Good Example Of Research Paper On Strategy Of Hospitality Management

Type of paper: Research Paper

Topic: Tourism, Hotels, Countries, Russia, Development, China, Strategy, World

Pages: 7

Words: 1925

Published: 2020/09/25

The present day especially in regard to businesses is ever changing with new players emerging necessitating the adequate planning and strategy development in the concerned businesses. In this paper, we shall examine the BRIC countries, their developments and mostly in regard to their impact on the world tourism. It is expected that soon enough the BRIC countries will be the greatest exporters of tourists globally. It is, therefore, necessary that any business that has a stake in the tourism sector develop a thorough and adequate strategy to utilize and maximize on this developments.
The BRIC countries are Brazil, Russia, India, and China. There are the countries that are at a similar stage in economic development, but experiencing a rapid growth rate. The rapid and even phenomenal growth rate has earmarked them for the greatest rising economies around the globe. In fact, the acronym has been used as a symbol of shifting in the global economic power from the G7 developed countries to the emerging and the developing world. Most analysts expect them to catch up and even overtake the developed countries by 2050 with more optimistic analysts expecting them to have achieved this by 2027. To fully appreciate the potential that these countries hold one just need to realize that the countries combined make up a greater than 40 percent of the world’s population and cover more than a quarter of the world’s land area.
It is, therefore, apparent that this paper shall develop a strategy covering the various issues that arise in regards to your hotel, a five-star hotel in Geneva. The strategy, developed seeks to explain the statistics for each BRIC country and the number of international tourists originating from these countries, will expand in the period between now and 2020. In addition, the strategy shall also consider what the increase numbers of tourists will mean for the hotel. Finally, this strategy will provide the necessary recommendations based on the data and the expected effects to the CEO of the hotel.

Analysis of the Countries

All the BRIC countries have displayed an increased and dynamic rate of growth. However, it is important to analyze each country on its own to avoid the data of the individual countries being lost in the aggregate. The singular analysis becomes paramount when one considers that the trends of traveling abroad of the BRIC countries citizens are completely different. It is interesting to realize that neither China nor India despite being the most populous countries in the group generate the greatest number of citizens. The World Travel Monitor delivered a special analysis commissioned by the ITB in Berlin discovered the following about the trips, tourism or otherwise from each country. Russia is the most sparsely populated and the third in economic might, but its outbound travels came in first. Russia was followed by the Chinese, Indians and finally Brazil.

China

China has had a sudden increase in its citizens seeking to visit overseas countries. The increase in the outbound travels in China has been constant for a while now with the growth in 2013 increasing by an amazing 26 percent with 27 billion dollars over the previous year. China had more than 98 million outbound trips that resulted in a total spending of 129 billion US Dollars. With such figures, it comes as no surprise that China took and seemingly dug in the first position in the overseas spending countries. China even surpassed both Germany and United States, the traditional largest overseas spenders.
Figure 1

Russia

Russia initially experiences a setback in its outbound traffic and tourists when the largest Russian tourist operators went bankrupt in 2010, other significant and major tourism companies including the Idealny Mir, ITC, and Lanta Tour Voyage Ltd soon followed in 2011. The ramification of such collapses was that most of the Russian tourists abroad were left without any assistance and help. In addition to the marooning, the tourists were also not refunded or compensated for their losses. The silver lining in this was that the Russian government legislated an act and reform the legislation that had regulated the tour operators. The laws resulted in the setting up of compensation funds to protect the tourists outside Russia and increased financial guarantees for the operators.
The result of this is the aforementioned large number of Russian tourists and the increased rate of outbound travels originating in Russia.

India

India, on the other hand, may not be as powerful or have a large number of outbound tourists as its compatriots Russia and China. There are several factors contributing to this. Nonetheless, they are primarily based on cost. India has experienced increasing costs in the transport, specifically the air transport. Due to increased airport and fuel costs, the price of flight tickets has consequently increased. The rising costs have been a major hindrance to the growth of airline bookings that has experienced a significant drop. In addition, the Indian currency is expected to be devaluated a factor that will result in the outbound tourism being severely affected. The continued devaluation will encourage the Indian tourists who would otherwise have traveled abroad to settle for domestic tourism.

Brazil

Brazil has focused considerably on drawing inbound tourism; 2014 was a massive success for this agenda due to the World Cup hosted by Brazil. Nevertheless, Brazil is steadily growing as a source of outbound tourism globally. The increase has ridden on several factors including the merger of TAM and LAN Airlines in 2012 that led to the largest airline in the Latin America and among the largest in the entire world. The merger allowed and facilitated more coordination on pricing and the management of routes. Furthermore, the merger has increased the geographical reach of the airlines and consequently the outbound Brazilian tourists. In contrast with India, Brazil has favorable exchange rates and the international tourist destination often offer cheaper services and prices than the domestic ones.
It is important to note that while Brazilian tourists to Europe are steadily increasing their main destinations are the Caribbean’s, Argentina, and United States. A reason that could explain this would be the limited knowledge of English and other European languages as they are mostly Portuguese speakers.

The following graph best demonstrates the issues covered in this section;

Figure 2

The Impact of New Influx of BRIC Tourists

The simplest and most apparent impact will be the presence of more customers and target markets. For a hotel, a large number of travelers provide the guests sought by the hotel. If the hotel moves quickly and positions itself strategically, then the number of guests directly from the BRIC countries will be larger. The BRIC tourists are even more important will examination of their current rise in the number.
The increased number of BRIC tourists and travelers will also drastically reduce the hotels dependence on the guest from the developed and rich nations such as Germany and United States. Traditionally, tourism has been mainly the domain of the Westerners and specifically the United States, Germany, UK and French tourists. The traditional reliance on Western tourists is disadvantageous on numerous fronts including the seasonal nature of the western tourists. Most of the tourists from the developed countries tend to travel during the holiday seasons rather than throughout the year. The consequence of this is that the hotel will experience a boom in the holiday season but then for the rest of the year be mostly unoccupied. The BRIC tourists, on the other hand, change this drastically. Due to the varying cultures and holidays the BRIC tourists will provide a much-needed avenue for the hotel during the otherwise unproductive times of the year.
The influx of BRIC tourists also demands that the hotels and any other shareholder in the tourist business go back to their drawing boards and come up with new marketing strategies that are either made to include the BRIC tourists or specifically tailored for the BRIC tourists. The reasons behind this are two; first, the hotel’s present marketing strategies are focused on the traditional tourists. Second, the new BRIC tourists have different approaches that must be taken. The most prominent of these approaches in online sales and marketing. Online marketing in countries such as Russia has been demonstrated to have a large impact on creating and drawing the customers. In addition, for the BRIC countries an online platform will avail a cheap and easily accessible channel for the potential tourists to view and even reserve hotel rooms.
With the change in the customer base, the hotels must start learning more about their customers. For example, most of the Brazilians speak Portuguese and have limited understanding of English or other common languages in Europe. Therefore, a hotel should have some members of the staff who can communicate fluently in the Portuguese language. Another example would be the Chinese aversion to some numbers as they are a sign of ill-omen such as number four. The hotel should then be capable of discerning Chinese guests and allocation rooms that are not on the fourth floor or that have number four in their digits. The hotels must, therefore, be knowledgeable about their customers before even marketing to them. The knowledge encompasses all aspects including cultures and sensibilities.
Another impact that is expected as a result of the influx of the BRIC countries tourists is the need for an increase in the services, and even the foods range offered in the hotels. While the tourists may have come to view the hosting countries, most of them prefer some of the things being familiar. A tourist may want a specific dish that he is familiar with; the hotels will capitalize on this and offer a wider range of food that they did previously.

Recommendations

The primary recommendation of this paper is an increased focus and emphasis on marketing. While the BRIC tourists may arrive in Geneva for other attraction it, is that hotel that they know of or have used prior that they will choose. The marketing strategy must be tailored to the different countries. As demonstrated, earlier the BRIC countries have different outbound traffics and obviously different expectations of a hotel. The hotel must be able to target the BRIC tourists adequately even before they arrive in Geneva. The marketing would form a central pillar in attracting the new BRIC tourists to the hotel.
The hotel must also strive to be as flexible and dynamic as possible. A new opportunity is best seized by the business that adapt faster to the opportunity. The flexibility might come into play when, for example, dealing with the aforementioned Brazilian, who communicates in Portuguese or the Chinese who avoids a room of floor with the number four. Furthermore, the hotel must be ready to apply its resources to draw the guests.
The hotels must also be willing to expand in both the physical size and the number of hotels. As mentioned earlier the number of the tourists from the BRIC countries is massive. In order, to fully maximize and take advantage of the large number the company must allow for expansion in its strategy. In case that the guests, who want accommodation, or other hotel services are more than the hotel, can handle then it must be capable of expansion.

Conclusion

In conclusion, the BRIC countries are growing at a fast and even shaking rate. A result of the economic growth rate the outbound travelers of some of the BRIC countries are increasing steadily with the tourists being a large number of the travelers. It is the hotels responsibility to develop and apply the necessary strategies to take full advantage of this influx.

References

Andreu, R., Claver, E., & Quer, D. (2013). Chinese outbound to tourism: new challenges for european tourism. Global Tourism, 23-31.
Becken, S. (2012). 6 Shapers and shifters for the future of travel and tourism. Future Tourism: Political, Social and Economic Challenges, 80.
Biggermann, S., & Fam, K.-S. (2011). Business marketing in BRIC countries. Industrial Marketing Management, 5-7.
Bloom, D. E., & Canning, D. (2000). The health and wealth of nations. Science(Washington), 1207-1209.
Enz, C. A., & Siguaw, J. A. (2000). Best practices in service quality. The Cornell Hotel and Restaurant Administration Quarterly, 20-29.
Krasyuk, I., & Mouzikant, V. (2014). Russia as a Brand in the Process of Social-Economic Development. Italian Science Review, 111-121.
Langkilde, D. (2014, January 4). BRICS Tourism Analysis. Retrieved from Tourism Matters: http://www.tourismtattler.org/brics-tourism-analysis/
O'Neill, J., & Stupnytska, A. (2010). The rise of the BRICs and N-11 consumer. Strategy Series, Goldman Sachs, 3.
POP, L. (2014). The Role of Tourism in the Economies of Brics Countries. Knowledge Horizons Economics, 136-141.
Sarkar, A. N. (2009). Enhancing Global Competitiveness: Advantage India. Mumbai: IK International Pvt Ltd.
Xiao-xia, D.-l. (2007). Comparison of Competitive Power between China and Advanced Countries in International Tourism Service Trade [J]. Journal of International Trade , 15.

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