Managing hotel occupancy in times of economic and financial crisis: Region Bulgaria

Marieta M.

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Managing hotel occupancy in times of economic and financial crisis: Region Bulgaria

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Abstract

This student dissertation addresses managing hotel occupancy in Bulgaria during the financial and economic crisis. Bulgarian hospitality industry is among the sectors which were severely affected by the global financial and economic crisis. This paper analyses the current condition of the industry and the trends in 2010. It provides possible solutions for governmental interventions and other practical measures for the survival of the sector.

The paper provides a thorough examination of the best practices for survival and development in the difficult crisis environment. It addresses the major trend for this year – the all-inclusive system. The dissertation also reviews the option of the implementation of fixed-pricing (cartel) agreements.

The sampling frame of the work includes both primary and secondary data. The primary data provides an overall picture of the opinions of the hotel managers and the customers. The secondary data relies on other recent researches and articles.

The work provides recommendations about the restoration of the hotel business. Tax concessions, amendments of visa policing towards the citizens of Russia and the former USSR, all-inclusive systems, cartel agreements and revision of hoteliers' policy on personnel hiring and training should remain on the agenda if the sector wants to survive.

Tags: Crisis in hotel occupancy, Hotel occupancy levels, Economic crisis in tourism, Impact of economic crisis in hotel occupancy

Abstract
Introduction
Rationale and research questions
Literature review
1. Theoretical issue
2. Effect of cost structure profitability
3. The ongoing crisis
4. Hotel business perspectives
Relevant topic information
1. Country profile of Bulgaria
2. Market issues
3. Cost saving activities
4. Informational technologies
Methodology
Findings
1. Primary research
2. Secondary research
Analysis
Conclusions and recommendations
1. What is the state of the hospitality sector in Bulgaria in the first months of 2010 ?
2. What measures should be taken in order the business to be restored?
3. What is the most suitable pricing policy for Bulgarian hospitality industry?
Recommendations
References

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[...] If the hotel can provide its clients modern conveniences like wireless internet, swimming pool, SPA, etc., the customer will be satisfied and will spend additional amount of money (but not too much, anyway) in the hotel. However, in spite of the positive news that price is not the only criterion, a vast majority of the polled (70 per cent) believe the global crisis has affected their consumption of hotel service, and the measures taken by hotels in order to keep their customers and attract new ones remain ineffective. [...]

[...] The prices in 2010 will remain low but the manager is optimistic about the future[10] ANALYSIS The global financial and economic crisis created an unprecedented challenge for the development of the tourist sector in Bulgaria. The hospitality industry of the country, generally promoted as a low-cost tourist destination, is experiencing difficulties. The bad situation in the sector of travel and tourism is determined by the lack of security about future purchases as the sector is highly sensitive to ill-will and the unexpected customer spending is what the industry relies on (Gatsou et al., 2005). [...]

[...] (2002) Quality management in tourism and hotel industry, Faculty of Tourism and Hospitality Management, Opatija pp. 12- A sharp drop-down of the prices by the sea (2010) [online], http://dnes.dir.bg/news.php?id=6119206 [Accessed: 1 April 2010] 7. Brignall, T., Fitzgerald, L., Silvestro, R., Johnson, R. (1991). Product costing in service organizations. Management Accounting Research, Vol No pp. 227- Bulgaria. Hotel market sentiment survey. February 2009 [online], http://www.horwathhtl.com/hwHTL/Publications/documents/BULGARIAHotelMar ketSentimentSurveyReport.pdf [Accessed: 1 April 2010] 9. Bulgaria: Market profile (2005) Travel & Tourism Forecast World, Issue p61-64, 4p 10. [...]

[...] Combining the general opinions and impressions of the tourists and the professional points of view of the hotel managers creates a suitable frame for further analysis of managing hotel occupancy in times of financial and economic crisis. The sampling frame of the secondary research includes articles and other recent researches, concerning the impact of the global financial and economic crisis on the Bulgarian tourist industry. Secondary sources play a subsidiary role towards the results from the primary research. They overcome the certain limitations of the questionnaires with standardized answers used for the purposes of the survey. [...]

[...] This student dissertation will provide an outlook for the upcoming months of 2010 and the possible solutions for managing the hotel occupancy in the region during turbulent times of financial and economic crisis. The sampling frame of this paper includes both primary and secondary data RATIONALE AND RESEARCH QUESTIONS Bulgarian hospitality industry is among the sectors which were severely affected by the global financial and economic crisis. The first fluctuations appeared in the last quarter of 2008 when the economy started to slow. [...]

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