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UK Hotel Industry

UK Hotel Industry Free Research Paper Sample

The UK hotel industry is very attractive with a greater opportunity for fast growth as it is growing at a very fast rate due to the increasing number of new hotels entering the industry with a projected growth of a 4% increase in the occupancy levels, 5.6% in the revenues (Zumbe, 2015). This shows that there are low barriers to entry which can make new hotels to want to expand and enter the UK hotel industry due to its market attractiveness and economies of scale (Perkins, 2015). This shows that the substitute threat is very high because of the increase in the competition which is brought about by the new hotels entering their operations in the industry (Hotel Industry magazine, 2015). For a hotel to survive in this highly competitive UK hotel industry, it has to come up with strategies to enable it to gain a competitive advantage through the production of quality and unique services and products to the customers.

The bargaining power of the consumers in the UK hotel industry is high because of the high competition brought about by the many competitors in the industry. This shows that the hotels operating in the industry often offer competitive prices so as to maintain a large number of customers because the customers can choose to spend on the services and products with lower prices and an increase in the consumer spending with an increase in the years (Garrahan, 2015). The supplier’s bargaining power in this industry is very high as the suppliers have the ability to exercise the primary powers that is at their exposure where they can set their prices.

Customer Satisfaction in Hotel

Customer satisfaction is very important in the hotel industry. In order for a hotel to be able to get to attract new guests, the managers should come up with strategies which could enable them to retain the existing customer and improve customer loyalty (Dominici & Guzzo, 2010). In the hotel and hospitality industry, the customers often pay a very close attention to the service type that they receive in the industry which would mostly likely to determine their future consumption. This is because customer loyalty would be determined by the satisfaction or dissatisfaction of a customer. A guest who is satisfied by the services of a hotel is likely to return as a loyal customer and also refer friends to the hotel and give in a positive feedback. A dissatisfied customer will give in a negative feedback which could have a negative result to the sales of the hotel which could make the hotel to lose customers.

One of the key factors to making sure that guests can be kept engaged and returning back to the hotel is through the delivering of high quality services and delivering according to the promises of the hotel (Hotel Industry Magazine, 2014). This makes sure that the guests get what the hotel promises them to expect and get from the hotel which is based on delivering on promise. Customer expectations also play a very important role in the satisfaction of customers. This is because the customers often have the expectation that they will get very good and high quality services for the money that they pay for. The guests do not expect to spend a lot of money on low quality services which could make them to be dissatisfied forcing them to opt to the other services offered by other hotels in the industry as there are very many hotels in the industry.

About Savoy Hotel

Savoy Hotel is a luxurious hotel which is located in Westminster City, London. The hotel began its operations on 6th August1889. It was the first Britain luxury hotel with electric lights in the hotel’s entire building, bathrooms with both hot and also cold running water, electric lifts and other technologically advanced innovations. The hotel is one of the most famous hotels in London and is managed by the famous Fairmont Hotels and Resorts (, 2015).

The hotel is made up of a total of 286 luxurious suites and rooms meant to celebrate the dual historical influences of The Savoy featuring a luxurious sensational-Art Deco style or even the elegant English Edwardian designs (, 2015). The hotel is well known for its many affordable breath-taking views of the iconic landmarks in London and the River Thames. All the guests staying in the luxurious suites often enjoy fine Butler services, full spa treatments, access to a private pool, and a full access to a 24 hour service gym in the Beauty & Fitness center of The Savoy.

Fine dining is one of the major integral part of the hotel courtesy of the world’s renowned chef, Escoffier Auguste in 1889. The hotel offers a Stylish-Art Deco informal dining setting or even a British Grill menu enriched with a fine French touch. The hotel is London’s best in the British tradition and roast dinner (, 2015). In the cocktail connoisseurs, the hotel is well known for its Beaufort Bar, which is one of the world’s renowned for its mixology boundaries and the presence of the Legendary American Bar which is one of the oldest cocktail bars still surviving in London. The Thames Foyer is the best in the hotel as it offers traditional afternoon tea which is one of London’s finest and a custom which is highly recognized in the British institution. This gives the guests an opportunity to also purchase chocolates, bespoke gifts and fresh patisserie in the Savoy Tea.


Staff motivation is a determinant in the customer satisfaction. The satisfaction and dissatisfaction factor in the Savoy Hotel is mainly dependent on the motivation of the employees. The increased motivation of the staff gives an explanation as to why the number of positive feedbacks from guest is very high as compared to the number of customers with a negative feedback. The employees were highly satisfied with the services offered by the hotel like the cleanliness, the value, the service, rooms. Sleep quality and also the location of the hotel. This satisfaction is due to the morale in the employees as they are determined towards satisfying all the needs of the customers through delivering and offering high quality services to the guests.

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