Hotel Plaza Athne in Paris - Research Paper Example

At the same time, it has been observed that entry of a new firm causes lowering the price as well as it leads to the shift in the demand pattern. In order to deal with the challenges of increased competition, the hotel industry is required to frame competitive strategies for improving their competitiveness and retaining the customers. However, formulating competitive strategy has become quite challenging for hoteliers due to the reason that the hotel industry is changing rapidly along with the increase in the level of competition (Tavitiyaman et al., 2011). Moreover, the quality of services offered by hotel occupies the central position for acquiring competitive traction.

It has been observed that hotels offering superior quality services are more efficient in generating loyal customers and retaining large customer base than their competitors at the marketplace (Petzer et al., 2008). Hotel Plaza Athénée is one of the renowned luxury the hotels in Paris, France. The hotel is positioned at one of the most prominent locations i.e. Avenue Montaigne, near the Eiffel Tower. The hotel is a subsidiary of Dorchester Collection group of international luxury hotels.

There are many restaurants in the building. Besides, the hotel also offers other amenities including sauna and steam room. On the other hand, the Peninsula Hotel in Paris is a subsidiary of The Peninsula Hotels Group of Hong Kong. The hotel is the first European hotel for Asian based luxury chain. The Peninsula Hotel in Paris is a new arrival in the hospitality industry of France. The hotel is located at Avenue Kleber in the French Capital. The hotel will have 200 rooms with Asian-influenced design features and a spa.

 Correspondingly, the new arrival within the hotel industry of France is likely to increase the level of competition for Hotel Plaza Athénée. Furthermore, the new arrival is perceived to have a significant influence on the demand pattern as well as on the profit earning capacity of the existing firms including  Hotel Plaza Athénée.