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Internet has become the specific driver and the business needs to alter the way they conduct their business. The strategic and the daily activities of business are being changed because of technological evolution. The sourcing of demand for the hotels is becoming challenging due to the complex and the robust digital system, which is used by the consumers in their process of search. Due to the widespread of E marketing, the behavior of consumers are changing. The hotels industry has to deal with number of the new realities with the changing business environment and because the hotels are making use of multiple business models (Baron et al., 2014, p.151). The hotels industry needs to evolve with the continuous changing environment.
1: The specific driver that is leading to change in the business process of the hotels industry is the consumers who have become the driving force. The growth in technology and the rising affluence has generated the modern hotels guests who come with the feeling of being connected with the traditional luxuries of hotels. The new generation of travelers does not regard the luxury items, which are available in abundance as the luxury rather they want to have some storytelling experience of the same (Amit and Zott, 2012). For example, the guest does not want the coffee machine in their rooms rather they would prefer to have the coffee by sitting in the lobby where they can drink and have coffee surrounded by the people. The traditional layouts of the hotels are also being changed due to the change in the nature of the hotel guests. Now days, the guests want to spend more time in the social places, due to which the size of the hotel are also changing (Batra & Keller, 2016, p.15). The meeting rooms are coming with the bright colors and they are becoming more homely and less formal. The hotels are offering new kind of product that comes with the differentiating factor in terms of services and the styles and they are adapting themselves to the new breed of ‘lifestyles hotels’.There is a growing complexity of the employee and the customer interaction that is driven by the technology and it is shaping the needs of the human resources in the hotels.
The application of the computer technology in the hotel industry is changing the management, operational and the guest services provided. Diffusing the information technology system in the hotels would increase the quality, efficiency and the flexibility of the hotels (Benson, 2016, p. 154). There is a generation of the new services such as interactive video texts and online brochures. The technology is widely affecting the marketing of the hotels. This can be explained with reference with the usage of technology in the Hilton hotels.
For the various purposes such as distribution, marketing, back office, front office, beverage and food control is done by making use of the core centers of information processing. The usage of the internet would influence the key area of operations of Hilton International. The use of information technologies such as video brochures and the reservation system helps the hotels in the distribution and the marketing of the bed nights. In order to make the delivery services cost effective and efficient, there is a need to link the back office, beverage department and the front office. The reservation system generates the reports on the availability and the cancellation of the rooms as it contains the information and makes use of the sophisticated software (Boons & Lüdeke-Freund, 2013, p.9).
The various technologies used by the Hilton for the purpose of communication are satellite broadcasting, digital telephone system, video texting, telecommunication, image communication and the various other networks for the purpose of communication and reservation. The hotel is able to gain the short-term competitive advantage by embracing the Electronic Data Interchange that is a cooperative technological infrastructure. The external and the internal operation of the hotels are controlled through the communication technologies and due to the integration of computers. This system of information management is regarded as the powerful tool of creation of wealth in the hotel industry (Dehkordi et al., 2012).
Due to the advancement in the technology, there has been a change in the way the hospitals are conducting their business and this ongoing trend is able to save and improve the hotels by changing their management structure, infrastructure and the staffing requirements. The hotel guests now a days, travels with the devices such as tablets, phones, laptop. All this stuffs make the Wi-Fi as a must in the hotels. The hotels are shifting from the models of the user pay. However, shifting from the user pay models may not be regarded as being financially feasible. The hotels are also making investment in the cloud servicing as they are providing the entertainment services on tap and the hotels are relying on cloud computing rather than investing in the structure of information technology (Fiorini & Lipsky, 2012, p.517).
However, all these does not imply that using the online platform is not the sole mode to gain the customer experience and all these needs to be part of the dynamic which would make the experiences of guest at the forefront of the operational and the marketing team. The room services of the hotels are changing. The booking of the hotels are done using the app, the hotel Marriot are making use of the marketing campaign highlights the features of mobiles services such as check in and checkout are the various guests services are done suing the mobile phones (Habib et al., 2015, p.655).
However, there are some organizational challenges that are faced by the hotels regarding the adoption of the internet. The capability of the integrated system is also complicated but the deriving of the accurate and complete data and its operation concerning the information and the profiles of guests. The extraction of data using the technology have become sophisticated and is more focused which helps in theft identification (Jerath et al., 2014, p.480).
2: A business model is used to demonstrate the elements that would help in running the business successfully and the model provides with the conceptual structure, which supports the business viability including its goals, purpose and the ongoing plan that is needed to achieve them. It configure the elements of the business such as its strategies, processes, structure, technology and these are conceived together to deliver the value to the customers (Berman & Katona, 2013).Advertising model- Under this model, the messages of the business is delivered with the content. The examples concerning this model of the business to customers are the Google and Facebook. LinkedIn is the example concerning business to business. When the volume of the viewer is highly specialized and large, then the model of advertising works best. Classifieds, yahoo is some categories of advertising model (Jerath et al., 2014, p.480).
Merchant model- This model is intended in the business providing goods and services. The retailer and wholesalers of the goods and services are the web merchants. Sales under this model is either based on the auction or on the price listed on the products. There are innovations that the merchants have pioneered with and they are associated with the marketing on the web. There various types of merchants such as catalog merchant, visual merchant, and aggregator. The examples concerning this model of the business to customers are the Amazon, Barnes, and Nobles. A Grainger industrial supply is the example concerning business to business (Kumar, 2016, p.16).
Manufacturing model- It is also known as direct model as the products manufactured reaches the buyers directly. The distribution channel is compressed under this model by predicating the power of web that allows the manufacturer to reach the customers directly. The concept of intermediaries is eliminated under this model. The model is based on the improved satisfaction and services to the customers, better efficiency and better understanding of the preferences of the customers. One of the good examples of the manufacturer model is the Del computer. The various example of the manufacturer model are direct selling, software-based services, syndication (Markides, 2013, p.313).
The Affiliate model- An affiliate is a person who helps in selling the product in return of commission, however the actual ownership of the product is never taken by them and it rest with the owner itself. When an affiliate makes the sale by referring the customer to the retailers, they are rewarded for the same. The Affiliate business model has been a huge success with the ease in its facilitation provided by the internet. The examples concerning this model of the business to customers are the Amazon.com. Restarant.com is the example concerning business to business (Webster Jr and Lusch, 2013).
Community model- This model connects the groups and individuals as the internet is based on the principles of the networking. Using the model of community, the business creates their models based on the repeat engagement and the loyalty of users. The users make high investment in the emotion and time. The revenue of the company is based on the voluntary contributions and services and on the sales of ancillary products. The revenge may also be tied to the premium services and contextual advertising and subscribing. The examples concerning this model of the business to customers are Threadless and Etsy. Linux.org and crowd SPRING are is the example concerning business to business (Kumar, 2016, p.6).
Infomediary model- This model act as the intermediary on the web by gathering and organizing large amounts of data and act also as an intermediary between the supplier and the receiver of the information. This terms covers or take into consideration the third party that distributes and manages the data on the internet. The various types of infomediaries are the audience, measurement services, advertising networks, and incentive marketing and business-to-business infomediaries. Wall street journal is the example of business to customers and InfoUSA is the example of business-to-business (Amit and Zott, 2012, p.41).
Brokerage model- under this model, the sellers and buyers come together with the help of brokers. Brokers have a frequent role to play in B2B, B2C and C2C markets that is customer to customers. Whenever, the transactions are enables, the broker’s charges commission or fees and the commission can vary depending in the types of transaction. Market place exchanges, auction brokers, demand collection system, transaction brokers are the sub categories of brokerage models (Markides, 2013). The examples concerning this model of the business to customers are EBay, price line, Orbitz and Etsy. The example concerning business to business are Alibaba and Bizydeal.
Utility model- this can be called as pay as you go model as the services are delivered for the content. The examples for the business to customers are Google Voice, Skype and audible. The examples of business-to-business are Slashdot.org.
Subscription model- Under this model, the services and the contents are delivered for a prescribed and fixed fee. Netflix and Angelfix are the Business to customer examples and sales force, LinkedIn are the example of business-to-business.
A hotel can employ one-business models and this happens when one business model is not enough but this may be the reason for the strategic failure. The employment of multi models in the hotel comes from recognizing the complementarities of the two high-end services that the hotels would provide and the nature of offerings and the substitute available. The models may be employed by analyzing the nature of the assets that is shared by the models. This is also done by analyzing the compatibility of the models in terms of its capabilities and the operational resources. It is seen that if the models have more something in common and they are more likely to generate values which is regarded as huge for the hotels (Habib et al., 2015, p.638). On the other hands, if the models have less in common, it is more likely that the models would be executed separately. However, managing the several business models in the organization is regarded as the tall order (PerreaultJr et al., 2013).
The park Hyatt in Sydney has incorporated multiple business models. It employs the utility and community model into its business. The brand value is so created by meeting the business needs of the operation of the hotels. The Hyatt specializes in the loyalty programs and this is regarded as the vital strategy in leveraging the relationship with the key customers. This makes the customer to get repeatedly engage with the customers. The sales strategy is such as to make the hotel to grow up in top line of revenue (Laroche et al., 2013).
The business model is such that the hotel combines the traditional style with the newly developed sophisticated style. The traditional values of comfort, care and courtesy are combined with the sophisticated and discrete residential style. Part Hyatt offers a wide range of services to their guests, which include luxurious suites and guest rooms and many more. Hyatt is the premier operator of the conference hotels. The hotel capitalize on the booking cycles that are done in advance and has substantial catering revenue. This is the strategy of doing the business in groups. The hotel has a dedicated resources managing program, which provides additional support to the hotels services. The network offices in several countries provides ongoing support to the portfolio of Hyatt. At the vital industry events, each offices coordinates the presentation of sub brand of Hyatt and Hyatt itself. Such models, which incorporate the occurring of events, help the hotel in accessing the potential and existing clients.
The hotel works closely with the distribution partners and this is done to ensure that the maximum market share is captured across all channels. It also has extensive marketing relationship with the airlines globally and regionally. The performance of the e commerce is enhanced and efficiencies of digital marketing is improved by the sophisticated analytics employed in the team of the business units. It can be seen from the discussion how Hyatt incorporates multiple models in its business system (Veit et al., 2014).
Employing the multi business models might require the organization to broaden its organizational skills and face the greater complexities. The organization might need to make other investments and it might demand the need for increasing the flexibility of the workers. If the hotels are able to master the two or three models together suiting the requirements and the demands of the hotels, this would leads to the generation of the formidable advantages to the organization that might be difficult for its competitors to overcome. The implementation of the multiple business models might not be risk rather it is the new tool for the strategists (Casadesus-Masanell and Tarzijan, 2012, p.32).
3: One of the forms of the internet marketing is the search marketing that makes use of the promotion of the websites, this is done by increasing the visibility in the pages of search engine results, and this is done through the advertising that is primarily a paid service. The concept is very simple behind the search marketing. Whenever a businessperson searches a web using the text box then he or she is in a hunt mode. There is uniqueness in the psychological nature as it signals the search engine that the information which the person is of commercial nature. The search marketing is the non-intrusive method of marketing. The search is unique as the searcher is tapping for the exact solution or the knowledge (Boons et al., 2013).When a single data string is entered with one or plurality of search items into the search engine, then it is regarded as the organic search. The results generated from the organic search are listed on the research pages because of the relevance to the search terms. In the paid search, the advertising is made within the sponsored listing of the search engine by making the payment each time, the user clicks on the advertisement. This search is regarded as the right search tool and strategy (Natarajan et al., 2013).
The biggest part of the online discovery is provided by the search but the content and detailed information is found by the people sing the platform of social media. Static information such as prices and research is depicted by the search. Social media depict the viral articles and timely news (West & Ibrahim, 2015).
There are different types of search such as directory listings, search engine marketing which includes the organic search that is the search engine optimization. There are three basics concepts of search marketing that is relevance; importance and popularity are the three concepts involved.
The importance of the search pages, which is relevant to the particular search query, are determined by the search marketing. The ranking of the pages is also determined under this content. The thing, which is incredibly valuable to the search marketing, is the creation of the great product. If people believe that a particular website is important then they might choose to link their websites with it. In order to get the word out, the technique of content marketing is very valuable and this would lead to the people sharing and engaging with the content (Leung et al., 2015, p.1556).
Popularity is the content of search marketing which has to be determined for certain types of queries. Say for example, if the search is about the hottest movies, then it is a clear request for something that is popular. For the topics that are trending, popularity is the powerful factor. Here, the important factor is the social media. Something can be popular because of many factor but the when the content for the same is developed then the emotional re action is created for the viewer (Martin &Isozaki, 2013).
The search marketing deals with the basic question of relevance when looking at any webpage. This is demanded by the search engine because it would let the search engine reply to the queries that are relevant to the particular query. The relevance of the search page can be determined by suing the various signals such as semantic analysis of the content, webpage title, the links of the webpage using the anchor text, the response of the user in context of the search engine pages of result. Moreover, the third party web pages and the topic matter of the same containing the links to the page, the topic matter of sites on the web page. If the user does not have a page that is relevant to the query related to the search, then the search items cannot be ranked. Moreover, the content on the search page needs to be consistent with the title tag so that the strong content is created to support it (Markides, 2013, p. 323).
The ability of the users to search for information, which is related to the particular location, is the local search. In some cases, the local link appears above the search box while in other cases; there is a need to specifically mentioning the local search (Moran & Hunt, 2014). Local search is an important part of the life of users because of the various factors:
Some of the small firms are not active on the internet and they encourage the millions of other businesses in a way that would provide the benefit to these small business. Though taking advantage of the capabilities of the web is a difficult task. This is assisted with the help of local search. The small companies have hard time being noticed online because of businesses growing into websites and the popping up of million websites (Iqbal & El-Gohary, 2014). The potential benefits from the search engine for these smaller brands is going on declining because they do not have resources to invest in the search optimization. This will imply that the smaller business owner needs to target smaller niche markets and narrower areas so that they are able to gain the exposures to increase their sales opportunities(Hua, 2016, p.28). Due to the increase understanding of the user intent, the various search engines has the property of creating local search. The algorithm tailored for the local search gives the users with the unique local search. As a result, of the growth of the mobile search, the local search is also being enhanced
One of the rapidly growing activities is the local search and the optimization of the local search is setting the challenge for the local markets. When the customers are shopping locally for the products and services, then in this regard maximum people relies on the internet as the source of information. Local search allow the users to view the results of the search based on map. Local search offers the local business incentives and it offers websites free, which encourage the listings of the business. The nature of problem is suggested in the incentives and is provided by the local search (Laroche et al., 2013).
The results from the local searches are timely, highly relevant and so useful that the users can rely and act immediately upon them. The search results that are traffic personalized and which is send to the websites of the business are more target oriented and is converted in a better way. The Google to combine with the location of the users collects the information about the user preferences and then the information is matched with the businesses of the local area to provide the users with the best suited needs (Eid and El-Gohary, 2013).
The search results are being redefined to a global level to serve the users in a better way. The searches done locally are shown parallel to the search results that are done in a traditional way and are incorporated into it. The changing behaviors of users have made the importance of the local search realizable to the company’s websites. This is so because the needs of the various would be accommodated in the local search (Fiorini &Lipsky, 2012).
The degree of success in applying the Internet differs in various aspects. The way of doing the business in the hotels has changed due to the internet and the hotels are the one who is one to capitalize on the new technologies. For the hotels booking, internet is the lowest cost channel. The hotels are faced with the issues in the technology and thin are attributable to the complexities of the environment and the lack of awareness in using the modern integrated system.
The search engine would keep evolving with the evolvement in the internet and in this regard to this; the search that is done locally is gaining greater importance in connecting with the users of search engines with the relevant consequences and this in turn help the business to increase the viability. Local search has become a necessity now a days and it is no longer treated as an option. The searches done locally are based on the hyper specific location of the users and such searches would start gaining the importance and popularity (Sigala et al., 2012).
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