Every firm tries to have a competitive advantage but not all achieve this. Many of them do not really understand what competitive advantage is or how to achieve it. A competitive advantage in a Hotel company can be achieved by offering the consumer a better value than other competitive hotels by for example lowering their prices or providing quality services that competitors do not have. A strong competitive advantage can hardly be imitated by other competitive firms.
Competitive advantage can be created if a hotel for example has an activity that creates superior value above its competitors. Companies can differentiate themselves also by the service they offer, products, image, quality and innovations.
From my informational interview, Mr. Koulouvatos, told me that Hotel companies differentiate themselves using quality of products as their first priority. On top of the general categorization by stars, hotels even within the same star segment may differ in the level of service offered. Another difference might be in the product itself. Some hotels sell room only whereas others sell all inclusive packages where the guest does not have to pay for any out of pocket expenses. As Mr. Koulouvatos claimed “Obviously, proper marketing that leads to proper pricing is probably the most important factor in promoting our product.”
POSTED BY: Katerina Argyrou (The blog I could not post last week and I sent by e-mail to Jess.)
http://www.referenceforbusiness.com/management/Bun-Comp/Competitive-Advantage.html http://www.referenceforbusiness.com/management/Bun-Comp/Competitive-Advantage.html
I feel that especially now with the recovery, competitive advantage in hotels is more important than ever. If a hotel company can come out right now with very competitive prices and reward programs for customers, hotel companies will not only gain a large customer base, but their customers will keep returning, creating a high brand loyalty for the company.
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