The hospitality industry is a service-oriented industry, which means that providing service is the main goal of the organization. Service generally is construed as intangible goods since there is no concrete product that is given to the customer, instead the hospitality industry focuses on providing quality experience and service. Likewise, the hospitality industry depends on their human resources to provide the service and experience that they want to offer their customers. The hospitality business also must build relationships with the community it is located in since it would give them competitive advantage. Moreover, the business also depends on a number of suppliers that would provide the much-needed goods that are consumed by the customers. In order to become competitive especially in the challenging hospitality industry, one must be able to consider and invest in all the stakeholders involved in the business.
The life of the hospitality industry is the customers or guests of the establishment, without customers, a hotel could not exist for long considering that it has a lot of capital expenditures and human costs (Baum, 2006). The marketing of hospitality establishments centers on promoting the facilities, amenities and service that the customers would experience if they stay with the establishment. The customer also evaluates his/her experience in the establishment in terms of how satisfied he/she is with the services and facilities of the hotel. However, most customers would likely be less critical of the facilities than the personal interaction and quality of service they have with the hotel staff. Besides, satisfied customers usually bring in more customers as they spread by word how satisfied they are with the hotel, at the same time, customers can also break the reputation of the hotel. A dissatisfied customer can be damaging for the hotel and must be avoided at all cost. It is important to consider that the customer base is a very important resource and customer loyalty has to be cultivated to ensure hotel performance and returns.
Aside from the customers, the most important resource that the hospitality business should focus on is its employees. The hotel staff provides the service that customers pay for and to ensure loyal customers means having excellent hotel staff. At the same time, the establishment has to provide attractive compensation and benefits that would motivate employee performance as well as provide training and learning of new skills and knowledge (Weber & Chon, 2002). It is important to invest in the well being of the employees in the hospitality business because their attitudes, feelings and state of mind affect the performance of their job. For example, if the receptionist is not feeling well, then it is expected that she may be not as accommodating to the guests as she should be. The business relies on providing service and experience to customers; therefore how successful the business would be depends on how well equipped, trained and committed the service personnel are to the goals of the company.
The stakeholders in the hospitality business includes the business partners and dealers that the management has to deal with, the community in which it is located, the society in which it serves. To give importance to the stakeholders means to build a positive relationship with all the other agencies that are influenced by the establishment. The hotel is a source of employment, business and income for the community and this influence can greatly boost the competitiveness of the establishment.