Effect Of Economic Depression On The Marketing Of Hotel Products (A Case Study Of Selected Hotels In Ilorin)

Project and Seminar Material for Tourism and Hospitality

Effect Of Economic Depression On The Marketing Of Hotel Products (A Case Study Of Selected Hotels In Ilorin)


The major objective of this work was to examine the effect of economic depression on the marketing of hotel products. Stratified and sample random techniques were used to select the respondents from the hospitality industries using interview and survey method. From the findings, it was recommended that management of hotels should emulate the policy of carrying out marketing research on a constant basis in order to know the view of the public and the existing customers about the services and products of their hotel and the management should always ensure from time to time that proper recommendations of marketing research are fully implemented, for its not worth-while venturing into unnecessary research

Table of Content

  • Title page
  • Certification
  • Dedication
  • Acknowledgement
  • Table of content

Chapter One:


  • 1.1 Background information
  • 1.2 Need for the study
  • 1.3 Statement of the purpose
  • 1.4 Scope of the study
  • 1.5 Limitation to the study
  • 1.6 Research hypothesis
  • 1.7 Definition of terms

Chapter Two:

Literature Review

  • 2.1 Economic depressions (inflation
  • 2.2 Food and beverages services
  • 2.3 Hotel Accommodation services
  • 2.4 Other associated products
  • 2.5 Hotel products
  • 2.6 Effect of economic depression (inflation)
  • 2.7 Impact of inflation on hotel industry
  • 2.8 Marketing of Hotel products

Chapter Three:


  • 3.1 Study population
  • 3.2 Method of data collection
  • 3.3 Sampling techniques

Chapter Four:

Data Presentation and Analysis

  • 4.1 Test of hypothesis
  • 4.2 Problems of inflation on market of hotel product and suggested solution

Chapter Five:

Summary, Conclusion and Recommendation

  • 5.1 Conclusion
  • 5.2 Recommendation
  • Bibliography/References

Chapter One


1.1 Background Information

Hospitality industry is recognize as one of the largest term of business organization in today’s world, ever since the stage of development of the industry which has been traced to the advent of the modern means of transportation which makes it easy for people to travel from one place to another.

The second stage of this ever continuous development in Nigeria which has been linked with the transportation development and to the political independence for back as 60s.

The mass of people on transit (out of their homes) needs to be well catered for in aspect of food, drink, and sleeping accommodation in their respective area of destination, hence the need for hotel service.

Hospitality as an industry is said to be an industry that held itself as an establishment offering food, drinks, and accommodation (if so requires) to any potential customer who appears able and willing to pay a reasonable sum of money for the service provided and who is in a fit stable to be received.

Products offered by the hotel establishment ranges from food and beverages to service and facilities render. It can be therefore classified as tangible and intangible items. The types if hospitality industry (commercial or welfare) determines whether these product are to be offered for sale at profit level or not.

In any commercial hotels, it h as been proven that the volume of sales turnover and the price the potential guest are willing to pay for the service which has been the important variables that determine the profit ability of the operations.

The early years of Nigeria post independence, the number of hospitality industry in the country is very nominal and thus enjoyed the monopoly of the market. But in years back, many were developed and managed hotels have sprang up, thereby creating competition between the old and the newly existing customers patronages.

Hotel products in Nigeria is limited to only accommodation, foods and beverages, and any other tangible or intangible services offered in the hospitality industry. While the effect of economic depression on marketing of hotel product in Nigeria simply show in the serious hardship whereby the inflation level on sales and regard the return (market) made has been subjected to the hyper-inflation year’s back, precisely more than a decade ago.

The resulted to the depression in the economic system of the nation and five a set-back even in the spending power of an individual while luxury items like hotel services possessed by the hotel addict were reduced, even some stop their consumption and patronage for hotels products and services thereof.

1.2 Need for the Study

Having clearly give throughout the previous research submitted to the department of hospitality management by my predecessor, the researcher observe vividly with keen interest on my views that much has not been done affirm critically the effect of the economic depression of Nigeria on the marketing of the hotel product HPS and possibly suggest a way out.

As regard my experiences in hospitality industry is concerned with equipped facilities and humanism to set on motion the materials resources effectively, it has to succumb to this term; exchanging successful product for cash or any other items of value in order to achieve her targeted profit margin.

Therefore, there is need to study with keen interest any intended factors that is capable of jeopardizing the interest, objectives, designed rolling plans of various hotel properties and distinguished stakeholders were necessary

1.3 Statement of the Problem

The main objective of this study is to ascertain whether the term economic depression (inflation) in Nigeria actually have an impact or effect on the marketing of hotel products (HPS) in hospitality industry and know the significant of such effect if any.

To stressed ignored phenomenal know as over population one o the major determinant of economic depression in Nigeria as this 21st century is concerned. it is also prepared to boost the general knowledge about marketing procedure, policy and strategic standard for hotel products (HPS) especially accommodation services.

The study focuses on pointing out marketing policies that could stand as or replace the existing measure recommend guiding the future of ant hotel establishment.

1.4 Scope of the Study

This research encompasses areas which includes assessing what economic depression (inflation) is, with a brief history of inflation in Nigeria, the effect of inflation to individual public, and industries with special reference to hotel establishment.

Hotel products and the types we have, the market strategies open up for a product is also not left touched.

The research is limited to hostels in Ilorin as thing the renowned ‘Kwara Hotel’ as a case study and the result of the findings is then generalized.

1.5 Limitation to the Study

The restriction of the study is to examine the only hotels in Ilorin using Kwara Hotel as the case study and where more hotels would need to have been visited is due to short time period available for the work and the financial containment on my side.

The traditional of treatment in rich information were confidential by the management of the establishment which also places a limitation to our findings. Absence of some familiar information needed from internet service to enhance accurate result findings in some situation where necessary.

1.6 Research Hypothesis

Often time, the business participate developed a believed system on a wise that inflation affects the volume of their sales and even the turn over. But the significant of such effects is not yet tested.

Mr. Akewusola would always say that: “he who assert must be prove for this reasons there is a needed for hypothesis to be testes in this research which include:

  1. Economic depression has no significant effect in the marketing of hotel product
  2. Solution to the pressing problem of inflation has not been in existence.
  3. The country population may sometime (probably) determines a rise in inflation.
  4. Inflation has no benefit effect to the hoteliers.

1.7 Definition of Terms

Hotel Product:

This is limited to only accommodation, food and beverages and any other services offered by a commercial hospitality industry.


In this context of this study, marketing can be defined as the operational function of the hospitality industry that involve in the act of creating awareness about the products of potential guest, such as motivating the existing customers, to consume more and actual selling of the hotel’s product at a profit margin.

Chapter Five

Summary, Conclusion and Recommendation

5.1 Summary of the Finding

  1. Most of the hotels rarely conduct marketing research in order to get specific information needed to solve a particular problem facing the organization.
  2. In most hotels there is no specific department for marketing activities where necessary charge’s in order to enhance profit on hotel’s product offer.
  3. Where there is marketing department, it is always a very few officers that managed the section.
  4. The strategies used by the management of hotels to create awareness about their product and service include advertisement on radio, television, dailies, journals and internet service. Public relation through personal contact letters, telephones are made use of.
  5. The small hotel stand the opportunity of benefiting from the inflation because they can easily reduce their overhead cost, unlike the bigger hotels that have to pay certain tenants rates, utilization, bill and electricity is no reduced to business available.
  6. Due to the cost involvement and other logistics, recommendation of the few marketing research conducted are partially or not implement at all.
  7. There is general reduction hotel manpower due to low sales turnover.
  8. Most of the large equipment available in the industry could not be used again due to the high cost of overhead cost and partly low turnover.
  9. Changing of hotel’s room facilities and other obligatory renovations are not regular.
  10. Most hotels also open along their main products sales outlets like car lure, telephone services, boutique, saloon, business centre to augment their market.

5.2 Conclusion

This work has attempted to proved test whether economic depression in Nigeria has an effect on marketing of hotel product in hospitality industry in this country.

The various ways in which the phenomenon has affected the industry so far had been identified clearly regarded as the possible solutions suggested.

These findings have been discussed and where possible necessary recommendations made, which I hope, would be of immense value to the reach of management of hospitality industry (hotel’s proprietors) even to the intended likely-hood stake holder.

Finally, it will be useful as reading for the student of hospitality management department across various institution and the general readers at large.

5.3 Recommendation

Having group a proper regards to result and the talking for all findings and observation in this research, I will like to make the following recommendation are stated below in order to foster the market of any hotel products in this depressed economic system.

  1. Management should emulate the policy of carrying out marketing research on constant basis in order to know the view of the public and the existing customers about the services and products of their hotel
  2. There is a need for management to always ensure from time to time that proper recommendations of marketing research are fully implemented, for its not worth-while venturing into unnecessary research.
  3. Intended hotel proprietor, developers stock holders hotel feasibility research, with due consideration to the future economy challenges of the nation before engaging in any hotel establishment. This will assist in determining the kind feasibility and equipment to be purchase.
  4. Hotel staff should be enrolled in training or market related studies so that they (staff) will not consider marketing of hotel product and services as the management effort only. This will also make them to earn more orientation and be cautious of their duties.
  5. Finally management of hospitality industries should recognize market and must be given due priority in term of staffing and funding.

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