A NICHE FOR BUDGET HOTELS IN SINGAPORE

Abstract

Recently, there have been more tourists seeking basic and cheaper accommodations than before. These establishments have also reported higher occupancies in the past two years as compared to those in the top-of-the-range hotels. There has also been much coverage in the media highlighting the potentials in the development of budget hotels. This dissertation attempts to provide an insight to this trend and to examine the underlying reasons for it This study will examine the marketing aspect of the hospitality industry which will become increasingly competitive. It is getting more difficult for hoteliers to build and retain their market shares at rates that will generate a satisfactory financial return. The tools and concept of marketing will be examined with reference to a case study. Hotels must thus rely on competent management and staff to respond to die changing conditions and an effective marketing strategy to maximize its revenue. The findings of the study shows that there is indeed a changing trend in tourists and there will be a shortage of budget hotels in the near future and thus its vast potential.