THE CHALLENGES OF HOSPITALITY INDUSTRY IN NIGERIA

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THE CHALLENGES OF HOSPITALITY INDUSTRY IN NIGERIA

ABSTRACT

The need to have standard hotels in Oba cannot be over-emphasized. This is because of the part they play in the socio-economic growth of the town.

They assist travelers coming into the city in the provision of comfort and other facilities to residents of the city.

In order to lend support to the business of these hotels and the entire economy of the city, these hotels need to apply promotion advertising in the running of their business in order to create awareness to their present and potential customers.

What this study aims to achieve is to examine the promotional problems experienced in hospitality industry (A Study of Selected Hotel in Enugu Urban).

A sample size of 480 respondents were randomly selected and was used for the study.

The following hotels were sampled

1. Home Pride Guest House

2. Zodiac Hotels

3. Crystal Park Hotel

4. First Hotel

5. Presidential Hotel

Based on the data collected and analysed, the following were found.

1. That the establishment of hotel in Oba is a welcome development because of the socio-economic role played by these hotels to the public.

2. These hotels require and actually make use of advertising in order to create awareness to the public including their present and potential customers.

3. By the use of advertising, a lot of progress was made by these hotels.

4. The researcher also found out that so many constraints militated against hospitality industry such as finance.

5. The researcher did not stop with the finding but went ahead to make recommendations as what to do to eliminate constraints on hospitality industry.

6. The researcher concluded the work on an encouraging and hopeful note, stressing that a lot still stand to be achieved from hospitality industry if and only when aggressive advertising is embarked upon and the proprietors of hospitality industry and professionals are given support and encouragement.

CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND OF THE OF THE STUDY

In hospitality industries promotion is a key ingredients in marketing campaign. Promotion has contributed a lot to boost a better image of both major and minor hotels in every part of the world. It does communicate to its publics; the type of services it renders, and also believes in fair deals and considers the interest of its customers and various publics. Hospitality industries services, pricing, as well as promotional policies and strategies constitute elements of its promotion – mix.

Hotels provide meals, drinks, attractions, accommodation etc., to the general public or persons in transit especially people traveling to places where they have neither their own homes nor any relation to cater for their needs. Such persons will like to know few things about the hotels in their transitory area. In other words, they may like to know about available hotels, the categories of such hotels, the room and suit fares, and the type of food served, the necessary comfort customers are accorded – with, the game that is both indoor and outdoor games available and perhaps and other special feature that make such hotels appealing to the sojourners in transit.

These characteristics of hotels are boosted by promotions of various types in so many countries of the world. In Nigeria, major hotels live like Sheraton, Eko Hotels, Federal Palace Hotels, NICON NUGA, to mention just a few of them, have made impressionable image both nationally and internationally and the praises go to promotions that have heralded their various characteristics, class placement status to the public generally. Without promotion, the image of their hotels and their excellent services would not be so diffused to the public. For instance recently in

Enugu, some hotels have come up with incentive – type promotions to attract new terriers, to reward loyal customers and to increase the patronage rates of occasional users. One of such hotels is Home Pride Guest House situated at number 16 Chime Avenue, New Haven in Enugu, promoted its hotel as (10%) Ten percent discount awaits customers that patronizes its hotel superbly built, and lavishly furnished with ultra-modern guest houses, with about sixteen (16) air conditioned rooms each with its exclusive toilets, cold/hot shower, stand-by water storage tanks to ensure uninterrupted water supply; a lounge with well stocked bar and assorted types of edibles including Chinese foods available; a well cemented car park adorned with beautiful flowers, and powerful stand-by generators to ensure uninterrupted power supply.

1.2 STATEMENT OF PROBLEM

The study is aimed at finding the importance as well of promotional problems experienced in hospitality industries. This is an organization that the principal objective is to make profit. To realize this objective, the business concern must be prepared to uphold the marketing concept of the supremacy of the consumer. Marketing promotion contributes a great deal in upholding the supremacy of the customers which involves identification and satisfaction of specified needs. Hospitality industry like hotel-ling is a competitive business and must endeavour to identify and satisfy customers’ needs to be able to stay in business.

There are some promotional problems in hospitality industry business in Enugu State. The problems are the factors that hinder promotion of hotel services.

One of such factor is income. The income level of both customers and proprietors will hinder the work of marketing promotion on hotels. Low income earners, for example may find it difficult to cope with high prices of hotel services which

happened as a result of marketing promotion carried out which invariably attracted high prices on them.

There are also several classes of people in society. We have high class individual and low class people as well. Those in the high classes are usually enlightened while those in the lower class are mainly illiterates.

For instance, some advertising messages are produced by professional for high class people while non-professional produced the type we call below the line advertising for low class people. Culture consider some advetisement as taboo, while some people in a special class, like corporation may find it not necessary advertising their hotel, hence it is only for members.

1.3 PURPOSE/OBJECTIVES OF THE STUDY

The study is aimed at critical analysis of the promotional problems experience in hospitality industries like hotels.

With the above problem statements, the main purpose or objectives of this research work will be as follows:-

1. Finding out to what extent the selected hotels in Enugu State have gone in the application of advertising as one of the tools for marketing promotions on hospitality industry.

2. Finding out what benefit have accrued to those hotels that applied advertisement in their business.

3. Knowing what the customers have gained from hotel services because of the use of promotional element like advertising by the hotels in Enugu State.

4. Understanding the mode of advertising mostly used by hotels in Enugu State.

5. Finding out the problems facing hotels in promoting their businesses in Enugu State.

6. Determining the effects of those problems on the hotel proprietors, the customers and the entire hotel business.

7. Finding out how to reduce or eradicate totally the problems militating against hotel promotions in Enugu State. As we have already noted that a promotion element like advertising is important in hotel business, we should also note that hotel promotions have so many problems associated with it.

For instance, it costs a lot of money to undertake advertising of goods and services. It is one thing to carry out advertisement by hotel proprietors and it is another thing for the proprietor to give the customers services that will eventually ensure customer satisfaction in accordance with what have been promoted and advertised.

The research therefore will endeavour to find out if the customers are actually satisfied according to the advertisement made, and if not, the researcher will try to proffer solutions as to how to eliminate the problems noticed in hotel promotion.

1.4 RESEARCH QUESTIONS

In pursuance of the above objectives, questions of this nature will be asked by the researcher.

1. How have these hotel promotions created awareness to present and potential customers to the hotels?.

2. If any awareness has been created through advertising, how have the profit margin reflected this awareness?

3. Are the hotels actually providing the services that they advertise/promote?

If yes, does the patronage measures or reflects the promotion/advertising input?

4. What are the problems noticed in hotel promotions?

5. What recommendations can be put in place for improved hotel promotion?

RESEARCH HYPOTHESIS

In order to carry out effective research work, the following hypothesis will be tested as stated below: –

1. Hi: Hotels in Enugu State promote and advertise their business adequately. Ho: Hotels in Enugu State do not advertise their business adequately.

2. Ho: Customers awareness and patronage of hotels business do not increase with hotel promotions/advertising.

Hi: Customers awareness and patronage of hotels business increase with promotion by hotels.

3. Ho: Hotels in Enugu State do not offer all the services they promote/advertise.

1.5 SIGNIFICANCE OF THE STUDY

The findings of this study is expected to provide useful information on ways to reach potential customers, travelers, institutions or corporate customers through planned promotion.

The significance of this study, therefore, lies on its contribution to the upgrading of hospitality industry image in general. To create awareness for the public to patronize this industry as providers of services essential to human life.

Finally, in the field of academics, the study will stimulate further research into marketing of hotel, catering services and

hospitality industry as a whole and delivering of quality and competitive services.

1.6 SCOPE OF THE STUDY

The study will cover just some few selected hotels in Enugu Urban. The researcher meant those businesses which on provision of a fee, lodging facilities and decent food and drinks are accorded the customer, whether open to the public or restricted to members of particular organization.

The work will cover the following five hotels situated in Enugu Urban.

1. HOME PRIDE GUEST HOUSE, CHIME AVENUE, NEW HAVEN ENUGU

2. PRESIDENTIAL HOTEL, INDEPENDENCE LAYOUT ENUGU.

3. FIRST HOTEL, OGUI NEW LAYOUT, ENUGU

4. ZODIAC HOTEL, INDEPENDENCE LAYOUT, ENUGU.

5. CRYSTIAL PALACE HOTEL, GRA, ENUGU.

In many occasions, the researcher was denied audience by the very people whom he had hoped would supply him information. The questionnaire which was distributed was either returned unanswered or half answered.

The researcher spent much time and money repeating visits to those he distributed questionnaire to. Many even thought that the interview being sought for was for tax- purpose and therefore bluntly refused to grant the researcher any opportunity for interview.

1.7 DEFINITION OF TERMS

Urban – A large city, especially the developed town.

Proprietor – An owner, especially of a shop, hotel, business etc. Problems – Limits or restrictions from professing.

This study will be extended to cover the promotional problems experienced in hospitality industry (A study of few selected hotels in Enugu State)

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