Sales & Marketing

Twitter icon
Facebook icon
Google icon
LinkedIn icon

Competitive advantage

This is the set of factors or capabilities that allow a hotel or restaurant to consistently outperform its rivals. Not all hospitality firms have a competitive advantage. Businesses may enjoy a sustained competitive advantage if their capabilities are valuable and rare, lack substitutes, and are difficult to imitate. For example, human resource (HR) practices by the Marriott Corporation have become a competitive advantage because they have spent years carefully studying, redesigning, and perfecting their HR practices and policies.

Beliefs and attitudes

A belief is a descriptive thought that a person holds about an object or phenomenon (Kotler, Bowen, & Makens, 1999). The term 'attitude' refers to an individual's preference, inclination, views, or feelings toward some phenomenon or object (Churchill, 1995). Thus, attitudes and beliefs are part of a consumer's psychological makeup. Consumers' attitudes are learned, are characterized by their consistency and responsiveness (Hanna & Wozniak, 2001), and can be very difficult to change (Kotler et al., 1999).      

Bargaining power

This refers to the relative power that either a guest or supplier has over the firm and its ability to negotiate transactions. Buyers have power if they buy in bulk and can therefore dictate terms, or if the product represents a large percentage of the buyer costs, making the buyer highly price sensitive (Porter, 1980). In such cases, the firm's bargaining power is weak. It may have to concede terms and/or conditions.

Awareness, trial, and usage

A grouping of three types of questions, awareness, trial, and usage, is used in marketing research to determine some of the behavioral characteristics of consumers. Awareness refers to the presence of the product or brand in the consumer's mind. This variable is measured in a variety of ways, ranging from simply asking a survey respondent if he or she is aware of a specific product or brand through asking the respondent to list the types of products or brands that come to mind.

Association market

By definition, associations are people or groups of people who find strength in numbers while sharing common interests of industries, professions, charities, hobbies, or philanthropic action (American Society of Association Executives, 2003a). Associations are a subset of a type or organizations typically referred to as 'nonprofits.' Outside the USA, nonprofits are often called nongovernmental organizations (NGOs) or civil society organizations. Like the greater classification of nonprofits, associations may in fact charge fees, generate revenue, and generate a profit.

Activity-based pricing

The hospitality industry can greatly benefit from the application of activity based pricing, a new prototype for improving profitability by reducing pricing mistakes and emphasizing revenue maximization. Activity based pricing (ABP) is a pricing method that combines market research data with cost accounting information to establish prices for products and services that result in designed profits (Daly, 2002).     

Yield management

YM is a management tool or technique that is currently being utilized by an increasing number of group and independently owned hotels in order to maximize the effective use of their available capacity and ensure financial success. YM is not an entirely new innovation and most hoteliers practice some form of YM such as the adjusting of room rates to temper fluctuations between peak and off peak seasons, mid week and weekend rates. This chapter, therefore, examines the use and application of YM in the hotel industry and hopes to demonstrate its ability to effectively maximize revenue and profit generation in this highly competitive and capital intensive industry.