios

• A variety of experiences.
• Many thrilling rides and events for adults.
• Culture-based attractions.
• Seasonal activities.
• A tour of one of the most famous studios.

Universal Studios Hollywood is a theme park of the brand Universal that produces movies, cartoons, and shows. Thus, it prides itself on the combination of pop culture-based projects and classic park attractions. Apart from the rides themed after movies and series, the park offers many shows and exhibitions, 3D events, and immersive experiences. One of the largest parts of the park is the Wizarding World of Harry Potter – an area that includes rides, shops, castles, and other establishments. The visitors will be interested in the park if they’re familiar with Universal’s products.

Legoland in Carlsbad

• Includes a theme park, a miniature park, and an aquarium;
• The third Legoland park to open (in 1999);
• 1.4 million visitors per year;
• The theme park includes the dinosaur-themed Explorers island, Fun Town for all ages, and Miniland USA;
• Sea Life Aquarium showcases Lego details in tanks.

Legoland in Carlsbad was opened in 1999 as a third Legoland Park in the United States. Today, it includes a theme park, a miniature park, and an aquarium. Legoland in Carlsbad attracts 1.4 million visitors per year. The theme park includes the dinosaur-themed Explorers island, Fun Town for all ages, and Miniland USA. Sea Life Aquarium showcases Lego details in tanks and walks visitors through long acrylic lego-themed corridors.

Knott’s Berry Farm in Buena Park

• California’s best theme park;
• Six million visitors per year;
• Seasonal events and activities
• The most famous annual event is Knott’s scary farm;
• The current areas and attractions include Ghost Town, Fiesta Village, The Boardwalk, and Camp Snoopy;
• On-site accommodation;
• Extra long hours on Saturdays.

Knott’s Berry Farm is a theme park located in Buena Park, California. With six million visitors per year, Knott’s Berry Farm is the most visited theme park in the US. Its titles include “California’s best theme park” and “America’s first theme park.” The park has a rich history dating back to 1920s, and today it employs more than 10,000 people. Knott’s Berry Farm hosts plenty of seasonal events and activities with the most famous being Knott’s Scary Farm. The current areas and attractions – Ghost Town, Fiesta Village, the Boardwalk, and Camp Snoopy – have something to offer to visitor of all ages. The park works extra long hours on Saturdays to accommodate the flow of visitors.

Seaworld in San Diego

• An animal park, a theme park, and an outside aquarium;
• Opened in 1964;
• 4.3 million visitors per year;
• Hubbs-Seaworld Research Institute educates the general public on marine life;
• Hosts shows with orcas, sea lions, and dolphins;
• Has many rides and rollercoasters.

SeaWorld, San Diego, California, is an animal park, a theme park, and an outside aquarium. Opened in 1964, SeaWorld has gained a great deal of popularity since then, welcoming up to 4.3 million visitors per annum. Today, the park is a member of the US Association of Zoos and Aquariums. Adjacent to the property of the park is Hubbs-Seaworld Institute that reaches out to the general public on the issues of marine life. The most famous events hosted by the park include shows with orcas, seal lions, and dophins. Apart from that, SeaWorld has a wide range of rides and rollercoasters, including water rollercoasters. Aquariums showcase dolphins, killer whales, seals, sea lions, and reefs.