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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].