This sample will let you know about-
- What is global hospitality?
- What is Consumer demographics?
- Explain Disruptive innovation.
Tourism is a dynamic part of our economy that conduct activities at wide level. The global hospitality & tourism industry. Which mixture the lodging, food, attractions, cultural and travel industries. It is the largest industry with $4.5 trillion in expenditures earning 2012 millions. In present time global hospitality & tourism industry face many problems that impact on the those organisation who conduct activities in this sectors (Bianchi, 2018). These issues are continued technological changes, changing expectations of customers, booking and revenue challenges etc. As per the study the European commission presents that sharing economy conduct activities across Europe from last two years and generating revenues of £3.6 billion and facilitating about £28bn of transactions in 2015. This report based on Turnkey Vacation Rentals which was launched in the year of 2012 by John Banczak and T.J. Clark. The strong competitor of company is Airbnd. In this report consist of three areas of Turnkey's business like current trends in the accommodation sector and many others. Along with provide recommendation for the hotel industry to reduce actual or potential impact of Turnkey. Get Assignment Examples.Talk to our Experts!
Outline and evaluate the success of Turnkey, highlighting its impact on the hotel industry
Turnkey vacation rentals company that was established in 2012. The founders of an organisation relies that rental industry was missing most travellers value such as experience of reliable customer service, cleanliness as well as quality that was a different and effective way to travel. As per the competitor Turnkey makes away with dreaded key exchanges. Turnkey do not provide door key for door lock rather than provide door lock code to reduce tension of losing key and freedom to the busy travellers. To analysis the success of Turnkey in hotel industry analysis three areas that relevant with the company in direct manner. These areas are:
Current trends in the accommodation sector: In present time accommodation sector facilitate effective services to customer in order to fulfil the expectation and cover large market area. Such as, Turnkey provide vacation rental services so for this follow all current trends in order to sustain long time in the market. These trends are going cashless, advanced technology, changing roles of staff members and many others (Booyens, 2016). Turnkey follow all trends that helps to make better in compare other companies like competitor of Airbnb. When company follow all the trends so attract for the rental services and recommended other people for stay here. The company follow different trends such as:
- Immediately communication: The company follow the trend of direct communication with customer without any waiting. As a result customer happy with the services and impact on the business in positive manner.
- Artificial Intelligence: In present time advance technology attract to people so that's why Turnkey select door code as a lock that take less time and provide freedom to busy traveller. They are offering services to customer through robots to impress them and attract for the company (Cohen, Cohen and King, 2018)..
- Social media for promotion: Every organisation wants to cover large market and attract customer for their business. To promote their products & services Turnkey use social media application that helps to business in growth & success in positive manner. Through these sites people provide suggestion in regard of business that helps in improvement.
- New roles of staff: In present time roles are circulated to employees according to their skills because in hotel industry recruit only professional and have knowledge about this sector. In Turnkey company provide role to people according to their interest that shoe result in positive manner and make effort to complete task on time.
From the all trends company get success for longer period of time and improve their services to fulfil the demand of customer.
Disruptive innovation: It defines as a technology whose application mainly impact on the market and function of industry. For example, modern disruptive innovation is defined as internet that will altered the way companies did business and impact in adverse manner that were unwilling to implement to it. In this type of innovation company take initiation in regard of product and services and effectively apply at the bottom of a market typically by being less costly and more approachable after that relentlessly moves in regard of upmarket and displacing established competitors. In the context of Turnkey take steps of innovation to provide door code to travellers instead of key. It is helpful to check out any time freely without any tension and do not take tension of keep key of door safely (Dredge, 2016). It is better way to provide freedom to busy travellers and impact on the hotel industry. When other hotel recognise about this idea so apply in their hotel that impact on Turnkey in positive manner and get success positively. At the starting Airbnd, provide to service of sleep on airbed in some random person's living room at low price. It is applied by the Airbnd to provide services to low income level customer and connect with them for longer period of time. As well as to compete with their competitors Turnkey provide facility of door code instead of key provide facility from safety.
Consumer demographics/Tourist type: Market segmentation is a procedure where classified market of potential customers into groups or segments that depended on various characteristics. The type of customers based on the segments such as demographic, psycho-graphic, behavioural and geographic segmentation (Gursoy and Sandstrom, 2016). In consumer demographics consist of those people that categorised on basis of gender, race age, income, disability and mobility. To attract customer Turnkey take interest about e customer taste & preference which is different according to age, gender, marital status and education. Along with also focus on the location, purchase intent like clothing, electronics and furniture. Want to get Assignment help? Talk Our Expert Now!
- Buyer type – Deal seeker or online shopping
- Lifestyle information – Cord cutters and DIY-ers
- Purchase intent – Clothing, furniture and electronics
- Location – Postal address and postcode
- Basic information – Gender, age, income level etc.
Every customer wants accommodation services like home so they expect more from the hotels. These expectation are show impact on hotel industry because many business fulfil the demand but some not. So it impact on those business who is not able for this. In the context hotel industry people face many problems and get problems in regard of prices. Due to generation gap and income level changes people feel changes that are not accepted by everyone. For this require to Turnkey conduct research and collect information about customer type and according to that prepare strategies for customer and easily handle critical situation in order to get success and improvement in business. Various kind of customer show impact on hotel industry in different manner and according to business conduct activities and complete all functional activities in particular period of time (Heo and Blengini, 2019).
Also read- Digital Marketing in Hospitality
Recommended the hotel industry should strategic to reduce the actual or potential impact of Turnkey
Turnkey take effective step to provide freedom to customers from key and start new services that attract to customer for their hotel. Along with also inspire to other hotel to apply this system in their hotel. The hotel industry is wide sector where many people operate their business activities in proper manner. There are rapid growth of peer to peer platforms has allowed people to collaboratively make use of under usage stock by fee based sharing. In this industry must apply innovation time to time because it carry out chance to allow people to rent short term accommodation services, acting as intermediary to engage with end suppliers for service fee (Koens and Wood, 2017). The competitor of Turnkey, Airbnd get growth at a staggeringly fast pace with popularity of climbing. It is recommended that to hotel industry to set effective strategies that will help to potential impact of Turnkey.
Turnkey apply changes and create innovation so it show impact in hotel industry in positive as well as negative manner. The positive impact that people attract for effective services and book room in this hotel to stay long time and continue work. The negative impact is other hotel growth fall down because they copy this method so Turnkey case on them for this system. So for this UK government must focus on hotel industry and ask to prepare effective strategies that reduce potential impact in hotel industry.
- Select right pricing strategy: To reduce negative impact on hotel industry of Turnkey require to set right price strategy for all hotel rooms. It helps to customer to arrive another hotel and like to services. There are analysing various types of pricing strategy to get success in future. In the context of hotel industry require to focus on best strategy in regard of particular hotel which is depended on the offers, who they are trying to impress as compare their competitors. A competitive pricing strategy set price of other hotel low as compare of Turnkey due to attract customer for other hotel services. In season time must apply discount strategy with extra value by extras and freebies (Medrado and Jackson, 2016).
- Incentive for direct booking: It is essential for business to select effective distribution channel in order to promote hotel and with customer where they are want to them to be. It is understanding that the hotels try to increase number of direct booking without any app provide incentive to people. It is also sensible to try to increase direct bookings that are made. The main purpose of direct booking do not necessary to paid commission to third parties that means ideal foe increasing revenues. Another option to exclusive incentives like loyalty points or freebies for customers that directly work with customise sites. Take Management Assignment Help from professional experts!
- Forecasting strategies: It is one of the important strategies that apply by the hotel industry for revenue management forecast and enables to evaluate for future demand and revenues. It is required to apply effective adjustments in the context of hotel industry for high quality forecasting on right records being kept with room rates and revenues.
- Work closely with other departments: It is required to work closely and create collaboration between various hotel sections like sales and research. In order to assure about the impact of Turnkey and their individual departmental strategies are in alignment with other department and so that can face issues effectively. On the basis of department collaboration take effective decision and carry out on board. Work with them applicable all the adjustments instead of imposing will that might be meet with resistance (Whitford and Ruhanen, 2016).
As per the above strategies it is recommended that hotel industry must apply these effective strategies that helps to get growth in market and get success for longer period of time. The strategies of Turnkey does not impact on the other hotel and they run their business activities in smoothly manner.
As per the above discussion it has been concluded that hospitality industry is wide industry that consist of different areas of services and provide facility to people at large level. The industry face many problem due to changes expectation of customers, tech changes and many others. These are changes are impact on the hotel industry in positive manner and help to get success and growth in positive manner. The innovation in company helps to attract customer and cover large market and identify different customer perception that categorised as per the gender, age, income level etc. To reduce negative impact of Turnkey hotel industry apply different types of strategies such as work closely with other departments, set effective pricing strategies etc.