CHAPTER ONE
1.1 BACKGROUND INFORMATION
Hospitality industry is recognize as one of the
largest term of business organization in today’s world, ever since the stage of
development of the industry which has been traced to the advent of the modern
means of transportation which makes it easy for people to travel from one place
to another.
The second stage of this ever continuous development
in Nigeria
which has been linked with the transportation development and to the political
independence for back as 60s.
The mass of people on transit (out of
their homes) needs to be well catered for in aspect of food, drink, and
sleeping accommodation in their respective area of destination, hence the need
for hotel service.
Hospitality as an industry is said to be
an industry that held itself as an establishment offering food, drinks, and
accommodation (if so requires) to any potential customer who appears able and
willing to pay a reasonable sum of money for the service provided and who is in
a fit stable to be received.
Products offered by the hotel
establishment ranges from food and beverages to service and facilities render.
It can be therefore classified as tangible and intangible items. The types if
hospitality industry (commercial or welfare) determines whether these product
are to be offered for sale at profit level or not.
In any commercial hotels, it h as been
proven that the volume of sales turnover and the price the potential guest are willing to pay for the service which has
been the important variables that determine the profit ability of the
operations.
The early years of post independence, the
number of hospitality industry in the country is very nominal and thus enjoyed
the monopoly of the market. But in years back, many were developed and managed
hotels have sprang up, thereby creating competition between the old and the
newly existing customers patronages.
Hotel products in Nigeria is limited to only
accommodation, foods and beverages, and any other tangible or intangible
services offered in the hospitality industry. While the effect of economic
depression on marketing of hotel product in Nigeria simply show in the serious
hardship whereby the inflation level on sales and regard the return (market)
made has been subjected to the hyper-inflation year’s back, precisely more than
a decade ago.
The resulted to the depression in the economic
system of the nation and five a set-back even in the spending power of an
individual while luxury items like hotel services possessed by the hotel addict
were reduced, even some stop their consumption and patronage for hotels
products and services thereof.
1.2 NEED FOR THE STUDY
Having clearly give throughout the previous research
submitted to the department of hospitality management by my predecessor, the
researcher observe vividly with keen interest on my views that much has not
been done affirm critically the effect of the economic depression of on the
marketing of the hotel product HPS and possibly suggest a way out.
As regard my experiences in hospitality industry is
concerned with equipped facilities and
humanism to set on motion the materials resources effectively, it has to
succumb to this term; exchanging successful product for cash or any other items
of value in order to achieve her targeted profit margin.
Therefore, there is need to study with keen interest
any intended factors that is capable of jeopardizing the interest, objectives,
designed rolling plans of various hotel properties and distinguished
stakeholders were necessary
1.3 STATEMENT OF THE PROBLEM
The main objective of this study is to
ascertain whether the term economic depression (inflation) in Nigeria actually have an impact or
effect on the marketing of hotel products (HPS) in hospitality industry and
know the significant of such effect if any.
To stressed ignored phenomenal know as
over population one o the major determinant of economic depression in as this
21st century is concerned. it is also prepared to boost the general
knowledge about marketing procedure, policy and strategic standard for hotel
products (HPS) especially accommodation services.
The study focuses on pointing out
marketing policies that could stand as or replace the existing measure
recommend guiding the future of ant hotel establishment.
1.4 SCOPE OF THE STUDY
This research encompasses areas which
includes assessing what economic depression (inflation) is, with a brief
history of inflation in Nigeria, the effect of inflation to individual public,
and industries with special reference to hotel establishment.
Hotel products and the types we have, the
market strategies open up for a product is also not left touched.
The research is limited to hostels in as thing the
renowned ‘Kwara Hotel’ as a case study and the result of the findings is then
generalized.
1.5 LIMITATION TO THE STUDY
The restriction of the study is to
examine the only hotels in
using Kwara Hotel as the case study and where more hotels would need to have
been visited is due to short time period available for the work and the
financial containment on my side.
The traditional of treatment in rich
information were confidential by the management of the establishment which also
places a limitation to our findings. Absence of some familiar information
needed from internet service to enhance accurate result findings in some
situation where necessary.
1.6 RESEARCH HYPOTHESIS
Often time, the business participate
developed a believed system on a wise that inflation affects the volume of
their sales and even the turn over. But the significant of such effects is not
yet tested.
Mr. Akewusola would always say that: “he
who assert must be prove for this reasons there is a needed for hypothesis to
be testes in this research which include:
Economic depression has no significant effect in the
marketing of hotel product
Solution to the pressing problem of inflation has
not been in existence.
The country population may sometime (probably)
determines a rise in inflation.
Inflation has no benefit effect to the hoteliers.
1.7 DEFINITION OF TERMS
Hotel Product:
This is limited to only accommodation, food and beverages and any other
services offered by a commercial hospitality industry.
Marketing: In
this context of this study, marketing can be defined as the operational
function of the hospitality industry that involve in the act of creating
awareness about the products of potential guest, such as motivating the
existing customers, to consume more and actual selling of the hotel’s product
at a profit margin.