Competitiveness Of The Uk Chain Hotel Industry
The hotel chain industry in the UK is growing better and better each year. Because of UK’s dedication to providing hospitality to locals and tourists alike, it as been home to many hotel chains that are known worldwide.
Among the countries around the world, UK ranks sixth in highest Gross Domestic Product and purchasing power parity. In Europe alone, they are considered next to Germany and France, thus ranking third in the European Union members. UK does not only generate income from industries such as machinery, industrial and scientific equipment, transportation such as aircrafts and motor vehicles, computers, textile, chemicals, metals, and other consumer products. The hotel chain industry also generates a lot of income for them.
The hotel industry was largely benefited by the European Union. Since their 1973 membership with the European Union, UK has successfully supported a liberal and trade expansion approach. Because of this, UK has been getting a bigger market in the hotel chain industry (Albi, 2008).
When the currency was changed to the Euro back in 2002, it even became more advantageous. Though only 12 states agreed to the change, it is expected that more and more would eventually join the use of the Euro, and more people will get to visit UK and experience their hospitality. This made economic exchange within Europe a lot easier. The flow of capital, goods, and services was united into a single market because of this.
People all around Europe can go and visit the United Kingdom and never worry about the currency that they will spend. Thus, it became closer to the people of other European countries. Tourism grew, and so did the economy of the UK. When the economy is good, hotel chains are in good condition as well. They have more guests and more people to show what they have got, and share their experience with others.
However, we cannot say that they have not been affected by the 2009 recession. They have been affected still, during the first quarters of 2009 with lowered Gross Domestic Product, but they have recovered as early as the last quarter of 2009. Because of the loss of purchasing power, hotels have been affected as well. They have had fewer guests, and the challenge to become better is always there.
Because of so many hotel chains existing in UK, there also is a very tough competition. When guests are scarce, they have to do the extra efforts to gain guests so they will not run out of business in this economic difficulty. Here, Porter’s ideas would be very helpful.
Porter’s five competitive forces is a very useful process of analysis for many businesses in order to increase their marketability and profit. Of course all business wants this, and Porter just helps a business create very strong competitive forces starting from what they currently have as a company.
The first force is the threat of other products or creating substitute products other than what the company usually sells (Porter, 1980). For hotels, this means offering new rooms, promos, and rates. Competition can be so stiff that hotels may offer their rooms in a very low price just to have guests. We can see here that they only have a single product and that is their hospitality services – but people can be creative. If they just stick to what they have been offering for years, this will not be a powerful force in itself to increase their marketability. What hotel chains need to do is to develop substitute promos and offers under their company. Since their people have the necessary skills, they can continuously try to invent new and better kinds of services that they can sell to their consumers. If they only settle for what they usually have, then time will come that consumers will look for alternatives and find it in another hotel chain with better offers. But if they develop new ideas and offers, consumers need not switch to other hotels to stay.
Second force is the threat of new competitor entry (Porter, 1980). Since the hotel is a common industry, other companies may try to create the same kind of services that others offer. Other hotel chains can create their own gimmicks that they can also introduce to the market, which they only copies from other hotels as well. Preventing the exact copying of the product or service is thus necessary. It must be branding and uniqueness of ideas, so that you will not end up just being stolen of your ideas.
Third is the intensity of competitive rivalry (Porter, 1980). This can only be solved through constantly improvising the product and service in order to maintain competitive advantage. Since their people have skills, they can continuously improve the hotel’s service every now and then so that they will gain the competitive force. The constant improvement of the hotels should not be missed.
Fourth is the customer’s bargaining power which may require necessary price changes (Porter, 1980). In a time when the prices if the basic commodities are continuously rising, hotel chains thus need to constantly find ways to lower their product and service cost. This might include finding cheaper suppliers or producing cheaper products with excellent service under their brand.
Fifth is the suppliers’ bargaining power which can be an advantage or disadvantage, depending on the decisions of the company (Porter, 1980). What hotel chains needs to do is to make sure that they have substitute suppliers just in case their current suppliers increase the cost of raw materials. Because one can never tell if the prices will go up, they must always find back up. This will ensure that the price of their services will remain stable and fit with the times.
Each hotel chain is actually a strong force in itself. They have the excellent people who can provide good service. If we actually look at it closely, each of the hotel chains in UK has established their own reputation and is doing well in their services. But competition is competition. If we fail to compete, the business will ultimately die out. So UK hotels are really doing their best on a daily basis. The number of guests that they continuously get is a proof of how good the hospitality industry of UK is.
However, we cannot really determine when the economy will face a downturn, and thus, hotel chains must always be ready for fierce competition. Hotel chains must always take the necessary precautions to future lack of competitive force and marketability. They cannot be lax in competition. Thus, Porter’s five forces model will be of great help to their competitive strategies.
希尔顿大酒店The Hilton Hotel: Corporate Social & Environmental Responsibility in the UK Chain Hotel Industry
The Hilton Hotels are known to be the top of the line when it comes to hotel services. In fact, they have created a dynasty of hotel chains around the world, each committed to providing excellent service and generate profit in their industry. But no matter how good a hotel chain can be, it is still important to ask whether or not there are committed to social and environmental responsibilities.
The hotel chain business as a whole involves a lot of social and environmental issues. Aside from the mere waste that they are emitting every single day, there is also harm in the environment when it comes to developing these hotels.
And because a hotel dynasty like the Hilton Hotels actually earn so much profit and damage the environment at the same time, it is but called for that they become socially responsible.
It is actually good to know that Hilton Hotels actually practices social responsibilities through being active in charity work. Hilton has reported to be active in making charitable donations to the needy. They have also shared knowledge, training and information for the continuous improvement of the hotel industry. They hire diverse individuals all around the globe and do not discriminate their employees. Hilton Hotels are dedicated to human rights, ethics, and the improvement of the community that they are in. They implement a social responsibility guide that not only affects their people and their clients, but the community as a whole (Hilton Supply Management. 2010).
For the environment, Hilton Hotels in UK have practiced a green policy. This policy gives the guests an option to reuse their towels so that they can save water and energy. Because of this program, approximately 12 million gallons of water are saved on a yearly basis. Hilton Hotels also uses electricity safe and efficient light bulbs which save on energy, but not all their hotels implement this. They also use renewable energy in all their hotels in the UK (Mercer, 2007). However good these may sound, they still lack the interest in protecting the environment, and making a sustainable plan so that they will be earning more profit by doing lesser damage to the environment. They have had recycling manuals but are not implemented in their hotels as a standard operating procedure – it still remains as an option for their managers to implement. None of their efforts in being environmentally responsible has been made public so far (Mercer, 2007). Let’s just say they can show very bad numbers. Yes they encourage their suppliers to be more environmentally aware and support environment friendly products but I feel that this is not enough. They have always released statement about recycling and using better products for the environment but they have not been dedicated to it (Mercer, 2007).
Just giving the option to their guests to reuse the towels or their managers to use a recycling program will show how lax they are in their social and environmental responsibility. Environmental decisions should not remain as an option but should be implemented in all their hotels around the globe. Imagine the impact that this will give, if hotels like Hilton actually initiate the change in the kind of business hotel chains does?