Competition Competition is another factor that those managing or owning businesses in the hospitality field have little to no control over. Many times, competition is heavily affected by economic and regulatory factors. For instance, changes in the airline industry since 9-11 have been due, in part, to changes in the regulatory environment such as greater restrictions on airlines and airport check-ins that have discouraged flying. Airlines have no control over these changes and many have suffered economically. They can only adapt to the changes as necessary and fight the other airlines for the customers that continue to travel by plane. Critical Success Factors in the Hotel Industry The Hotel Industry can be Highly Competitive. Critical success factors are the areas in which a business must excel to survive in the marketplace. The critical success factors in the hotel industry have been changing over time, driven by global competition and increasingly high customer expectations. Hotels are focusing on quality management to attract new customers and earn repeat business. Location MOTAL: Photodiso Photodisc/Getty Images The hotel industry has traditionally focused on location as the most important critical success factor. Despite the changes in the industry, location is still important. A hotel located on a little-used highway is not likely to do very well, even if it offers superior service and amenities. However, although location remains highly important, other factors matter. Travelers used to take it for granted that hotel service would vary significantly depending on location, but this is no longer the case. Global Outlook Even small, locally owned hotels need to be able to compete on an international basis to be successful. Tourists deciding where to take their next vacation can choose from destinations all over the world, and can easily research the quality of local hotels when making their selection. If a hotel tries to compete solely on price and location
Competition Competition is another factor that those managing or owning businesses in the hospitality field have little to no control over. Many times, competition is heavily affected by economic and regulatory factors. For instance, changes in the airline industry since 9-11 have been due, in part, to changes in the regulatory environment such as greater restrictions on airlines and airport check-ins that have discouraged flying. Airlines have no control over these changes and many have suffered economically. They can only adapt to the changes as necessary and fight the other airlines for the customers that continue to travel by plane. Critical Success Factors in the Hotel Industry The Hotel Industry can be Highly Competitive. Critical success factors are the areas in which a business must excel to survive in the marketplace. The critical success factors in the hotel industry have been changing over time, driven by global competition and increasingly high customer expectations. Hotels are focusing on quality management to attract new customers and earn repeat business. Location MOTAL: Photodiso Photodisc/Getty Images The hotel industry has traditionally focused on location as the most important critical success factor. Despite the changes in the industry, location is still important. A hotel located on a little-used highway is not likely to do very well, even if it offers superior service and amenities. However, although location remains highly important, other factors matter. Travelers used to take it for granted that hotel service would vary significantly depending on location, but this is no longer the case. Global Outlook Even small, locally owned hotels need to be able to compete on an international basis to be successful. Tourists deciding where to take their next vacation can choose from destinations all over the world, and can easily research the quality of local hotels when making their selection. If a hotel tries to compete solely on price and location
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
Section: Chapter Questions
Problem 1CE
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Hi, please explain the photo attached please
Transcribed Image Text:Competition
Competition is another factor that those managing or owning businesses in the
hospitality field have little to no control over. Many times, competition is heavily affected
by economic and regulatory factors. For instance, changes in the airline industry since
9-11 have been due, in part, to changes in the regulatory environment such as greater
restrictions on airlines and airport check-ins that have discouraged flying. Airlines
have no control over these changes and many have suffered economically. They can
only adapt to the changes as necessary and fight the other airlines for the customers
that continue to travel by plane.
Critical Success Factors in the Hotel Industry
The Hotel Industry can be Highly Competitive.
Critical success factors are the areas
in which a business must excel to survive in
the marketplace. The critical success factors
in the hotel industry have been changing
over time, driven by global competition and
increasingly high customer expectations.
Hotels are focusing on quality management
to attract new customers and earn repeat
business.
Location
MOHAN:
TO
Photodisc Photodisc/Getty Images
The hotel industry has traditionally focused on location as the most important
critical success factor. Despite the changes in the industry, location is still important.
A hotel located on a little-used highway is not likely to do very well, even if it offers
superior service and amenities. However, although location remains highly important,
other factors matter. Travelers used to take it for granted that hotel service would vary
significantly depending on location, but this is no longer the case.
Global Outlook
bos
Even small, locally owned hotels need to be able to compete on an international
basis to be successful. Tourists deciding where to take their next vacation can choose
from destinations all over the world, and can easily research the quality of local hotels
when making their selection. If a hotel tries to compete solely on price and location
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