HOSPITALITY INDUSTRY

HOSPITALITY INDUSTRY

HOSPITALITY INDUSTRY

Intangibility – refers to the nature of the service element of the product. The accommodation and food and beverages can be described and defined but the service element is intangible potentially variable both in the process and in the way it is carried out.

Perishability – you cannot sell yesterday’s accommodation, conference facilities, restaurant covers

today or tomorrow. The opportunity has passed.

Simultaneous production and consumption – the product (viewed from the customers prospective) is generated when ordered.

Ease of duplication. Food, drink component is tangible therefore easily duplicated. The intangible is the delivery of product the procedural aspects, the cordial interaction between customer and staff.

Heterogeneity – The procedural execution and conviviality of the product service delivery elements applied to the hospitality sector are difficult to consistently replicate.

Variability of output – Cyclic demand the season, month, week, day for product service will vary demand other factors such as the state of the national, global economy have even greater influences upon the market.

Difficulty of comparison – the implicit, tacit elements of the product service makes direct comparison virtually impossible. Other factors customers tend to consider when making a purchasing decision include the following:

Search qualities – attributes that differentiate you from your competitors.

Experienced qualities – tangible attributes that can be identified before purchase.

Credence qualities – elements of product service that customer cannot evaluate because of a lack of experience, knowledge or the skills to assess