Introduction – Hotel Industry and Catering
The purpose of this report is to evaluate The Felbridge Park Hotel’s marketing capabilities. This family owned business based in Sussex belongs to the UK Hotel Industry. Elements of Hotel Catering are also included in discussion due to the hotel’s restaurant. The recession is the main economic factor affecting this industry. 2009 has been tougher than 2008, ‘although there has been an increase in the number of consumers taking UK breaks in 2009 , it is the cheaper end of the accommodation market that has seen the most benefit from this, eg budget hotels and the likes of Butlins.’ (Mintel 2009) (See Appendix Figure 1). The strongest macro-economic factors affecting hotels are political/legal and economic. Nonetheless environmental, socio-cultural and technological are also regarded. External Analysis
Political/Legal: Licences to operate interfere and they can change with political times. Tort of negligence and discrimination laws are other factors affecting Fekbridge Park Hotel as the swimming pool can be a hazard and staff can be accused of negligence. Overbooking is liable to tort of negligence. All these can financially affect the hotel; in addition they might ruin its reputation. There are laws regarding eviction, reasons must be clearly stated. The restaurant is taken separately, having its own legal and political factors, although they are similar to the ones mentioned above. The industry is facing an increased amount of bureaucracy with the ban on smoking in public areas and increasing concerns about binge-drinking. This comes, of course, on top of the existing costs of complying with Health and Safety Legislation. Economical: ‘The hotel market generally has been one of the worst affected by the recession in the field of hospitality, with high levels of insolvencies and redundancies rife as a way of controlling costs.(Mintel 2009) ’ This affects the disposable income, consumers putting a greater focus on value for money. Another economic factor is pound power, a consequence of the Credit Crunch, which declined against the euro and dollar (Appendix, Figure 10). This is favourable to abroad visitors that might be attracted by the exchange rates. High prices not only on hotel services, but customers see hotel restaurants overpriced as well. ‘Mintel found that 16m people think this.’ Environmental: Concerning both the hotel and its restaurant is consumer behaviour, which can incline favourable to organic products and environmental friendly services and products. Socio-cultural: A trend of cuisine fusion is rising as people want to enjoy different cuisines. ‘Consumers are increasingly demanding to new styles of food and drink from different parts of the world (e.g. French, Italian, Portuguese, Indian, Japanese, Thai, Malaysian and Middle Eastern) and restaurants serving these styles are continually springing up.’ (Case study) ‘Both the hotel and hotel catering markets are expected to receive a significant boost from major sporting events being held in the UK in the coming years: the 2012 Olympics and Paralympics and the 2015 Rugby World Cup.’ (Mintel 2010) These cultural events will attract large numbers of visitors, mainly in London which is close to Sussex. On the other hand European Tour Operators Associations argues that the Olympics can harm England as no country has been able to correctly predict demand. They are warning accommodation owners to not increase prices. (Mintel 2010) Technological factors do not have an influential impact on the hotel industry. Micro-environment
The Total Revenue of the Hotel Market in 2010 is estimated to 11,516, an increase from 10,968 in 2009. (Mintel 2010) Recession has crushed demand and people started looking for alternatives. ‘Camping and caravanning are negatively affecting the hotel market.’ (Mintel 2009) ‘The proportion of revenue per room in the UK derived from Food & Beverage...
Please join StudyMode to read the full document