Hospitality Industry

It can be interpreted from the above discussion that economic recession has significantly affected the business operations of different industries. Due to recession, the productivity and profitability of the businesses has been reduced and some big business organizations have got liquidated. With respect to the analysis of the hotel industry, it has been analyzed that the industry is widely influenced by recession. It is due to the reason that the hotel industry has a direct relation with the tourism industry and decrease in the tourist arrivals directly influences the hotel revenues.

The occupancy rates of the hotels and the average room rates got reduced, which affected the output from the business operations. The hotel industry involves large amount of fixed cost in the form of wages of the employees and billing of the desired utilities, so many organizations focused on the cost cutting and lay offs. The consumer behavior regarding the lodging facilities was changed and it affected the operability of different divisions of the hotels. Financial market variations reduced the credit availability to the hotels due to this; small business operators in this industry got adversely affected. The level of competition in the hotel industry was intensified and the hotels focused on differentiating their services for sustaining their brand name as well as service quality.

In order to become successful in the adverse economic conditions, the hotels require integrating their business strategy and the different divisions, so that the market opportunities can be maximized and tapped effectively for gaining control over the business operations in the adverse economic climate. It is necessary to create demand for the lodging services, which are available at affordable prices with adequate service quality, so that the influence of recession can be counterbalanced. The inclusion of flexible management structure oriented towards the customers will be helpful for hotels in the establishment of adaptive services and operational efficiency.

Regarding the organization and execution of the business operations effectively, the hotels require implementing well structured and formulated management practices, so as to manage the different business aspects in an optimal manner. For overcoming the challenges posed by the recession climate, the implementation of effective marketing, human resource, financial and customer service strategy is essential. The marketing strategy provides assistance to the hotels in optimizing the market overview of the products and services favorable for the customers. It also promotes the services of the hotels for the creation of the brand image in the market and differentiating the service portfolio.

Since human resource is the key towards the success of the hotels, it is essential for the hotels to provide adequate incentives and motivation for retaining the key talent. It is also helpful in the coordination of