A Poster on Budget Hotel Sector - Outline Example

A POSTER ON BUDGET HOTEL SECTOR al Affiliation) The budget Hotel sector would be considered as among the most successful hotel in the hotel sector. The budget hotels could be considered as the most convenient for travelers with intention of maximizing their funds as well as minimizing their expenses. They offer a wide range of services and amenities. This includes reasonably furnished and sizable rooms that are less expensive and equipped with full-service twenty four hours. The Budget hotel could be recognized by the European Hotel star union, where it could be rated as the one and two star hotel based on their level of facilities and services. The hotel has core principles of which it would be to provide lodging services. The provision of on only bed and breakfast services of some of the budget hotels enables them to reduce on their staffing to a ratio of 0.1 to 0.2 employees per room. This would be therefore be the reason, why the budget hotel could be able to cut down their prices up to 30% to 70% as compared to others hotels such as the luxury hotels and business hotels. The main focus of budget hotels would be bedroom facilities and services. This results to raised level of cleanliness, comfort, convenience and safety as compared to other midscale and upscale hotels (AA 2011, p.17). Their position could be enhanced by the availability of well established infrastructures such as transportation and municipal facilities. They also consider regions that would be equipped with public facilities such as the shopping malls, restaurants, convenient shops and pubs. Budget hotels would be rarely located to underdeveloped regions due to lack of these services and facilities. The hotel sector could be traced back to the biblical time as it could be among the historical industry still in existence. The establishment of budget hotels was as a result of infrastructure development that facilitated large number of travelers. This could be around 1930s to 1950s in United States of America (AA 2011, p.24). The budget hotels could be established in order to provide affordable accommodation facilities to the travelers. The evolution of budget hotels started as Quality Courts United that operated in the chain and were informal groups of motels. The group defined standards in relation to operating procedure and physical facilities in 1941. The end of Second World War provoked a significant demand for budget hotels due to massive travel. The budget hotel sector began diversifying to a different direction mainly to Europe between 1960s and 1980s. The stem of the hotels was the United States of America where afterward the sector began entering to the global market that is, to Canada, South America and finally to Europe. The budget hotel experienced rapid growth by the end of 1990s. During this time, the completion in the hotel sector was stiff which led to the elimination of weak management of some of the budget hotels (AA 2011, p.21). The phenomenon resulted to improved brand image and value, quality services and attention to the market segmentation. The budget hotel at this time was considered as global market. The reason could be due to the established chains in different regions. The main focus of the budget hotels was to provide affordable facilities and services that comprised of mainly bed and breakfast. The budget hotel sector gained popularity or entered the market in greater proportion at the beginning of 21st century. Currently in the hotel industry, budget hotels cover 33% in United States of America, 12% in the United Kingdom and 24 % in France. The budget hotel development extended up to the developing countries such as China and India which could have increased its international market share. The strategy used by the budget hotel sector Franchise international which employs cooperate with local individual. The current structure of the budget hotel would be to maintain a high standard in their services and facilities in through effective internal management. The reason would be to improve competitiveness from midscale and upscale hotels. The budget hotels launched new technology where would book online in advance and they introduced self-check systems, which saves time and labor cost. The technology resulted to the expansion of the chain, for example, in the United Kingdom which could be the largest of all chains, 40 budget hotels were opened in the year 2009 and followed by 70 more budget hotels in 2010. The success of the budget hotels to reach midscale or upscale level could be accelerated by the economic, political and social factors. Specialist in the hotel sector has predicted the rise of budget hotels by the year 2027 to double in size to 26.8 % (Emerald 2004). This could be enhanced by the economic factors such as the affordability of the accommodation services thus increase in demand due to a large number of leisure travelers. The other economic feature would be bombing of economy in developing countries such as India and China. The development of public facilities such as infrastructure and transport system by the government would play a significant role in shaping the future of budget hotel sector. The advancement of information technology adopted by budget hotels resulted to reduced labor cost, construction cost, energy cost and fixed cost hence efficiency in management where there would be minimal input with maximized output. For example, in future the roots could replace the receptionist and the barman (Emerald 2004, p.18). The future shape of budget hotels could also be influenced by social factors. Some of these factors may entail transparent prices of hotels and clear information dissemination about the operation and services offered by the budget hotel sectors (Fiona 2008, p.13). The information may enhance increased number of holidaymakers, backpackers and cultural tourists who would plan for journeys to enjoy and experience a different culture from various regions than stay in business hotels and luxury hotels. The sector would rarely be affected by political factors or changes (Franchise Intenational 2011, p.19). The budget hotel consumers could be analyzed as comprising of student, working class customers and a large number would be those seeking leisure as tourist. The trends of different customers would be driven by their needs, for example, students would be seeking for basic environment for their studies that would be affordable (Kuhn 2011, p.27). The budget hostels become their destiny. The business visitors would tend to stay in budget hotels. This would be due to their demand would be high living standards, but due to economic stress they end up in budget hotels. The backpackers, on the other hand, would prefer budget hotels than elegant hotels due to their scope of work that require them to travel all year round (Emerald 2004, p.45). The available information on the trends of customers in budget hotels shows that 4 out of 10 business travelers could have used budget hotel during their business visitation. The data also shows that in the leisure market composed 5.1 million tourists seeking adventure. The tourist used the, branded budget, hotels especially those located in Britain (John 2007, p.91). The reason that causes business traveler to use budget hotel could be due to their short term trip. The company’s policy needed to save the employee traveling fee due to the economic crisis. Most consumers would be seeking hotels that offer basic essential and in this case budgets become their target (Kuhn 2011, p.32). The employment trend of budget hotels, labor markets, work patterns and employment practices could be defined by peak and off peak periods. The demand for employee would be high especially in peak seasons such as Christmas or summer season when the number of traveler would be high (Franchise Intenational 2011, p.26). At this time, the hotels employ of part time employees who most of them lack skills hence compromising on the sector core values and the customers demand (Steves 2008, p.42). The practices which most hotels employ could be regarded as flexible working practices. The staff would be retained to improve the hotel’s productivity. Sometime the hotel industry counter interact the reputation by proving poor conditions for employment (Eurapart 2011). In building hotels, the labor cost could favor the project proponent especially in locations of less development. Labor cost could be reduced through online booking, computer internet access and self check in machines (Franchise Intenational 2011, p.35). The introduction of robots to the hotel industry would save much more on labor cost as well as improve efficiency in the provision of services at the hotels. An example would be the introduction of one-armed robot at New York that could carry luggage as well as perform the processes of check in. This increased efficiency and reduced extensively labor cost (Fiona 2008, p.56). The budget hotels sector could be regarded as an enormous potential market that could not be affected by the economy or the locations. The hostels trend would continue to expand to developing countries due to their scope of providing affordable services and facilities without compromising their quality (Eurapart 2011, p.15). This has enabled the sector to grow and, therefore, establish a chain in various parts of the world. The core success factor could be as a result of pricing which other hotels such as business hotels and luxury hotels offered in extremely high prices. The management or the operators’ main focus was to innovate strategies (Kapfere 2008, p.12). These strategies would reduce the price even further in order to attract more customers’ especially middle income earners and those living below a dollar per day. This could be achieved where technology would be the golden key solution in meeting their target (Fiona 2008, p.33). References AA, 2011. Hotel guest accomaodation and self-catering standards star rating, Ney York: Oxford. Emerald, 2004. Critical success factors in UK budget hotel operation. [Online] Available at: htt://.www.emeraldinsight.com [Accessed Februalry December 2004]. Eurapart, 2011. Budget hotel chains in Europe. [Online] Available at: htt://www.eurapart.com [Accessed Tuesday December 2011]. Fiona, 2008. Economy Hotel Development in Mainland China. 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Budget hotel ofranchise looking to expand in Asia. [Online] Available at: htt://.www.franchiseinternational.net [Accessed Tuesday February 2011]. Frank, 2009. Check out the UK budget hotel operations.. [Online] Available at: htt://.www.dailymail.co.uk [Accessed February December 2009]. Jacob, 2011. European Hotelstars Union. [Online] Available at: http://.www.hotelstars.eu/enindex [Accessed Tuesday December 2011]. John, 2007. Budgethotels. [Online] Available at: http://www.trihic.com [Accessed Tuesday December 2011]. Kuhn, 2010. Tiny Robot. [Online] Available at: http://.www.caterereaserch.com [Accessed Wednesday 2010 October]. Lu, Z., 2004. Budget Hotelsgain popularity. [Online] Available at: http.//.www.schinadaily.com [Accessed Wednesday June 2011]. Mintel, 2008. Hotels Executive Summary. [Online] Available at: http://.www.academic.mintel.com [Accessed Friday March 2011]. Nick, 2008. The Effect of the Recession on the Hotel Sector. [Online] Available at: http://.www.insights.org [Accessed Friday March 2011]. Phillip, 1995. Choise Hotels. [Online] Available at: http://www.chicehotels.com [Accessed Tuesday December 2011]. Sidwell, 2005. The Queensland University of Technology Research Week. [Online] Available at: http; [Accessed Thursday March 2011]. Travel News, 2010. The UK first budget chain has celebrated its 25th anniversary. [Online] Available at: htt.//.www.breakingtravelnews.com [Accessed Thursday March 2011]. Travelodge, 2011. New Hotels. [Online] Available at: http://.www.travelodge.com [Accessed Tuesday February 2011]. Wisconsin History Society, 1996. Explore Old world Madson. [Online] Available at: http.//.www.wiscousinhistory.org [Accessed Friday June 2011]. Read More