This makes it more likely that the profitability will be there for when sale is easy to transact and complete the profit margin usually decreases. The average employee to room ratio in India is 1. By its basic nature the hotel industry is fragmented. When potential customers can learn about a hotel on line, the internet reduces the differences among competitors.
It is augmented by staff training and room service. Natural factors such as an earth quake, or natural factor directly affect the hotel sales. Porter Conclusion Whether a hotel or hotel chain is well established or brand new, the five underlying forces of competition which include: This has been possible due to continuous improvement in the facilities and services provided by the domestic players and due to presence of various multinational brands.
The hotel industry is also referred as hospitality industry.
In fact many established companies have synergies between their established business and online technology. Also many of the firms in this industry have presence in various sectors which provide them a high financial backup. Threat of Substitute Goods In Porter analysis hotel industry hotel industry there is usually another hotel just around the corner.
In the case of hoteliers this is crucial. After suffering these blows, the hotel industry managed to gain back its footing on the economic map.
Customers enjoy a good amount of bargaining power on the quality of service provided in this segment. It would be a boon to humanity which will help to show progress of property and advances in hotel industry. They are finding internet businesses like cheaphotels. Also due to economy of scale a new firm will have to face this barrier.
These factors play a vital role, especially in monsoon season. With their products in greater demand by greater numbers of hoteliers suppliers gain some measure of power by competition for their offerings.
Others, like Best Western have differentiated themselves by standardization and by price. Vintage Inns Vintage Inns started in Niagara-on-the-Lake approximately 25 years ago when a recent immigrant bought many of the established old hotels in town.
This will help to minimize troubles and team of hotel industry can handle such situation easily. Customer Profile for Hotel Industry 4. The constant challenge will always be to get the guest to choose your hotel over the competitor.
In case of the economic recession, the hotel industry should be more durable than the tourist market because of the fluctuation in the tourist industry. The new entrants will be at disadvantage as the best locations are limited in the metropolitan cities.
Sheraton Hotels Sheraton Hotels Chain is a world wide concern. Tourist demand is seasonal in nature and hence to a large extent the industry faces a seasonal demand.
The gestation period for a hotel is expected to be around 30 months. Such substitutes can affect the business traveler segment of the customers.
Cheng, Bibliography Porter, M, It also must indicate that the welcome feeling is part of what the staff is trained to provide as an expertise. Economic Factors Economic factors include many factors such as taxation changes, inflation, economic growth, interest rates and exchange rates.
Other than travel agencies who arranged hotel stays the hotel business has always been a face to face business and this normally sustains the economic value of the transaction. Customers are more particular to the service provided than other factors such as price charged by the hotels.
Average employee cost in varied from Rs 4 lakhs to Rs. Given the potency of this threat a superb internet presence is vital.
It is best to know that economic change does leave a significant impact on the behavior of the firm.Report Summary The purpose of this study is to analyze the premium segment of the hotel industry.
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ANALYSIS OF HOTEL INDUSTRY IN PORTER’S FIVE COMPETITIVE FORCES Submitted By- Krati Chouhan Section- A BBA LLB(Hons.) III Semester. Due to the economic recession in the past, the business travel all over the world suffered a decline which consequently had a bad effect on the hotel industry.
At the same time H1N1 epidemic (Swine Flu) hit the world and tourism deteriorated by various degrees. After suffering these blows, the hotel industry managed to gain [ ]. Feb 22, · Now, more than ever, Porter’s well regarded thoughts on business strategy and the Internet, first published inare crucial to consider and they contribute to an analysis and critique of the hotel industry’s internet strategy.Download