Economic principles and their uses in hotels.
It is very evident that hotel sectors are solely based on
the economy and how the companies use various strategies to earn maximum. Some
of the economic principles used by the hotel Grand Hyatt:
1.
People
respond to incentives: With respect to the expectations of
various types of customers in the Indian domain, Grand Hyatt uses various types
of discount offers to alluring the targeted customers. For example: 5% discount
on the services after checking in if the guests make bookings 1 month prior to
their date of check-in.
2.
Law
of demand: At the time of dry season, when there is an
evident reduction in the check-in the hotel, the hotel reduces the rack rates
for the guests. Similarly, when the demand rises for the rooms, the hotel
immediately increases the room rates.
3.
Measures
of utility: The hotel uses a specific method of survey in
the restaurant to understand the utility derived from the special menu prepared
by the chef for the event, where the guests are supposed to share their views
in the 1st segment of the sheet of survey in the form of
scale/rating out of 1 to 10 to explain how good the menu was, and rakings on
the basis of what was the best item in the menu to the moderate/worst item in
the menu.
4.
Diminishing
marginal utility: When there is a buffet system going on
in the banquet hall, there is a visible diminishing of satisfaction in the
customers for the food. This signifies that there is a drop down in the
satisfaction derived by the customer with continuous consumption of any good or
services.
5.
Economies
of scale: The kitchens in the restaurant of this hotel
uses the concept, as they need bulk of vegetables every day to prepare food
items or dishes. The hotel purchases bulk of vegetables at a time, thereby
reducing the cost of the goods.
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