HOTEL INDUSTRY IN LIGHT OF CUSTOMER PERSPECTIVE

Abstract

Hotel industry is considered the backbone of tourism activity everywhere in the world. It is an industry of huge dimension in its own place. It is a multi-billion industry in terms of investment, labor intensive, both in terms of output or capital employee per unit of labor and consumes large amounts of inputs and services, thus, generating back and forth strong economic stimuli in the areas where it is located. This research has been conducted as an essential part of the degree completion for MBA program at NUST INSTITUTE OF MANAGEMENT SCIENCES (NIMS). The purpose of the research is to understand the industry at hand from how the consumers see it and to facilitate the general readers in clearing their perceptions. The research moves with introducing the reader to the hotel industry in general and then directly moving on to the first hypothesis. Each hypothesis is taken individually; proved right or wrong and then the second is taken up. After completing all three, some recommendations regarding areas where each individual player lacks have been given separately for each player. They are then followed by a conclusion. In order to conduct the research in a systematic manner three hypothesis have been developed. This has been done to provide a basis for each area of research. They are;  Competition is the driving factor largely responsible for strategy formulation of individual hotels  Consumers benefit most due to intense competitive rivalry  Marriott is the undisputed market leader The first hypothesis has been proved wrong while the next two have been proved right. The approach adopted has been that the first hypothesis was taken and analyzed according to the fact that what other factors are involved in strategy formulation apart from competition. They have been identified and stated and their relevance depicted. The second hypothesis has been proved right by stating how exactly on what dimensions consumer end up benefiting from this rivalry. Also how the individual players are trying to differentiate themselves on which dimensions and how the consumers actually are at the receiving end. The third hypothesis has been proven right in light of the factors that have lead to Marriott’s success and the development of this perception in the first place. In the process of uncovering that, Marriott’s position as a leader emerged. This thesis has been covered from perceptions resulting from competitive rivalry among hotels. This is because generally most of the researches conducted are regarding the workings, brand image, service delivery and industry on the whole. However, even the industry players do not seem to notice that the sheer competition that exists between them has significant impacts on consumer psychology. These need to be understood for future planning. Apart from the industry players, the research has been conducted keeping the general consumer in view i.e. to facilitate his understanding of the dynamics of the industry as a whole.