Concept of Value Proposition in the Hotel Industry

Hotel owners desire that their properties conform to any developments so as to bring about substantial returns. A concise value proposition will ensure that a traveler stays in hotel longer. The hotel industry mainly has faced challenges in hospitality for a long time on how to meet the numerous unique and diverse needs of the consumers while, on the other hand, retaining a excellence in operation and a quality level. Hotel industries use value proposition to indirectly promise their customers that they will be satisfied by using their products. The resultant mutual exchange enables the hotels stabilize and improve their competitiveness in the hospitality industry. The changes can be categorically classified under operations, assets and ownership, consumer behavior and marketing and distribution.

To begin with, hotels have experienced major changes in operations thanks to technology. Advancement in technology brought about complications that prompted the quest to introduce that party operators and franchisees (Hoisington, 2017). By including multiple investors, it has become easier and productive for third-party operators to manage hotels. There has also been the introduction of select-service hotels like Airbnb which directly meet consumer needs and result to higher profits for the hoteliers. Hotels currently rely on social media platforms to market and distribute their products (Hoisington, 2017). For instance, Airbnb in an online marketing platform but its impact on the hotel industry is undeniable. Airbnb has totally changed consumers’ preference of hotels as it offers vacation homes, hotels and gathering halls to travelling corporate and anyone looking for a suitable accommodation in any country.