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1 Strategic Analytical Review Concerning The Hotel Sector By Joscelyn Chamberlain Gemma Gamble Tina Harrington Rebecca Pinfold Jasmine Rushton
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2 General Overview “A place providing meals and accommodation for payment” Oxford Dictionary(1986), 6 th Edition, Oxford University Press, UK
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3 Hotel Sector Turnover = £11 billion per annum 22% share of all catering industries Number of outlets remained stable over the last 5 years
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4 Number of Hotel Outlets in the UK YearNumber of Outlets 199548,416 199648,529 199748,626 199848,730 199948,696 200048,413
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5 Trends in the Hotel Industry
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6 Hotel Trends Long stay guests diminishing Foreign guests diminishing Business stays remaining stable Short stays increasing Revenue increased from non-residents Number of US visitors drastically decreasing
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7 Competition Campsites Low risk Self-catering holidays Medium risk Foreign holidays High risk
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8 Seven Influences On The Organisation 1. General evaluation:Turbulent. Several problems Sept 11 th +Foot & Mouth+Looming Recession=Loss of Tourists
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9 Seven Influences On The Organisation 2.Factors affecting many industries Political-War in Afghanistan Economic-Recession Technological-Internet opportunities Green-Global warming, flood threats, warmer summers and winters Socio-Cultural-Decreasing PDI, less eating out, more people staying at home
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10 Seven Influences On The Organisation 3. Industry Money, employees and customers 4. Organisation Hotels are dependent on attracting customers
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11 Seven Influences On The Organisation 5. Competitors Other hotels, holiday parks compete for same customers. The home has become a real threat to the industry 6. New Competitive Entrants Less likely due to current climate 7. Customers Or the distinct lack of!
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12 Environmental Influences Foot and Mouth Events of 11 th September Looming recession
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13 Political and Economic Influences Political Labour government is stable DDA revises Employment Law Government more concerned with other issues Economic Recession looming PDI likely to decrease Interest rates continue to drop $ and Euro weak to Sterling Lack of investment in Hotel Industry Unemployment on the rise Drop in price of oil
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14 Social and Technological Influences Social Increasingly work orientated Worries about flights Technological Government interest in providing internet access Improving power and skill in computers
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15 Stakeholder Map of the Current Situation A Shareholders B Employees Suppliers Travel Agents C Financial Directors D Financial Directors Level of Interest High Low Level of Power High Low
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16 Market Segmentation Of the hotel sector turnover, for 2001 an estimated 38% was generated from hotel catering Market Segmentation Holidays and Short Breaks 42% Regular Business Travel 26% Conference & Banqueting 18% Non Resident Users 14%
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17 TIME 199920002001200220032004 900 1000 1100 1200 1300 SALES £M IntroductionGrowth Maturity Decline (terrorism and FMD) Product or service Re- launch in 2002. PRODUCT LIFE CYCLE ANALYSIS OF BUSINESS TRAVELLER WITHIN THE HOTEL SECTOR. Product Life Cycle
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18 Market Penetration In existing business traveller market – Introduction of guest loyalty schemes/ home office facilities. Product Development Market DevelopmentDiversification Market Options Matrix Withdrawal In the decline phase Of the PLC-In the next 5 years all hotels will have the same facilities Market Increasing Customers Present New PresentNew Product or Service: increasing technical innovation
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19 The Future of the Hotel Sector No immediate sign of a downturn in sector fortunes Minimal growth Reluctance to fly/travel Decrease in occupancy Long term plans and strategies must be set in motion Impact of reactive measures Proactive strategies
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20 The Future of the Hotel Sector “By 2010 there will be a variety of changes made to the average hotel room and the services offered with hotels” Customised Comfort-The Hotel Room of the Future Find Articles.com
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21 THANK YOU
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