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In order to carry out the assignment I have chosen an organization that I know very well. Analyzing a company’s business strategy is never easy because it must provide an insight into the company’s strategic decision making processes, its structure and overall business operations taking into account the diverse internal and external factors that affects its short-term and long-term strategies.
I have examined one segment of tourists who can afford to spend more money on their convenience and relaxation1. Firstly, I am going to give a description of hotel categories including their characteristic features, then I will analyze my chosen organization, the Gresham Palace Hotel Budapest in detail.
1. Introduction of hotel types and rating system
Hotels are the most significant and most widely recognized forms of overnight accommodation which can be classified using different methods and criteria.
The hotel product consists of location, facilities, image and services. One of the main characteristics of the hotel product is that the demand for it is affected by seasonality, consequently business hotels suffer from periodicity. Therefore the aim to attract off-peak customers is a must for the accommodation industry.
Hotels can be categorized according to location (city, suburban), owners (family, hotel chain), facilities, services and clientele (businessmen, holidaymakers, etc.). Different types of hotels comprise country house hotels or inns, commercial or business hotels, convention hotels, resort hotels, airport hotels, luxury hotels and motels.
The cost and quality of hotels are usually relatively indicative of the range and type of services available. Due to the enormous boom in the tourism industry worldwide since the last decades of the 20th century, standards, especially those of smaller establishments have improved considerably. Over the years various rating systems have been introduced out...