Hospitality Industry Management Essay Example | Topics and Well Written Essays - 500 words

Hospitality Industry Management - Essay Example In their analysis, (Elliot et al 2012, 94) agree that Ku-De-Ta Hotels should assess the consequences of total customers in relation to other substitute products offered by rival hotels. It means they should introduce incentives for retaining loyalty program. This will limit the buyer alternatives enjoyed by most customers. Another significant implication involves expansions of economies of scale because of rigid government policy. Australia has complicated legislations of conducting business that often affect industry profitability. Consequently, (Gordon, 2012, 125) believes Ku-De-Ta Hotel deserve to invest in product differentiation to establish a strong brand and customer loyalty. In brand loyalty, threats should be averted by accessing equal distribution of products and services in the new market. It should also invest in modern modes of advertising such as the use of Facebook, Twitter, or blogs to establishing lasting rapport with middle-class clients frequently using technology (Knight, 2013, 114). However, this is only possible by having adequate capital requirements to sustain industry profitability that usually balances the absolute costs of conducting business. Accordingly, (Morrison 2002, 123) assert that capital requirements could be solicited through loans or savings. The entry of new entrants will lead to low threats because of setbacks such as expected competition and low cost benefits. Ku-De-Ta Hotel also has an edge over others because of its feasible location proves it difficult for new entrants (Knight, 2013, 124). In switching costs, Ku-De-Ta Hotel is faced with the threat of their rivals who offer substitute products and, thus, interfere with customer loyalty. This suggests that customers are susceptible to alternatives such as identifying hotels that have warm water instead of cold water. It, thus, is upon Ku-De-Ta Hotel