Competition Strategies of Selected International Hotels Groups on the Polish Market

Abstract

Listen

Translate article

Background: The hotel industry is a relatively new and rapidly growing industry in Poland. The last three decades resulted in a significant expansion of the local hotel market, as well as of operations of international hotel chains. Thus, competition among actors in the industry, along with the companies’ need to differentiate their offerings from those of competitors, has risen. Branding strategies are increasingly used by companies for achieving better positioning on the market, as well as for gaining a competitive advantage and customers’ loyalty. Purpose: The purpose of this thesis is analyse of Polish hotel industry and identify instruments and ways to compete international hotel groups in the Polish market. This research attempts to identify the essential aspects of competitiveness in the hotel industry. Methodology: This thesis relies on a qualitative research, with a main focus on discovery, and aim to expand current knowledge in the field of hospitality management the Polish hotel industry. The study consists of an in-depth case study of one international hotel group operating in Poland. The empirical data was gathered from phone from secondary data such as annual reports and official websites. Conclusion: The number of hotels in Poland grows rapidly every year. The key drivers for the development of hotel business in Poland are: economic growth, rising popularity of Poland as a holiday destination, development of medical tourism in Poland, dynamic growth of BPO/SSC sector, rising popularity of domestic trip, growth of expenditures of Polish residents for trips. The sector has benefited from the process of globalization and from the constantly falling relative costs of travel. Only 13% of the categorized hotels in Poland are chain hotels compared to the average level of 30% in Europe. In Polish hotel market is 13, 7% of chains hotels and 86, 3% are not chains. International brands’ share of Poland’s hotel market remains low, 11,04%, with domestic hotel operators accounting for 8,2%. Number one in Poland chains groups is international chains group - AccorHotels with 71 hotels and 12,085 rooms. Number one chains brand is Ibis with 31 hotels and 4,195 rooms. The AccorHotels group’s brands present in over 95 countries throughout the world, with over 4 200 hotels and 600 000 rooms. The AccorHotels group is developing most intensively in the European hotel market, which leads in the rankings of international groups and hotel chains. In Poland, it remains the leader, taking first place among hotel chains. The AccorHotels Corporation has expanded into the Polish market through a strategic partnership with the Polish Orbis Hotel Group, from which it acquired 51.55% of the shares. Contributions: This thesis positively contributes to the academic community, as it expands the theoretical knowledge about the Polish hotels industry, with a main focus on the branding- and marketing activities of international hotel chains. The findings provide a practical insight on how companies are positioned in the market in relation to their competitors. Moreover, with an extensive choice of accommodation available in the market, the comparison of hotels is beneficial in helping customers choosing the best alternative according to their need