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Hotel Business Depends on Tourism Resources at Tourist Destinations

To make the right choice, let's learn about the characteristics of the hotel business.


1.1.4.1 Hotel business depends on tourism resources at tourist destinations

The hotel's customers are mainly tourists, so tourism resources have a great influence on this business. Because customers want to visit, relax and explore tourist destinations, they use accommodation services. And the scale of hotels depends on the attractiveness of these tourism resources.


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1.1.4.2 Hotel business requires large investment capital

Hotel business requires a suitable area, therefore the cost of land clearance is high and due to the luxury nature of this industry, it requires high technical facilities of the hotel, and the facilities are further improved with the increase in star rating.

Hotel Business Depends on Tourism Resources at Tourist Destinations

1.1.4.3 Hotel business requires a relatively large amount of direct labor.

The characteristic of hotel products is that they are services, created with the participation of customers, taking place in a direct relationship between staff and guests, so this product is mainly of a service nature and this service cannot be mechanized but can only be performed by hotel staff, and the service time is 24/24 so a relatively large number of workers are required.


1.1.4.4 Hotel business is a rule-based business.

Hotel business is governed by a number of factors, which operate according to a number of laws such as: natural laws, socio-economic laws, human psychological laws, etc.

For example, the dependence on tourism resources, especially natural resources, with the repeated fluctuations of weather and climate during the year, always creates changes according to certain rules in the value and attractiveness of resources to tourists, thereby causing seasonal fluctuations in hotel business, especially resort hotels in tourist destinations.

beach vacation or mountain vacation. (Dr. Nguyen Van Manh and MSc. Hoang Thi Lan Huong (2008), General Introduction to Hotel Business, Hotel Business Administration , National Economics University, Hanoi, 26)


1.1.5 The meaning of hotel business


1.1.5.1 Economic significance

Hotel business is one of the main activities of the tourism industry and performs important tasks of the industry. Hotel business also affects the development of the tourism industry and the general economic and social life of a country.

Through the hotel's accommodation and catering business, a part of people's consumption funds is used to consume services and goods of hotel businesses at tourist destinations.

In addition, the development of hotel business contributes to attracting domestic and foreign investment capital, mobilizing idle capital from the people.

Hotels are major customers of many other industries in the economy, because every day hotels consume a large volume of products from many industries such as: heavy industry, light industry, food industry, agriculture, post and telecommunications, banking, especially handicrafts, etc. Therefore, when developing the hotel business, it also means encouraging other industries to develop accordingly. (Dr. Nguyen Van Manh and MSc. Hoang Thi Lan Huong (2008), General Introduction to Hotel Business, Hotel Business Administration , National Economics University, Hanoi, 27-28)

Hotel business requires a relatively large number of workers, so developing this business creates a large number of jobs for workers.


1.1.5.2 Social significance

Through human rest during travel, hotel business helps workers maintain and restore productivity.

Tourism activities help people understand more about customs and practices, love the country's nature more, and at the same time promote the country's image to the world.

Hotel business facilitates meetings and exchanges between people and countries, creating an atmosphere of international peace and cooperation.

1.2 Basic content about competition


1.2.1 Some basic concepts of competition

Currently, there are many concepts of competition from different economists, but according to Michael Porter: Competition is to gain market share. The nature of competition is to seek profit, which is a profit higher than the average profit that the business is having. The result of the competition process is the average profit in the industry in the direction of deep improvement, leading to the consequence that prices can be reduced (1980).

Through research and understanding of competition, I have come up with the following: competition is the rivalry between businesses to increase their sales in the market using certain tools.

According to the business dictionary (published in 1992 in the UK), competition in the market mechanism is defined as "The rivalry between businesses to gain resources to produce the same type of goods for themselves.


1.2.2 The role of competition


1.2.2.1 For the economy

Competition plays a very important role and is one of the strong driving forces for production development. It forces producers to be proactive, actively improve their skills, innovate techniques, apply science and technology, and perfect management organization to increase labor productivity and economic efficiency. Where there is a lack of competition, there is often stagnation and underdevelopment.

The role of competition for businesses: Competition helps businesses constantly develop and improve products to gain competitive advantages for themselves, requiring businesses to develop market research activities, and launch high-quality, convenient products that are more suitable for consumers.

Besides the positive aspects, competition also has negative impacts, which are reflected in unfair competition such as unethical or illegal actions such as spreading rumors to harm competitors, or competitive behaviors that divide the rich and the poor, and damage the ecological environment.

The difference between unfair competition and healthy competition in business is that one side uses tricks to destroy competitors, the other side uses competitive tools such as competing on product quality, using after-sales strategies... to attract customers and improve their competitiveness.


1.2.2.2 For the restaurant and hotel industry

As for businesses, competition is also a driving force that helps hotels take appropriate measures to continuously improve products, upgrade facilities, and especially constantly improve the skills of staff and workers to enhance their competitiveness.

Competition also helps restaurants constantly research the market, improve their menus, and always create novelty to attract customers.

1.2.3 Some main competitive tools of enterprises

Competition is essential for businesses, especially during the economic recovery period. Here are some competitive tools and methods to use them effectively:

a. Product competition:

Nowadays, product quality has become an important competitive tool for businesses in the market. The higher the product quality, the higher the level of satisfaction of demand, leading to increased consumption speed, increasing the ability of businesses to win in competition. In the current conditions, people's living standards are increasingly improved, meaning customers have increased payment ability, therefore, customers are less sensitive to price, so price competition has and will tend to give way to quality competition.

The problem is that businesses must always maintain and continuously improve product quality, because product quality is an important factor that determines the survival of a business.

b. Compete by product price:

Product price is the monetary expression of the product value that the seller or selling business intends to receive from the buyer through the exchange of that commodity on the market.

Hotels need to find suitable pricing policies to attract customers. Nowadays, people's living standards are getting higher and higher, so price is no longer the main competitive tool of businesses, but if price competition is combined with other suitable competitive tools, it will attract more customers.

c. Compete by the art of product consumption

In the current market mechanism, good production is not enough for a business to survive, but it must know how to bring its products to consumers through different distribution channels. Normally, a business's product consumption channels are divided into the following types:

Business

Consumer

We have the distribution channel structure:



Retail

Agency


Retail

In addition, to promote the sales process, businesses can conduct a series of support activities such as: Marketing, advertising, organizing customer conferences, seminars...

Nowadays, the art of product consumption plays an extremely important role, even deciding the survival of businesses in the market because it affects the competitiveness of businesses in the following aspects:

- Increase the ability to consume goods by attracting customers' attention to the business's products.

- Improve the image position of the business in the market (brand, reputation of the business)

- Expand business relations with partners in the market, coordinate with entities in market domination and anti-counterfeiting.

d. Compete with other tools

In addition to the above tools, businesses can also enhance their competitiveness with after-sales services, demonstrating the business's responsibility to its customers even after the purchase transaction has ended.

After-sales service includes:

+ Ensure to take back products that do not match the original agreement and refund the customer or exchange for another product.

+ Warranty commitment for a certain period of time.

+ Provide maintenance services for products with long life

- Payment method is also a competitive tool used by many businesses. Complicated payment methods, many steps or delays, affect consumption and therefore affect the competitiveness of businesses in the market.

- Competition on market opportunities : Any business that can predict market opportunities and seize them will have more conditions to win in competition. Market opportunities often appear due to the following factors:

+ Changes in the technological environment.

+ Changes in population and natural conditions.

+ Relationships established by each business.

- Competitive bargaining. It is an agreement between business owners to share the market in a peaceful manner.

- Avoidance methods: It is a way to withdraw from competition by finding another market (a market with a small market share that other competitors have neglected or are not interested in)

1.3 Competitiveness in the hotel industry


1.3.1 Concept of competitiveness

The term competitive capacity (CCR) has been widely used, but so far there is no consensus on the concept of CCR among scholars, professionals and businesses.

The competitiveness of a product is the ability of that product to be consumed quickly while there are many people selling the same product in the market. Or in other words, the competitiveness of a product is measured by the market share of that product.

Enterprise competitiveness is the ability of an enterprise to create competitive advantages, to produce higher productivity and quality than competitors, to capture a large market share, to generate high income and develop sustainably. (http://saga.vn/view.aspx?id=12382,2008 )


1.3.2 Factors affecting competitiveness

Competitiveness is the strength of a business shown in the market. Here are some factors that affect a business's competitiveness:

- Factor 1: Business management level

- Factor 2: Enterprise resources: human resources, capital, science and technology level.

- The third factor that makes up a business's competitiveness is the product's competitiveness. Product competitiveness is the ability of a product to sell quickly and in large quantities in the market, and is influenced by the following factors: quality, price, delivery time, accompanying services, and product reputation.

- The fourth factor is the ability to connect and combine with other businesses and international economic cooperation.

- Factor 5 is production and business productivity.

- The final factor is brand reputation.


1.3.3 Current competition situation in the hotel and restaurant industry

Nowadays, hotels and restaurants are springing up a lot, so there is fierce competition between hotels and restaurants to gain market share and competition between hotels and resorts, between restaurants and small eateries.

In addition, other types of accommodation such as resort hotels, villas for rent, tourist apartments, motels, bungalows, resorts, and motels are also developing strongly in key tourist destinations.

Currently, in Vietnam there are about 67 tourist villages (Self-proclaimed Tourist Villages - Survey results of the Institute for Tourism Development Research) with 4,656 rooms, accounting for 0.79% of the total number of tourist accommodation establishments and 2.73% of the total number of rooms nationwide, mainly concentrated in localities and locations with attractive tourism resources in terms of ecology and environment.

Tourist villas: According to incomplete statistics, the whole country has about 64 tourist villas with 1,080 rooms, accounting for 0.75% of the total number of tourist accommodation establishments and 0.63% of the total number of rooms in the country, concentrated in some localities such as Ba Ria - Vung Tau, Lam Dong and Hai Phong.

Tourist apartments: There are 59 tourist apartments with 566 rooms, accounting for 0.69% of the total number of tourist accommodation units and 0.33% of the total number of rooms nationwide. The scale of tourist apartments varies from a few rooms to hundreds of rooms. Previously, tourist apartments were only for long-term rental, but now due to the increasing demand for accommodation, these types of tourist accommodation units serve short-term guests including tourists, business guests and foreigners who need long-term accommodation in Vietnam.

Tourist accommodation: There are 3,350 tourist accommodation establishments with 56,345 rooms, accounting for 39.41% of the total number of tourist accommodation establishments and 33.05% of the total number of rooms nationwide. In terms of quantity, tourist accommodation establishments are the second largest type of accommodation establishment after hotels, but most of them are small in scale, scattered throughout the country, of poor quality, and incapable or very incapable of serving tourists.

Tourist campsites: There are 48 tourist accommodation establishments considered as campsites with 567 rooms interspersed in the campsites, accounting for 0.56% of the total number of tourist accommodation establishments and 0.33% of the total number of rooms. Camping sites are a new type of tourist accommodation establishment, and visitors have low spending ability, so the quality of camping sites is still limited and not popular in Vietnam.

Other tourist accommodation establishments: there are 642 tourist accommodation establishments with 9,456 rooms, accounting for 7.44% of the total number of tourist accommodation establishments and 5.55% of the number of rooms nationwide. (Ths. Ha Thanh Hai, 8/2010 http://thcn.duytan.edu.vn/news/Details.aspx?newsID=301&lang=VN)

From the above information, we can see that the accommodation industry is growing strongly in quantity and diversifying in types, so the competition between tourism establishments is very fierce.

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