8111_1-1

7/29/2019 8111_1-1

1/17

PAPERREF#8111

Proceedings:EighthInternationalSpaceSyntaxSymposium

EditedbyM.Greene,J.ReyesandA.Castro.SantiagodeChile:PUC,2012.

8111:1

ANANALYSISOFURBANHOTELLOCATIONFOCUSINGON

MARKETSEGMENTANDLOCAL&FOREIGNGUEST

PREFERENCE

AUTHOR: Eun Min PARK

Sejong University, Department of Architecture, Republic of Korea

email: [email protected]

Young Ook KIM

Sejong University, Department of Architecture, Republic of Korea

email: [email protected]

KEYWORDS: HotelLocation,MarketSegment,Local&ForeignGuest,F.I.T,ProfitTHEME: UrbanStructureandSpatialDistribution

AbstractThegeneralfactorsdeterminingthesuccessorfailureofhotelmanagementare:thechiefexecutivesability,scaleand ratingof thehotel, the relationship to the localmarket,and thehotels location.Aboveall, thelocationofhotels,asalimitingfactor,whichdirectlyaffectsthe investingsuccess,needstobefulfilledasatopmostpriority.Previousstudieshaveshownthathotelguestsselecthotelswithhighaccessibility.However,noanalysishasshownadirectrelationshipbetweenhotel locationandsales.Inthisstudy,therelationshipbetweenFITguestsandroomrateswasregressivelyanalyzedthroughmarketsegmentanalysesforahotelsprofit structure. Subsequently,Market SegmentDataofhotels located in Seoulwasfollowed. Inorder toscrutinizespatialaspects,asubstantivestudywasaccompaniedbyhotel locationandcomparisonanalysesusingSpaceSyntax. Inaddition, localandforeignguestsare influencedbydifferentfactorswhenchoosingaccommodations.Subsequently,thisresearchpredictsadirecteffectbetweenFITprofitandhotel location.Asfor comparisonsbetweenLocal&Foreignguests, thispaperwilldemonstratehowahotelsmarketingstrategymustdistinguishbetween localandforeignguests,aswellasconsideringthefactorsthataffectacustomers choice, inparticular hotel location. Byproviding objective suggestions, this study will help inselectingalocationandanalyzingaccessibilityforhotels,culture&tourismaccommodationsandespeciallythecitybusinesstype,residencehotelorofficestargetingforeigners.

7/29/2019 8111_1-1

2/17


SantiagodeChile:PUC,2012.

8111:2

I.INTRODUCTION

1.1BackgroundandPurposeofStudy

Theoperatorsmanagementability,thescale&levelofthehotel,andtieswithlocalmarketsarementioned

tobethegeneralconditionsfordecidingthesuccessorfailureofhotelmanagement.Although,priortothe

aboveconditions, locationalenvironmentofthehotelneedstobetobesatisfiedonthepreferentialbasisforitsimportanceasafactordirectlyaffectingthesuccessoftheinvestment.ConradN.Hilton,theformer

operator ofHiltonhotels, stressed in an interviewwitha reporter from aU.Seconomics magazine, that

location is the first, second and third most important factor for the success of a hotel. Investments for

successfulhotelsstartfromacomprehensiveassessmentofnotonlythevalueatpresenttime,butalsothe

futurevalueofthesitefromthetimeoftheselectionofthe location.(Ju,JangGeon,1999)Thedomestic

hotel industry is expected to be struggling, to a certain extent, due to unstable political and economic

variables. In this situation,ahotelovercoming adifficulteconomic situation, andgeneratinghighprofits

squarelywillbetheonlyonewhowillsurvive.(Gu,JaHyeok,2004)

Ingeneral, themethodofmeasuringsuccess factorsofahotelsprofit isnotasimpleprocess.Thereare

various aspects and factors are multiply militated for measuring the management performance of theenterprise. (Kim, SaHeon,2001) Although, among the important and core factors from the summary of

researches by domesticforeign scholars concerning sales increase are: location(position), convenience,

atmosphere,reputation(image),rationalprice levelofthefacility,convenienceofreservation,safety,taste

andqualityofF&B,subsidiaryfacilitiesandamenities,andcleanlinessoftheguestroomsandbathroomsof

the hotel. Sale maximization signifies the maximization of sales in rooms, amenities and other sectors

respectively.Of the factorspreviously referenced, themaximizationof salesat room sector isable tobe

possiblebyaccommodatingplentyofgueststoallavailableroomsatthehighestrate.

Ofalltheresearchtofindawayofincreasinghotelprofitthroughtheinfluxoftouristaccompaniedbythe

abovechoicebehaviors, locationofhotelhasbeenacrucial factor inregardtotheoperationofahotels

business.Nomatterhowexcellent the facility,andmenuandoperationalpolicyare, the salesvolume ismostaffectedbythelocationofthehotel.Sincetheimportanceoflocationformsagreatproportioninthe

hotel operation to such an extent that its a matter of life and death to sales. Hotel managers must go

through scientific and rational research to select the appropriate location. For understanding the

relationshipbetween the locationofthe localmarketandsales,prevalentstatisticaldata is insufficient in

fulfillinganaccurateandsystematicalreviewonthevalidityofthelocation.Previousstudiesonthelocation

of hotels were implemented by Lee, GwangWoo(2003), Kim, JeongHun(2003) based his studies on the

analysis of satisfaction, Seo, JiMin(2002) using the AHP Method / Sensitivity Analysis and Woo, Chan

BokMun,GyeongIlfocusedonthestructureofthefuzzymodel,whichmainlyfocusedonthecustomer

preference analysis. In addition to those, research on the hotel marketing strategy and efforts by many

differenthotelcompaniesareeasilyfound intheexistingstudies(Gu,TaeHoi Lee,YunCheol(2005),Han,

JinSu(2003),Cho,YunSik(1991),Woo,ChanBok(2004)andmanyothers).

In spiteof suchefforts,empiricalanalysis targetinghotelcompanieswith regard to the relationbetween

roomsalesindex,anindexformeasuringoverallsalesperformanceoftheroomsectorofahotelandroom

saleshasnotbeenproperlycreatedyet.(Gu,JeongDaeandother,2005)Therehasnotbeenacomparative

studyonthespatialanalysisandsalesanalysisrelatedtothelocationofahotelintheurbanarea.Inrespect

of sales in each market segment, especially the F.I.T(Frequent Individual Traveler / Foreign Independent

Traveler),empiricalanalysisonhow locationaffects the salesandon the spatialstructure in the relation

7/29/2019 8111_1-1

3/17



8111:3

betweenlocationofhotelandF.I.Thasnotbeenfulfilledsofar.Thus,acloseandobjectiveinvestigationon

thelocation(position),salesofeachmarketsegment,andF.I.Tisrequiredtobecarriedout.

Inthiscontext,thisstudyaimsat investigatingthecorrelationbetweenroomsales indexes,suchasroom

profitratio,thenumberofroomssold,roomoccupancyrate,andaverageroomrateandroomsaleswhile

findingwhichofthosesalesindexesshowsstrongcorrelation.Everyonemaywanttobelocatedtohisorher

advantagewhenselectinga location.However,makingajudgmentonwhich locationamongtheproposed

sites,whichwillbringagreaterpotentialforprofit,isnosimpletask.Moreover,itismuchmoredifficultto

analyzetherelationbetweenlocationandsalesthroughobjectivespatialanalysis,notbyasubjectivepoint

ofview.

Perceiving such importance of a hotel location, this study intends to carry out spatial analysis using the

methodof space syntax.Thishasbeenprimarilyused for cityplanningandarchitecture to findouthow

locationaffectssalesofeachmarketsegment. Especially,F.I.T followedbytheempiricalanalysisonthe

spatialspaceintherelationbetweenthehotellocationandF.I.T.

The purpose of this study is to apply this methodology to the selection of hotel location for providing

systematicalassistancetothedecisionofpriorityorderandweightamongmutuallyexclusivealternativesatthetimetouristhotels,accommodations andurbanhotelsselecttheir location.Inselecting location, influx

ofF.I.Tproposesthepossibilityoftheapplicationofspatialanalysisthroughenhancementofinconvenience

and accessibility for cultural tourists. Also, facing up to the difference in domesticforeign tourists

preferences inhotelselectionattributes,thisstudy intendstoanalyzethedifference indomesticforeign

touristshotelselectionaccordingtotheaccessibility.Dependingonthelocationfeature,thiswillsuggesta

guideline for establishing an effective marketing strategy for both domesticforeign tourists. The

applicationofspacesyntaxforspatialanalysis,whichwasmainlyusedforcityplanningandarchitecture,will

provide the tourism sector thepossibilityofenhancing convenienceandaccessibility for cultural tourists

throughquantitativeobjectiveanalysisonthespatialspace.

1.2.MethodandScopeofStudy

Foreffectiveachievementofpurpose,thisstudyfirstreferredtothepreviousstudiesonthelocationfactor,

F.I.T and spatial analysis. Based upon the existing theories, this study carried out a contemplation and

summary of hotel location and accessibility followed by the thorough investigation into the

domesticforeignbookspublishedwith the themeof location theoryandhotelselectionattributes,and

precedentstudiesontouristattractionsandtouristrelatedspacesyntax.

As for the methodology, this study first implementsdataanalysison the market segment and continues

analysisonthecorrelationandregression,respectively,onthefactorsinregardtoeachmarketsegment.As

forthespatialanalysisoneachhotelinthecityofSeoul,thisstudyfindsthedegreeoftotalityforthearea

wherethehotelislocatedusingspacesyntax.

Inthecaseoftheanalysisondomesticforeigntourists,comparativeanalysis is implementedtocompare

thedegreeoftotalityand thenumberofhotelusers.Theselectionofa locationcanbeclassifiedbytwo

differentaspects :anentrepreneurs locationselectioncriteria,and theselectionattributes intheclients

position. (Lee, GwangWoo, 2003)This study will first look into the previous studies on general location

selection criteria and continue to the examination of the entrepreneurs location selection criteria and

selectionattributesinclientspositioninconsecutiveorder.

7/29/2019 8111_1-1

4/17



8111:4

Dataanalysisonthemarketsegmentwascarriedouttargetingsalesfiguresof10hotelsof175starhotelsin

Seoul.Aspatialanalysisusingthespacesyntaxanalysismethodwasalsoimplementedwithprioritygivento

theperipheryareasofthe175starhotelsinSeoul.Whileimplementingthisanalysisonthe10hotels,hotels

in the Jongno and Gangnam areas were counted out due to excessive competition within the area.

Comparativeanalysiswasalsocarriedoutonthe resultsofthemarketsegmentanalysis, followedbythe

reselectionof targets for intensiveanalysison theaccessibility.Due to relative importanceofanaverage

room rate, this studyattempts to carry out a comparative analysis through spatial analysis for intensive

analysis on room rate, focusing on the economicfinancial outcomes excluding psychological outcome

which is not helpful for proper measurement of outcome. Therefore this study intends to make a close

investigationintothecorrelationbetweenaverageroomrate,theindexofroomsales,androomoccupancy

rateofroomssoldineachmarket,especiallyF.I.Tandaccessibilitythroughspatialanalysis.

1.3.TheDefinitionofF.I.T

There are Several variables actually influencing the hotels position for instance, the proximity to

monopolisticactivities,suchas:railwaysstation,hospitals,monumentsandotheramenities. Inthisstudy,samegradehotelsareacknowledgedbythehotelassociationareused.Thismeanseachhotelhassimilaror

equivalent brands, quality of amenities, rooms, food and beverages, and customer service. The hotels

considered are not hotels which serve aparticularpurpose, suchas: resort hotels, condominium hotels,

economyhotels,familyhotels,apartmenthotels,airporthotels,yachthotels,highwayhotels,orhotelsthat

emphasizescenicviews likeanoceanormountains.Theyareurbanhotelshavingastrongapurposeof

tendencyforbusinessandcitytravel.Inotherwords,theF.I.T.market.

ThedefinitionofF.I.Tindictionaryisforeignitinerarythatisindividuallyconstructedanddoesnotinvolvea

packagetour.Foreign independenttour.Nowgenerallyusedto indicateany independenttravel,domestic

orinternational,thatdoesnotinvolveapackagetour.5starHotelsmarketsegmentcanbedividedbetween

business and pleasure guests. Additionally we can differentiate between the Individual market andgroupmarket.AlsoPleasureisreclassifiedaspackageandFIT.Finally,others.Inthismarketsegment,

F.I.T(FrequentIndividualTraveler/ForeignIndependentTraveler)impactsmajorsalesenhancingtheeffects

that appeal to guest, because FIT guests need to individually plan their schedule, budget, purchase,

expenses, etc. According to data, Business FITs market share (at 61.9%) is the highest, followed by

BusinessGroup(15.4%),PleasureFIT(7.4%),Airline(5.4%),andPleasurePackage(4.1%).BusinessFITholdsa

remarkablystrongpositioninthehotelmarketsegment.

FIT Group

BusinessBusinessFIT(Corporate) BusinessGroup(Meeting)

Airline(Contract)

PleasurePackage

PleasureGroup(Tour)FIT

Others Others

Table1

TheCompositionofHotelMarketSegment

7/29/2019 8111_1-1

5/17



8111:5

II.THERESEARCHMETHODOLOGY

Basedonthedatafrom2004through2007,thisstudyimplementsanalysison:ratioandfigureofoccupancy,

room rate, corporate, tour,package,meeting andeachF.I.T segment to find the connectivity within the

figures. With this data, a graph was created for the segment ratio of year 2007. As the feature of

irreversibilityshows,hotellocationdoesnotchangegreatly.Inotherwords,segmentalcorrelationanalysis

foryearfrom2004through2007wasfirstcarriedouttoprovethefactthatthiscanbeappliednotonlyto

annualprofitabilityanalysisbuttootherperiods.

2004 2005 2006 2007

GGrraannddHHiillttoonn 99..00%% 1100..33%% 1100..22%% 77..22%%

MMiilllleennnniiuumm 2277..55%% 2277..99%% 3355..11%% 3333..99%%

LLootttteeMMaaiinn 2244..11%% 2266..11%% 2277..00%% 2277..22%%

WWeessttiinn 4411..88%% 4488..77%% 5522..99%% 5544..00%%

PPllaazzaa 3366..33%% 4433..88%% 4422..77%% 4422..66%%

WWaallkkeerrhhiillll 4411..11%% 4411..77%% 3322..33%% 3377..22%%

GG..HHyyaatttt 6611..00%% 6655..66%% 4444..99%% 4400..33%%

SShhiillllaa 4499..55%% 4499..99%% 5522..99%% 5522..66%%RRiittzzCCaarrllttoonn 4488..11%% 5533..33%% 4444..55%% 4433..99%%

MMaarriiootttt 4411..88%% 4488..44%% 3377..22%% 4400..44%%

Table2

MarketSegment BusinessFIT(Corporate)Ratio20042007

Forcloseanalysisonthedetailedratioinyear2007,thisstudyfoundthevalueoftotalF.I.Tpluscorporate

andcarriedoutanalysishowtheratioisbeingcomposedineachhotelasdescribedintheTablebelow.

PleasureFIT BusinessFIT(Corporate) TotalFIT(FIT,Coporate)

GGrraannddHHiillttoonn 1100..55%% 77..22%% 1177..66%%

MMiilllleennnniiuumm 1122..33%% 3333..99%% 4466..22%%

LLootttteeMMaaiinn 1133..66%% 2277..22%% 4400..88%%

CChhoossuunn 2244..44%% 5544..00%% 7788..44%%

PPllaazzaa 77..33%% 3399..55%% 5500..66%%

WWaallkkeerrhhiillll 88..22%% 3377..22%% 4455..44%%

HHyyaatttt 2277..88%% 4400..33%% 6688..11%%

SShhiillllaa 55..99%% 5522..66%% 5588..55%%

RRiittzzCCaarrllttoonn 99..88%% 4433..99%% 5533..77%%

MMaarrrriiootttt 2222..22%% 4400..44%% 6622..66%%

Table3

SegmentRatio FIT(2007)

7/29/2019 8111_1-1

6/17



8111:6

Figure1

SegmentRatio (2007)

The importanceofF.I.T isactuallyshownbythe ratio itshares inthemarketsegmentaswellas inother

sectors.

Hotelshavearoomratepubliclyannouncedperstay.However,eachguesthasadifferentrateuntilheor

shemakesareservationtostayatthehotel.Atthismoment,aguestpaysadifferentamountofadeposit.

Asthenumberofroomislimited,hotelscangetahighernetgainasdepositsgoesup.Thismeansthatthe

highertheroomratesare,thebetteritisforhotelmanagementinthefinancialaspect.Thismayvaryeven

in5starhotels.

Table4

ComparebyRoomRate(2007)

7/29/2019 8111_1-1

7/17



8111:7

Figure2

RoomRate(20042007)

Asshown intheTable4andFigure2,yearonyearhotelroomratesaremakingnoodds,butdifference in

annualnetgainappearedinyear2007.TopthreeofChosun,HyattandShillahavethehighestroomrates,

whereasGrandHiltonhasthelowest.

Thisstudy implementsregressionanalysisontheroomrateandFIT(FIT&Corporate),sincethosefactors

areexpectedtohavethehighestinterrelationshipandbedirectlyconnectedtotheprofit.EventheFITguest

areclassifiedby localresidentsforeigners.Thisstudyperformsfrequencyanalysisonthehotelselection

factorsbasedontheresultofsurveytargetingboth localresidentsforeigners.Theresultofthesurvey is

used for comparison of local residentsforeigners satisfaction on the accessibility. Spatial analysis is

carriedoutlayingstressonthe5starhotels.Toanalyzetheaccessibilityofhotel,anAxialmapcontainingthe

entire roadnetworkbasedon2000Ver.1/1000scalednumericalmapofSeoul is firstprepared forspatial

analysisonthespatialstructure.AnAxialmapofSeoul,drawnwithtotal54,247axialmaps, isdraftedby

AUTO CAD2004 and converted to file to be found its attribute values of spatial space through UCL

Depthmap(Ver.7.12) program.ThisenablesfindingthelocationofhotelsinSeoulwithanAxialLine.

Figure3

AnalysisofSeoulAxialLine&HotelsdistributioninSeoul

TotalIntegration:maximum(0.930),Minimum(0.217),Average(0.624)

AsshownintheFigure3,thedegreeoftotalityofeachhotellocationwasmeasuredwithaxisofmainentry

&exitcirculationineachhotelasitsstartingpoint.

7/29/2019 8111_1-1

8/17



8111:8

Figure4

HotelLocation&IntegrationMasurement

HotelSinla(JangchungDong,JungGu)

Figure5

HotelLocation&IntegrationMeasurement

HotelHilton(HongeunDong,SeodaemunGu)

7/29/2019 8111_1-1

9/17



8111:9

Regressionanalysisisalsocarriedoutforthevalueofthedegreeoftotalityextractedfromtheanalysisand

FIT(BusinessFIT,FITandTotalFIT).Theanalysisstartedwithasurveyforfindingoutthedifference inthe

accessibilitybetweenlocalresidentsandforeigners.SurveytargetingFITguestsrevealedthathotelselection

factors vary depending on whether the guest is a local resident or a foreigner. SPSS Frequency analysis

implementedbasedontheresultofthesurvey,foundthatguestsshowedsignificantresponse inorderof

service,accessibilityandfacility.Thosethreefactorsturnedouttobesharingaslightdifferenceintermsof

importancewhenaskedbyforeignguests.Themainfindinghereisthatbothlocalresidentsforeignersare

givingconsiderablethoughttotheaccessibility.Foreignersturnedouttobeaffectedbyaccessibilityslightly

morewithfiguresof3.62incomparisonwith3.34oflocalresidents.

ImportanceofFITGuest

significanceleve Note

N M SD t p

Service

Local 106 3.44 .39

3.915 .000 ***P

7/29/2019 8111_1-1

10/17



8111:10

independentvariable dependentvariable Analysis

1 CorrelativewithEachyearFITAnalysisofMarketsegment

CorrelationAnalysisofF.I.T

21 FIT RoomRateAnalysisofMarketsegment

regressionanalysisofF.I.T&Rate

22 Location,Integration FITGuest

AnalysisofMarketsegment

SpaceSyntaxAxialLineIntegration&regressionanalysis

23 Location,Integration RoomRate

AnalysisofMarketsegment

SpaceSyntaxAxialLineIntegration

&regressionanalysis

31 Location,IntegrationNumberofGuest

Local&ForeignTourist

AnalysisofGuestinformation


&regressionanalysis

32 Location,Integration

NumberofGuest

UsingHotelfacilities

Local&ForeignTourist

AnalysisofGuestinformation


&regressionanalysis

Table6

Hypothesis&Analysis

Thehypothesisofthisstudymaybesummarizedasfollows.

First,analysisonasingleyearmighthavevalidity,sinceFITratioinmarketsegmentdoesnotchangegreatly

regardlessofthechangingyears.

Second,FITguestandroomratemighthavecorrelation inmarketsegment.Asaresult, locational factors

mightbeaffectedbyFITguestandprofitability.

Third,withregardto thehotelselectionattributes, foreignersmightbeaffectedbytheaccessibilitymore

thanlocalresidents.

III.RESULT

3.1.HotelMarketSegmentAnalysis

Thisstudyanalyzedmarketsegmenttargeting5starhotelsinSeoulforyear2004through2007.Ofthedata,

acloseanalysisontheFITineachyearturnedouttohavelittlefluctuationbothinfiguresandonthegraph.

As a result of performing a correlation analysis using the coefficient, FIT showed little fluctuation

maintainingsimilarratiotopreviousandnextfiscalyear.

Theresultshowsthatananalysisonadataof2007,asingleyear, issufficiently influentialonyearsother

thantheapplicableyear.ThissignifiesthatFIT,unlikeothermarketsegment, ismore likelytomaintain its

salesrecordratio,unaffectedbythemarketingefforts.

Using segmentanalysison theyear2004 through2007andespecially the singleyearof2007, this study

intendstoprovethehypothesisthatFITaffectsthelocationbythefollowinganalysis.

7/29/2019 8111_1-1

11/17



8111:11

22000077 22000066 22000055 22000044

22000077 ccoorrrreellaattiioonnccooeeffffiicciieenntt 11 00..880055 00..882255 00..880033

PPvvaalluuee 00..000055**** 00..000033**** 00..000055****

NN 1100 1100 1100 1100

Table7

CorrelationanalysisofMarketSegment(F.I.T)(20042007)

Point1:**.Aspvalues

7/29/2019 8111_1-1

12/17



8111:12

sharing thehighest inFITwhilecontractandtoursectorsareon thecheapest level.Meanwhile,business

FIT(Corporate)turnedouttomarkthe lowestroomrateofall.Fromtheviewpointofperishability,oneof

thetypicalfeaturesofhotelbusiness,itaffectsthenetgainagainsttheminimumcostforhousekeepingand

depreciation cost per room. This means that the market segment with higher room rates increases

profitabilityofhotel.ThehighertheFITratio,that istosay,themoreaffects ithasonthenetgainmore

thananyothermarketsegment.Whereassegmentswithlowroomratejustincreasesroomoccupancy.This

significance can be portrayed through regression analysis on total FIT and room rate, having 72% of

interrelationshipasavalueoftheanalysis.Thisshowsthatan increaseofFITguestsincreasesthevalueof

theroomrate.

3.3.HotelPositionSpaceAnalysison5starHotelsinSeoul

Foranalyzinghotellocationthroughspatialspace,thisstudyusedaspatialanalysismethodofspacesyntax

formeasuringaccessibilityandvisibility.Priortothe implementationofspatialanalysisoneachhotel,the

entireroadnetworkbasedon1/1000scalednumericalmapofSeoulisfirstpreparedasaxialmaps.Attribute

valuesofaxiallinespatialspaceiscalculated.Valueofspatialspaceforeach5starhotelisusedforcheckingitslocationontheentireaxialmapofSeoul.

Hotel Integration Hotel Integration

RRiittzzCCaarrllttoonn((YYeeookkssaammddoonngg)) 00..888811772233GGrraannddHHaayyaatttt

((HHaannnnaammddoonngg))00..881100448822

JJwwmmaarrrriioott

((BBaannppooddoonngg))00..884499112244

MMiilllleennnniiuummHHiillttoonn

((NNaammddaaeemmuunnrroo))00..669911007744

LLoottttee((SSookkoonnggddoonngg)) 00..883388227799SShhiinnllaa

((JJaannggcchhuunnggddoonngg))00..662266889944

CChhoossuunn((SSookkoonnggddoonngg)) 00..882266662255

GGrraannddHHiillttoonn

((HHoonnggeeuunnddoonngg)) 00..5599336699

SSeeoouullPPrraazzaa

((TTaaeeppyyeeoonnggrroo22ggaa))00..881111003322

WWaallkkeerrHHiillll

((KKwwaannggjjaannggddoonngg))00..556622886644

Table9

IntegrationofEach5starsHotelinSeoul

When itcomestothedegreeoftotalityof5starhotels inSeoul,theRitzCarlton located inYeoksamdong,

GangnamandtheMarriotthotelsaremarkingthebestaccessibilitywithvalueof0.88and0.84respectively.

Incontrast,GrandHiltonandWalkerHillturnedouttobethehotelswith lowestdegreeoftotalityhaving

valueof0.59and0.56respectively inregardtotheaccessibility.The lowestvalueofthedegreeoftotality

ontheentireaxiallineofSeoulwas0.22whilethehighestwas0.93.OverallaverageofSeoulwas0.62.The

study found that most of the 5starhotels in Seoul marked comparatively high degree of totalityand all

thingsconsidered,theyturnedouttobelocatedintheareaofhighaccessibility.However,thedifferenceof

the degree of totality between the sameclassed 5star hotels must be explained as the influence of

accessibility,thelocation.

7/29/2019 8111_1-1

13/17



8111:13

3.4.RelationbetweenHotelPositionandF.I.T

The result of research on the degree of totality targeting 5star hotels in Seoul is as follows. Regression

analysisonthedegreeoftotality,FIT,BusinessFITandtotalFITwasconductedtargeting7hotelsexcluding

10hotelslocatedwithinthehighlycompetitivearea.

TToottaallFFIITT CCoorrppoorraattee FFIITT IInntteeggrraattiioonn RRoooommRRaattee

GGrraannddHHiillttoonn 1177..66 77..22 1100..55 .59 112288991111

MMiilllleennnniiuumm 4466..22 3333..99 1122..33 .69 118833226666

WWeessttiinn 7788..44 5544 2244..44 .83 226622770011

WWaallkkeerrhhiillll 4455..44 3377..22 88..22 .56 220022008899

GG..HHyyaatttt 6688..11 4400..33 2277..88 .81 224499333344

SShhiillllaa 5588..55 5522..66 55..99 .63 224488557733

MMaarriiootttt 6622..66 4400..44 2222..22 .85 119922002233

Table10

TotalResultofEach5starsHotelinSeoul

RR RR22 tt PP

TToottaallFFIITT 00..775577 00..557744 22..559944 00..004499

FFIITT 00..991188 00..884422 55..116699 00..000044

CCoorrppoorraattee 00..444499 00..220022 11..112244 00..331122

Point1:**.Aspvalues

7/29/2019 8111_1-1

14/17



8111:14

3.5.ComparingDeterminantofHotelwithLocal&ForeignTourist

According to surveys, there are different determinants dependant on local & foreign guests. Service,

Accessibility,andfacilitiesareallimportantbasedonsurveyresults.Allthreeresultsuggestthatforeigners

considerthemslightlydifferently.BothLocal&Foreignguestsconsider locationsignificantwhenchoosing

accommodation.However,foreignguests(3.62)areeffectedbyaccessibilitymorethan localguests(3.34).

Theresultofresearchonvariations inGuestNumbersUseofFacilities,RoomOccupancy,andGuestterm

overoneyear,asaffectedbyhotelaccessibility,isasfollows.

GuestNumbersoveroneyear UseofFacilitiesoveroneyear Hotelindex

Foreigner Local TotalForeigner

RatioForeigner Local Total

Foreigner

Ratiooccupancy(%)

GG..HHyyaatttt 6688222211 3311993377 110000115588 5500..11 444488448800 889944227766 11334422775566 3333..44 7733..66

GGrraannddHHiillttoonn 7755554499 3377996655 111133551144 4444..77 110044333322 339977998888 550022332200 2200..88 6677..0099

WWaallkkeerrhhiillll 6677114400 4477556688 111144770088 3377..44 330066772233 11661111776600 11991188448833 1166..00 6633..8833

WWeessttiinn 112277334455 1188224422 114455558877 7711..11 2266338811 9955118822 112211556633 2211..77 8811..2266

SShhiillllaa 117777665544 4499004444 222266669988 6666..22 4411666677 119911009977 223322776644 1177..99 8844..4433

MMaarriiootttt 6611000022 2288331155 8899331177 5577..22 113344555599 660011777755 773366333344 1188..33 8833..6699

MMiilllleennnniiuumm 113377443311 1166005533 115533448844 7711..99 224411449966 336677887766 660099337722 3399..66 8800..3322

Table12

GuestNumberofEachHotel(Local&Foreigner)

RR RR22 tt PP

RatioofForeign

GuestNumber00..996699 00..993388 66..669966 00..000033

RatioofFacilitiesUsedNumber

00..449999 00..224499 11..116622 00..331100

Point1:**.Aspvalues

7/29/2019 8111_1-1

15/17



8111:15

LocalGuest(%) ForeignGuest(%)

1night 24nights More5nights 1night 24nights More5nights

4433..88 3366..33 1199..99 1144..88 5544..33 3300..99

Table14

ComparisonofTerm(Local&Foreigner)

With previous analysis of Regression Analysis of Foreign Guest Ratio, 1night guest(43.8%) is high score.

Eventuallythe localguestvisitforhotelmarketing,promotion,meetingandseminaretc.Itdoesnotmean

determinant for mid or long term travel. On the contrary, 1night foreign guest(14.8%) is low, it means

mostlymidorlongtermstaying.Highaccessibilityhotelsshouldplanamarketingstrategyforforeignguest

typeofmidorlongtermtravel,Conversely,lowaccessibilityhotelsareencouragedtomakeaspecialevent,

marketingandpromotionforlocalguest.

IV.CONCLUSIONANDIMPLICATION

4.1.Conclusion

Duetothenatureofcorporatestrategy,analysisonthesegmentalhotelmarkets isneveraneasyprocess

evenforpeoplewhomakealivinginthefieldofhotelbusiness.However,hisstudygavemeanopportunity

tobetterunderstandthemarketsegmentofthehotel industry.Consideringthefeatureofhotelbusiness,

thisstudysuggeststhatacloseinvestigationontheweightandimportanceofFITshouldbeimplementedby

thecorporateoperatingthehotelbusiness.Inaddition,analysisfoundthatFITisaffectedbytheaccessibility,

whichmeansthatthisfactordirectlyaffectstheprofitabilityofhotel.

Theresultofanalysiscanbesummarizedasfollows:

First,theratioofFITguestsinmarketsegmentdoesnotchangegreatlyovertime.

Second,thenumberofFITguestshasacorrelationwithroomratebymarketsegment.

Inotherwords,thelocationofahotelaffectstheFITguestanditsprofitability.

Third,hotelselectionfactors:Foreignersaremorelikelytobeaffectedbyaccessibilitythanlocalresidents.

This studyproved the importanceofFIT through the implementationofanalysison themarket segment

towardhotelprofitstructure.TheinfluxofFITguestsandroomrateturnedouttobeaffectedbythedegree

oftotality.Also,thestudyrevealedthatthere isadifferencebetweendomesticandforeigntouristshotel

selection. Inacorporateposition, it issuggested thattheselectionofhotel locationand theoperationof

hotel business should be made thorough objective analysis on the previous hotel market. By providing

objectivesuggestions,thisstudywillhelpinselectingalocationandanalyzingaccessibilityforhotels,culture

& tourism accommodations and especially the city business type, residence hotel or offices targeting

7/29/2019 8111_1-1

16/17



8111:16

foreigners.Also,thedifferenceinlocalresidentsandforeignerspreferencetowardaccessibilitywillsupport

existing hotel companies to establish an optimum marketing strategy by understanding its strength and

weaknesses.Theapplicationofspacesyntaxforspatialanalysis,whichwasmainlyusedforcityplanningand

architecture,willprovide the tourismsector thepossibilityofenhancingconvenienceandaccessibility for

culturaltouriststhroughquantitativeobjectiveanalysisonthespatialspace.

4.2.Implication

Basedonthisstudy,whichanalyzedthesalesofhotels,Iexpectmanyfollowupstudiescanbededicatedto

thestrategic indexofhotelcompaniesbycoveringall relevant segmentsother thanFITconsideringboth

marketingandaccessibility.Astudyfocusingonthevariablesofhotelslocatedwithinthehighlycompetitive

areamustbe fulfilledusingspacesyntaxaswellas factorsused inthisstudyfor intensiveanalysisonthe

areawheretourismattractionsandhotelsareconcentrated.Ihopefurtherstudiesonawiderangeofhotels,

officesandresidencehotelsinothercitiesotherthanSeoulareabletobefollowedinthefuture.

Whilethisstudyhasadifferentsignificanceasanewtrialinasituationthatthetourismsectorisstilllacking

instudiesonthespatialanalysis.Manyfurtherstudiesinthecultureandtourismsectorsshouldbecarried

outfollowingtheprecedentactivitiesutilizingspacesyntaxindevelopingspace,tourismattractionandtour

packagefortouristbyrecognizingthepossibilityofstudyandmanyfurtherassignments.

ThisResearchwassupportedfrom2ndBrainKorea21projectofthegovernmentofKorea

REFERENCE

Kim,DoHyeon(2007).AStudyoflocationfactorsaffectingsalesindepartmentstore

Seo,JiMin(2002).AnapplicationofAnalyticHierarchyProcesstoselecttheHotelSite

Han, Yoeng Su & Kim, Pil Doo(2005). A Plan for Building up the Cultural and Sightseeing Town as the

CompanyTownn

Choo,ChangKon&Rhee,HyounHo(2004).AStudyontheSpatialConfigurationofHotelLobbyintermsof

GuestandStaffArea

InHeaLee&YoungOokKim(2009)TheEffectofSpatialConfigurationandLandUsePatternonLandPrice

Formation

Ko,HoSeok&Park,KwanSoo(2001).AStudyontheChoiceAttributesofForeign IndependentTouriststo

MediumandLowpricedAccommodations

Goo,JungDae&Kim,MeeKyung(2005).TheRelationshipsofRoomBusinessIndexandRoomRevenueinthe

HotelCompanies

Kim,JeongHoon(2002).AstudyonthedecisivefactiorinthechoiceofhotelF.I.Tguest

7/29/2019 8111_1-1

17/17



8111:17

Lee,KwangWoo(2003).ResearchofHowLocationofHotelMayAffecttheirRelationshipswithGuests Only

fortheFITguestsin5starHotelinSeoulCity

Yoo,KwangMin&Kim,Nam Jo(2009).TourismResourceDevelopmentStrategiesUsingSpaceSyntax A

caseofYooyangdong,YangjuCity

Lee,SangHyun&Li,GuangZhe(2007).APredictionontheMovementFrequencyinaSpatialStructureUsingtheSpaceSyntax:throughConsideringtheRouteCharacteristics

Joo,JangKeon(1999).Hotelplanning&Design

JamesF.EngelandRogerD.Blackwell(1989). ConsumerBehavior,4Thed.TheDrydenPress.

S.Medrik(1980). TheBusinessofHotel,Heinmann,London.1314

BonnieJ.Knutson(1988).FrequentTravelers:MakingthemhappyandBringingThemBack,TheCornellH.R.A.

Quarterly.84

RobertC.Lewis(1984).IsolatingDifferrencesinHotelAttributes,TheCornellH.R.AQuarterly.69

8111_1-1

Documents

Transcript of 8111_1-1