Research Paper: Managing Hospitality Issues

Pages: 3 (1035 words)  ·  Bibliography Sources: 2  ·  Level: College Senior  ·  Topic: Business - Advertising  ·  Buy This Paper

Managing Hospitality Issues:

As the largest service industry across the globe, the hospitality industry has a huge number of competitors or hospitality establishments. The success of these establishments is influenced by various factors such as brand identity, pricing, and marketing. In the past few years, the hospitality industry has been characterized by increased complexities, intense rivalry, numerous cases of failures, and constant changes (Reichel, 2006, p.329). . Therefore, it has become increasingly important for manages of hospitality establishments to develop appropriate business strategies and deal with issues that emerge from time to time. Some of the major considerations to make when developing a suitable business strategy include pricing, staffing, and advertising.

In the first phase of simulation on Michael's lemonade business, I suggested Michael should sell his lemonade for $0.35, mount a signboard that advertises natural health drinking, and choose one assistant. The pricing decision was a good one since it provided a competitive advantage over the neighboring lemonade stand. The modest price increase was influenced by the fact that reducing the price is not usually a good strategy. Similarly, the selection of a single assistant was effective because it contributed to the production of more lemonade in a cost-effective way. However, selecting natural health drink as an advertisement on the signboard was not a good decision because it only targeted a health-conscious customer segment.

In the second phase of simulation on Blue Mist Resort, the main aim for new marketing and financial decisions was to regain the market share that the revenue generating facility had lost to neighboring hotels in the past year. Given the intense rivalry in the market, some of the major elements to consider in decision-making include media spending, advertising, cost-cutting measures, attracting new and previous customers, and introducing new services. After reviewing the current status of the resort and conducting an analysis of its competitors, my PR campaign was best priced hotel, outsource marketing, decreased room rates for tourists, increased room rates for other customers, and added holiday packages and children's area services. Since this initial decision did not yield expected results, I reduced salaries by 25% as part of cost-cutting. The new marketing initiatives included adding heated swimming pool, tie-up with cab operators, purchasing new plasma televisions, and laptops for library access. Similarly, these decisions did not generate expected results since some competitors were attracting more customers.

The results in each of these phases in the simulation demonstrate that the management of hospitality issues is a complex and multi-faceted process that requires managers to consider various factors when making decisions that could affect the operations and success of a firm. While managing hospitality establishments is already a daunting task, increased competition in the industry increased challenges for these managers. Based on the results of the simulation, some of the major recommendations I would provide include the fact that managers of hospitality establishments should not generally lessen the price of their services because price reduction is not usually effective. Secondly, these managers should avoid duplicating strategies that are adopted by their competitors since this does not contribute to increase in the number… [END OF PREVIEW]

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Managing Hospitality Issues.  (2014, February 1).  Retrieved June 18, 2019, from https://www.essaytown.com/subjects/paper/managing-hospitality-issues/5320183

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"Managing Hospitality Issues."  Essaytown.com.  February 1, 2014.  Accessed June 18, 2019.
https://www.essaytown.com/subjects/paper/managing-hospitality-issues/5320183.