Report on the Background to International Hotel Industry

Date:  2021-06-21 07:24:41
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University of Richmond
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This essay has been submitted by a student. This is not an example of the work written by our professional essay writers.

The hospitality industry can be defined as a whole range of fields within service sectors that include lodging, transportation, planning of events, among others which are all interrelated and organized intentionally for public service.

Establishments in the hospitality industry are divided into categories which include commercial hotels, motels, resorts, residential hotels and convention hotels. They all require staff to fill similar positions and therefore becomes a source of employment. Their main goal is to serve the public.

The hotel industry can be traced back to 1700sthe hospitality industry journey came in with five major phases.

Early period.

The ancient Greeks thought that being hospitable was by their well-being and those of others. The Greeks came up with thermal baths, which were specially designed for relaxation and recuperation. Later, the Romans also built mansions to provide accommodation for travelers on government business.

Medieval Period.

This era began with English travel excursions where they built inns as their private residences. Nobles stayed in monasteries. Caravanserais were also later built to provide resting destinations for the caravans in Middle Eastern routes (Lewis, 2015). They were built along the monasteries and abbeys. These places became the first establishment to offer refuge to travelers.

Florence Italy, the great innkeeper, became the first to integrate an association with the aim of turning hospitality into business.

Renaissance period.

During the 16th century, the demand for inns and taverns went up the first hospitality establishment was built in 1788 and named Hotel de Henry. These hotels created a trend, and England and New York made taverns. Pennsylvania made inns. Southern colonies made ordinaries.

Nineteenth century period.

The two world wars greatly disrupted the growth of hospitality in the 20th century. A proper structure of hospitality was formed in the 1950s, and 1960sindustral revolution in 1970s enabled construction of hotels in England, Europe, America, France, and Italy.

Modern period.

Today, architects, engineers, developers, managers, hoteliers, are all conscious of new trends. They thus come up with better criteria to provide modern standards and improve quality in hotels. With brands like Hyatt, Hilton, Marriott, Starwood, Ritz, having been established, the hospitality industry is definitely doing well (Hosein, 2012).

Background to Hotel Company.

The Marriott West Indian Quay is a five-star England, it is situated in London, at 22 Hertsmere has three hundred is owned by a billionaire named John Christodoulou. Christodoulou owns a hundred percent of Yiannis group, which owns the London hotels Marriott West Indian Quay and Canary Riverside sPlaza (Pels, 2010).

S.W.O.T Analysis


It has a high brand of recognition all over the world.

They have good employee retention capacity.

They have opened up more than three thousand, seven hundred hotels in over seventy countries all over the world.

They have technical innovations aimed at improving customer experiences and constant upgrade of business processes.


There is too much expansion of the hotel globally. This could lead to brand dilution.

There is stiff competition from already established hotels. This has led to a limited market.


There is innovation in customer services.

High potential in emerging markets.

Well done renovations.


Competition on price points is stiff.

Growth is stagnant.

There is the entry of several international brands.

Background to Global Hotel and Tourism Industry.

The global hotel and tourism industry began in the late 1700 century during colonial times. It has undergone a series of global problems such as the world wars, inflation periods such as the great depression, urbanization, and other renowned social changes. However, through it all, it has emerged to be among the flourishing sectors of major world economies. As seen from history, it adopted the modern concept used today in the 1950s and 60s. The whole concepts of offering accommodation to people were seen from ancient periods. The City Hotel in New York was the pioneer of the modern day hospitality. Other hotels followed suits such as the Philadelphia and Boston.

With the rise of geographical and political instability, health issues, the rise in insecurity, the global hospitality industry is facing a threat. Even so, it still thrives to maintain its growth. The global hospitality is still anticipating to gain (Mark, 2000). Major industry developers are strategizing and optimizing their capital investments. They are also coming up with ways to meet demands for hotel acquisitions. Focus on technology is increasing as both customers and hoteliers are now able to evaluate returns on investment from the media, data, and apps.

The global industry is adapting to new emerging markets and global travel increases, destinations need to effectively implement and invest in strategies to differentiate themselves from their competitors. Cross-border capital flows have intensified competition, and thus there is need to come up with better planning strategies.

There are varied organizations that represent hotels globally. First is the World Tourism Organization (UNWTO). It is mainly responsible for dependable and flourishing tourism. It is known to be the worlds biggest organization in the sector. The second organization is International Hotel and Restaurant Association which aims to boost the industry to be a major source of revenue and as a means of sustaining the environment (The Economist, 2010). The third organization is the international hotel and restaurant association whose major aim is putting the welfare of the hospitality industry upfront. Its main members are the national hotel and restaurant association which has branches all over the world. They observe global organizations in the tourism sector. Lastly, there is the World Travel and Tourism Council. Its aim is catering for socioeconomic influences of travel and tourism.

Emerging Markets.

Emerging markets are terms used to refer to countries that have characteristics of being developed, but do not really meet the standards of a developed could already develop countries or those that will develop in future. The largest countries include Brazil, China Russia, and India. The WTM industry report shows that hospitality industry is beginning to switch its focus from developed countries to emerging economies like Asia, Latin America, Middle East and is predicted that by 2015,emerging countries will have accounted for forty-three percent of international departures and more than half of arrivals. Most researchers view emerging markets as opportunities to re-invent new models and do away with traditional markets. Emerging markets should be embraced and nurtured, for a better economy (Gupta, 2013).

China, being one of the emerging markets, could work very well with the Marriott Hotel Chinese tourists in the past few years have overtaken those in America and Germany by far. Therefore, the hoteliers, ANALYSIS tourism departments, among others are exploring ways to reach Chinese consumers.

P.E.S.T Analysis of China.

Political Factors.

Its government has formal and informal rules which firms must abide by. The government has mainly focused on e-commerce, which is still in its early stages. There are no regulations supporting privacy, recognition of digital signatures consumer rights and validation of electronics yet.

Economic Factors.

The China economy has significantly increased over the past few years. Their GDP is high due to the high rate of saving, potential urban growth, export business and enough skilled labor.

The labor cost in China is low, and its growth rate is impressive (John, 2010).

Social factors.

Demographics in China, such as population growth and age distribution fluctuate. These alter the social trends and cultural values. China has a collective culture, and the literacy levels are quite high. Due to very high access to the internet in China, most Chinese shop online. They have Taobao, which is the largest local e commerce website.

Technological factors.

The main technological advances include:

New products are being developed with new production technology; new distribution mechanisms like the Internet; new purchasing mechanisms like intranet and extranets; new working methods such as mobile telecommunications (Dobbs, 2016).

Analysis of SWOT and PEST

The SWOT analysis shows that Marriott hotel has a physically powerful marketplace location which enables set to expand. Based on the PEST analysis of China, one concludes that China is a potentially great market, but needs small changes .the Marriott Hotel can highly benefit from this company if it gets to understands Chinas should seek to understand both the micro and macro environment in which it functions.

Chinas rapid economic growth and stable political conditions make e-commerce industry attractive to investors, both locally and internationally.

Hotel Strategy.

Porters strategy of differentiation.

Of the three generic studies offered by Porter, the differentiation strategy would be the most suitable for the company (Desai, 2012). Differentiation involves making the hotel services and products very different from the competitors and making them more attractive. For the differentiation strategy to work, the company will need to

Deliver high-quality products and services.

Conduct good research and innovation.

Have an effective sales and marketing technique.

Why differentiation strategy?

Because when you serve customers uniquely well, you tend to build a strong bond of loyalty among customers. The market becomes less attractive to competitors.

Differentiation strategy enables you to have a deeper understanding of what your customers motivates invention and the need to fulfill customers demand, which is what hospitality is really about.

Practical application of strategy.

More research will be conducted on particularly what the customers want. Their preferences will be taken into consideration and appropriate measure taken to ensure that they are satisfied.

With the new technology, we will ensure that the hotels products are redesigned to ensure they are the best in the market. Its services will be first class, and the employees will undergo training on how to offer better services.

Through the media, the hotel is going to market itself using all the social media platforms and reach as many countries as possible (MacKay, 2007).

The hotel is going to partner with other countries all over the world to ensure that it stands out in the markets

2. The cooperate Ansoff matrix model.

Using the model is straightforward.You weigh up the risks associated with a number of strategic options. You can do that in three steps.

Step one.

1. Analyzing your options.

You can classify your ideas into different approaches. The ideas are varied, and its classification of different forms of approaches is essential in comprehending them. It also helps make the whole process less strenuous.

2. Manage risks

Conduct a risk analysis to have a better understanding of danger associated with the option chosen. Create also a contingency plan to which prioritizes the options and address the ones most likely to be faced. A contingency plan is good as it helps one prepare for the risks associated with the chosen strategic options (Wang, 2001). For the cooperate Ansoff Matrix Model to become effective this step is very important as it puts everything to perception.

3. Choose the best option.

The hotel will...


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