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  • Subject area(s): Marketing
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  • Published on: 14th September 2019
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The hospitality industry is one of the largest industries in the world, it is a broad category of fields that includes various service focused fields. Even during tough times that the world has been facing for the past few years, the hospitality industry is still continuing it's growth on a steady pace. This is due to the fact that people always are in need to take some time off their busy schedules and still are looking for ways to relax and get out of the routines.

Motivation is a dynamic process in which by using psychological, social, economical and administrative ways and means certain needs and targets in an enterprise are achieved. A persons motivation is growing when:

• his own individuality is noticed

• if the process and the workflow is understood

• if the work is suitable for not only his professional qualification but also his needs are met

• if by educating himself the person gets satisfaction

• if the culture of the enterprise is similar to a persons morale and values

• if the salary is reasonable

Humans are constantly motivated when their intends become real and also the other way around.    [Forand, 2011]

According to Abraham H. Maslow who suggests that motivation can be explained with five interdependent levels of basic human needs (motivators) that must be satisfied in a sequence starting with the lowest level and continuing upwards till every single need is satisfied. The first and most crucial, fundamental and most pressing are the physiological needs for survival (to stay alive and reproduce) and security (to feel safe). They are followed by social needs (for love and belonging) and self-esteem needs (to feel worthy, respected, and have status). The final and highest level needs are self-actualization needs (self-fulfillment and achievement). The theme underlying is that human beings are never satisfied beings, as we are striving for something, we think that if we get it, our needs will be satisfied and we will be happy, however when we eventually get the thing that we were after soon new needs and wants arise and we are not happy again because we are in need for something else that in our minds will fulfill our needs and make us happy however actually this is a nevernending loop. In personnel motivation thus, this theory is making it a little bit easier to understand the employees and find ways to motivate them to stay in our enterprise longer because every employer whether consciously or unconsciously is striving to get the best and most professional employees within his enterprise, because success in hospitality industry is however still based on the customer satisfaction.  [Maslow, 1943]

1.1. Hospitality industry

Hospitality industry is different from other economical sectors because it is closely connected to many other industries and their products. This is why it is impossible to identify the industry as an autonomic, separate industry and determine it's economical investment. The hospitality industry for years has been the one industry experiencing continuous growth in size, revenue and demand. It is also one of the industries providing the most job positions in the world. []

Chart 1.1  World industry distribution

Hospitality as a sphere of services is getting bigger with every year and thus is helping other hospitality related industries in growth. Hospitality has already become one of the most notable economical sectors of the European Union. There are approximately 2 million hospitality related enterprises in EU and mostly they are small and middle sized. These enterprises generate up to 12% of total GDP, provide 6% of employment and 30% of external trades.  The analysis of tourism development in EU during the past 20 years shows that the count of lodges has increased by almost 64%, while the population only by 6,2%. The global forecast says that by the year 2020. three of the most popular tourist destinations will be Europe (717 mill. of tourists), East Asia and Pacific Ocean region (397 mill. of tourists) and USA (282 mill. of tourists).     [Forand, 2011]

1.2. Statistics and data

International tourist arrivals were 880 million in 2009. The European region continues to attract the largest number of tourists, accounting for around 52% of total traffic in 2009. The Asia Pacific and Americas follow with shares of 21% and 16% respectively. France, USA and Spain were the top three tourist destinations in 2009; China and Italy rank fourth and fifth respectively in terms of tourist arrivals.

International tourist receipts were down 5.7% in 2009. Europe continues to draw the highest amount of total receipts, accounting for 49%; the Asia Pacific and Americas formed around 24% and 19% respectively. USA, Spain and France were the top three earners during 2009 in that order; Italy and China ranked fourth and fifth respectively.

[Forand, 2011]

In Latvia, according to the data of Latvian Bank, in year 2009  Latvian border was crossed by 4,7 million foreign tourists in total which is by 14% less than the previous year. In result the income from foreign tourists also was decreased by 15% generating a revenue of approximately 480 million EUR. In year 2009 most tourists came from:

• Lithuania – 14%

• Russia – 12,4%

• Sweden – 10,9%

• Estonia – 10%

• Germany – 8,9%

• Finland – 8,6%

Data shows that more than half of the foreign tourists travel from these countries. [Forand, 2011]

Year 2009 was the last year Latvia experienced a decrease in demand for hospitality industry. Year 2014 has been the fifth year in a row when count of visitors for hotels and other accommodation establishments has grown. Despite negative trends and political tension, Russian and CIS country tourists continued to constitute a significant part of accommodation industry clients. Positive visitation dynamics were significantly supported by continuous development of tourist attractions and big public events (e.g. the World Choir Games, Riga as European Capital of Culture in 2014) taking place throughout the year. During the first three quarters of 2014, the Riga hotel market saw a number of openings, which increased the total stock of 4-star hotels by 401 rooms.   [Central Statistical Bureau]

Table 1.1 Distribution of Hotels by Number of Stars in Latvia

During the first three quarters of 2014, the number of people serviced by Latvian hotels and other accommodation establishments experienced positive growth. A total of 1.68 mln visitors were serviced by the Latvian hotel industry, among which 1.15 mln or 68.6 per cent were foreign visitors. The total amount of visitors in the first three quarters of 2014 grew by 14.9 per cent and the amount of foreign visitors grew by 15.2 per cent compared to the same period in 2013. Russian, German, Lithuanian and Estonian visitors accounted for half of all foreign visitors in the first three quarters of 2014, with Russian visitors alone standing out with 21 per cent. As compared to the same period in 2013, in the first three quarters of 2014 the number of visitors from Great Britain grew by 43 per cent, German visitors - by 36.9 per cent, Belorussian visitors - by 26 per cent and French visitors by 24.4 per cent. Even so, the average number of nights spent by foreign visitors in a hotel or other accommodation establishment decreased from 2.1 in the first three quarters of 2013 to 2.0 in the same period in 2014. The leaders in terms of hotel stays were visitors from Belorussia with 3.1 nights spent per visitor, the USA with 2.4 nights and Russia with 2.2 nights. Compared to the previous year, in 2014 visitors from Estonia, Lithuania, Germany and Poland spent on average more nights in Latvian hotels and other accommodation establishments. The decrease in average nights' stay is affected by business trips, which typically last just one day. The positive visitation dynamics were significantly supported by continuous development of tourist attraction objects and big public events taking place throughout the year. Remarkable events that contributed to tourist inflow were the Nordea Riga Marathon, the World Choir Games, the New Wave song festival and the Riga city promotion programme presenting Riga as the 2014 European Capital of Culture. However, hotels continued to suffer from seasonality of demand, with high seasons reached in winter holiday time and in May - August and a low season observed in the second half of January and February. [Central Statistical Bureau]

Chart 1.4 Distribution of Foreign Visitors by Country of Origin

1.3. Motivation

Motivation is considered to be the internal and external factors that stimulate desire and energy in people to be continually interested and committed to a job, role or subject, or to make an effort to attain a goal.

Motivation results from the interaction of both conscious and unconscious factors such as:

• intensity of desire or need

• incentive or reward value of the goal

• expectations of the individual and of his or her peers.

These factors are the reasons one has for behaving a certain way      [Maslow, 1943]

It is understood that the for the best results the employer must find out what is the best motivation for each and every single one of his employees. To motivate others is to make them move in a desired direction to achieve a defined target. Employees are the most valuable organizational resource however at the same time the only resource that can take action against the organizations target. Because of this it is needed to invest in making use of their energy for the good of company. Employees must be motivated not only in economical way but also with good relations and a show of appreciation.  [Praude, 2001]

Explanations of motivation in scientific literature from different authors also vary:

• group of factors that determine the behavior [Madsen, 1959]

• process of a particular action regulated by psyche [Magomed-Eminov, 1998]

• mechanism that determines the movement and development of a specific action     [Gidarian, 1976]

• complex of factors that determines the activity of a personality, needs, drives, situative factors and the behavior of a person [Zanuk, 2001]

• dynamic process in which by using psychological, social, economical and administrative ways and means certain needs and targets in an enterprise are achieved [Forand, 2011]

According to A. H. Maslow people possess a set of motivation systems unrelated to rewards or unconscious desires. Maslow stated that people are motivated to achieve certain needs. When one need is fulfilled a person seeks to fulfill the next one, and so on. The earliest and most widespread version of Maslow's hierarchy of needs include five motivational needs, often depicted as hierarchical levels within a pyramid.

Maslow posited that human needs are arranged in a hierarchy: “It is quite true that man lives by bread alone — when there is no bread. But what happens to man's desires when there is plenty of bread and when his belly is chronically filled? At once other (and “higher") needs emerge and these, rather than physiological hungers, dominate the organism. And when these in turn are satisfied, again new (and still “higher") needs emerge and so on. This is what we mean by saying that the basic human needs are organized into a hierarchy of relative prepotency”

The hierarchy of needs:

• 1. Biological and Physiological needs - air, food, drink, shelter, warmth, sex, sleep.

• 2. Safety needs - protection from elements, security, order, law, stability, freedom from fear.

• 3. Love and belongingness needs - friendship, intimacy, affection and love, - from work group, family, friends, romantic relationships.

• 4. Esteem needs - achievement, mastery, independence, status, dominance, prestige, self-respect, respect from others.

• 5. Self-Actualization needs - realizing personal potential, self-fulfillment, seeking personal growth and peak experiences.

The deficiency, or basic needs are said to motivate people when they are unmet. Also, the need to fulfil such needs will become stronger the longer the duration they are denied. For example, the longer a person goes without food the more hungry they will become. One must satisfy lower level basic needs before progressing on to meet higher level growth needs. Once these needs have been reasonably satisfied, one may be able to reach the highest level called self-actualization. Every person is capable and has the desire to move up the hierarchy toward a level of self-actualization. Unfortunately, progress is often disrupted by failure to meet lower level needs. Life experiences, including divorce and loss of job may cause an individual to fluctuate between levels of the hierarchy. Maslow noted only one in a hundred people become fully self-actualized because our society rewards motivation primarily based on esteem, love and other social needs.  [Maslow, 1943]

2.1. Organizational structure of Front Office in the enterprise

Organizational structure of the hotel “Konventa Seta” is simple and pretty much the same as most of the hotels in the industry. To have the basic overview and to understand it more easily here is a presented chart of the structure.

Chart 2.1 Organizational structure

As it can be seen in the table, receptionists and front office is in the middle of everything. Technicians and housekeeping report to receptionists and housekeeping manager, therefore reception clerks report to Front Office manager also communicating with the reservations office and housekeeping manager and those later on report to General Manager who also is giving and receiving information from Public Relations and Marketing.  All the communication is done using direct communication, phone and property management system “Fidelio”. The link between the reception and technicians is a journal where reception clerks mark the problem and technicians check it and take the needed action.  

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