Importance Of Location In A Hotel Industry Tourism Essay
In every business location plays a very important role in its success and hotels are no exception. The proposed place for starting a business or a place where the business is situated is termed as location.
The selection of a business site is one of the most important decision that should be prepared by an entrepreneur (Yang, Wong, & Wang, 2012) .Before starting the business entrepreneurs must have a complete idea about the overall cost (Avinal, 2005). Even though, choosing the apt location is based on certain factors the first and foremost thing which needed to take in to consideration is to locate a site with minimized cost. An entrepreneur need to clearly look at all the areas and various benefits which each region had to offer as well as available government support.
Every hotel will have their own target groups or customers which include local national and international tourists, people coming for business purposes, conferences, weeding bookings and so on. Target groups may differ in each hotel but most of these groups prefer locations which are attractive and locations usually located near to different transport links.
There are positive and negative effects in deciding to invest in city center hotels as well as rural setting hotels. (Aviad A. Israelia, 2011) Location is a extremely essential factor in the case of city center hotels.
Hotels in city centers often have a fairly saturated market, so before investing the owners need to guarantee that the location has an advantage over its competitors.
Hoteliers must have good knowledge about the present tourism industry in their chosen region or country. Now in many areas the tourism rates are getting higher so in a short period of time people who invest in such areas can increase their value of the asset. (Kimes, 2011)
It is also crucial to be aware of the tourist attractions within the hotel locality. If hotels can draw high occupancy throughout the year without relying on seasonal tourism then diversity can be beneficial
As the manager of the hotel just about to open in a location with many competitors how could you operate without negatively influencing the markets local room rate?
A hotel needs creative global brand management, continually with resources to organize and keep up a brand in the face of extreme competition. While setting the room rate the managers or owners should make sure that the prices are practically affordable, impartial and competitive to attract and maintain the client’s .moreover the prices must be enough to balance costs and a fair return on investment. (Stella Zounta, 2009)
When starting a new hotel the primary focus will be on profit. (Ziqiong Zhang,Qiang Ye,rob law, 2011) So while fixing the room rate most of the hoteliers consider taking the price of the land, if the price of the land is high then the hotels will also charges more.
We can operate an hotel without negatively influencing the markets local room rate through providing attractive offers and deals such as discounts for online bookings, providing rooms with complimentary meals, free city sightseeing and tours ,giving good deals for people staying for a longer period. Another important factor is providing good quality service to the customers. (Ziqiong Zhang,Qiang Ye,rob law, 2011) Poor service in hotel industry can destroy the business. While selecting a hotel most of the customers prefer good quality service rather than the price factor. (Abdul Aziz Abdullah, 2012)
What issues do you see as the most important when selecting a location for the new hotel development?
A right location plays a very important role in the success of a new hotel development. (Yang, Wong, & Wang, 2012) Moreover if the location of the hotel is in an area where the competitors are not able to fulfill the guest’s requirements then you can easily achieve success. Before proceeding with the plan of building a new hotel, a feasibility study is done in order to attain an analysis of the site. Now a day’s competition in the hospitality market is very high. So when selecting the location first we have to identify the central elements and physical characteristics of the site, if it is situated close to an airport or a railway station there is a high chance of getting more customers. it is the same in the case of choosing a location near to shopping and entertainment places.
lot of travelers make their decisions on accommodation based on the options they can see while travelling therefore it s always good to build a hotel near to a major road or a highway, and make sure that the hotel’s driveway is simple and accessible.
When it comes to physical elements we have to be sure whether the location will be able to suit a well presented plan. Basic requirements like gas water electricity should be accessible. We also have to make sure that the location has any conditions that can affect the project economically or otherwise. It is also good to get an idea about the local permitting process and the level of complications that need to be faced. (M.Larkin, 2009)
As a manager of a hotel in your local area what community groups would you be involved with?
Market segmentation is one of the main components that needed to be applied on hotel revenue management. (Jan-Benedict E.M Steenkamp, 2002) It helps you to target and market to diverse groups of consumers with distinct behaviour with a proposal that fit their wants and budget level.
To provide high customer satisfaction Managers of hotels need to learn as much as they can about their customers. (Hanny N. Nasution, 2008) The more managers understand about their customer wants the better they satisfy their needs’ (Oh, 1999) .Manager of a hotel need to collaborate with many community groups to be successful. The best way is to associate with reputed travel agencies, tour operators, business groups etc.Travel agencies and tour operators daily have to handle many visitors so as a manager if you can give special prices and benefits to travel agents they can bring in many guests to the hotel.
You have been appointed as a manager of a first class hotel located in an isolated area what management decisions do you make?
In order to do well in hotel management more than good knowledge about the hotel industry, a manager need to build up exceptional management, analyzing skills, time management skills and excellent interpersonal skills.
To succeed the manager need to keenly seek out for information about what’s happening in the hotel industry, and in an advanced society. As a manager of a hotel located in an isolated area the best thing to do is to organize and sustain relations with people working indifferent fields such as hospitality, media, and tourism. This will promote the business and helps to understand the various trends and possibilities that can influence the business in a positive way. Promotion is the best way to notify others about the various offers and services provided in a hotel. (Larry R. Weatherford, 2003) It helps to influence more and more potential customers to the hotel. Promotion through advertising can be done in both printed and electronic media. Attractive advertisements can inform people about the hotels offerings.
Furthermore to do well in such a situation as a manager we need to give more preference on excellent facilities, overall customer experience and should focus to rise above the norm than the competitors. (Christine Jones, 2002)