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Tourism Marketing: Hotels and Restaurants Comparison Essay


Comparison of Cambridge Suites Hotel and Hampton Inn by Hilton Hotel

A study of the two named hotels indicates a large difference in the prices of their services. Cambridge Suites Hotel records higher prices in all their services as compared to the same services offered by the Hampton Inn hotel though both hotels occupy the same locality in Sydney. The table below represents the results of the statistics recorded.

Item of comparison Cambridge Suites Hotel
(Rates in Dollars)
Hampton Inn by Hilton
(Rates in Dollars)
Rooms (per person) From $ 109.35/night From $ 99/night
Meetings and events From $ 89 for 20 people From $ 82 for 20 people
Weddings From $ 387.95 From $ 306.97
Dining From $3 to $250 for platters From $ 2.50 to $ 243.35
Spa $100 per month per person $ 96 per month per person

Table 1: A difference in the prices of services offered in Cambridge Suites and Hampton Inn (Andreyeva, Long, and Brownell, 2010).

Cambridge Suites Hotel has higher prices than that of Hampton Inn in all services provided. This is due the location of Cambridge Suites in an area inhabited by rich people as compared to those living in the area surrounding the Hampton Inn Hotel.

Comparison of Napoli Pizzeria and The Olive Pizzeria Bistro restaurants

Napoli pizzeria is located at 465 Charlotte Street while The Olive Pizzeria Bistro is located along the Sydney port Access Road. The two restaurants mostly operate in fast moving foods such pizza, cheese, pepperoni, and pepp-cheese among others. The table below summarises the results of a study on the prices of different commodities

Products Napoli Pizzeria
Cost per item (in Dollars)
The Olive Pizzeria Bistro
Cost per item
Pizza From $3 From $2.5
Cheese From $7 From $5.7
Pepperoni From $4 From $3.8
Pepp-cheese From $4.35 From $4
Mush-cheese From $6.20 From $5.85

Table 2: Comparison of the prices of foodstuffs in Napoli Pizzeria and The Olive Pizzeria Bistro (Hayes and Ninemeier, 2004).

Other hotels and restaurants in Canada

Grey Eagle Resort, a modern hotel in 3777 Grey Eagle Drive Southwest, T3E 3X8 Calgary, Canada offers a series of highly recommendable services and is one of the most preferred hotels in the area. Even though it has higher prices as compared to the two studied hotels within Sydney, it attracts a good number of Canadian tycoons and others from the world over. In Grey Eagle Resort, a living room inclusive of breakfast goes for 84 pounds for a single night per person. This is much higher than the hotels in Sydney. Consequently, other services such as meetings, weddings, and events are also more expensive.

Raymonds Restaurant, in the eastern Coast of Canada, also experiences higher prices in their services with the cheapest pizza amounting to $8.50. Generally, the costs are higher than hotels in Sydney. Hayes and Ninemeier (2004) note that a seven-course tasting menu runs from $125 and five-course menu at $100. However, the restaurant attracts a high population of rich individuals with higher profit margin recorded in 2014.

Price comparison of International hotels and restaurants

A study of international Hotel Calgary indicates even a quite higher prices of the services offered. The rates for suites in the hotel start from $119 per person per night. Consequently, dining and events rates are also higher than that of the hotels in Canada, with the starting rate being $112. According to International Hotel Calgary (2015), Catering and weddings are also expensive with the rates calculated per hour.

Thrillist restaurant in the Middle East is one of the restaurants that attract a greater population regardless of its high prices on goods and services. However, it maintains additional services that keep most of its customers regardless of high prices. The lowest rate is $ 14 for a pizza.

Justification of the higher prices by companies

Evidently, companies that charge relatively higher offer modernised and highly improved services that meet their clients taste and preferences. For instance, Cambridge Suites Hotel provides ample rooms for meetings and events organisation with different set of sitting patterns enabling the client to choose the design of their own interest. Consequently, in the event of the meeting, Cambridge Suites provide meeting WI-FI, flip chart and markers, and all day non-alcoholic beverages among others. One of the distinct methods used by Hampton Inn is individual pricing during the meeting if need be and offers for audio-visual systems. My visit to these expensive hotels and restaurants proved provision of extra services and, therefore, a justification of the higher prices (Andreyeva et al., 2010).

Most companies that offer services of higher products offer other free services such as free high-speed internet, free breakfast, pet friendly services, and accessibility to kitchenette where the client can prepare some other foodstuffs apart from those provided by the hotel. Cambridge Suite and Hampton Inn, for example, provide free breakfast and internet to their clients and therefore a need to maintain high prices for their services. I realised that the more a hotel becomes expensive, the more improved are its services. I, therefore, concur with the concept higher prices directly relate to better services.

Other factors affecting price by hotels

The sales of the products in the hotels in Sydney and the world over depend on other factors both within and outside the concept of the company. Outlined below are some of those factors that determine the price of a commodity or service especially in a hotel:

The development cost

Any person offering a service or a product would not be willing to sell the product at a lower cost than the initial production cost. The main aim of operation is to obtain profit. The total cost of production inclusive of tax and other expenditures determines the actual unit cost of a commodity or service. Consequently, an introductory price is always high due to higher in innovative processes and heavy investments into research and development of the new product.

Economic trend

Economic factors such as labour cost, taxation rate, inflation rate, currency exchange rate, and government’s fiscal and monetary policies positively or negatively influence the price of a product or service. For example, a higher taxation of cheese would generally contribute to a rise in the prices of all the restaurants that offer cheese-related products.

Class of the targeted customers

The class of the targeted customers affects the pricing of services and products. There exist three classes of people; the rich, middle class and the poor. A product or service that targets the rich commands a higher than those targeting the middle class. The rich usually render a low-priced service or product valueless; therefore, it does not attract many buyers or attendants. Cambridge Suites Hotel, for example, targets the rich and this contributes to the higher prices of its services to maintain the pool of its customers.

The level of demand

A higher demand than supply of a product or service creates a scramble for the limited available services. Consequently, the products inflate leading to higher pricing of the commodities. Therefore, a product developer must understand the market trend about the demand and supply.

References

Andreyeva, T., Long, M. W., & Brownell, K. D. (2010). The Impact of Food Prices on Consumption: A Systematic Review of Research on the Price Elasticity of Demand for Food. American Journal of Public Health, 100(2), 216-222. Web.

Hayes, D. K., & Ninemeier, J. D. (2004). Hotel operations management. Upper Saddle River, NJ: Pearson/Prentice Hall. Web.

International Hotel Calgary. (2015). Calgary Hotels Downtown. Web.

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