Hotel New Products Development

The risk of new product development is relatively large, so its success rate is low, usually around 65%. However, for a variety of reasons, hotel must study the dynamics of the market, investigate the needs of the guests, and develop new products. In general, the main reason for developing new products is:

 1. Enhancing competitiveness in order to maintain or increase profits

                                                                                                                                                                                                                                               On the one hand, some of the original products of hotel have entered the late stage or the late stage of the mature period, and the grudging support has been very difficult and meaningless, and on the other hand, the competition is new and form a new threat, the hotel determined to abandon the strategy of keeping the old product and to open up the new growth point of growth for survival and development while knowing that the new product development is difficult and the success rate is low.Once the new product has been developed, it is expected to bring considerable profit to the hotel,especially when the new product is in the early stage of its long-term and mature period. The practice of many hotels has proved that hotel usually through development of new products to get out of difficult and make themselves profitable.

   2. To keep the operating undiluted in the off-season

Most hotels have to bear the miserable experience of the off-season, especially in the two seasons of the summer and winter, and some hotels have a sharp drop in the room rate. Many hotels have been successful in the development of off-season new products. For example, the hotel in the vicinity of the scenic spot uses the cold winter season to attract the tourist source of the meeting and the student's winter vacation,to a certain extent make up for the economic income of the off-season. In some hotels, the target market is aligned with the local source in the season of tourism and the off-season, attracting the city enterprises and the company to hold exhibitions, conferences and other activities to attract local residents to conduct activities such as marriage and funeral or health care.

   3. Maintenance and expansion of market share

From the product life-cycle analysis, when a product enters into a long-term and later stage and a mature period, the competitor group is imitated, and the latecomers tend to take advantage of the time difference, the product quality is better, and the cost is lower, to take part of the market share. In order to take back the original market share,hotel equipment suppliers will make full use of the product quality, expand the product category and improve the competitive power. Manufacturer is overshadowed by its competitors, and is not able to compete for the market, often using the strategy of developing new products. 

   4. To reverse the bad social image of hotel amenities manufacturer

                                                                                                                                                                                                                                           The face of some of hotel products suppliers has been the same for years, and it is difficult for the hotel to profit from those products, and the reputation and the social image of hotel supplies suppliers are affected, and the sales of other products in hotels are endangered. The production manager eliminate the old products that lack the competitiveness, and replace the new products with vigorous vitality. This class of examples is available from hotel new products.