Hotel Marketing - Case Study Example

Hotel Marketing Hotel and tourism is one of the most empowered industries in the society today. However, at the break of the worldwide financial crisis, handling the situations related to the said matter became much harder to take into consideration among businesses included within the said industry. Among the most affected factions of the said industry is that of the flourishing number of hotels around the world. From at least 65% of market share, hotels and resorts now receive only 54% of market share in the global trade. People travel less and choose to save more on vacations and other travel activities. How then could the tourism industry survive this challenge? In the case that follows, an understanding on how PDR Hotel and Resort businesses could be well marketed to the world so as to increase its profit share in the market. With the marketing approaches to be suggested, it is expected that the management and the marketing department of the said business organization would find better ways to make it easier for them to penetrate the worldwide market of travelers. How would the purchase of an old hotel, Mortloch affect the increase of profit in the business? How could this hotel be better marketed to travelers considering its location and its facilities? All these shall be given considerable explanation within the paper that follows. HOTEL MARKETING: Handling the Marketing Needs of PDR Hotels and Resorts To Increase Annual Profit Gains Introduction Hotel and resorts are one among the many factions of worldwide tourism industries. From the break of the early 1990’s, people began to have interest in traveling around the world for many reasons. The peak seasons for the said travels increase in market influence every year giving better chances to businesses operating within the said industry to gain higher level of profit. For this particular case, one hotel and resort business shall be considerably observed, the PDR Hotels and Resorts chain of tourism facilities. To know more about the case, the next section shall introduce the organization further. About the Business PDR Hotels and Resorts is a world-renowned travel destination for many tourists around the world. Being a luxury hotel usually known to be situated in primary areas of every location where they are situated in, PDR Hotels and Resorts hold a strong sense of market control in terms of attracting travelers to book in their facilities found mainly in the United Kingdom, Dublin, Paris, New York, Moscow, Dubai, Singapore, India and the USA. Being well-distributed around the globe, PDR Hotels and Resorts already hold a strong and unbreakable reputation in the field of travel and tourism operations. However, as the market also changes the level of their demands from the said industry, PDR administration decides to go beyond the usual and traditional culture adapted by the organization in terms of locating their branches. Recently, the administration decides to buy a property located at the outskirts of a city. Hotel Mortloch is an old yet operating hotel that used to be recognized as a major destination for royalties during the time of its peak operations. Today though, the owners of the facility simply had other priorities to actually focus on the development of the area. Hence, PDR administration decides to take on the responsibility of reviving the reputation of the Mortloch hotel through buying the property and making it a part of their worldwide chain of operating hotels and resorts. However, approaching the need to market this particular new facility may not be as easy as 123, it should be observed that unlike other PDR branches, this is located far from the center of the city. Besides that it has old facilities, major renovation needs to be done so as to mix the facilities of the hotel with that of the traditional appearance of PDR buildings around the globe. How then should this challenge be handled successfully? All the departments of operation of the PDR hotels and resorts team shall be involved directly in the process of reviving and marketing the Mortloch Hotel as part of the growing chain of facilities of the PDR hotels and resorts around the globe. Who to Market to? First thing to consider in the process are the clients to whom the hotel should be marketed to. This particular phase of the decision shall be able to outline the other operations needed to be considered in making Mortloch hotel an ideal part of the PDR chain of operating facilities. Below is a list of possible primary target market for the hotel. It is believed that through considering the following groups of clients, Mortloch would rather be one of the most unique and even the most powerful branches of PDR hotels and resorts in terms of market attraction. (a) Frequent Travelers: This particular group of guests may include those who are aiming to visit different areas around the world for relaxation and vacation purposes. It should be remembered that businessmen who are staying only for a few days and are in need of near-city destinations are not included in this group. Because of the location, families or even retired individuals who have made it a hobby to travel would make a great choice of market for the operations of the Mortloch hotel to penetrate. (b) Regular Customers There are some regular customers of the PDR hotels and resorts who could be given a chance to take consideration of a discounted trip to Mortloch to experience the kind of service and relaxation that the said hotel could offer them. This may appear to be one of the marketing strategies that PDR would use to attract good feedbacks from the regular customers, thus making use of the “word of mouth” system of marketing in a much effective manner. (c) Companies and Staffs Since the area is far from the city, Mortloch could serve as a retreat facility that is best for staff team building activities. With the recreational areas as well as function rooms that are to be installed within the original operating facility of the Mortloch hotel, the area would be a great attraction for companies aiming to refresh their employees through nature away from the city’s busy streets. (d) Marketing for Special Occasions and Exceptional Events Weddings, Anniversaries, special business occasions and other remarkable events that needs to be given way could be held at the Mortloch hotel as the area’s location is best for those wanting a more serene and exclusive celebration of the whatever occasions that they would like to take notice of. These groups of clients are noted to be the target market for the Mortloch hotel. Through the descriptions given, Mortloch would be presented to these clients as a perfect get away destination for those who would simply want to rest themselves away from the hustles and bustles of the city and experience a relaxing way of rejuvenating their senses through nature and luxury altogether. Of course, even though Mortloch would become a very distinctive branch of the PDR chain of Hotels and Resorts, it should still connive with the reputation of the organization as a luxury destination, hence making natural ambiance connect with luxurious relaxation would be the main theme of the marketing approach to be used in this particular branch of PDR. What to Market? (a) New and Improved Man Power Services To be able to market the hotel successfully, it is important to consider manpower. Everyone in the staff that shall be sent to the Mortloch hotel to work for PDR should be well trained based on the operations that the hotel would be offering to the target clients. Being a special branch, Mortloch hotel operations could include nature activities such as eco-walk. Activities such as this, needs some special attention. Hence, to operate well for this matter, it should be recognized that the need to train staff to handle such activities is a must. Besides that regular staff who are to work in the hotel also needs to be trained so as to help them familiarize themselves with the area. (b) Improved Facilities Mortloch is a known yet old hotel. Upon purchase, PDR surely knew that they would need to consider some renovating activities that would rather bring in better appearance as well as better operating facilities to the hotel. These primary renovations would likely be the main attraction of the marketing. The facilities could include sports areas, wide function rooms [both indoor and outdoor], gym or other recreational stations, spa centers, small boutiques and shops to be located just near to hotels to allow the clients buy their supplies even when they are far away from the center of the city. (c) New Travel and Hotel Stay Packages With a far away location, it is important to offer the target clients with considerable packages that are sure to make their stay in the hotel worthwhile and the place worthy of returning to. These travel and stay packages could include free service from the city’s center to and from the hotel, item freebies; or for special occasions, food and activity area packages as well as room availability bookings; for companies aiming to provide team building activities to their staff, a package of reasonably priced room offers along with the use of the facilities and special attractions of the hotel such as the eco walk or the use of the function halls could be well included in the package offers. Focusing on what the target clients might need during their stay is considered to be among the most valuable approaches to marketing the Mortloch hotel to the target guests. Improving everything to the taste of the target market is essential for ensuring that the hotel operations of Mortloch would surely be able to attract the interest of the clients that they are aiming to primarily serve. Where and How to Market? Approaching the where and how of the marketing approach to be used for Mortloh is easy ones the target clients are already identified. (a) Sending Personal Letter to Owners of Companies Letters of invitation are to be sent to company owners as well as top managers to give them an idea of the package for employee training and team building activities are to be stated in the letter so as to give the said authorities an overview of what they are to expect from the hotel and the staff as well that would surely interest them in making viable reservations for the said offers. An explanation as to why they should choose Mortloch hotel as a destination for their activities shall also be included in the letter so as to give them a reason to consider the trip and be focused in making this business adventure a remarkable activity for everyone. (b) Advertising through the Internet The Internet is the most powerful medium for advertising today. Although the past have already placed a strong impact on how the people viewed business operations done through the Internet, several business enthusiasts never ceased finding ways by which they would be able to attain success within the said industry. Many among the business owners around the world still believe in the benefits that investing in online business ventures would naturally bring their organizations. As for a fact, the said situation is quickly becoming a trend both among organizations that are already established and the business and even those business entities that are just starting to join the said competitive industry. Most of the benefits that the said system of business transacting has mainly attracted investors as well as stockholders in making a great decision of joining in the process of industrial change though the innovative integration of technology within the system. To understand this claim further, a diagrammatic presentation shall be shown herein: Diagram 1: Efects of Information Technology in the relationship between clients and business organizations Diagram Analysis: From the presentation made above, it could be observed that the reason behind the business entities joining the band wagon of taking advantage of the provisions of science and technology in the modern society is indeed worthwhile. As it could be seen, the five major effects that have been presented through the diagram actually directly affect the growth rate of the organizations in a modern society. This is indeed an attractive provision that IT could ever offer business entities. For Mortloch hotel, utilizing the internet to collaborate easier with the clients aimed to be attracted to the packages of travel and stay that the hotel offers is indeed a huge step towards global invitation of visitors to come and check what Mortloch hotel is ready to offer its clients and guests. Other Considerations to Make (a) Cost and Expenses The primary cost for renovation and the training of the staff are to be considered seriously. Through making the best out of what is already in the hotel and fixing what needs to be fixed could well help in the process of controlling the expenses for the said operation. It should be realized that whatever amount of money is released for this operation should be assured to gain back from the operations of the hotel to make all the changes worthwhile. (b) Training Needs for The Staff With the new facilities and the new approach to marketing [internet-based], training of the staff is certainly needed. Handling Mortloch hotel would be a much special approach to operations that PDR shall take into consideration. Hence, considerable training for the staff could be well given attention to by the organization. Summary and Conclusion Ideally, tourism is a win-win arrangement. The consumer escapes his normal routine and is pampered, entertained, or educated. But what is in it for the providers? International tourism is a ready generator of foreign currency. Most countries need foreign currency to pay for goods and services that they must import. Government revenue accrued from tourism is being used to improve infrastructure, provide higher standards of education, and meet other pressing national needs. Virtually all governments are concerned that their citizens have employment. The jobs generated by tourism help meet this need. When international tourism began, the experience of visiting a foreign country was rare enough to satisfy many travelers—this despite the hardships of travel at the time. Today, however, mass communication allows many to sample far-off destinations on television without leaving the comfort of their home. Resorts are thus now challenged to make an actual visit an outstanding experience while providing the comforts of home or better. Additionally, since many tourists travel frequently, destinations often compete globally. The effect of tourism on the environment, the impact on indigenous cultures, the compatibility of the goals of profit-oriented resorts and mega-resorts with the national objectives of the host countries—these are some of the often competing concerns that will have to be balanced in the days ahead. In recent months, concerns about safety and security have taken a serious toll on the travel industry, and these must eventually be addressed. How they will affect the growth of modern tourism in the long run remains to be seen. In this case, the PDR Hotels and Resorts has again been presented as a well diversified chain of operations that simply aim to provide diversified clients with the services that they need from the organization. Purchasing the Mortloch hotel was only the beginning of this diversification. Marketing the location and the facility itself is another side of the story. With successful operations handled though, it could be expected that this branch could well become one of the most unique branches of the PDR Hotels and Resorts group around the globe. References: Tourism Principles and Practice, C. Cooper, J. Fletcher, A. Fyall, D. Gilbert, S. Wanhill, Pearson Education, Third edition, Madrid 2005. Janice Reynolds (2002). A Practical Guide to CRM. CMP Media. Jeffrey Peel, Mike Gancarz (2002). CRM - Redefining Customer Relationship Management. Digital Press. Ramana, V. Venkata, and Somayajulu, G. (2003). Customer Relationship Management - A Key to Corporate Success. Publisher : Excel Books, New Delhi. Snehita Srivastava (2004). Customer Relationship Marketing - A Key Success Factor in Marketing. Osmania Journal of Management, November. Stone, Merlin and Foss, Bryan (2001). Successful Customer Relationship Marketing. Kogan Page Publishers. Read More