Contemporary Hotel Marketing for Macro Environment -myassignmenthelp

Question: Discuss about theContemporary Hotel Marketing for Macro Environment. Answer: Introduction In the modern era, the competition among firms and businesses operating in the hospitality industry has become highly intense. Now, it is no longer easy for organizations to attract new customers and retain the old ones in the long run. Businesses are required to develop effective strategies at regular intervals to deal with the increasing competition (Mok, Sparks, Kadampully, 2013). On the other side of this, the changes in macro environmental factors also affect the overall operations and activities of businesses operating in the hospitality industry of Australia. Factors such as technology, legal laws, socio-culture, demographics, etc. affect companies to a great extent. The present report explores different macro-environmental factors and their impact on activities of the business which are operating in the hospitality industry of Australia. External Macro Environment Impact of changing demographics In simpler terms, demographics can be defined as the statistical study which is linked with human population and its overall distribution in the society. In the present scenario, the changes in demographic variables result in affecting areas such as sales and profitability of businesses. The statement can be justified by the fact that in situations of rising in the aging population, the demand of hospitality related services tends to reduce(Kandampully, Zhang, Bilgihan, 2015). On the other hand, increasing young population results in raising the demand for travel, tour, and leisure related services. Changing economic conditions It can be stated that adequate economic growth helps businesses in the hospitality industry of Australia to carry out the smooth flow of their business operations and activities. Here, fall in discretionary income levels can result in lowering down the sales and profitability of these businesses. In simpler terms, discretionary income can be termed as the income which is left after spending and paying all the taxes(Solnet, Kralj, Baum, 2015). Furthermore, people spend their discretionary income on buying products and services of the hospitality industry. On the other side of this, increase in interest rates also affects the operation of companies operating in the hospitality industry. For example, increase in the rate of interest creates obstacles for businesses in terms of growth and expansion. It can be asserted that taking loan from banks becomes difficult and thus, people restrict themselves to spend their money on activities linked with leisure, travel, and tourism. Intense Competition The degree of competition among business has become highly intense, and the factor is beyond the control of organizations. Furthermore, brand, substitute and indirect are the three primary sources from where businesses face competition. The increasing and intense competition is a severe threat to companies operating in the hospitality industry of Australia. The rationale behind this is that intense competition provides customers with various alternatives and options to choose from. At the same time, hospitality businesses are required to operate with low prices to attract more customers and sustain in the marketplace. Companies are even required to operate with the low-profit margins, and this is a significant obstacle to long-term growth. Intense competition is a threat because it affects areas such as brand loyalty, customer retention, and profit margins(Seri?, Gil-Saura, Ruiz-Molina, 2014). The marketers are required to develop effective strategies which can help in getting a competitive advantage over other market players. At the same time, they need to ensure that a lot cost of operations is maintained and this is quite challenging. Society and culture changes and their impact on industry The changing socio-cultural patterns, social values, belief and lifestyle of customers have also emerged as a big issue for marketers in the Australian hospitality industry. The changing lifestyle and pattern of travel have resulted in making the study of consumer behaviour very complicated for the markets. To sustain in the long run, companies in the hospitality industry are required to offer products and services as per changing consumer behaviour, need, and demand. However, it can be critically argued that businesses may face challenges in increasing revenues and profits if the products and services are not according to demand of customers(McPhail, Patiar, Herington, Creed, Davidson, 2015). The marketers are required to carry out changes in their marketing strategy and plans according to the changes in the socio-cultural environment within the country. Political legal changes Legislation linked with the market, monetary and fiscal policies, social regulations, government support to the industry are considered as some critical components of the political-legal element of a macro environmental factor. The changes in laws and regulations encourage businesses to carry out modifications in their existing processes and activities(Assaf Agbola, 2014). The hospitality organization may also face legal consequences and penalties in situations if the laws and regulations are not addressed properly. Changes in the rate of taxes and interest may force customers to lower down their spending on activities linked with leisure, travel, and tourism. At the same time, political unrest in the country may restrict international travellers and tourists to visit that particular nation. Such kind of situations adversely affects the overall operations, sales, and revenues of small, medium and large enterprises operating in the hospitality industry(Buhalis Crotts, 2013). Some other legal issues faced by hospitality industry include health regulations, the degree of foreign investment, liquor licensing, landing taxes, etc. At the time of carrying out marketing activities, it is required by marketers to consider the legal laws and regulations developed within the industry and country.. Technology advancements In the present scenario, the emergence of technology has affected the overall lifestyle and spending of people to a great extent. On the contrary of this, it can be critically argued that technology is considered as a mixed blessing as it has both advantages as well as some disadvantages. The use of technology has resulted in making the entire purchasing process of customers more convenient. At the same time, businesses in the hospitality industry of Australia are now available with a potential platform to carry out marketing and promotion of their products and services(Wijesinghe, 2014). Tools such as email marketing, social media, internet marketing are highly effective in terms of attracting customers. On the other hand, companies are required to upgrade technology at regular intervals and this result in increasing the overall cost of operations. Conclusion It can be inferred that the macro environmental factors are beyond the control of businesses. To sustain in the highly competitive marketplace, it is required by companies to examine the changes in five major marketing environments. It is also suggested that businesses should monitor these changes and should develop effective strategies to lower down the adverse effect of these changes. References Assaf, A. G., Agbola, F. W. (2014). 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