Strategic Management in Tourism and Hospitality

1.1 Current Market Situation and Economic Environment

Current Market Situation

The business that is being analyzed in this paper is a hotel of Australia that exists in the hospitality and hotel industry of Australia. The hotel and hospitality industry of Australia has seen strongest growth in the international arrival from countries like Asia-Pacific regions. The revenue of the hotel market in the economy is seen to rise at an annualized 0.1% and reach a total of $12 billion (Ibisworld, 2020). The Adina Apartment Hotel operates in this industry of Australia and is impacted by the current market conditions and the economic environment. The paper analyzes the impact of economic condition on the hotel and the vision and mission the hotel holds. Further, it analyses the differentiation features and positioning strategy of the hotel.

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Economic Environment

The economic factors that impacts the operation of the hotel are:

Consumer consumption- Australia shows a consumption has increased to 268845 AUD million as of 2019 and this has positive impact on the hotel as the demand for their service tend to increase from domestic consumers (Tradingeconomics, 2020).

Employment factors- employment in Australia has increased by 21,000 persons in April 2019 with maximum portion of full time workers and there is also an increase in hours worked by 0.3 percent (Abs, 2020). This has positive impact on the hotel demand growth and chances of getting labor force for their work.

Interest rates- interest rates has been reduced to a low rate of 0.75% this increases the borrowing ability of the hotel for investment purposes and bring new advances in the hotel (Dw, 2020).

Inflation- the inflation rate in Australia has increased from 1.26% in 2018 to 1.9% in 2019 leading to an increase in the cost of Adina Apartment hotels due to rise in the price of the materials and equipment the hotel uses (In2013dollars, 2020).

GDP per capita- the GDP per capita of Australia has decreased from 56420 US$ to 53825 US$ reducing the standard of living of the people and increasing the risk of loss for the Adina Apartment hotels (Statista, 2020).

Investment climate- the climate for investment in Australia is highly suitable due to stable environment making it easy for Adina Apartment hotels to expand and run their business in the economy.

1.2 Description of the Product, Service and Target Market

Adina Apartment hotels is known to provide stylish apartment as a product to the customers that are fully apartment with amenities. In addition to this the hotel provided different room equipment and well stocked fridge as products to the customers. In addition to this, the hotel offers number of services to the customers such as grocery service, room service, meal service, laundry service and on-call service to the customers over time (Adinahotels, 2020). The target market of Adina Apartment hotels is segmented based on two types of segmentation that is psychographic and behavioral segmentation (Camilleri, 2018).

Psychographic segmentation- the target market of the hotel are the customers that love to stay at a hotel that make them feel home away from home, ample space to stretch out, best view in the house and a luxurious living (Adinahotels, 2020). The hotel target the customers that holds such psychology when choosing a hotel for themselves.

Behavioral segmentation- the target market based on this are the customers that has the behavior of frequent travelling due to business needs or leisure needs and prefers to get an entire apartment to live in like a house instead of in a single room in the hotel.

2.0 Vision, Mission Statement and Goals

2.1 Vision

Vision of Adina Apartment hotels is to become the best hotel in the region with fully equipped service apartment and unique designs (The hotel conversation, 2020).


Adina Apartment hotels has the mission to offer homely environment and comfort to the modern explorers that love to have a fusion of elegant architecture and contemporary design when they travel (The hotelconversation, 2020).

2.3 Goals

The goals of the Adina Apartment hotels are:

  • To become one of the best reputation as the developers hotelier throughout Australia.
  • To accomplish and maintain an end-to-end hotel design, development and management capability.

3.0 Unique Differentiating Features

The unique differentiating features of the hotel lies on the type of hotel service and design that the hotel offers to the customers. The hotel gives the entire apartment service to the customers unlike room service like other hotels. The customers get the chance to live in an entire house and get a home like feeling with fully furnished rooms and kitchen. Moreover, the contemporary design and lifestyle that the apartment hotels give adds to the uniqueness of the hotel. The hotel incorporates classic architecture, Australian furniture and a local artwork with the motive to create a comfortable environment (Adinahotels, 2020). These two features add up to the uniqueness and level of differentiation offers by Adina Apartment hotels in their service and products.

4.0 Positioning Map

4.1 Positioning Map

The positioning map of Adina Apartment hotels is to offer high quality service at high or premium pricing. This makes the hotel lie in the second quadrant of the positioning map.

4.2 Relative Position of Key Competitors

The competitors of Adina Apartment hotels that operate in Australia and offers apartment hotel service to the customers and act like direct competitors such as United Places (Perry, 2020). The United Places also position itself as a high end brand that offers high quality service at high price.


In conclusion it can be stated that Adina Apartment hotels has position itself in the market efficiently and faces various benefits and challenges from the external market conditions of Australia. The hotel has been known for its unique services and products to the customers and has established its position in the hotel industry.


Statista. (2020). Australia: Gross domestic product (GDP) per capita in current prices from 1984 to 2024. Retrieved 5 May 2020, from

Thehotelconversation. (2020). Adina Apartment Hotel Coogee Beach Sydney reveals new look. Retrieved 5 May 2020, from

Perry, K. (2020). Australia’s Best Apartment Hotels. Retrieved 5 May 2020, from

Tradingeconomics. (2020). Australia Consumer Spending. Retrieved 5 May 2020, from

Dw. (2020). Australia cuts interest rate to record low. Retrieved 5 May 2020, from

In2013dollars. (2020). Inflation in 2019 and Its Effect on Dollar Value. Retrieved 5 May 2020, from

Ibisworld. (2020). Australia – Market Research Report. Retrieved 5 May 2020, from

Camilleri, M. A. (2018). Market segmentation, targeting and positioning. In Travel marketing, tourism economics and the airline product (pp. 69-83). Springer, Cham.

Adinahotels. (2020). About Adina Hotels. Retrieved 5 May 2020, from

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