Changing Consumer Demand for International Hospitality Products
Introduction
By matching the potential consumer demand with suitable products and service, their needs and wants can be satisfied. Organization can also maintain its competitive edge and achieve the organization goal. Therefore, understanding consumer demand is an important part of running international hospitality business, especially in the current dynamic global environment with incessant innovation. There are plenty of factors that can influence consumer demand for international hospitality products. As a result of this, different types of hospitality products emerge.
Factors influencing consumer demand for international hospitality products
Political Impacts
According to Shoemaker et. al. (2007), the political environment refers to the rules and regulation that can either encourage growth and trade or impede it.
The government decisions can stimulate or stifle the social, economic and technological development. Therefore, they are probably the most critical and uncertain factor that determines how consumers can act and affect their demand.
Government policy and legislation affect the consumer demand in many ways. Reich (1997) gives some example of legislation, like various types of taxation and legislated methods of collection, city ordinances and zoning, health codes and inspectors, building code, etc. Consider the opening of China. This led to many opportunities for hotels as consumer travel more and their demand increased.
An article (2003) published by the Hong Kong Trade Development Council stated that a war will inevitably affect consumer sentiment. The cost of production of goods and services will be influenced by oil price surges. Hence, consumer demand will be affected. Terrorism can also affect consumer’s demand on security. This show that political stability is a critical factor influencing consumer demand.
Economic condition
The economic condition play a significant role in changing demand for hospitality markets. Reich (1997) notes
By matching the potential consumer demand with suitable products and service, their needs and wants can be satisfied. Organization can also maintain its competitive edge and achieve the organization goal. Therefore, understanding consumer demand is an important part of running international hospitality business, especially in the current dynamic global environment with incessant innovation. There are plenty of factors that can influence consumer demand for international hospitality products. As a result of this, different types of hospitality products emerge.
Factors influencing consumer demand for international hospitality products
Political Impacts
According to Shoemaker et. al. (2007), the political environment refers to the rules and regulation that can either encourage growth and trade or impede it.
The government decisions can stimulate or stifle the social, economic and technological development. Therefore, they are probably the most critical and uncertain factor that determines how consumers can act and affect their demand.
Government policy and legislation affect the consumer demand in many ways. Reich (1997) gives some example of legislation, like various types of taxation and legislated methods of collection, city ordinances and zoning, health codes and inspectors, building code, etc. Consider the opening of China. This led to many opportunities for hotels as consumer travel more and their demand increased.
An article (2003) published by the Hong Kong Trade Development Council stated that a war will inevitably affect consumer sentiment. The cost of production of goods and services will be influenced by oil price surges. Hence, consumer demand will be affected. Terrorism can also affect consumer’s demand on security. This show that political stability is a critical factor influencing consumer demand.
Economic condition
The economic condition play a significant role in changing demand for hospitality markets. Reich (1997) notes
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