Marketing Trends in the Food, Beverage and Lodging Sectors of the Hospitality Industry - Essay Example

Name of the Student] Marketing Trends in the Food, Beverage and Lodging Sectors of the Hospitality Industry [Name of the Course and number] [Date] [Name of the Professor] Marketing Trends in the Food, Beverage and Lodging Sectors of the Hospitality Industry Introduction The travel and tourism industry’s components are; first, tourism lodgings, including hotels, motels, camps, cruise ships. Second, transportation services, such as airplanes, ships and trains. Third, food and beverage operations, like bars, catering, restaurants, and taverns. Fourth, retail stores, including shops selling gifts, souvenirs, arts and crafts. Fifth, activities, comprising of educational trips, business, festivals, sports events, and recreation. Some of the important components of the hospitality industry are; tourism lodgings, catering companies, and the food and beverage departments in the tourism lodgings. Tourism lodgings occupy a unique place among the travel and tourism companies, as they provide their guests with overnight accommodation, food and beverages, and recreational activities[Kap12]. Overview. The food and beverage industry is characterized by extreme fluidity, which makes it similar to the other sectors of the hospitality industry. As such, airline dining, cafeterias, catering establishments, dining halls, lounges and restaurants can function on their own. Furthermore, these can constitute a part of a casino, cruise ship, resort or other larger establishment. Quite frequently, this industry proves to be highly creative and energetic; and the work can be extremely intense, depending upon the economy and the season. Moreover, this industry provides employment to bartenders, food and beverage managers, chefs, cooks, event planners, waiters and other supporting staff[New151]. Importance. It has become commonplace for consumers to increasingly use the social media. This has resulted in opportunities, as well as challenges for hoteliers, who have been forced to participate and respond to this new development. The blogs related to travel provide graphic accounts of consumers’ experiences. Moreover, social networking websites, such as Facebook, are used for sharing travel photos and experiences. Furthermore, TripAdvisor and other websites provide customer ratings, reviews, opinions and comparisons of hotel stays [Ach12]. These have a major influence upon consumer choices. Background of the Topic The hospitality industry experienced rapid expansion and growth in the domestic, as well as the international markets, during the 1980s. This changed to consolidation via mergers and acquisitions in the 1990s. In the year 1987, KFC proved to be a pioneer, as it was the first fast food company to make inroads into China. After ten years, this company had 200 restaurants. Subsequently, it had 1,800 restaurants in 400 Chinese cities. In the initial stages, the majority of the international strategies concentrated upon a single product. Subsequently this changed, and at present the larger firms have a portfolio of brands and sophisticated consumers across the world[Enz091]. This has further increased the intricacy of the challenges envisaged by the process of internationalization. A significant change in consumer behavior has been observed in the hospitality industry, during the recent past. Economic uncertainty and improved access to industry have made the contemporary traveler very selective. This is with respect to hotels and their booking facilities. At the same time, hoteliers have been subjected to enormous pressure to spare no effort in attracting customers and to obtain their loyalty. It is no longer possible to entice customers by merely offering several promotions, relying upon online travel agencies or by continuing with the customary marketing practices. Thus, the market for hoteliers has become unsettled[Ach12]. In order to remain profitable, hoteliers have to study and conform to the emerging industry trends. In addition, a recent study by the Cornell Center for Hospitality Research related to the information provided by the social media sites that affected hotels. Such information had a significant impact upon the performance of hotels and their ability to attract the hyper connected traveler. The present day traveler has been seen to prefer hotels that have been accorded favorable reviews and ratings [Ach12]. Therefore, hoteliers have to analyze such information and undertake decisions that are focused upon the customer. Trends Detected It has been declared that the future of the hotel industry will be characterized by the following trends. First, there will be a persistent consolidation of the market that is at present fragmented. The major players and franchises will spare no effort in attempting to expand their influence. Second, there will be a substantial increase in the number of niche operators, who will provide new concepts or radically alter the existing ones. Third, the budget design hotels will bring about an amalgamation between affordability and style[Sla07]. The major facilities and hotel hospitality chains have been placed under tremendous pressure, on account of the boutique hotels, to undertake innovation. This pressure has generated adequate opportunity for the vendors to benefit from the burgeoning demand for novel and unusual services. The design and technology vendors who provide exclusive and unconventional products and services are certain to reap the maximum benefit[Sla07]. At this juncture, it has to be realized that rapid innovation has emerged as a trend that is gaining in strength from day to day. One of the consequences of this development is that the competition has become very aggressive. Thus, the contemporary industry marketers depend upon development, as well as a sound marketing plan. The vendor has to create new product offerings that have to be popularized by outstanding advertising campaigns, and this process has to be on a continuous basis[Sla07]. For example, social networks, in the words of Alan Zaccario, the vice-president of Newcastle Hotels and Resorts, can enhance customer satisfaction. The opinion of customers regarding a hotel can be accessed immediately. However, it is essential to undertake change and to address customer requirements, in a swift manner. Such action is essential for preventing damage, and it has to be undertaken prior to the customer checking out of the hotel. A single negative comment on TripAdvisor can cause considerable damage to the reputation of a hotel[Her15]. Under these circumstances, it becomes inevitable to manage social media. This has to be combined with the pertinent management systems, with a view to undertaking action rapidly and to resolve any issue. Hotels do not exist in isolation and their operations are transparent and connected. Social networks provide hotels with the capacity to provide a better customized guest experience[Her15]. Analysis of Trends The European nations are witnessing the unprecedented proliferation of restaurant chains. This has been attributed to the increasing interest for American food among consumers. An instance is provided by Foster’s Hollywood restaurants franchisee, the Madrid based Grupo Zena, has restaurants that span Spain. This restaurant chain has discovered that American themed casual dining is quite popular among the European youth. All the same, these chains constitute a minor component of the European quick service sector[Enz091]. As such, consumers in the various European nations have their own preferences. In fact, a survey among non-US consumers found that bakery items were tremendously popular among the French, Germans and Spaniards. With regard to the British, this survey found that hamburger and hamburger products were very popular. Thus, to achieve success in the new European markets, McDonald’s has concentrated upon its McCafé concept[Enz091]. It is possible for any stakeholder group to be inflated, on the basis of the nature of the venture. Thus, several global firms outsource some of their activities to other nations, thereby transferring millions of knowledge and service jobs to other nations, especially India. At the very least, global ventures depend upon a foreign government’s cooperation. All the same, several of the global ventures entail other stakeholder groups. These new groups increase the intricacy of stakeholder analysis and management. In addition, this enhances the necessity for a truly efficient business intelligence system[Enz091]. Globalization and technological innovation, per se, can be expected to be instrumental in deciding the future of hospitality. The large hotel companies will persist in their efforts to expand the reach of their operations. Furthermore, free markets will facilitate a larger movement of capital across nations and into the developing world. The initial spadework carried out by McDonald’s and Yum! Brands has provided considerable information for the restaurant chains[Enz091]. Moreover, technological innovations have promoted the development of new development channels and methods for optimally conducting customer relationships. It has been conjectured that there will totally mobile reservations and sales, location aware marketing, the provision of mobile devices to all front line personnel, and automatic transmission of choices from embedded storage devices[Enz091]. Effect of Trends Innovative trends such as online ordering is quite beneficial for consumers or guests. Online ordering makes the task of ordering very easy, involves less time and is comparatively less expensive. For example, the California based Yard House Restaurant makes ordering food more consumer friendly, by keeping it online with simple technical terms. Instances of trends are; first, the California based Yard House Restaurant, which had commenced business in the year 1996. This outfit experienced a six unit growth, from 53 to 59. This is a chain of casual cum family American restaurants that provides lunch and dinner. The average cost of a meal works out to $10 to $30 per person. A full bar is in place, with seating for up to 300 patrons, and there is provision for online ordering and banquet services. Its trading areas are in Arizona, California, Colorado, Florida, Georgia, Hawaii, Idaho, Illinois, Kansas, Massachusetts, Minnesota, North Carolina, Nevada, New York, Ohio, Oregon, South Carolina, Texas, Virginia, and Washington[Gel151]. In addition, cafeteria chains, like Mount Pleasant provide profits to their owners by consistent progress in business. As such, Mount Pleasant, increased business by 8% or from 37 to 40 units. This chain of cafeterias provides lunch and dinner, and the cost of a meal varies from $8 to $20 per individual. It has a full bar and the average seating is around 250. Catering and online ordering services are provided and its locations are in Florida, Georgia, North Carolina, Tennessee, Texas, and Virginia. Approximately, 50% of these restaurants have been franchised[Gel151] Furthermore, the Vancouver based Blenz The Canadian Coffee Company Ltd increased by five units, from 55 to 60 representing a 9% growth. It is a quick serve coffee shop that provides breakfast, lunch and dinner. The price ranges from $4 to $12 per person[Gel151]. Innovative trends of quick service, in such companies, make the employees more efficient and customer service compliant. Specific Examples Innovative concepts have enabled consistent improvement in business for several restaurants. Some examples are listed hereunder. The New York based BR Guest Restaurants showed an increase of a unit for the Bill’s Bar & Burger concept. This was from 4 to 5 and represented a 25% growth. Other company concepts were Atlantic Grill with two units, Blue Fin with one unit, Blue Water Grill with a unit, Dos Caminos with six units, Isabella’s with one unit, Hilo with one unit, Ocean Grill with one unit, Ruby Foo’s with one unit, Sammy D’s with one unit, Strip House with four units, and Troy Liquor Bar with one unit. There was a 24 to 25 overall company increase or a 4% growth. These restaurants, which are expensive concepts, serve different cuisines. The meal periods are lunch and dinner, and the cost of a meal varies from $15 to $50 per person. Moreover, these restaurants have a full bar service with an average seating of 250. Furthermore, catering and banquet services are provided and the trading areas are Florida, New Jersey, Nevada, New York and Pennsylvania[Gel151]. In addition, the Marietta, Georgia based Neighborhood Dining Group, which had been founded in 1991, had shown an increase of one unit, from five to six units, due to the inclusion of a new concept, the Minero. Other concepts were Chicago’s Steak & Seafood, Husk Charleston, Husk Nashville, Mccrady’s Restaurant, and No 5 Faber. These restaurants provided upscale steakhouse concepts, and were open for lunch and dinner that costs from $15 to $50 per person. There was full bar service with a seating capacity of 200, and there were banquet rooms. The trading areas were in Georgia, South Carolina, and Tennessee[Gel151]. With respect to the hotel industry, the growing competition and increase of unique amenities and services has compelled hoteliers to incessantly search for a competitive advantage. The fundamental expectation of hotel guests is service. However, very few companies provide excellent service [Kap12]. As such, training is indispensable for providing world class service, which is expected by the guests. [Kap12]. As such, the influence of social media upon the hotel industry has been tremendous, and this includes evaluation of guest satisfaction and improvement of processes. For instance, Larry Gorman, a senior director at SkyTouch Technology has stated that the unprecedented proliferation of social networks has transformed the hotel industry to a significant extent. Thus, it has become a simple task for hotels to study their guests, and to review the various opinions and criticisms being levelled at them[Her15]. However, it has become crucial for hotels to manage their online reputation. Summary of Conclusions The hospitality industry continues to develop and this sector has been undergoing significant change due to market consumption and global competition. In this environment, quality has achieved paramount importance, with regard to attracting and retaining customers. In the majority of the hospitality environments, the primary differentiating factors are the quality of service and the extent to which customers derive satisfaction from the service. This work claims that innovative concepts in the restaurant and lodging sector makes the hospitality industry, an ever-growing and successful business. There are many innovative trends which have been discussed in the above work that promote the success of the industry by addressing market challenges. In addition, novel concepts in technology pave the way for the development of new distribution channels. As such customer relationships can be maintained around the world, optimally. In this ever-growing competitive market, the hospitality industry has to reinforce its strengths for sustainable growth. Mobile reservations, location-aware marketing, and online ordering of food and beverages have contributed significantly towards the growth and success of the hospitality industry, in the present day competitive market. Moreover, for attaining success in the contemporary diversified cultures of the world market, the hospitality industry has to comply with the needs and aspirations of the international customers. Efficient services, innovative concepts and global market chains that comply with different cultures and consumers, will enable the hospitality industry to achieve sustainable success in the future. In my opinion, technological advancement and innovative marketing strategies in the food, beverages and lodging sectors would render the hospitality industry, a permanent success in the international competitive market. List of References Kap12: , (Kapiki, 2012, p. 1), New151: , (New York Institute of Technology, 2015), Ach12: , (Acharya & Medepalli, 2012), Enz091: , (Enz, 2009, p. 401), Sla07: , (Slavens, 2007, p. 37), Her15: , (Hertzfeld, 2015, p. 47), Enz091: , (Enz, 2009, p. 413), Enz091: , (Enz, 2009, p. 420), Enz091: , (Enz, 2009, p. 425), Gel151: , (Gellman, 2015), Kap12: , (Kapiki, 2012, p. 3), Read More