Budget Hotel vs. Luxury Hotel: An operation management perspective

Budget Hotel vs. Luxury Hotel: An operation management perspective Essay example
Masters
Essay
Finance & Accounting
Pages 7 (1757 words)
Download 0
This paper highlights on the key differences and similarities between a “Budget Hotel” and a “Luxury Hotel” from the viewpoint of operations management. Within the hospitality industry, the positioning concept of both these segment lies at opposite extremes. Although there are some commonalities in the concepts but the differences among them are striking. …

Introduction

A budget hotel aims to provide a hotel with basic necessities and they are mainly targeted to an audience who are willing to minimize their expenses. It requires you to draw a smaller amount of cash to stay in a budget hotel. They are especially designed for visitors who are willing to spend a nominal amount of money on their stay. Travelers and senior citizens are amongst the frequent visitors of budget hotel.
The budget hotels operate on a low-price model. The level of service is highly standardized and designed to suite “no-frills” convenience customers. Fiorentino (1995) identified budget hotel as “a brand new purpose-designed product concept in the hospitality industry which relies heavily on three factors; branded product concept, value for money, and service consistency”. Jones (2002) identified some of the key characteristics of a budget hotel which are mentioned below:
• Lower prices (Emphasizing the affordability factor)
• Limited facilities and services
• Targeted for the transient market
• Located on major road networks or in secondary urban locations (retail parks)
• Standardized operating procedures and rates countrywide
A survey was conducted in China to identify the critical success factors in the budget hotel segment of the industry. The researchers (Hua, Chan & Mao, 2009) identified that three factors; physical product, service quality and location were amongst the most critical success factors. ...
Download paper
Not exactly what you need?

Related papers

Financial Management in Health Care / Health Care Budget
This has followed a breakdown of the various components i.e. revenues and expenses. A final analysis of the projected income is obtained in the end. Inflation has played a major role in this process and has been considered. The projections show an increase in net income which can sustain the running of the organisation (John et al, 2007). Financial drivers A clear indication of financial…
Hyatt Hotel Financial Analysis
Hyatt has six diverse brands, which are specifically designed in order to deliver the best experience reflecting high standards of life, luxury, comfort, values, attitudes and aspirations of the clients who are the main stakeholders. The Hyatt hotel is run by a group of talented and highly skilled professionals whose visions and aspirations is to make Hyatt Hotels the leading brand in hotel and…
Intro to Finance: Budget
The hotel will be located in the mid of the city with high class interior and high class amenities to cater services to international tourists. The hotel will be one of its kinds in the city and will be the centre of attraction due to the facilities it provides to the local and international guests. The hotel will also include the cultural touch of he city and provides ethnic services. The size of…
Company Analysis Paper (Starwoods Hotel and Resort)
As such, the company plays a major role in world economy especially in America. The company embraces diversity in the provision of services where operates under nine different brands. The renowned brands that comprise this company include Westin, Le Meridien, St. Regis, Four Points, AloftSM Sheraton, ElementSM, and The Luxury Collection (Hospitality Net Web). Starwood capital is the mother company…
budget
This type of budget helps corporate to have an insight on whether the available income will suffice to finance the anticipated expenditure (Millett, 2011). On the other hand, budget forecast, utilizes financial figures for previous period to come up with figures for the current period (Brookson, 2000). Therefore, it can be scrutinize that budget is a very important tool that can help to monitor…
Analyse the financial performance & position of Intercontinental Hotel Group plc and explain and evaluate the treatment intangib
Background Information Intercontinental Hotel Group Plc. owns one of the leading brand and chain of hotels and resorts across continents. The group’s registered corporate office is located in Denham, United Kingdom and the group has a history of almost 60 years of delivering the highest level of quality of customer service which has permitted the group to achieve phenomenal growth over the last…
Obtain a copy of the annual report for Intercontinental Hotel Group PLC for the year ended 31 December 2011
Financial performance and position of the Group “The big picture is 9 hotel brands, over 153 million guests annually, more than 672,000 rooms in over 4,500 hotels in nearly 100 countries and territories around the world” (IHG website, 2012), The nine renowned brands being Intercontinental Hotels & Resorts, Crowne Plaza Hotels & Resorts, Hotel Indigo, Holiday Inn Hotels & Resorts, Holiday Inn…