Monopolistic Competition

Monopolistic Competition
The hotel industry

Consumer Behavior

Behavior: What factors influence
consumer choice?
- Disposable income
- Class / Status
- Brand Image
- Luxury expectations- References
- Taste

Types: Who is the client?
- Business travelers – 40%
- Leisure/Personal - 60%
(Some Locals)

Perception: What needs do
consumers look to satisfy when
choosing a hotel?Excellent surroundings/ambience High class treatment Effective time management Value per dollar Social status Safety & Security A good night’s sleep Hygiene -

DESCRIPTION

LOCATION

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•First-rate guest experience.
Personalized service and very high quality.

Tourist

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Business travelers.
Space and technology.

Urban

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Something different.
Neighborhood:Opportunity to share.

Both

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Friendly service with comfort and value.
Relax and simply be themselves.

Both

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Frequent travelers.
Relaxed and recharged.

Urban

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Greatvacations, no matter the time.
Space, amenities, and fun.

Tourist

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Upscale business and leisure travellers.
Longer stays: The best of home and hotel.

Both

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Convenience atgreat value.
Longer stays: Freedom: “Home-like stay”.

Both

Patterns of differentiation & Competition
Less Competitors &
Price Competition

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Deluxe

• Geographic
Location
Luxury• Type of Traveler
Upscale
MOST INTENSE COMPETITION !!! & Stay
Extended Stay
Upscale
Mid, F&B

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Mid, No F&B

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Economy

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Budget

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Extended Stay
Low-end

LESSDIFFERENTIATION

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MORE DIFFERENTIATION

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More Competitors
& Price Competition

• Type of Offering
• Size & Services
• Architecture
Design

How IHG drives demand
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Brandsponsorship
Television
Print advertising campaigns
Public relations.
Priority Club Rewards  Hotel loyalty program
IHG Partner Connect  As a partner, you earn a percentage of
hotel bookings...