This article says globalization and technology is the new trend. Companies need to work to appeal to their international consumer. As the article stated a consumer from China is going to search for a hotel differently and have different needs than a consumer from Russia. This forces companies to work twice as hard. Not only do they have to appeal to different demographics but they also have to maintain a consistent brand image no matter where the location. “The notion of brand integrity is crucial: hotels will need to supply consistent service in a global environment, while adapting to support customers with new cultural background and sensitivities in local markets.”
The article also mentions social media as a way of communicating with consumers. Consumers are using the web for research whether it is from a reliable source or not. Companies now have to work harder to combat any negative comments found on the Internet. Social media is taking company accountability to a new level.
The industry is also expecting the use of mobile hotel booking to increase. This opens new doors for any company to expand. Do you think that this could take businesses like hotels.com out of the market? Think about it, if the hotel company comes out with an app for your phone that makes booking rooms on the go easier, would you still go to hotels.com?
“Consumers at all income levels have been splurging on indulgences while paring many humdrum household expenses, according to industry data for the last year.” This is a trend seen across all industries but why could this be? It seems the reason for this could be because consumers what to feel better. The economy has been in a slump and consumers want to brighten their day whether it is a new bag or a small treat. Unfortunately, this does not mean consumers have faith in the economy and it does not mean that consumer spending will increase anytime soon. It is important to notes that while consumers are purchasing wants rather than needs they are buying inexpensive goods. For companies this means imports will increase however domestic jobs remain stagnate.
~Nia McCarthy
Great job, Nia!
ReplyDeleteI liked how you basically discussed the external factors affecting businesses especially in our industry where consumer trends plays a huge role. The trend of globalization had influenced the industry such that the company would have to sustain the same image of the brand all around the world.Knowing that the world has become expanding through globalization, customers just seem to depend heavily on what social media brings them and so firms try to keep a decent image about their business.Also a recent consumer trend would be the increased demand for leisure and tourism even in a bad economy therefore, this can also be considered an external factor affecting the industry.
ReplyDelete-Lila Al-Refai
In class recently, we talked about how the key to being a successful international corporation is adopting to consumer behavior in different cultures. It is important not to be ethnocentric and assume that all travelers/people are looking for the same experience, whether it be in the lodging or restaurant sector. McDonald's Corp. has clearly show how this can lead to succes; there menues vary from country to country, even region to region in some places. You have done a good job at illustrating how important it is to acknowledge cultural borders and how they represent different consumer habits.
ReplyDelete-Laura Iaffaldano
I really liked how you brought social media into the mix. Most people wouldn't think of Facebook being a viable hotel booking service but they also didn't think it would be a chat video service as well. It is of my belief that Hotels.com can make a good stand in the competitive landscape if they adapt to the changes and provide an app or smart phone version of its service.
ReplyDelete-Domenick Cocchiara