Year of Graduation
Managing of supply and demand in service organizations on the example of the hotel
Faculty of Management
The current world economic development trend is the increase of the consumption of services. The maturity of the market is an important indicator of an economy’s competitive ability. The leading role of the service sector in economic and social life causes the improvement and modernization of service companies managing methods. One of the most difficult problems in the sphere of service organizations management is the concordance of supply and demand. The present research discusses the strategies of supply and demand management, which are used by service organizations and the methods with the help of which these strategies are adapted. The relevance of the topic is determined by the peculiarities of the organization of service functioning, competition intensity and the need of the improvement of work efficiency.During the process of literature gathering some works of foreign investigators B. Susser W., Zeithaml V., Klassen, Kotler F., Chase R. and also several Russian researchers Balayeva O. Predvoditeleva M., and others have been analyzed.The main purpose of this research is to work out recommendations for future development of the existing management system of supply and demand in medium-sized service organizations, to improve its ability to respond to changes on the market in an appropriate way, to act efficiently under the conditions of uncertainty. For the achievement of this goal the following tasks are highlighted: the analysis of theoretical and empirical aspects of the problem of supply and demand concordance and main approaches to its solution, the reveal of the existing management system peculiarities of the hotel Brigantina and the description of practical recommendations for stimulation of an additional demand and incensement of occupancy rates.The hotel "Brigantina" which is situated in Novorossiysk city and is owned by a private company was chosen as an object of investigation.The subject of investigation is the mechanism of supply and demand coordination of service organizations especially in the hospitality industry. Level capacity strategy was chosen as a basic approach to supply and demand concordance. This approach describes the situation when capacity is limited and that is why the management of the demand is most applicable strategy. The main aim of this strategy is to maximize the utilization of organizational resources. To assess the feasibility of this strategy the analysis of the company’s practice, its strengths and weaknesses, based on SWOT analysis and its changing business environment based on PEST and Porter five forces analysis were conducted.Finally, the research provides a set of recommendations for the implementation of fixed level strategy into supply and demand management system of medium-sized city hotels for stimulation of an additional demand and the loyalty of regular customers. It also casts the light upon different approaches to this problem and elaborates the methodology for the regulation of prices based on price differentiation, the segmentation of the consumer market and the elasticity of demand of each segment. In addition, recommended tools form the price policy of the hotel.The analysis provides a set of knowledge and statistic about the medium-sized city hotel 'Brigantina' which can be used as a good example of the application of new methods of demand prediction but it should be noted that the peculiarities of the organizational environment must be taken into account. Moreover it should be noted that improved management system would reduce organization costs, which would reflect in future price reductions. The analysis provides a set of knowledge and statistic about the medium-sized city hotel 'Brigantina' which can be used as a good example of the application of new methods of demand prediction but it should be noted that the peculiarities of the organizational environment must be taken into account.