MULTI-SEMENT MODEL AND BUYER”S PERSPECTIVE ANALYSIS OF A HOTEL ACCOMODATIONEXECUTIVE SUMMARYThis paper discusses the use of multi segment model and buyers’ perspective analysis for a hotel accommodation. We have chosen Marco Polo hotel chain in Asia-pacific region as our case study. It is one of the leading hotels in the region associated with excellent quality of services. We analyzed its hotel accommodation based on the buyer’s perspective in a services industry. Services is distinguished by its intangible nature and lack of physicality. It can only be experienced by the buyer and there is no separateness between buyer and seller of services during the services encounter. In the first Quadrant, that is the product quadrant, factors such as accessibility, visibility, distinctiveness or uniqueness of services were explored and it was seen tht the Marco Polo hotels score sufficiently high on these points.
All their hotels are quite well known and the bran is equated with luxury as well as comfort and a certain standard of services. Moreover, all the hotels of this chain are situated at the central points and close to well known tourists or public places.
Moving on the second quadrant that is the product delivery – we looked at the booking and sales services plus the types of accommodation available at the hotel. Marco polo hotel have quite a large number of rooms available which vary according to size and requirement. They have separate rooms and accommodation for people on holidays and people on business travel. The Hotel management takes special care to ensure that visitors and guests get services according to their requirements. Similarly, in the third quadrant as well, we discuss the auxiliary services such as the room service or the porter service etc.
provided by the hotel and Marco Polo again comes out on top on this front as well. Their services are up to the expectations and they try their best to service each and every guest to the best of their ability. All requests are taken into consideration and best possible solution provided for any problem. In the additional marketing segment, we find that the hotel is offering services such as baby sitting or crèche services, limousine services, a beauty salon, health and fitness center etc, to its guests.
The hotel can probably offer these additional services on discounted prices to their guests and this will definitely make the hotel more popular and will ensure that guests are able to make use of these services. The hotels can also include sight seeing services for half day or full day through private taxis or shuttle buses. This will again help its guests to plan their sight seeing quite comfortably and they need not search or inquire for sight seeing tours from other areas.
They can provide discounted prices to their guests and give them one more reason to choose Marco Polo hotel. .INTRODUCTIONHotels and accommodation sector is a part of a big hospitality industry – that is the services industry. Globally, tourism has become one of the most important industries with international arrivals expected to reach 1.6 billion by year 2020 and the expenditure on tourism is expected to hit US$ 2 trillion mark. (WTO 1998) The tour and travel industry or the hospitality industry includes tour operators, airlines, car rental agencies, and hotels and accommodation, online and offline travel agencies and other companies etc.
Based on the information by World Travel & Tourism Council (WTTC ) this industry is very interestingly poised and ready for the phenomenal growth in the coming years. The increased interest in tourism has been fuelled by many factors such as growth in world economy and people are now spending their growing incomes on leisure and travel. Moreover, the airline prices are dropping due to competition and hotels are vying with each other to offer maximum discounts and sops to customers to boost their revenues.
Another important factor has been the rapid changes in technology especially the onset of internet revolution. The world wide web has changed the way people traditionally looked and bought goods and services and the travel industry has also been irrevocable changed by this phenomena. But the ever demanding and changing customer preferences have brought the hotel industry under pressure. With many small hotels coming up as niche or mass market operators, the competition has increased tremendously and thus the hotels and accommodation agencies are trying hard to differentiate themselves and their services by finding innovative ways to retain their competitive advantage.
The margins have shrunk and customers are unwilling to be loyal to one hotel chain or agency and go for the best deal being offered. Thus to do business, companies must find ways to maximize their revenues and simultaneously reduce costs and keep the quality of the services high.