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Implications of Economic Decline on the Marketing Industry for Hotels

Autor:   •  March 29, 2011  •  Essay  •  908 Words (4 Pages)  •  1,273 Views

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The tourism Industry in has been hit very hard by the current global recession with all areas declining during 2009 and deteriorating in comparison with the previous year. Inbound and outbound tourism flows both saw double-digit decreases, while domestic tourism was also down as a lot of people cannot afford to go abroad in the present climate . These decreases had a effect on all tourism service providers as overall demand fell reductions in demand were reflected in a number of ways: people took fewer trips, with especially pronounced drops in second and third additional trips per year and duration of holidays was also shorter. In 2008 it was the norm for someone to take two or three holidays in the year to different locations and they would also be for long durations of time two and three weeks . It was also quiet common for to go on a cruise it seemed everyone went on a cruise at some stage recently I haven't heard on many people going on a cruise as they a quiet expensive an seen as a novelty holiday .

Furthermore, travellers reduced their spending watching what they spend their money on and looking for value for their money before recession hit nobody minded how much money the spent on anything e.g: An American tourist on a holiday in Ireland would have no problem staying in a hotel that cost 300 Euros a night and this price would only include the basics like breakfast, in the current climate hotels that were able to charge 300 Euros a night for basics now have dropped their price and also have included an extra with the price of the room if they did not do this they will not attract the customers. E.g. the Sheridan Hotel now include a complementary cruise on the Shannon along with dinner in the hotel restaurant in the price of the room.

While the decline in industry output led to a severe drop in business travel both incoming and domestic that exceeded the overall decline. In addition to reduced tourism flows, falling unit prices across all areas were the second major characteristic of travel and tourism in Ireland during 2009. Due to the current recession prices of everything overall have fallen hotels are now offering great rates for weekend breaks and prices of rooms have also dropped considerably this in turn will entice more people to stay in the hotel. When a hotel drops its room prices it is hoping that it will make this money back as the clients staying in the hotel going to the hotel bar and restaurant due to its convenience as they are just down stairs the majority of people will go there versus a other

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