A platform for the connoisseurs to indulge with the mesmerizing beverages and lip smacking global cuisines, access the information and review and interact at the same time. This is also a huge support tool for the Hospitality aspirants pursuing any Hotel Management Program or is a beginner with the Hospitality Industry.
Amazon
Showing posts with label Hospitality Catering. Show all posts
Showing posts with label Hospitality Catering. Show all posts
Customer loyalty programs are highly significant in the hotel industry for several reasons:
Repeat Business: Loyalty programs are designed to reward and retain existing customers. In the hotel industry, repeat business is crucial. Returning guests are not only easier to convert but also often spend more on each visit. A loyal customer who is part of a loyalty program is more likely to book with the same hotel chain in the future.
Revenue Generation: Loyal customers tend to spend more money on various services within the hotel, such as dining, spa, and room upgrades. They may also recommend the hotel to friends and family, thereby contributing to word-of-mouth marketing.
Competitive Advantage: In a highly competitive industry like hotels, loyalty programs provide a significant competitive advantage. Customers are more likely to choose a hotel where they can earn rewards or receive special benefits. This can help hotels stand out in a crowded market.
Data and Personalization: Loyalty programs collect valuable customer data. This information can be used to personalize marketing efforts, tailoring promotions and offers to specific customer preferences. This personalization can enhance the customer experience and increase loyalty.
Brand Loyalty: A well-executed loyalty program can foster brand loyalty. Customers who accumulate points, earn rewards, and have positive experiences are more likely to become emotionally attached to the brand. This can lead to long-term, devoted customers.
Cost Savings: Acquiring new customers is generally more expensive than retaining existing ones. Loyalty programs can help reduce customer acquisition costs, as the focus shifts from attracting new customers to maintaining and nurturing the relationship with current ones.
Feedback and Improvement: Loyalty programs often provide a platform for customers to provide feedback. This feedback is valuable for continuous improvement and refining the customer experience.
Inventory Management: Loyalty programs can help hotels manage their inventory more effectively. By offering exclusive deals and benefits to loyal customers, hotels can encourage bookings during low-demand periods, helping to optimize occupancy rates.
Partnerships and Alliances: Many hotel loyalty programs have partnerships with airlines, credit card companies, and other businesses. This can extend the reach of the loyalty program and offer customers even more ways to earn and redeem rewards.
Long-Term Growth: Customer loyalty programs are part of a hotel's long-term growth strategy. They are not just about immediate gains but building a sustainable customer base for the future.
However, it's essential to note that not all loyalty programs are equally effective. A poorly designed or executed program can be costly and ineffective. Success in the hotel industry often comes from creating a program that genuinely adds value to the customer's experience and builds a strong emotional connection to the brand.
Tripadvisor is a travel guidance platform that helps people plan and book their trips. It is the world's largest travel site, with over 350 million monthly users. Tripadvisor offers a variety of features, including:
Hotel reviews: Tripadvisor has over 800 million hotel reviews, making it the most comprehensive source of hotel reviews online.
Restaurant reviews: Tripadvisor also has over 600 million restaurant reviews, making it a great resource for finding great places to eat.
Attraction reviews: Tripadvisor also has reviews of attractions, such as museums, theme parks, and other tourist destinations.
Price comparison: Tripadvisor allows you to compare prices for hotels, flights, and other travel expenses.
Booking tools: Tripadvisor also offers booking tools for hotels, flights, and other travel expenses.
Tripadvisor works by crowdsourcing reviews and ratings from travelers. When you visit a Tripadvisor page for a hotel, restaurant, or attraction, you will see a list of reviews from other travelers. You can also see the average rating for the property, as well as the percentage of reviews that are positive.
Tripadvisor is a valuable resource for travelers who are planning their trips. It can help you find great places to stay, eat, and visit. It can also help you save money on your travel expenses.
Here are some of the ways that Tripadvisor works:
User-generated content: Tripadvisor relies on user-generated content to power its platform. This includes reviews, photos, and videos from travelers all over the world.
Machine learning: Tripadvisor uses machine learning to analyze user-generated content and provide travelers with personalized recommendations.
Data analytics: Tripadvisor uses data analytics to track trends in the travel industry and identify new opportunities for growth.
Tripadvisor is a constantly evolving platform, and the company is always looking for new ways to improve the user experience. If you have any feedback or suggestions, you can share them with Tripadvisor through its website or mobile app.
Five hotel trends to watch out for in 2023 and beyond
Julia Krebs, Rooms Division Lecturer, at Les Roches Marbella, tells us how the hospitality industry is going from traumatic to triumphant
In this article, Krebs outlines what the next 12 months have in store for the industry, how we can expect to see hotels adapt to stay competitive, and why it’s important to stay on top of the latest developments.
Changing workforce
Possibly the most significant development is the influx of younger people into the industry following the great exodus from hospitality during the pandemic.
Hotels are desperate for qualified people to work for them, which means there has probably never been a better time to enter the hotel industry. And the opportunities are there whether you have the experience or not. Many hotel groups are experiencing such acute labour shortages they are offering on-the-job development and expanding their management in training programs to include not only the traditional food and beverage or rooms division routes but also 360-degree operations as well.
We’re also seeing faster career progression than we had before due to skills gaps in key roles, so it’s going to be really interesting to see how that impacts the industry in the next 12 months and beyond. With more energetic, passionate, and enthusiastic people in higher positions, it’s unthinkable that will not have a significant effect on how hotels develop and the kind of services and technologies they embrace.
Technology trends
Another hangover from the pandemic – increased use of smart technology in hotels – is also set to be a theme throughout the industry in 2023. Where the Covid crisis necessarily saw new technologies such as a hotel app deployed for customers to check in and out, I think we will see that ‘smart hotel’ trend continue but with an increased emphasis on building human interactions back into the mix.
You just don’t get the same level of hospitality with a robot as you do with people, so hotels will increasingly be looking at ways in which they can combine the efficiency of technology with the personal touch. That will be even more of a factor given people are now spending a higher proportion of their income on their travels in the post-pandemic world.
Going green
Boosting efficiency isn’t all about saving money either. As the sector continues its post-pandemic recovery, so the spotlight has turned on the industry’s environmental impact and, as a result, sustainability will be a key trend in the next year and beyond.
Combatting climate change is one of the biggest challenges we face today and is a top priority for the hotel industry. That’s why we’re seeing the entire industry adopting more environmentally-friendly approaches in almost every aspect of their operations and this is set to continue in 2023.
Whether it’s demanding more sustainable goods and services from supply chains, striving to reduce waste or designing energy-efficient buildings, hotels have embraced the challenge of reducing their carbon footprints and are aggressively pursuing a greener agenda.
The truth is sustainability is no longer something hoteliers can ignore. It’s increasingly a deciding factor in customers’ hotel choices and it’s important to the new generation of employees who will drive the industry in the future, so I’ve no doubt 2023 will see some big strides in this area.
Giving back to society
While tourism’s impact on the environment is rightly at the forefront of hoteliers’ minds, we are also increasingly seeing them consider how their operations affect the societies in which they have a presence too.
Mass tourism can have a devastating effect if it is not properly managed and hoteliers are becoming increasingly aware of the potential impact opening more and more hotels could have, so I think we will see a growth in the number of socially-conscious initiatives the travel industry develops in the next year and beyond.
In particular, giving back to local communities will be a recurring theme. We are already seeing more hoteliers making conscious efforts to source talent, goods, and services from the areas in which they operate, hiring from underrepresented groups when possible, and investing in their employees’ professional development. It doesn’t stop there.
Hotel companies are, in short, taking more responsibility for the development of tourism in their local communities and stepping up to the plate and I think this will be one of the key trends in the future.
Traveller preference trends
One of the more interesting key trends we have already seen have an impact on revenue management in the hotel industry – and one that’s set to continue for years to come – is the rise in segmentation of guests.
Things have come a long way since we asked whether the purpose of guest visits was business or pleasure. Hoteliers are now separating customer groups into many more categories and tailoring their offering according to the desired customer experience. For example, we have already seen more ‘pet-friendly’ hotels open in response to consumer demand, and niche offers of that type are likely to become more widespread.
Another driver of innovation in the industry – again influenced by the pandemic thanks to the technology behind remote working becoming more commonplace – is the burgeoning ‘digital nomad’ lifestyle. Older-style business lounge facilities are being updated and adapted to become co-working spaces for hotel guests. They provide the essential communications and IT infrastructure but also give guests the opportunity to network, taking away the sense of isolation many people experienced during the Covid years.
Catering for specific guest needs has already driven some of the larger hotel chains into diversifying their offer according to the experience clients are demanding and I think this will continue to be the case for the foreseeable future. And I’m not just talking about individual hotels – I can see the larger multinational groups creating entire sub-brands that are geared towards catering to a specific niche as they look to compete with boutique offerings in increasingly diverse target markets.
Covid recovery
As we have seen, the far-reaching effects of the pandemic are still having a significant impact on global hotel industry trends and the changes it brought about will define how hotels develop and thrive for years to come. Adapting to the ‘new normal’ is a common theme throughout the top trends in hotels for 2023 and this is evident not just in the way hoteliers have already tweaked their offer to suit changing traveller preferences but also in the very nature of hotel companies themselves, which have experienced an influx of young and passionate employees.
That workforce will be one of the factors driving the adoption of more socially conscious and environmentally sound initiatives and the technological solutions that can facilitate them. But unsurprisingly, it will be customer demand that shapes how hotels emerge from the pandemic and that underpins each of these hotel trends for 2023.
We are beginning to see the effects of what some in the industry have described as ‘pent-up demand’ unfold, with the result more customers are spending more on their travels. To ensure hoteliers benefit from this development, it’s critical they not only react to demand but also monitor and stay up to date with the latest and future trends. While they do not necessarily need to be first to market, early adoption or buy-in to certain trends can lead to significant business exposure, brand awareness, and customer loyalty.
Visa Inc. (NYSE: V), the global leader in digital payments, and EY, the leading professional services organization, have launched a comprehensive report titled ‘Charting the Course for India – Tourism Megatrends Unpacked’.
The report reveals that India’s tourism industry is on track to reach US$1 trillion by 2047, with data-led tourism set to be a key driver of growth. It takes a long-term view of India’s tourism industry, beyond the pandemic’s impact, and identifies the megatrends expected to shape the sector over the next decade.
The report was unveiled in the presence of Amitabh Kant, G20 Sherpa, and former CEO, NITI Aayog, and Alfred F Kelly Jr, Executive Chairman, Visa, at the ASSOCHAM India Tourism Conference in New Delhi.
The report identifies Sustainability, Enabling Technologies, and Evolving Tourist Preferences as the main disruptive forces driving tourism. Sustainable tourism experiences and offerings are in high demand worldwide, and this trend is likely to continue in the future.
At present, the global sustainable tourism market is valued at US$180 billion. In India, this is valued between US$26 million- US$2.5 billion and is expected to grow at 15% CAGR. Another key trend identified is evolving tourist preferences, driven by the presence of Gen Z, which constitutes 24% of the global population and 27% of this is in India.
The report offers detailed insights into the segments that will play a critical role in driving tourism industry growth and the Indian economy at large.·
Spiritual tourism will play a key role since 60% of domestic tourism in India is spiritual in nature, and 30.5 million international travellers are expected to visit India by 2028 for this purpose.·
Medical and wellness tourism will witness growth with a potential for 24 million jobs to be created by 2032. In 2021, 21% of international travellers sought medical treatment in India .·
Adventure and sports tourism has the potential to create 6 million jobs by 2032. Globally, an average adventure tourist spends US$2,900 per trip.·
Business travellers and MICE – India’s share in the global MICE market will more than double from 2019 to 2025. In 2021, 12.1% of foreign tourists visited India for business purposes.·
Travel mobility – Airports in India will increase to 220 by 2025 with US$1.5 trillion worth of investments through the National Infrastructure Pipeline Scheme (2020-25).
If you are interested in making a career in the hotel industry, here are some prerequisites to keep in mind:
Education: Many hotels require at least a high school diploma or equivalent, but some positions may require a degree or certification. Depending on your role, a degree in hospitality management, business, or a related field may be beneficial.
Communication Skills: Communication is a key part of working in the hotel industry, whether you are interacting with guests or communicating with coworkers. Excellent communication skills, both verbal and written, are essential.
Customer Service: Providing exceptional customer service is essential in the hotel industry. If you have a passion for serving others and making their experience enjoyable, this industry might be the right fit for you.
Attention to Detail: Hotels have many moving parts, and attention to detail is critical to ensure everything runs smoothly. This means being organized, detail-oriented, and able to multitask.
Flexibility: Hotels operate 24/7, and many positions require working irregular hours, including nights, weekends, and holidays. Having a flexible schedule is often necessary in the hotel industry.
Teamwork: Many positions in the hotel industry involve working as part of a team. Being able to collaborate with others and work towards a common goal is an important skill to have.
Industry Knowledge: Understanding the hotel industry, its trends, and its challenges is important for a successful career. Keep up with industry news, stay informed about new technologies and practices, and participate in relevant training and development opportunities.
By developing these skills, you can set yourself up for a rewarding career in the hotel industry.
CRISIL Research estimates show India’s organised quick service restaurant (QSR) market size to be worth Rs 58 billion in 2013-14. The industry is expected to grow at 26 per cent CAGR (Compound Annual Growth Rate) over the next three years to Rs 117 billion by 2016-17. Nevertheless, its share will remain a miniscule 2-3 per cent in comparison to the overall domestic food services industry. [National Restaurant Association of India estimates the size of the domestic food services industry (organised and unorganised) at Rs 2,476 billion in 2013, and projects about 11 per cent annual growth to Rs 4,080 billion by 2018].
Growth of QSR industry Growth to be driven by outlet expansions The QSR industry’s growth over the next three years will be primarily propelled by an average 16-18 per cent growth in store additions. During this period, same-store sales growth will be muted, averaging 6-8 per cent (significantly lower than 12-15 per cent average of last three years). We expect same-store sales to remain lower in the near-term but pick up later.
Established players are expected to account for about two-thirds of store additions. Among the established QSR chains, foreign players, namely Domino’s Pizza, Subway, McDonald’s, KFC and Pizza Hut, are together expected to comprise about 40 per cent of overall store additions. The contribution of relatively new entrants will also be significant at over 30 per cent share; brands such as Dunkin Donuts and Krispy Kreme that have entered the market in the past two years are expected to rapidly expand their store network. Players such as Burger King, Wendy's and Johnny Rockets are slated to enter the market as well.
In the case of same-store sales, growth will largely be from price hikes; QSRs have been raising prices by 5-6 per cent annually. However, average transactions per outlet will stay relatively flat mainly due to a more mature store profile (stores operating for over two years) for the bigger brands and higher competition. New entrants, though, could see an increase in transactions per outlet.
Same-store sales growth to pick up; historical levels unlikely Same-store sales growth, which was robust at 20-25 per cent in 2010-11 and 2011-12, plummeted in 2012-13 and 2013-14. Cannibalisation due to opening of multiple outlets in the same catchment area, stiff competition, and economic slowdown leading to decline in discretionary spending, coupled with high food inflation, impacted same-store sales. Same-store sales of both Jubilant FoodWorks (master franchisee for Dominos and Dunkin Donuts in India) and Hardcastle Restaurants (franchisee for McDonald’s in the south and west) edged lower by 2 per cent and 9 per cent, respectively, in the first quarter of 2014-15 compared to growth rates of 25-30 per cent in 2011-12. Yum Restaurants India divisions’ same-store sales dipped by 4 per cent during the July-September 2014 quarter.
Same-store sales of Dominos and McDonald's declining CRISIL Research expects same-store sales to gradually pick up, aided by improvement in discretionary spending triggered by economic recovery: after a sub-5 per cent growth rate for two consecutive years, the Indian economy is expected to pick up in 2014-15 and 2015-16.
However, same-store sales growth will not rebound to historic levels of 20-25 per cent because of increasing competition and cannibalisation, especially in metros and tier I cities. Also, a mature store profile will limit any sharp improvement in same-store sales growth for the established brands - close to two-thirds of the total stores for larger brands such as McDonald’s and Domino’s are more than two years old. Hence, large QSR chains have been gradually moving to tier II and III cities, where competition is limited.
Foreign brands to maintain dominant position Foreign brands dominate the QSR industry with over 60 per cent market share (in terms of number of outlets). In terms of value, the market share of foreign brands is higher vis-Ã -vis domestic brands as most have better average transaction size as well as number of transactions per outlet. The strong brand image and larger store area allows foreign brands to cater to larger number of customers.
Riding on the success of these international brands, the Indian market also witnessed the emergence of domestic brands such as Jumbo King, Goli Vadapav, Faaso's, Kaati Zone, Yo! China and Smokin’ Joes. However, most domestic players have been struggling to adapt to the quick service format.
Over the next three years, CRISIL Research does not expect a drastic change in the ratio of Indian and foreign QSR brands.
Foreign brands have been successful in tier I cities and are now expanding rapidly into tier II cities. These brands typically operate through the franchise model, which is an efficient way to scale up operations as it reduces capital burden.
By contrast, Indian brands are finding it difficult to scale up operations. Over the last two years, store additions of Indian brands were a mere one-tenth that of foreign brands. Some Indian brands such as Fasoo's revamped their strategy to achieve scalability. Indian players need to build their brand image; one of the tools to do this is by ensuring standardisation across product offerings by efficiently managing the logistics chain.
Foreign cuisines more adaptable to QSR format Foreign cuisines have a dominant share of the QSR market due to easier adaptability to the cold storage format and their quick-to-serve nature; pizzas, burgers and sandwiches account for about 85 per cent of the total market size in value terms. Indian food, which is prepared through complex processes using several ingredients, is difficult to translate into an assembly line production model. However, domestic players such as Goli Vada Pav and JumboKing are trying to adopt the successfully implemented cold storage model to their domestic cuisines.
Market share break-up based on cuisines 2013-14E (value terms) Interestingly, many players are also adding new products to their menus. A case in point is Domino’s Pizza, which launched wraps in May 2014. McDonald’s also now offers wraps. At Pizza Hut, non-pizza menu comprises about 50 per cent of the menu.
Severe competition in QSR especially in metros / tier I cities The Indian QSR market is highly competitive where players compete through core offerings and product variations not just among the organised segment but also among the huge unorganised market. Customers now even have various options and preferences to choose from.
The degree of competition can be understood by the fact that the same brand has multiple stores catering to the same micromarket, in addition to the presence of other QSR brands serving similar food. One such instance is the presence of two stores of the same brand in a single mall, one for dine-in and the other for delivery.
Competition in the burger segment will also increase with large global players, namely Burger King, Fatburger, Wendys and Johnny Rockets, expected to enter the market. Johnny Rockets recently opened an outlet in Delhi and Gurgaon. The US burger chain, Burger King, plans to open stores in Mumbai and Delhi this year through the franchisee route. American burger chain, Fatburger, has appointed Vazz Foods as its master franchise in India.
In the donuts segment, Mad over Donuts was enjoying a near monopoly in India since its entry in 2008. However, the entry of Dunkin Donuts and Krispy Kreme has increased competition within this category as well. Dunkin Donuts, which sells burgers and donuts, entered India in January 2013. Krispy Kreme recently entered India through a franchise agreement with Citymax Hotels India Pvt. Ltd.
Foreign chains move towards tier II, III, new entrants - metros Having set up operations in the metros, large chains such as Domino’s and McDonald’s are increasingly expanding their presence in tier II and III cities. Over the last one year, Domino’s strengthened its presence in cities such as Bhiwadi (Rajasthan), Korba (Chhattisgarh), Rajahmundry (Andhra Pradesh), Aligarh (Uttar Pradesh), Hoshiarpur (Punjab), Belgaum (Karnataka), Dharamshala (Himachal Pradesh) and Rangpo (Sikkim). Over the last one-and-a-half years, Hardcastle (McDonald’s) has opened outlets in tier II cities such as Coimbatore, Mysore, and Kochi in the south and Rajkot and Mehsana in the west.
Such expansions help utilisation of cheaper real estate in smaller cities, but also allow large chains enter relatively untapped markets. Opening outlets near highways allows the large chains to draw benefits from cheaper real estate and cater to customers who are constantly on the move. However, the relatively new entrants, especially the domestic QSR brands, will remain focussed on bigger cities to establish their presence and enhance brand recall.
Going forward, we expect QSR growth to be higher in tier II and III cities owing to the huge opportunity to expand in these markets. With metros already saturated, we expect major expansion to take place in tier II and III cities. As disposable incomes in semi-urban areas have increased and aspirations to experience brands have gained momentum, there is good potential in tier II and III cities. Hardcastle Restaurants, the master franchisee for western and southern India for McDonald’s, plans to invest about Rs 7 billion over the next five years to expand its restaurant network primarily focussing on tier II and III cities.
