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Kolodiychuk A.V., PhD, Associate Professor

Uzhgorod Trade and Economic Institute of the Kyiv National Trade and Economic University

PROSPECTS FOR THE INTRODUCTION OF NETWORK APPROACH TO THE DEVELOPMENT OF HOTEL BUSINESS IN UKRAINE

 

The services sector is becoming more development in Ukraine, however, the development of the hotel business is complicated by several issues: an imbalance of supply and demand, weak legislative regulation, imperfect procedure of certification of hotel services, high cost of residence, low quality of services, economic and political instability of the country. As a result, decreasing in competition in the market of hotel services is observed.

The natural methodological basis for solution of issues of formation of the hotel chain stands systemic approach, general systems theory and systems analysis, which together make up a modern sector of system research.

Promising concept for formation of the model of hotel chain can be seen as a dynamic set of six interrelated processes. These processes follow logically from one another. However, there is a steady feedback and accordingly reverse impact of each process on the rest and on the all their set. This is an important feature of the model of the hotel chain formation.

The first phase is conducting of the analysis of external and internal environment. Thus, the environment analysis provides organizational and economic processes of formation of the hotel chain and includes in oneself the full range of measures for studying the impact of geographic, economic, political, demographic, socio-cultural, scientific-technical and international factors of macro environment.

The second stage is definition of the mission and goals of the company. Defining the mission and goals of the hotel chain consists of three sub-stages: 1) formation of the mission that expresses the need in created hotel chain and its purpose; 2) formation of short-term objectives in key areas of the company activities (sphere of hotel services production, sphere of personnel policy, sphere of work with customers, sector revenues, etc.); 3) determination of the long-term goals and objectives of the hotel chain.

The third stage is the choice of strategy. At this stage, take a decision about how and by what means the company will perform imposed tasks.

As the main strategies of the hotel chain development offered to use the basic development strategies: strategies of concentrated, integrated and diversified growth.

Group of concentrated growth strategies aimed at expanding the business by seeking of additional opportunities of available resources growth within the hotel chain. It includes: market development strategy, which includes work on the extension of the hotel services; product development strategy, which involves activity for growth through new products, services and brands production; strategy of strengthening of market position.

Group of integrated growth strategies provides the development or acquisition of companies related to the field of hotel chain activity. It comprises: 1) strategy of acquisitions of competitors; 2) strategy aimed at strengthening of control (or acquisition) from side of the hotel chain over the main suppliers of products and equipment for hotels, design and construction companies; 3) strategy, resulting in control over the structures located between the hotel chain and consumers of hotel services – travel agencies and tour operators, systems of reservation and booking seats that significantly reducing a percentage of the value added to the cost of services.

The group of diversified growth strategies included: strategy of centered diversification, providing additional features of new services formation in existing business; strategy of horizontal diversification that provides the ability to use new technologies, services, marketing tools, developing analogical for core area products; strategy of conglomerate diversification, which involves the development of new markets and services not related to the field of hospitality.

The fourth stage is the stage of formation of the hotel chain. It is implemented as a result of lease and acquisition of existing on the market hotels at the expense of credit resources with the subsequent reconstruction and their adaptation to the standards of the chain. Another way for implementation is the new construction in such areas where buying of establishments in the secondary market deemed inappropriate.

At this stage should occur hotel chain formation as a business entity, integration of all input for its enterprises, working of mechanisms of corporate governance, positioning of integrated business structure in the target markets of hotel services, introduction and recognition of its own standards in quality, winning the image and prestige in hoteliers and consumers, advertising of brand in domestic and foreign tourist markets. According to scientists Z. Tymoshenko, H. Munin and V. Dyshlevyy, hospitality as an industry should know exactly whom and how to serve and to whom to direct their product [1].

The fifth stage is the stage of intensive growth of the hotel chain. At this stage the priority is the development of the hotel chain through: funds raised through the issue of shares or other securities that are placed in financial markets; obtaining of public facilities for rent, which is made possible by active positioning and brand promotion for chain in the market; further attracting of credit resources for the construction of new hotels; hotels that join to the network in accordance with the franchise agreements and management contracts; the formation of internal capital market (profits earned as a result of work of operating hotels in chain).

The most promising segment of hotel business in Ukraine is an area of receiving of Ukrainian and foreign tourists traveling with cultural and cognitive, recreational purposes, as well as business travelers. Therefore, it is advisable to apply the service quality standards developed in the existing international hotel chains with relevant development of service units and infrastructure of additional services (conference rooms, business centers, free Internet access in the rooms, increasing number of rooms in category "deluxe" and "apartment", etc.).

Quality standards are the same for all the companies of integrated business structure should apply to the management systems and program of visitor reception.

Each of the world's hotel chains has its own set of programs for customer service and various activities conduction. Among them are standard in all hotels and unique. Regular programs include programs of special corporate offers, "weekend-offers", programs for newlyweds, retirees and others. Special programs should always cover their proposals periods of low tourist season (e.g. conducting of seminars, conferences, congresses etc.).

Training of personnel requires the strictest standards and main task is to provide a high quality hotel services, so that consumers have a desire to come back again. After all, if the guest has not received the level of service that the hotel was declared, it will not return here and probably also his close entourage: "People is the main value of any organization; effective management by theirs is the key to success" [3, p. 307].

Based on the importance of staffing issues decision, we consider it necessary to organize within the hotel chain single system of selection, training and retraining of personnel, which applies even specialists with higher professional education. Subsequently, the staff of hotel chain has incentive for career growth, as they see the prospect of advancement within the chain, moving from one hotel to another and raising their qualifications.

Sixth stage is assessment and audit of results of the strategy implementation. The main elements of the control system are: the establishment of indicators for assessing the implementation of the strategy; creating a system of measuring and tracking the status of control parameters; comparing the actual state of control parameters to their desired state; evaluation of comparison results and the taking of decision on their adjustment.

Regarding the prospective directions of the hotel services development in Ukraine, it is the creation of hotel chains, united by a common brand and high level of service quality. Modern Ukrainian regional markets of hotel services are not enough saturated, and characterized by different rates of demand. Thus, the hotels of highest category are usually popular in major cities and resort centers. However, the most lucrative today market of top-class hotels (4-5 stars) is approaching to its saturation. The most rational strategy for strengthening position in the market of hotel services is building of hotels 2-3 stars category, target segment of which are domestic tourists traveling with recreational, cultural-cognitive and business purposes.

As a result, for the prospects of development of the market of hotel services in Ukraine must implement the following:

·                   With objective of a dominant position taking in the market of hotel services hotel chain can be develop by building of new hotels or buying of existing hotels in major cities of Ukraine with the possibility of their reconstruction.

·                   For maximizing of the effectiveness the hotel chain must base own system for overall management on the strategic vision. On the basis of the strategic vision must be emerging the corporate policy in chain, which is a common goal, short-term and long-term goals, norms of relationships that ensuring effective sustainability and development of business structure.

Consequently, the functioning of hotels in networked systems provides a number of competitive advantages compared to hierarchical organization and management forms that suggests the prospects of their further development in Ukraine. In any case, the creation of hotel chains in our country will mean a transition to a new level of presence in the global market of tourist services.

 

References:

1. Tymoshenko, Z.I., Munin, H.B., & Dyshlevyy, V.P. (2007). Marketynh hotelʹno-restorannoho biznesu [Marketing of hotel and restaurant business] (Tutorial). Kyiv: European University, 246 p. [in Ukrainian].

2. Tkachenko, T.I., & Havrylyuk, S.P. (2005). Ekonomika hotelʹnoho hospodarstva i turyzmu [The economy of hotel industry and tourism] (Manual). Kyiv: Kyiv National University of Trade and Economics, 179 p. [in Ukrainian].

3. Walker, J. (2002). Vvedenye v hostepryymstvo [Introduction to hospitality] (Textbook) (Translated from English). Moscow: Unity-Dana, 607 p. [in Russian].