Экономические науки/6.Маркетинг и менеджмент

 

U.A. Sutkovaya, V. V. Smaznyy

 

Donetsk National University of eonomics and trade named after M. Tugan-Baranovskiy, Ukraine

 

Hotel Services Demand Smoothing in the Aspect of Seasonality

 

One of the important and dynamic industries of world economy today is hospitality industry. This sphere includes hotels, catering and other establishments that provide tourism services. Many countries pay significant attention to hotel business as the main component of hospitality industry. None of the civilized countries can normally function without the proper level of hotel business development. Existence of comfortable hotels is not just a consequence of demand development, but also a growth into the important stimulus for international relations intensification and Ukrainian integration into a world community.

The modern state of national hotel companies is characterized as unstable progress which is stipulated by the seasonal fluctuations of demand and inability to create supply of a specific product - hotel service, by a price increase on services and insufficient level of service quality at the low elasticity of demand by price and organizational conservatism of management process.

Determination of demand seasonality on hotel services and factors which influence it allows to estimate correctly the existing condition of service providing in the separate enterprises of hotel industry, and also to offer measures on the increase of hotel rooms’ workload. Because of impossibility to move hotel services supply operatively from one city to another, the different market conjuncture of hotel services is formed in different cities and regions. That is why determination of demand seasonality of hotel sphere in cities and regions of Ukraine and argumentation of separate hospitality services development are actual.

Problem of additional services development, as a factor of increase of demand seasonality on the hospitality sphere, arises at the current stage of hotel business development in Ukraine. This process includes formation of assortment policy of hospitality services, depending on the type of a hotel, appropriate analysis of these additional services, effective management and providing high-quality services constantly.

On the basis of the long-term investments attracting program and efforts directed on the increase of hotel services demand and obtaining a possibility to function during all the year round, the flow of tourists is increased in different periods of time that stimulates smoothing of demand on hospitality services in the aspect of seasonality.

Dislocation of modern hotels doesn’t play a key role, as they often become a component of multifunctional complexes, where clients can find everything they need, including entertainments, not exceeding the bounds of the complex [1]. In spite of huge amount of investments needed for such multifunctional complex realization, developers believe that they worth it due to synergy effect and income diversification possibility. For example, a complex with four components can be observed. During the first 2-3 years of construction developer receives investment returns from residential real estate. Income from commercial component is received closer to the construction accomplishment: investments in trading and office estate property returns within 4-6 years. Because of a comprehensive interior arrangements necessity, hotel component has the long-term payback period, approximately 5-7 years [2].

The projects of multifunctional complexes have extremely high chances on success and can take the notable place at the Ukrainian real estate market. As several market elements drive hotel demand, including commercial individual travelers, corporate groups and tourism, I offer the following directions how to increase room amount workload, due to forming of such additional services of hotel:

-                     Organization of conferences and providing them on a regional level with all necessary equipment and space for different amount of participants.  This will provide a workload of the hotel rooms in working days of a week during months with high business activity;

-                     Mixed-use hall providing organization of weddings, banquets, congresses, concerts and other mass events. For example, a summit is held in the first half of a day, and in the evening it is transformed into banquet hall for the participants of this seminar;

-                     Tourist firm (operator) that provides weekend tours for one or two days around the region with placement of tourists in the hotel;

-                     Sport and health-improving center with a set of exclusive services that are given for regular visitors with a discount. Also permanent clients receive certain services free of charge from time to time;

-                     Shopping - entertaining center as a basic element of multifunction complex which gives additional entertaining services for the clients of hotel and shopping opportunity for any taste.

Hotel as a component of a multifunctional complex, providing above-mentioned services, will be able to function successfully throughout the year. Hotels, located in the center of city, are not able to provide such service-mix. They are usually situated near architectural sights and there is no place for building of a multifunction complex with an adequate parking that occupies up to 10 hectare. Correct combination of additional services of hospitality and balanced assortment policy of the hotel will smooth the demand on hotel services, taking into consideration seasonal fluctuations. It will especially influence on tourist infrastructure development of regional centers which are not tourist or business destinations.

Literature:

 

1. Холловей Д.К. , Тейлор Н., Туристический бізнес // К: Знання - 2007, 798 с.

2. Jones Lang Lasalle Inc., Перспективы девелопмента многофункциональных комплексов в Украине // Исследование рынка недвижимости – 2008, 8 с.