Principles in Marketing: Generational Changes and Globalization

Principles in Marketing
Name:
Institutional Affiliation:
Course Name:
Instructor:
Date:
Principles in Marketing
Value proposition involves the process of convincing potential customers on the benefits of doing business with a particular organization. Businesses must show how they plan to offer high-quality products and services to clients compared to the competition. Highly competitive industries thus must innovate to overcome others in the industry, thus attract more customers. The hotel industry involves highly competitive chains and small hotels that all aim at attracting more potential clients to use their services. Therefore, the value proposition in this industry must align with the needs of the potential clients, especially with the changing generational behaviors.
Generational Changes
Earlier generations, such as baby boomers and generation X, grew up in an industry with minimal technological innovations. As a result, their requirements mainly lay in the ability of the hotels to offer exceptional services at cost-efficient prices. Furthermore, such individuals also have preplanned activities throughout the year that enable them to plan their activities adequately. As a result, hotels could offer well-tailored holiday packages to lure such clients at different times of the year. Consequently, with these older generations becoming less active, their participation in traveling reduces, thus offering little returns for the hotel industry.
However, the exponential nature of evolving technology has led to improved service delivery in the industry. Newer generations, such as millennials and Generation Z, have grown using technologies such as computers, mobile phones, and the internet. As a result, their needs require integrating such services into hotel packages (W., 2016). Additionally, these generations also have impromptu trips that come up at any time of the year. Such attributes make it difficult for the hotel industry to offer attractive packages that can lure them. With millennials growing up to becoming the most active group globally with increased spending powers, their behaviors are poised to shape the hotel industry.
Changing Hotel Industry
Globalization has led to the transfer of knowledge and technologies to different parts of the world. As a result, the hotel industry has also witnessed some disruptive technologies such as Airbnb that provide an alternative source of accommodation for travelers. Airbnb majorly offers accommodation in residential settings, thus giving travelers the option to choose a house at a fixed charge (Fromm, 2020). In comparison, hotels charge each person separately, thus being significantly expensive for large groups of people.
With newer generations preferring such prospects offered by digital companies such as Airbnb, traditional hotels face stiff competition to attract ...