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Global Trends and Driving Forces in the Hotel Industry Research Paper

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Updated: Jun 25th, 2019

Marketing management trends

Global marketing defines the market share of a hotel in the hotel industry. According to Galicic (2014), global marketing is the most important for a hotel because it expands the geographical presence, improves global branding, and increases market share.

The forecast shows that global marketing grows in the hotel industry because of globalization, which increases movement of people for leisure and business purposes. Fundamentally, global marketing enables hotels to enhance their target market by reaching out to customers in diverse geographical regions and to improve awareness of the services that exist in the hotel industry.

Provision of standardized services and amenities with customization to meet the unique needs of customers in a certain locality is a global trend and a driving force in the hotel industry. Whitla, Walters, and Davies (2007) assert that the hotel industry must provide standardized services that meet unique needs of customers emanating from diverse geographical regions globally.

The forecast of the evolution indicates that standardization of services is inevitable because customers are frequent travelers, who require services that meet certain standards based on their travel experiences and expectations. In essence, the services that the hotel industry offers must meet specific minimum standards.

The incorporation of information technology promotes the competitive advantage of a hotel in the hotel industry. Koutroumanis (2011) recommends hotels to use information technology in receiving orders, accepting payments, scheduling labor, forecasting production, engineering menu, formulating prices, and keeping inventories.

The information technology automates systems and processes in the hotel industry, and thus, it reduces errors and improves the quality of services. The forecast indicates that information technology is rapidly evolving and transforming the hotel industry because the global economy is gradually embracing e-commerce.

Social networking is an integral trend and driving force of marketing in the hotel industry because it enables customers to interact with hotels, provide feedback, and refer to their friends. Zeng and Gerritsen (2014) hold that social media is a powerful network marketing tool that is effective in the promotion and marketing of the hotel industry.

Koutroumanis (2011) states that hotel industry should embrace social networking sites, for example, Twitter, Facebook, LinkedIn, MySpace, and YouTube, because they promote marketing and customer loyalty. Given the increasing number of people in the social media, the forecast shows marketers in the hotel industry increasingly rely on it in marketing and educating customers. Hence, hotels should take advantage of the social media in advertising because most customers use social sites in searching for hotels with positive reviews and appealing services.

The adoption of new business models and marketing strategies is essential to reduce operation costs and improve sales. Gustavo (2013) holds that new business models, such as joint ventures, mergers, acquisitions, and strategic partnerships, promote expansion of hotel chains, development of brands, and improvement of sales in the competitive hotel industry.

In the period of global economic challenges, these business models coupled with effective marketing strategies boost the competitiveness of hotels. As hotels are unable to satisfy unique needs of customers in various geographical regions, the forecast indicates that the aforementioned business models enable hotels to use their concerted efforts for improving competitive advantage and satisfying diverse customer needs.

Safety and security comprise a global trend and driving force in the hotel industry because customers consider them while choosing their travel destinations. Singh (2015) recommends that hotels should offer physical security, personal security, and the information system security for customers to feel safe in their amenities.

The physical security entails security infrastructure such as a secure fence, proper lighting, the presence of fire equipment, and installation of closed circuit TV cameras amongst other pertinent equipment. The personal security comprises security measures provided in guest rooms and precautions of hotel employees to protect guests from possible dangers and loss of property.

The information system security includes security of information technology systems that customers and hotels use for making payments and keeping personal details. In the wake of terrorism and advancement of technology, the forecast of trend indicates that safety and security will be the major factor that customers consider in choosing hotels.

The provision of health and wellness services is a new trend in the hotel industry. Rao (2014) argues that hotels should provide health and wellness services such as gymnasiums, swimming pools, sports, and healthcare centers so that customer can improve their wellness during their stay in a hotel.

Moreover, food and beverages should reflect health and wellness needs of customers. The forecast of the trend of services shows that customers have become conscious about their health and wellness, and thus, they choose hotels based on the nature of health and wellness programs they offer. From this point of view, hotels need to keep in tandem with the increasing demand for health and wellness services among customers.

The political environment is a major factor that influences hotel industry because it determines the movement of travelers. Ingram, Tabari, and Wattanakhomprathip (2013) state that terrorism and upheavals make governments limit movement of travelers and impose a curfew on certain regions.

Furthermore, governments offer travel advisories to their citizens, which influence the movement people across the globe. Thus, the political environment has a marked influence on the market trends in the hotel industry. The growth of hotel industry indicates that travelers prefer visiting destinations with a stable political environment and favorable legislations.

The Most Competitive and Successful Trends in Scotland

The use of information technology is the most competitive and successful trend in Scotland because it allows customers and hotels to interact on the Internet, as in the case of Gleneagles. Law and Jogaratnam (2005) assert that the hotel industry faces a technology-based revolution, which will determine the competitiveness of a hotel.

Online booking and payment systems are some of the trendy uses of information technology in Scotland. Hotels in Scotland such as Gleneagles should employ social networking in its marketing strategy. Hamid, Akhir, and Cheng (2013) hold that social media offers viral marketing among the young customers, who constitute a significant proportion of customers in the hotel industry.

Given that customers in the hotel industry emanate from diverse countries, global marketing is integral to the promotion of hotels in Scotland. Naidoo and Munhurrum (2011) assert that global marketing significantly determine market share of a hotel.

The hotel industry in Scotland should focus on providing health and wellness services. The promotion of health by World Health Organization has increased awareness among customers to change their lives by choosing healthy lifestyles (Koncul, 2012). Global trends indicate that health and wellness service is the current trend in the hotel industry, and thus, hotels in Scotland need to incorporate in their services.

Owing to the threat of terrorism, hotels in Scotland should improve safety and security of their amenities and customers. Henderson, Shufen, Huifen, and Xiang (2010) state that safety and security of customers is a major factor that determines their choices of travel destinations and hotels.

To expand their services globally, hotels in Scotland need to adopt new business models, such as strategic partnerships, mergers, acquisitions, and joint ventures. Gustavo (2013) states that these business models enable hotels to thrive in the competitive hotel industry and overcome effects of global economic recessions.

References

Galicic, V. (2014). Internal marketing in the hotel industry. Tourism and Hospitality Industry, 1(1), 297-312.

Gustavo, N. (2013). Marketing management trends in tourism and hospitality industry: Facing the 21st century environment. International Journal of Marketing Studies, 5(3), 13-25.

Hamid, N., Akhir, R., & Cheng, A. (2013). Social media: an emerging dimension of marketing communication. Journal of Management & Marketing Research, 3(12), 1-7.

Henderson, J., Shufen, C., Huifen, L., & Xiang, L. (2010). Tourism and terrorism: A hotel industry perspective. Journal of Tourism, Hospitality, & Culinary Arts, 4(1), 33-46.

Ingram, H., Tabari, S., & Wattanakhomprathip, W. (2013). The impact of political instability on tourism: case of Thailand. Worldwide Hospitality and Tourism Themes, 5(1), 92-103

Koncul, N. (2012). Wellness: A new mode of tourism. Economic Research, 25(2), 525- 534.

Koutroumanis, D. (2011). Technology’s effects on hotels and restaurants: Building a strategic competitive advantage. Journal of Applied Business and Economics 12(1), 72-80.

Law, R., & Jogaratnam, G. (2005). A study of hotel information technology applications. International Journal of Contemporary Hospitality Management, 17(2), 170-180.

Naidoo, P., & Munhurrum, P. (2011). Marketing the hotel sector in economic crisis evidence from Mauritius. Global Journal of Business Research, 5(2), 1-12

Rao, S. (2014). Emerging trends in hospitality and tourism. International Journal of Research, 1(1), 1-8.

Singh, J. (2015). Safety and security concerns in hospitality industry. International Journal of Management and Commerce Innovations, 2(2), 1-5.

Whitla, P., Walters, P., & Davies, H. (2007). Global strategies in the international hotel industry. International Journal of Hospitality Management, 26(1), 777-792.

Zeng, B., & Gerritsen, R. (2014). What do we know about social media in tourism? A review. Tourism Management Perspectives, 10(1), 27-36.

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