Market Research in Hospitality: Examples & Impact

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  • 0:03 The Role of Market Research
  • 0:56 Examples of Research Studies
  • 1:50 Impact of Research Studies
  • 2:59 Lesson Summary
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Lesson Transcript
Instructor: Tara Schofield
Market research can be helpful and even critical in making certain decisions, understanding an industry, and determining what is happening in a particular area. This lesson discusses several ways to gather information on the hospitality industry, from gathering data personally to having an independent study done.

The Role of Market Research

Conducting market research is important, especially when making decisions in the hospitality industry. Market research involves analyzing data, evaluating possible options, and understanding what trends are happening in an industry. Research is also valuable when seeking capital or investors to purchase a business or expand your current operations.

Let's imagine you've become aware of a hotel for sale in your area and are interested in purchasing it. However, you are not sure if there is enough business to keep the hotel full and ensure that you earn a profit. After doing some research of your own and reviewing other available research, you decide to pursue purchasing the hotel. You must find an investor to help you raise enough funds to buy the property. The market research helps you build a solid case for potential investors and find someone who is willing to partner with you in getting the hotel.

Examples of Research Studies

Research studies may be conducted by a large independent firm, usually hired by a hospitality company or a hospitality industry. Other studies may be less formal and less thorough but still offer the information you need. These less formal studies may include gathering statistics from other local properties.

For instance, if you are gathering hotel information, you may ask all of the hotels in your area for occupancy rates, room rates, revenues, etc. Gathering this type of information for the previous several years can give you an idea of what is happening in the market, such as whether or not occupancy is growing, rates are increasing, and local hotels are profitable. Other sources can also provide helpful information. If you have a chamber of commerce or a convention and tourist bureau, you can gather data that helps with your decisions and plans for the future.

Impact of Research Studies

Not only do research studies provide information that can be used in your individual decisions, the data can also support industry changes that affect a larger group of people and businesses.

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