UK hotels are usually highly susceptible to external forces which generally impact very negatively to their operations at all levels. Graeme (2005. argues that due to the fast rising demands for hotel industry services in UK, their development has been equally rapid, a notion that makes their response systems to be very rigid to counter such disturbances. It is from this notion that even small interruptions will send successive ripples to the core of the industry.
Effect of credit crunch on UK hotels market
Credit crunch is the sudden tightening of the major conditions that are required in accessing credit by from different financial intuitions. In such situations, the hotel industry in UK gets under intense shortfall of the consumers as finances become less available. Therefore, their sales and profitability generally assume a downward trend. Scott (2008) indicates that the occupancy levels in Northern Boarder fell with 8.3% from the credit crunch by July of the year 2008. Scott continues to say that on average, Glasgow suffered 15% decline while Scotland recoded a 10% decline. Though the recent credit crunch has been associated with the present financial down turn, it is indeed very true that the service industry is affected more compared to other sectors by the crunch. As a result, many of the services offered by hotels become very expensive to cater for the rising interest rates.
Unemployment effect on the UK hotels market
The rising levels of unemployment have been a major negative factor in the progress of the hotel industry in UK. Due to the fast rising impacts of the current economic downturn globally, UK companies like others globally, have massively laid off their workers in bid to cut down costs. By May 2009, unemployment rates rose with 0.7% to 7.25% which is the highest since the autumn of 1996. Therefore, many of the unemployed people shift towards expenses reduction with the demand for the leisure activities in the different hotels being the first ones to shift from. Therefore, the total sales for many of the hotels are left to only those who are working and earning high salaries. Besides, even the employed ones still keep off many of such luxuries as they await the current uncertainty (Frances and Stephen, 2007, pp. 68-71).
Currency effect on the UK hotels market
Being at the heart of EU, the hotel market has been affected by the present economic down turn just like others in the country. However, the weak pound has not had much negative impact on the industry as it indeed raises the ability of the visitors to access the facilities for less. Though it is a major factor, the notion has been overwhelmed by the high levels of unemployment that shifts the desire for cost reduction to more people (Kotler, P. 2007, 54-59).
Marketing Mix effect on the UK hotels chain
To effectively address the different eternal effects in the hotel industry, market nix has turned out to be a major route for many of the UK hotels chains. It is a general tern that is used with reference to product, price, promotion and place which are applied simultaneously with great emphasis on addressing variant problems affecting the market at different times (Michael, 2005, pp. 121-122).
With the impacts of the current global shifts in the market demands for different hotel products by the various consumers, market mix underscores the need to understand them and therefore offer the necessary products that people can actually afford. Though considered to be highly entrepreneurial, the notion works in that by offering differing prices of different products, consumers will be able to fix themselves in different categories that fit them. However, the management should avoid loses in the whole operation (Graeme, 2005, 134). Aspects such as reduction the cost prices and use of alternative systems that aid in reducing the overall prices of the products should be explored. The ability to reduce the price of the major services by the hotel management forms the road map to the chains success.
The hotel industry sustenance is based on the ability to provide product variations through innovative techniques. At any single time, the hotel industry should have enough options for the consumers which pose higher returns to them. This has been very effective in UK hotel chains as more people seek alternative products that fit their purchasing power. However, the notion of the application is a major question as there is no coterminous consideration that can be assimilated for all the diverse hotel demands (Graeme, 2005, 106-110). By ensuring that the product meets the necessary quality standards, the hotel industry chains are indeed fast tracing their upward trend after a long economic down turn.
Market mix could possibly have not been complete without effective promotion of the hotels and their products to the consumers (Graeme, 2005. 151-153). This notion has assimilated a new system where the hotels assume various brands that seeks to guarantee consumers the highest possible values. Arguably, promotion through the media persuasively wins the customers back by informing them on the major beneficial additives they would derive from visiting and consuming their products. To add to that, it has the capacity to target particular groups that fall in its consumer brackets.
To effectively maintain high profitability in the hotel industry many of the UK hotel chains have opened various branches that seek to tap all the possible market available for their products. Notably, this market mix consideration has managed to link with the consumers by offering direct sales far away from the main hotels to anchor their overall profitability (Graeme, 2005, 163-165). Under this notion, the management have understood the tight schedules of the people and devised it as a tactic to reach them. It is from this notion that most of the UK hotel chains have managed to remain profitable even during the current economic crisis.
It is from the above consideration that this report concludes by stating that use of marketing mix is the most effective method of addressing the different problems that face the UK hotel chains. By interlinking the major facets of the market mix, it is especially possible to curve the necessary innovation and capture the extended highly dynamic market to the hotel advantage.
Frances, B. & Stephen, P. 2007. Essentials of Marketing. Brussels: Routledge.
Graeme D. (2005). Introduction to marketing concepts. London:Butterworth-Heinemann. pp. 10
Kotler, P. 2007. Marketing management. London: Pearson Education.
Michael, J. 2005. Marketing: critical perspectives on business and management. Taylor & Francis, New York: Sage. 122
Scott R. 2008. Scottish hotels suffer credit crunch. Retrieved from >thescotsman.scotsman.com/…/Scottish-hotels-suffer–.4516694.jp -<