In current scenario, travel and tourism is the largest service industry in UK. The major aim of this is to promote and develop tourism sector and competitiveness of UK as destination and enhance the existing tourism goods and services for ensuring the employment and economic growth. The main aim of this report is to create understanding about the factors that affect the supply and demand of the larger five-star luxury hotels. It also demonstrates the strategies that can be practiced by five-star luxury hotels.
Factors affecting tourism demands
The challenging atmosphere of the tourism industry is being influenced by the demand of the consumer. Larger five-star hotels have needed to create the understanding about the factors that can influence the demand of an organization for accomplishing the specified objectives. Five-starhotels also develop their understanding regarding the strategies that will support to deal with the negative factors of the tourism. It can support to attain the organization task along with improving the productivity of firm in the long-run. The following factors affect the tourism demand:
The alteration the technology can reshape the business environment to influence the consumer and fulfill their consumption level. Visitors can expect the easy payment service and management to buy in the travel. They are believed in the online system and safety equipment. In case, the larger five-star hotel does not offer the online system to their consumer then it can decline the demand for tourism. In the current scenario, the consumer can expect the web interface and easy management to have the tourism services. The technical alterations can consider service related to the comfort of the consumer due to increasing the business efficiency. In addition, it can also be said that the adoption of modern technology in the tourism can be expensive for an organization. However, the technical modification entails the application of security, entertainment, and safety-related services in the tourism and travel.
Consumers are expecting the advanced technology along with efficient goods and services by the larger five-star hotel.
Globalization can also affect the tourism and accomplish the objectives of the companyin the international market. The extension of tourism in the many countries can provide the opportunity to increase the scopes as well as competition. Globalization has enabled the consumers to address the better return on their investment that will create the complexity to the organization due to offering the quality services at the appropriate price. Moreover, the larger five-star hotels have the opportunityto get the benefit at the international level however it can create the competition and rapid modification in the consumer's demands such as more luxury, service control, adventurer destination choices, and innovative culture are a negative impact on the business.
The modification in the rate of currency exchange can also influence the demand for tourism. Tourist can expect to the stable currency rate and higher exchange amount at the time of visit the tourist place. The currency interest rate can divert consumer’s decision to contribute to the tourism. Larger five-star hotels have extension in various countries to influence the consumers towards the tourism. An organization can also create a depth understanding about macroeconomic factors such as currency exchange rate, inflation rate, disposal income of consumers, and interest in pricing and purchases for easily enhancing the consumers in travel and tourism. The cost of travel facility or services can affect the inflation as well as taxes. The incomes sources of people are being varied but the disposable income is enhancing in the current living standard. In addition, it can also be said the higher disposal income can slope the consumers to enhance the demand for tourism services for visiting the attractive destination (Ridderstaat, et al., 2014).
Changes in supply to meet effects of demands
The organization can sustain in the market by enhancing the level of consumer satisfaction and opportunities systematically. A Larger five-star hotel provides the goods and services on behalf of consumer demand to get the higher profit.
An organization should provide the quality food and accommodation with attractive tourism offers for influencing a large number of consumers. A larger five-star hotel offers the delivery of food and housing the quality services to their potential consumers. The quality and time delivery factors can also be involved in provision.
A larger five-star hotel has classified the products on behalf of consumer’s income, interest, and convenience to cover a larger number of consumers. A 5 start hotel can also classify the services into many phases such as special, regular, sports tourism, and adventure. The hotel segment services on behalf of the quality, comfort, and supplementary needs. The goods and services are developed for financial price value, therefore, a large number of consumers can register themselves for travel and tourism.
The technical implementation can also be imperative for offering the safety security in the delivery of services in the tourism sector. An organization should use the online services to provide many consumer services related to registration, availability of resources, and payment. The hotel should imply the web and mobile services to its consumers for satisfying a large number of consumers by delivering the quality product and services in the specified time.
An organization should address the specific season to offer the seasonable packages to the potential consumers for enhancing the profitability in the marketplace. The seasonal package can are implied to attain the specified goal in estimated time. five-star hotel provides many destinations services to the potential consumers can be supportive to take competitive advantages (Tribe, 2015).
From the above analysis, it can be concluded that larger five-star hotel can be influenced by many factors such as technology, globalization, and Macro-economy. It can also be summarized that there are some elements that affect the demand for tourism such as provisions, product types, technological implements, and seasonality. It can direct impact on the profitability in long-term.
Ridderstaat, J., Oduber, M., Croes, R., Nijkamp, P., & Martens, P. (2014). Impacts of seasonal patterns of climate on recurrent fluctuations in tourism demand: Evidence from Aruba. Tourism Management, 41, 245-256.
Tribe, J. (2015). The economics of recreation, leisure, and tourism. UK: Rutledge.