Developing product Essay Example

a convenient choice for guests attending conferences and concerts in the area.

The annual conference of the UK's Conservative Party took place on September 28, 2008, at ICC. This event brought over ?20 million in economic activity to the city of Birmingham, impacting everything from hotel bookings to trade in restaurants, bars, and shops. With up to 20,000 delegates traveling to the city, this was a significant boost to the local economy (Birmingham post, 2008a). Birmingham is home to the largest event center in the country, NEC, which hosts a variety of events including the motorcycle show, WWE, BBC Good food show, BBC Garden show, and many more (NEC group, 2008).

Marriott offers conference facilities in addition to their business tourism products. Businesses can rent space for meetings, events, and product launches. The meeting, conference, and exhibition industry is a rapidly growing sector that has a significant association with business travel (Ladkin and Spiller, 2001 cited in Buhalis and Dimitrios 2006). Marriott considers the business opportunities in Birmingham to be demanding for their revenue and it is one of the most profitable divisions in their product portfolio. According to Buhalis and Dimitrios (2006), the relationships with relatives and friends provide a powerful incentive for repeat travel. Birmingham is a very diverse cultural city with people from almost every part of the world living there.

It's highly probable that many international tourists will visit Birmingham to see their loved ones. Marriott boasts 4-star accommodations and offers food and beverage options at the West 12 restaurant ; bar for fine dining experiences. This shows that Marriott provides a wide variety of products to those visiting friends and family. Along with

their existing offerings, Marriott also provides leisure tourism products.

Birmingham city provides tourists with a distinctive leisure experience, featuring a variety of destinations such as Cadbury world, Brindley place, Warwick castle, and the Bullring shopping landmark. For a comfortable stay, consider Birmingham Marriott, which has built up a reputation for excellent lodging services based on over 80 years of experience. Marriott is committed to its mission of becoming the foremost provider of hospitality services worldwide. The "Marriott Way" is embodied in the company's commitment to serving associates, customers, and the community.

In 2008, Marriott's long-lasting fundamental beliefs were identified as crucial to its ongoing success. This essay aims to evaluate Marriott's product portfolio by exploring the connection between different tourism products and identifying problems with them. To examine these issues, a PEST analysis is required. The analysis centers on four sectors - political, economic, social, and technological - that impact the hospitality and tourism industries. A significant political factor that affects these industries in the UK is their rapid expansion and high labor requirements (Jameson and Holden, 2000).

Government regulations can have a significant impact on the labor and wage rates of hotels, which require a substantial workforce. The National Minimum Wage has increased from 5.52 pounds per hour to 5.

As of October 1st, 2008, Directgov (2008) states that Marriott will pay ?73 per hour, which is an increase from the previous year. Despite this, Marriott encounters difficulties in ending employment contracts due to Employment law. Additionally, tax legislation imposes a substantial tax burden on Marriott and government control over taxes affects their profits. Furthermore, immigration policies have created obstacles for foreigners wishing to enter the

country.

The UK tourism industry has experienced growth over the past decade due to economic factors, however, Marriott is facing a decline in customers as foreign visitors decrease.

According to Knowles et al (2001), domestic and international tourism spending accounts for approximately 4% of GDP. This increase in price levels in England affects both the local economy and Marriott. The hotel has struggled with managing costs due to inflation, and fluctuations in currency exchange rates have caused instability for international customers, which is an important factor affecting their motivation.

The local expenditure has an effect on the hotel's profit, which in turn is influenced by the number of bookings for Christmas parties. According to the food and beverage service manager of Marriott, there are currently 500 fewer bookings compared to the previous year. Marriott offers Christmas dinner at an average price of 35 pounds.

According to Balaji (2008), Marriott will experience a revenue loss of roughly 17,500.00 pounds from their Christmas business this year. Social and cultural factors are also driving customers towards budget hotels for their affordability, resulting in Marriott needing to reduce its rates. Furthermore, the hotel must accommodate the growing number of vegetarians by potentially modifying its food and beverage options as it is a four-star establishment located in an urban area.

As the population demographic continues to grow, a new type of traveler known as the "backpacker" is becoming increasingly prominent. This particular group has had a significant impact on the hotel industry, particularly luxury hotels, as they tend to opt for backpacking accommodations instead. Shaw (1990) notes that Europe's population is aging due to both fewer births and better healthcare, which means that Marriott Hotel

is seeing an increase in their older clientele who now make up a larger percentage of their customer base.

In light of an aging population, the hotel should consider the dietary and lifestyle requirements of elderly guests, as well as anticipate a rise in disabled visitors. It is essential to offer sufficient amenities to accommodate these needs. Furthermore, globalization has led to greater technological connectivity across the world.

The internet has made it more convenient for customers and hotels with the rise of online advertisements, booking, and payment systems. This convenience has increased competition for Marriott as they must now compete with other hotels online. Customers can compare prices and view facilities from their own computer instead of visiting a travel agent. To remain competitive, Marriott needs to invest in their internet equipment. Additionally, there are two additional issues that impact Marriott's product portfolios beyond the PEST analysis. Firstly, according to the Telegraph in 2008, official figures showed that wholesale food prices rose by 7%.

The hotel industry has experienced a 4% increase in price levels over the past year, which is more than three times the inflation rate. As hotels prioritize profit (Hughey et al., 1997), material costs directly affect product prices. Nevertheless, if a product's price surpasses its value, it may be eliminated from the menu or fewer amenities may be provided. Customers consistently pursue exceptional service and diverse products at reasonable prices.

The rise in price level results in an increased cost for customers per item, causing some to reject certain products and others to avoid purchasing anything altogether. Additionally, in 2007, the UK implemented a new visa policy as reported by NDTV.

Prior to this, non-European individuals seeking to travel to the UK had to obtain a valid visa from the relevant bureau. However, if travellers from non-European countries submit sufficient relevant documents, obtaining a visa becomes somewhat easier.

The new immigration and visa regulations suggest that Non-EU inhabitants are no longer welcome in the UK, making it harder for them to visit the country for vacations. NDTV (2007) reports that the UK is striving to strengthen its borders, potentially alienating the South Asian community and damaging support for the Labour government in hotels. The visa policy is particularly restrictive for international and Asian travellers, which could lead to a decrease in Marriott's customer base. Consequently, Marriott's potential profit is undermined by the visa policy.

Furthermore, due to the decrease in the number of travelers and the need for sustainability, all hotels will be vying for customers, leading to heightened competition in the market. Marriott's challenge lies in consistently dealing with the ongoing issue of limited customer numbers. As outlined by Hanlon (1999), customer demand is influenced by three essential factors: their income, travel costs, and service quality.

The hotel industry is expanding rapidly, which has led to an increase in competition. To stay afloat, small and medium-sized hotels have emerged and are attracting customers with their reasonable prices and high-quality service. As a result, customers prefer to save money without sacrificing quality when enjoying hotel amenities.

The competition to reduce prices has caused a decline in the demand for high-end hotels, as even budget hotels can provide rooms of a similar standard. This can be seen in the case of a B;B offering standard rooms for just 20 pounds

per night, which are comparable in size to those at Marriott. However, the B;B's rooms have a homely atmosphere and unique decor, which sets them apart from the typical corporate hotel experience.

When comparing the rooms of B&B and Marriott, it is highly probable that customers will prefer the services of B&B. Additionally, this paper presents the Tourism Area Life Cycle (TALC), discussing its beginnings and how it is utilized. This concept assists Marriott in determining their position within TALC and what efforts must be made to revamp their product. Butler (2006) asserts that tourists are constantly changing and evolving, influenced by a range of factors, including alterations in their preferences and requirements. The outlined pattern utilizes the product cycle as a foundation.

According to Butler (2006), the sales pattern for a product starts slow, then experiences rapid growth, stabilizes, and finally declines. This can be seen in the case of tourism where initial barriers such as restricted access and lack of facilities limit the number of tourists. However, with marketing efforts, information dissemination, and additional facilities, popularity grows and more visitors arrive. Eventually, the rate of increase in visitors slows down as carrying capacity is reached.

The decline in the number of customers at Marriott is mainly caused by the global economic slowdown, rather than a lack of carrying capacity.