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[[Category:Hotel info]] [[Category:Checked]]
[[Category:Info pages]] {{Template:New Skin Box}}
''→ Go! [[:Category:Hotel info]]'' <br>
''→ Go! [[Introduction to Hotel]]''</div><br>
{{Running E-manual}} <br>
{{Template:New Skin Box}}
{{Running competition}} __NOTOC__ __NOEDITSECTION__
== Competition in the market ==
A way to check the competition is by looking at three types of competition:
* Generic competition (time and money)
How many people travel, and what is their average income? How/where do they usually spend their money?
What are their sentiments? Consumers can only spend their money - and their time - once. Try to use some realistic figures from the real local situation in your country.


== Step 4/10: Competition in the market == __NOEDITSECTION__
* Specific competition (or lodging alternatives).
You are playing this game in a competition: all of the teams start with the same [[history]]. The main outlines of your tasks in running the hotel are:
If consumers decide to spend their money on lodging, they can choose to stay in a hotel, a campsite, [https://www.airbnb.com use Airbnb], stay with friends and relatives etc.  
* Keep the hotel financially healthy, and run it in a profitable way. This does not mean you have to go for maximum profit: you can have other targets as well, as long as you make (acceptable) profit.
* Keep it independent (not joining a big hotel chain, no selling the assets, or even the entire hotel etc.).  


* Selective competition (with direct competitors)
If consumers choose a hotel, other competitors offering the same product in the same market are the most likely competitors. The competition is now mostly based on ''brand'' and ''product specifications''. We call these the direct competitors. In the city the Emerald Forest Hotel is located in, their are approximately ten other hotels, which the Bergman's consider to be (direct) competitors. <br>
Of course there are other theories on competition, like [https://www.investopedia.com/terms/p/porter.asp Porter's 5 Forces] or check [https://www.credera.com/blog/management-consulting/seven-favorite-frameworks/ Seven favorite frameworks] or info on a [[Comp set]].


You will compete with a number of teams for customers. The customers will make use of your hotel or one of the competing hotels in your city. The market will develop depending on the actions of all of the hotels in their city.
<br>
 
In the Game itself, there are also two [[Creativity competition|competitions]], one on creativity and one on profit.
Basic options to have a growth in [[occupancy rate]] are:
* Attract customers from your competitors;
* The market in your city grows by the teams' activities or it might grow by itself;
* Have a better adapted offer for the customers (better fulfilling their needs and wants).
* You have higher marks given by your coach because the explanations of your decisions are better.
 
=== Theory on market competition === __NOEDITSECTION__
A way to check the competition is by looking at three types of competition:
* Generic competition (on time and money)
How many people travel, what is the average income? How, on average, do they spend their income?
What are the consumers' sentiments? Consumers can only spend their money - and their time - once. Try to use some realistic figures from you real local situation in your country.


* Specific competition (on alternatives).
== Cooperation ==
If consumers decide to spend their money on leisure, they can choose to stay in a hotel, a campsite, [https://www.airbnb.com use Airbnb], stay with friends and relatives etc. Try to use some realistic figures from your real local situation.
Because normal economic competition rules apply, hotels are not allowed to work ''too'' closely with each other on prices; making price-covenants with competitors is forbidden and illegal. It is considered important, that customers have free choice and that there is serious competition. Creating an organisation which covers the interests of several hotels or all hotels (for instance, in a promotion) is a normal thing, and not done yet in the city. This could for instance, be a [http://en.wikipedia.org/wiki/Destination_marketing_organization DMO]. Any serious [[cooperation]] could bring advantages to the hotels teaming up, if there is a legal ground (an agreement) and described obligations and advantages for all parties. Obviously, it will also incur some costs.


* Selective competition (with your direct competitors)
== Secret ==
If consumers choose for a hotel, other competitors offering practically the same product are the most likely competitor. The competition is now mostly based on brand and product specifications. 
A lot of information on competitors is freely available. Some information should be kept secret not only for the sake of your hotel, but also by law (privacy regulations like [[GDPR]]). Your operating review, as anything in your [[Team file]], is ''for your (hotel) eyes only''. If problems arise, you could [[Accusation|accuse]] another hotel of an illegal act, or for that matter, be accused. You could get [[Fine|a fine]] related to (for instance) legal issues or, for that matter, [[Bonus|bonuses]]. <br>
<br>
=== Together ===__NOEDITSECTION__
As the normal economic competition rules apply to your [[city]], you are not allowed to work too close together on prices: making price-covenants with competitors is forbidden. Creating an organization which covers the interests of several hotels or of all of the hotels (for instance, in a promotion) is allowed. This could be a [http://en.wikipedia.org/wiki/Destination_marketing_organization DMO]. Any serious [[cooperation]] could bring advantages to the partners if there was a serious ground (an agreement) and described obligations and advantages for all parties.
It is important that customers have a free choice.  
<br>
<br>
=== Secret === __NOEDITSECTION__
A lot of information on your competitors is freely available. Some information should be kept secret not only for the sake of your hotel, but also by law. If problems arise you could [[Accusation|accuse]] another hotel of an illegal action, or for that matter, get accused. Coaches could give you [[Fine|a fine]] related to (for instance) legal issues or, for that matter, [[Bonus|bonuses]].
<br>
=== Same choices ===  __NOEDITSECTION__
You might find out that some of the competitors have the same plans as you have: well, welcome to the real world: that’s life! The same goes for logos and hotel names, although this might make things complicated for the consumer. You can get some of this information from the market (at the Trade Fair during the game). You can adapt to these findings: if this concerns your [[hotelname|hotel name]] and logo, this is tricky and expensive. If it concerns your strategy, adapt it slowly, otherwise customers won't understand the shift.
<br>
=== Self-defeating prophecy === __NOEDITSECTION__
As in reality, you do not know in advance what your competitors are up to. Market research may show that the weekends market will grow. But if this market grows just by 5% and all of the hotels in the city anticipate this development, there will be far too many hotel rooms offered in this market and thus the average occupancy rate will drop (even though the market has grown)! <br>
This could also mean that other markets  - which did not seem too interesting before - become very interesting.
== Competitions in the game == __NOEDITSECTION__
There are two competitions in the game in each city:
* The [[Competition on net profit|competition on net profit]]
* The [[Competition on creativity|competition on creativity]].
All teams will automatically be participating in both of these competitions. Each year, all of the hotels will be ranked on their net profit and creativity. A rank outside of the Top 3 does not mean that your team is doing a bad job. Sticking to your strategy is the most important thing: having a high rank on profit is just a nice extra. <br>


''→ Go! Following the Introduction to the Hotel? Step 5/10 is the [[City| City page, click here]]''<br>
<hr></div><br>


''→ Go! Following the e-Manual? Step 5/10 is the page [[Targetgroups]]''<br>
{{Footer}}
<hr>
''→ GO! [[#top|Top of this page]]''
<center><small>''Emerald Forest Hotel'' offering an <font color="green">'''emerald''' </font color="green">hotel experience!
| Run your own hotel in this management simulation.</small></center>

Latest revision as of 10:29, 12 October 2024

→ Go! Introduction to Hotel


Competition in the market

A way to check the competition is by looking at three types of competition:

  • Generic competition (time and money)

How many people travel, and what is their average income? How/where do they usually spend their money? What are their sentiments? Consumers can only spend their money - and their time - once. Try to use some realistic figures from the real local situation in your country.

  • Specific competition (or lodging alternatives).

If consumers decide to spend their money on lodging, they can choose to stay in a hotel, a campsite, use Airbnb, stay with friends and relatives etc.

  • Selective competition (with direct competitors)

If consumers choose a hotel, other competitors offering the same product in the same market are the most likely competitors. The competition is now mostly based on brand and product specifications. We call these the direct competitors. In the city the Emerald Forest Hotel is located in, their are approximately ten other hotels, which the Bergman's consider to be (direct) competitors.
Of course there are other theories on competition, like Porter's 5 Forces or check Seven favorite frameworks or info on a Comp set.


In the Game itself, there are also two competitions, one on creativity and one on profit.

Cooperation

Because normal economic competition rules apply, hotels are not allowed to work too closely with each other on prices; making price-covenants with competitors is forbidden and illegal. It is considered important, that customers have free choice and that there is serious competition. Creating an organisation which covers the interests of several hotels or all hotels (for instance, in a promotion) is a normal thing, and not done yet in the city. This could for instance, be a DMO. Any serious cooperation could bring advantages to the hotels teaming up, if there is a legal ground (an agreement) and described obligations and advantages for all parties. Obviously, it will also incur some costs.

Secret

A lot of information on competitors is freely available. Some information should be kept secret not only for the sake of your hotel, but also by law (privacy regulations like GDPR). Your operating review, as anything in your Team file, is for your (hotel) eyes only. If problems arise, you could accuse another hotel of an illegal act, or for that matter, be accused. You could get a fine related to (for instance) legal issues or, for that matter, bonuses.

→ Go! Following the Introduction to the Hotel? Step 5/10 is the City page, click here


→ GO! Top of this page
. . . Emerald Forest Hotel offer an emerald hotel experience! Run your own hotel in this management simulation . . .


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