Chapter 12 - Competition in the lodging business. In this chapter students will be able to: Describe methods of analyzing data, find limitations in poorly analyzed data, explain the steps in analyzing data, improve skill in separating important from unimportant facts, analyze information to make sense of it, determine significance in data. | Competition in the Lodging Business Chapter 12 Copyright © 2010 by John Wiley & Sons, Inc. All Rights Reserved DEFINITION OF MARKETING Marketing is “communicating to and giving customers what they want, when they want it, where they want it, at a price they are willing to pay” (Lewis, 2000) COMPETITION IN THE LODGING BUSINESS Based upon what you have learned so far, how would you characterize the lodging industry in terms of competitiveness? The industry can be characterized as being highly competitive as well as very fragmented There are many different ownership companies, brands and types of properties each vying for their share of the market LEADING “BRANDS” Wyndam Hotel Group—7,043 hotels Choice Hotels International—5,827 hotels InterContinental Hotels Group—4,186 hotels Best Western International—4,000 hotels Accor—3,982 hotels Others: Hilton, Marriott, Carlson, Starwood, and Groupe du Lourve COMPETITION IN THE LODGING BUSINESS Despite the visibility of several large hotel . | Competition in the Lodging Business Chapter 12 Copyright © 2010 by John Wiley & Sons, Inc. All Rights Reserved DEFINITION OF MARKETING Marketing is “communicating to and giving customers what they want, when they want it, where they want it, at a price they are willing to pay” (Lewis, 2000) COMPETITION IN THE LODGING BUSINESS Based upon what you have learned so far, how would you characterize the lodging industry in terms of competitiveness? The industry can be characterized as being highly competitive as well as very fragmented There are many different ownership companies, brands and types of properties each vying for their share of the market LEADING “BRANDS” Wyndam Hotel Group—7,043 hotels Choice Hotels International—5,827 hotels InterContinental Hotels Group—4,186 hotels Best Western International—4,000 hotels Accor—3,982 hotels Others: Hilton, Marriott, Carlson, Starwood, and Groupe du Lourve COMPETITION IN THE LODGING BUSINESS Despite the visibility of several large hotel companies, many hotels are still independently owned and operated From year to year, the number of hotels that attain chain affiliation usually equals the number of hotels that become independent 5,642 projects nationwide were planned in 2008 including renovations, new construction, and conversions of one flag to another As the industry grows, it becomes more competitive and marketing becomes more important COMPETITION IN THE LODGING BUSINESS The marketing mix in lodging is much the same as we described it earlier and how it applies to the food service industry; how the 4 Ps are interpreted, however, is slightly different “Product” includes both physical goods and services; it also includes services provided at the chain level “Price” refers to what the guest actually pays – which may differ quite a bit from the “rack rate” (posted rate) Price, in the lodging industry, is much more flexible than in the food service industry COMPETITION IN THE LODGING BUSINESS “Place” refers not only to .
