Introduction Hospitality Marketing

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INTRODUCTION HOSPITALITY

MARKETING

TOPIC - I


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In 1950s, hotels in US began to change, driven

by changes in the society around them:

1. Population growth


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2. Longer life span

Not only did the population grow, it became

older and these new families started

relocating.


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3. Improved incomes

Family incomes improved.


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4. Increased leisure time

Additional legal holidays were given to workers.


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5. Expanded highway system

Soon became an important factor in the no: of Americans

traveling, both for business and leisure. It also helped the

local travel simple.

Vehicle registration grew phenomenally and Americans

took to the roads in great nos.


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6. Development of suburbs

As a result, new residential neighborhoods were

established in the suburbs which were followed by

retail shopping centers, office buildings, and

recreational and entertainment facilities, all of which

attracted increased traffic and the need for

accommodations and meeting space.


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7. Increased air travel

Air travel also became a commonplace part of

the American business and leisure scene.


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8. Convention center expansion

The 1950s and 1960s ushered in a booming US

economy. As businesses grew, business people

needed facilities for convention and meetings.


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8. Convention center expansion

As businesses expanded into the suburbs or outgrew

the limited facilities of the smaller convention

centers, there was a boom in the construction of

convention hotels, both in the cities and in regionaland resort destinations.


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What does these factors have to do with

hospitality Sales & Marketing?


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The answer is simple : everything !


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Changing times had a great impact on the hospitality

industry, and the industry had to evolve

tremendously to meet the new challenges posed by

a changing society.


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To meet the demands of road travelers in the 1950s,

the industry responded with development of a no: of

chain properties: Holiday Inns, Ramada Inns, Howard

Johnsons, and Travelodge were among the lodging

pioneers along interstate highways.


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Each of these chains introduced its own standardized

designs, amenities, services, and referral networks;

each became easily recognizable (both in terms of

service and market image) in the eyes of the

traveling public.


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The growth of these and other chains coupled with

developing technology ushered in the first toll-free

reservation systems in the 1960s, a decade that also

introduced the first budget hotels.


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These back to basics budget properties did not come

into great prominence until the 1970s, when

runaway inflation, fuel shortages, and budget

cutbacks on the part of many companies resulted in

an unprecedented belt-tightening among travelers.


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1980s have also changed the face of the hotel industry,

a no: of large convention hotels such as the Las Vegas

Hilton, the New York Marriott Marquis, the Hyatt

Regency Maui.


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Even small hotels are catering to the business traveler

with executive floors, business services, and fitness

amenities that were virtually non-existent ten years

ago.


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Todays Hospitality Trends


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Current and emerging economic, social, and political

trends can greatly affect future demand for

hospitality services, and must be identified before a

property can position itself competitively in the

market place.


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TRENDS

It includes;

1. Computers

2. Distribution method

3. Media planning


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TRENDS

4. Competition

5. Guest preferences

6. Product segmentation


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1. Computers

Use of computers has revolutionized central

reservations systems and has provided direct link to

travel agents and airline reservations systems for

instantaneous verification of room arrangements.


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1. Computers

It plays an important role in areas as diverse as

generating marketing data bases (both for current

and future guests), following up on sales efforts, and

sending personalized sales letters.


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1. Computers

It is also an indispensable tool for managing research

information, generating monthly reports, and

planning sales & marketing efforts.


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2. Distribution method

New distribution technology will not be limited to

third-party suppliers. Direct-to-the-consumer

technology is now being developed that will permit a

potential guest to buy flight and room packages in

the comfort of his or her home through internet.


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3. Media planning

Media planning plays an important role hospitality

sales & marketing. Earlier we had only few media

options. Today its wide open print and broadcast

media, internet !!


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3. Media planning

With wide range of media choices, audiences have

become smaller, it has become necessary to

narrowcast advertising. Marketers must develop

advertising and promotions that appeal to specific

markets.


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4. Competition

The changing competition is another important

consideration in todays marketplace. More hotels

are seeking affiliations in order to compete with large

chains, who have the budgets and the clout to

command a large share of the hospitality business.


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Todays guests are more sophisticated, more informed,

and know exactly what they are looking for. These

experienced traveler wants value, but services and

amenities are important too.


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Because of changing guest preferences and the

addition of new market segments (SLT Single Lady

Travelers), properties have had to re-evaluate their

target markets and reposition themselves to be more

competitive.


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This has led to perhaps the most important

trend in todays marketplace: product

segmentation or product categories.


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PRODUCT SEGMENTATION


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It is designing, building, and/or marketing

hospitality properties for a specific market

segment.


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Hospitality Product Segment

1. Luxury

2. Mid-priced

3. Budget


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Now there are segments within these segments,

and hotels are creating brand images and

names to distinguish their properties from

competing properties.


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Today, product segmentation has taken three

basic forms:

1. Tier or niche marketing

2. Hotels within hotels

3. All-suite hotels


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1. Tier or niche marketing

Tier marketing was established as properties

became aware that there was an increasing

no: of market segments with varying

preferences and budgets.


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Quality Inns was the first chain to adopt a multi

tiered marketing strategy ,and introduced ComfortInns (budget properties) Quality Royale (upscale

properties) to compliment its mid-priced Quality Inns

product.


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The other chains quickly followed this, some by

developing different brand names to attract new

market segments, others by buying existing chains

(as in the case of Holiday Inns, which purchased

Granada Royale Hometels )


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What were the reasons for this sudden

diversification of hospitality properties?


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The recognition on the part of some chains that

additional markets needed to be targeted in order

to meet the goals of aggressive growth plans.


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The need to identify the variations in

facilities, price and service between

properties within a chain.


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The chains attempt to instill brand loyalty

in their guests, a strategy that has long been

used in the sale of consumer goods.


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The trend toward upscale and economy properties

The fact that many mid-priced properties were

finding it difficult to compete because of their age

and condition.


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With so many hotel chains the diversifying to

reach as many market segments as possible, it

is important that a chain make the

distinctions among its properties clear.


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The Radisson hotel chain, for example, uses

different names to distinguish its properties:


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Radisson Plazas are deluxe facilities

featuring a minimum of 250 guestrooms and

40-50 square feet of meeting and function

space per guestroom.


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Radisson Hotels feature a minimum of 200

guestrooms and 50-70 square feet of meeting

and function space per guestroom


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Radisson Inns cater to the roadside traveler,

and have a minimum 150 guestrooms and 30-

40 square feet of meeting and function space

per guestroom .


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Radisson Resorts are designed to serve

incentive groups and high-class meetings with

a minimum of 200 guestrooms and 45-50

square feet of meeting and function space per

guestroom.


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These properties are promoted differently, but

are promoted to generate a brand loyalty

in this case, a brand loyalty to Radisson

properties.


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Brand loyalty has been used in other industries, such as

automobile industry, for years, and involves

capturing the consumer and moving him or her

up to the next product tier as wants and desires

change.


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In the case of automobile industry, for example, a

young man might purchase a Ford Escort for his first

new car, then later graduate to a Ford Taurus as his

family grows.


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As his career and salary rise, he will, if he remains loyal

to the Ford brand, choose another Ford product

a Lincoln or Thunderbird over other luxury cars.


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Hotels Within Hotels

Product segmentation is not limited to chains

acquiring or building different types of

properties.


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The hotel within a hotel concept has proved

popular, especially with upscale guests who

appreciate having a club or floor reserved

exclusively for their use.


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Sheraton and Hilton hotels offer Tower sections, Hyatt

promotes a Regency Club, and Marriott offers a

Concierge (care-taker) level. Other properties also

promote business clubs, floors, and/or services.


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All-Suite Hotels

This has become an integral part of the hospitality

industry, and appeals to value-conscious travelers

who do not want to pay for extra amenities they

would not use at a traditional hotel (a lounge,

swimming pool, health club, and so on), as well as

travelers who enjoy the extra comfort a suite can

provide during extended business or pleasure stays.


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THE NEED FOR PROPERTY/HOTEL

MARKETING


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For years the hospitality industry focused on

selling guestrooms and other services and

facilities. In todays sophisticated marketplace,

however marketing has become the

buzzword;


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What is the difference between marketing and

sales ?


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Marketing is basically the study and management of

the exchange process.

It involves those things that the property will do to

select a target market and to stimulate or alter the

demand for the propertys services.


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While marketing includes sales, it also involves a no: of

other factors: research, action strategies, advertising,

publicity, and sales promotion, as well as a means to

monitor the effectiveness of the marketing program.


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Sales consists of direct efforts to sell the property by

personal contact, telephone, and mailings. It is

important to note that the sales process has been

changed considerably by new marketing concepts

that focus on what consumers want rather than on

what the property has to sell.


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Example : the establishment ofno-smoking rooms in

response to requests from health-conscious guests.

Because of marketing research, more properties are

developing features for sales people to sell, rather

than just trying to sell existing features.


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Marketing Focuses Vs Sales Focuses

M Market analysis, planning and control.

S Field work & desk work to sell to consumers.


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MLong term trends, how to translate problems and

new opportunities into new products, markets, and

strategies for long term growth.

SShort term considerations, such as todays

products, markets, consumers, and strategies.


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MProfit planning, such as determining the

appropriate mix of business from individual market

segments.

S Volumes and quotas, current sales, bonuses, and

commissions.


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Marketing, then, focuses on the researching of

trends and the development of successful

sales techniques and efforts.


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Successful sales of the property depend on effective

strategies, which can only be developed by focusing

on market variables the environment

(uncontrollable or external variables), and

controllable variables inherent in the property (the

marketing mix)


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THANK YOU


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difference between hotel and resort,


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hotel as a product,


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elements of marketing,


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market segmentation,


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benefits and needs of segmentation,


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types of segmentation,


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basic operations and functions of a hotel and a

resort,


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Market segmentation in the hospitality industry

and how it differs from product segmentation

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Introduction Hospitality Marketing

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