Hotel value chain analysis. Internal value chain analysis for hotel industry Free Essays 2022-10-22
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A hotel value chain analysis is a tool used to understand the various activities and processes involved in the creation of value for a hotel business. By examining each step in the value chain, a hotel can identify opportunities for cost savings, efficiency improvements, and revenue generation.
The primary activities in the hotel value chain include:
Procurement: This involves the sourcing and purchasing of materials, supplies, and services necessary for the operation of the hotel. This includes items such as linens, food and beverage supplies, cleaning products, and technology.
Operations: This includes the management and maintenance of the hotel facilities and the delivery of services to guests. This includes activities such as housekeeping, maintenance, and guest check-in and check-out.
Marketing and sales: This includes the promotion and sale of the hotel's products and services to potential guests. This can include advertising, social media marketing, and sales efforts through travel agents and other third parties.
Customer service: This involves the management of the hotel's relationships with guests, including the resolution of any issues or complaints.
Support activities in the hotel value chain include:
Human resources: This involves the recruitment, training, and management of the hotel's employees.
Technology: This includes the use of technology to support the hotel's operations, including the use of computer systems for reservations, guest management, and financial reporting.
Administration: This includes activities such as financial management, legal compliance, and strategic planning.
By analyzing each of these activities in the value chain, a hotel can identify areas where it can improve efficiency and reduce costs. For example, a hotel might find that it can save money by sourcing supplies from a different supplier, or by implementing a more efficient system for managing employee schedules.
In addition to cost savings, a hotel value chain analysis can also help a hotel identify opportunities for revenue generation. For example, a hotel might find that it can increase revenue by offering additional services to guests, such as spa treatments or golf outings.
Overall, a hotel value chain analysis is a valuable tool for understanding the various activities and processes involved in the creation of value for a hotel business. By examining each step in the value chain, a hotel can identify opportunities for cost savings, efficiency improvements, and revenue generation, ultimately leading to increased profitability and success.
Value Chain Analysis Of Hotel Chocolat Group Plc
The company can also achieve its cost minimisation objectives by analysing hiring and training costs with their relative return. Consolidation in the Market 3. Effective infrastructure management can allow Hotel Chocolat Group Plc to optimise the value of the whole value chain. Some examples of Intercontinental Hotels Group's marketing and sales activities are- sales force, advertising, promotional activities, pricing, channel selection, quoting and building relations with channel members. Includes market size and segmentation data, textual and graphical analysis of market growth trends, leading companies and macroeconomic information. The Propriety Management System is the most important to take into consideration which is the software to manage all the operations and share all the information with all the hotel departments in real time.
Solved Porter Value Chain : Taj Hotels, Resorts and Palaces Analysis
Hotel owners are trying to create end-to-end solutions for hotel managers by empowering them as much as possible helps in generating more revenues. Metrics and KPIs to Avoid while Analyzing Hotel Industry Value Chain Growth or market share is also not a very reliable goal as often firms end up pursuing market share at the cost of profitability. The effective Value Chain Analysis requires Hilton to realise that all activities or functions do not require same scrutiny level. It can include warehousing of physical products, material handling, as well as architecture to receive and store customer information for digital media company. The value chain highlights the importance of the operational manager being involved in all aspects of the process, from suppliers right trough the customer.
These activities include — marketing, advertising and promotion, channel selection, sales force management, pricing etc. This is facilitated by the training programs used in all hotels of the system in particular, the program "Excellence in Service", which emphasizes the importance of corporate standards and their direct relationship with increasing customer satisfaction. The limitations of Value Chain analysis as a model have also been discussed. Technology Development is very important within the hospitality as it is a modern industry in constantly growth where new technologies are needed to save time and work smarter. After the content of the suggestions Premium Hotel chains Hotel Strategic management Marketing Plan Four Seasons Hotel Four Seasons Hotels and Resorts Four Seasons Lausanne 1. Beginning at 2017, there were more than 570 Hilton Hotel Resorts properties in 85 countries and spaces transversely more than six landmasses.
Value chain analysis of four season hotel Free Essays
International Journal of Research in Marketing, 33 1 , 93-106. For example the finance and planning at Palaces Taj are managed at corporate level while quality management, accounting and legal issues are managed at business unit level. Growth in sales is not a good goal for value chain analysis as every managers know that boosting sales is easy to do by reducing the prices dramatically. The company can also achieve its cost minimisation objectives by analysing hiring and training costs with their relative return. The company has received appreciation for its waste reduction efforts.
Value Chain Analysis Of Intercontinental Hotels Group
The primary association was set up by Conrad Hilton. What are the key value-creating activities at each step in the chain? For the purpose of this article the definition is broad — it can mean using customer data to serve advertisements based on usage behavior to clients, moulding plastic to make products etc. Contrastingly, the US industry registered significant growth in 2016, posting an increase in both demand and prices. Four Season Hotel Analysis Huboi TIP- Four Seasons Resorts and Hotels The company that I have chosen for the theory in practice report is the Four Seasons Resorts and Hotels. I studied sociology and marketing at Europa-Universität Viadrina Germany and Universidade da Beira Interior Portugal. In the first part I will introduce the Value chain and its activities followed from cost advantage, differentiation and how important is the technology. MANDARIN ORIENTAL HOTEL Bander Alsowaida Sami Basuliman Ta-Wei Chuang Sharda Del Rio Meihan Dong Xiaoxing Liu Anand Mehta EXECUTIVE SUMMARY Luxury industry became a commodity for some customer.
Some examples of operational activities are machining, packing, assembling and testing. The Porter Value Chain classifies into different groups as product and support activities Premium Process management Marketing Management Value Chain analysis of Four Season Hotels Evaluation of an eCommerce Site www. These fuse Homewood Suites, Promus Hotel Corporation and some more. The article includes tips for students and analysts on how to write a good Value chain analysis for a firm. Finally, Hilton impelled two basic advancing projects with the ultimate objective to attract a regularly expanding number of customers and keep existing customers. Operations Activities that help the organization to transform raw material into finished products. Without analysing the in-bound logistics, Hotel Chocolat Group Plc can face various challenges in product development phases.
Global Hotels & Motels Industry Profile & Value Chain Analysis
Equipment repair and maintenance also falls into this category. Reconfiguration means structural changes such a new production process, new distribution channels, or a different sales approach. Here is a pictorial presentation of Porter Value Chain model: 3. These shared accommodation service providers have relatively lower overhead costs compared to chain hotels, which enables them to provide their customers with a personalized experience at relatively lower cost. The Firm Infrastructure is represented from the management team with the long term planning, the quality management , public affairs, finance and accounting. Task: evaluation by the customer of a specific service in the activity. Journal of Strategic Management, 2 1 , pp.
Manager at McDonald's and the Hotel Industry needs to see each activity as part of that value system and how adding each activity or reducing each activity impact the McDonald's and the Hotel Industry value chain. Once the value chain has been identified, a cost analysis can be made by estimating the cost of operating the value chain. For instance, a company can procure the unique and valuable inputs that are not easily available to competitors. As of December 2015, Hilton Worldwide franchised 3,875 hotels with 533,039 rooms. Equipment repair and maintenance also falls into this category. Most definitions of the hotel sector include not only hotels, but also many other types of overnight lodging, such as hostels, motels, inns, and guest homes.
Evaluation of an eCommerce Site www. This report's study also contains product specifications, manufacturing processes, cost structure, and data information organised by area, technology, and Room Capacity. The research process entails the investigation of various factors affecting the industry, such as government policy, market environment, competitive landscape, historical data, current market trends, technological innovation, upcoming technologies, and technical progress in related industries, as well as market risks, opportunities, market barriers, and challenges. As mentioned above, the application of Porter Value Chain model depends on understanding the importance of all activities. Westin Hotels were considered as the core competencies of Hilton Hotel, it is also the oldest hotel management company in North America.
Solved Porter Value Chain : McDonald's and the Hotel Industry Analysis
Reconfiguration means structural changes such a new production process, new distribution channels, or a different sales approach. If Clonlara Hotel have a real competitive advantage, it means that compared to its rivals Clonlara Hotel is - operating at lower costs, commanding a premium price, or doing both. For example customers are willing to pay more for flawless uniform experience in Apple products even though Apple products are not the cutting edge products. To achieve customer satisfaction, the business requires, which depends on the timely received goods and its services to standards by exterior suppliers. New technologies are used in both priority and support activities. Please contact client services for any further information: Request sent: your sample pages will be with you shortly.
