Do you think the service competition strategy of Lan Xiang Hotel is correct?

The correct service competition strategy of Nanxiang Hotel is correct, which is mainly reflected in the following aspects:

First of all, from the perspective of service marketing, hotel service competition is obviously superior to price reduction competition. Because, although the city has more than 2 million domestic and foreign tourists every year, the reception capacity of existing hotels and restaurants has exceeded 7 million/year. The local hotel industry is excessively competitive, and the average room opening rate is less than 40%. It is difficult to improve the room opening rate by reducing prices, so we must turn to service competition, and it is possible to enter the track of benign development by relying on high-quality services.

Secondly, the local hotel service market is subdivided. Among all the tourists, there are more than 600,000 domestic and foreign tourists who request to stay in three-star hotels/year, but there are only three three-star hotels in the city, which is obviously insufficient, which has forced tourists to divert to low-grade stores. Under this market background, it is wise for the three-star Nanxiang Hotel, which has just been put into operation, to take the middle and senior tourists as its marketing target and adopt the strategy of winning by service instead of launching a new round of price war with low-end hotels. At the same time, service competition also embodies the principle of taking target customer service as the center and service is benefit.