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http://slidepdf.com/reader/full/9558 1/17

Code: 9558

Date of Allocation: 21st July 2012

Date of Completion: 24th July 2012

Topic: Hospitality and Tourism Marketing Strategies

Word count: 4250

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TABLE OF CONTENTS

INTRODUCTION ........................................................................................................... 1

MARKETING STRATEGIES OF INTERCONTINENTAL ...............................................................................1

Recommend marketing and customer loyalty strategies for a hospitality or tourism

organization................................................................................................................ 7

Critically evaluate marketing communication strategies for hospitality and tourism

................................................................................................................................. 10

CONCLUSION ............................................................................................................ 12

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INTRODUCTION

InterContinental Hotels Group is world’s largest hotels company with its headquarters in

Denham, UK. It is a British multinational hotel brand. The company has around 4500 hotels in

about 100 countries. Crowne Plaza, Holiday Inn, InterContinental and Staybridge Suites, Hotel

Indigo, Candlewood Suites are the various brands of the company. Around 3800 of its hotels

function under franchise agreements, 640 are operated by the company itself but are owned

separately and about 16 are directly owned (InterContinental Hotels Group , n.d).

The company provides a number of services like luxury suites and deluxe rooms, butler

and concierge services, restaurant, bars, Health club and spa, conference rooms and banquet halls

and etc. It gives out special offers like wine dinner’s special, shopping weekends etc. Services

are rendered to both internal and external customers. Internal customers are people from withinthe organization i.e. the employees of the hotel. The hotel checks the quality of services by first

providing it to its employees and management. External customers are people unrelated to the

organization and come to the hotel just for its services. They make payment for the services

provided to them. These external customers are of the biggest significance for the hotels as their

business depends upon them. They can make or break any company. Development of an

organization depends on its external clients only. The brand hotels of the InterContinental Group

entertain a huge clientele mainly of the high profile and the elite (InterContinental Hotels Group,

n.d).

MARKETING STRATEGIES OF INTER CONTINENTAL

With reference to the InterContinental Hotels Group, public relations and customer

loyalty strategies have been discussed. According to experts, “An organization’s strategy is the

fundamental pattern of present and planned resource deployment and ecological communications

that indicates how the institute will realize its goals.

Before explaining these strategies in detail, getting a clear picture of what marketing

strategy shows, is essential. Marketing strategies are very significant for every organization in

today’s volatile environment. It helps management to use scarce resources in the most efficient

manner. Such strategies enable a firm to deal with the dynamic environment. Strategies are

focused on one central point, for instance, targeting a particular market segment etc. A business

makes it strategies in basically four areas- price, product, place and promotion. These strategies

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are taken up by a company in order to fulfill its goals and objectives. InterContinental takes into

account various marketing strategies to bring about customer satisfaction and to make its mark in

the competitive environment.

Public relations (PR) strategies are aimed at providing a company exposure to the

public. These strategies are used to persuade the audiences to make a particular image of the

organization in their minds. The principle technique that public relation strategists use is

identifying the audience to be targeted and to customize every information to attract that target

group. The chief purpose is to attract customers, shareholders, investors, suppliers, government

and all related and interested people to maintain an optimistic perspective about the organization

and its policies and products. Foremost tricks include delivering speeches at conferences and

meetings, using press for this purpose, award functions and communicating with the workforce.

According to experts, creating and harnessing relationships with the public generates shared

understanding between an organization and its audience (L’Etang, 2007). InterContinental Hotels

makes use of this strategy to appeal to the concerned parties.

Customer maintenance is the utmost important factor when it comes to public relation

strategies. This technique of maintaining customers is intended towards reducing customer

dissatisfaction. A company’s ability to manage its consumers and draw new customers, depends

not only on the quality of its goods and services, but it is also dependent upon how good the

company is in maintaining relations with them (Appiah-Adu and et. al, 2000). The impression it

has in the minds of its stakeholders is very critical in customer maintenance. Consumer

preservation has more to it than just fulfilling customer needs. It involves exceeding their

expectations at every level and gain their loyalty and faithfulness. Buyer perpetuation

unswervingly generates profit for the company. Study suggested that occupied clients produce

1.7 period additional incomes than standard consumers, whereas having occupied staff and busy

consumers proceeds a returns with an increase of 3.4 times the standard. Using this marketing

tool a company can generate a larger consumer base as compared to its competitors. Public

Relations strategists are aware of the fact that simply targeting the public and getting feedback

from them is not sufficient. It also includes identifying the objectives, creating responsiveness,

collaborating with award functions and other major events in order to generate attentiveness

among its consumers (Morris and Goldsworthy, 2008).

Marketing communications and e-marketing activities and strategies

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Communication is the process of providing the customers access to every vital

information of an organization’s products, services and concerned policies. The strategies that

are adopted by InterContinental Hotels for this purpose include information speeding up and

hotel visits. The first strategy involves internet based marketing practices. Using this facility

interested customers can get much wanted and relevant information. This is a very cost effective

strategy and at the same time very manageable. InterContinental Hotels Group updates all the

relevant messages and information on its web based program which makes it convenient for its

clients to get an overview of the various services and facilities that the group offers. The

customers can visit the hotel and get a clear picture of the real services and amenities put on offer

by the company (Dikeni, 2001). In its e-marketing practices, the group provides its valuable

information to a number of travel agencies, so that the customers can enjoy some bargains and

discounts at this hotel if they book tickets from the concerned travel agencies. IHG is a market

leader in e-commerce services. It is the first corporation to offer its customers online reservations

in the hotel sector, and a pioneer in enabling its visitors to review, cancel or make alterations in

the reservations online, notwithstanding the original mode of reservation (Burns, C. & Bush, F.,

2000 ). The Group apprehended quite early that its clients associated its skill to provide

outstanding services online with its capability to give excellent experience in the hotel as well.

For this reason, it deployed Akamai to make sure that there was uninterrupted flow of bookings

and reservations and other customer support tools were part and parcel of the bigger strategy and

plan to ensure brilliance in all operations.

Other marketing activities and strategies

InterContinental Hotels engaged in intense marketing practices like placing air balloons

on top of its roof to draw the local people, using flyers mentioning its name on airplanes to

attract foreign tourists and etc. It also made use of social networking sites like MySpace, Twitter,

Facebook, etc. which is a great way of word of mouth publicity (Price and Starkov, 2012).

Critically evaluate marketing strategies in the hospitality or tourism sector

In Hotel industry there are a number of strategies of attracting customers. With the help

of such strategies it becomes easy to manage the demand and supply of its services. For this

purpose several strategies have been analyzed from a critical point of view:

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Competitive Advantage and Sustainable Competitive Advantage

It is the differentiating factor of an organization that enables it to stand out among its

competitors. It is the value that a firm creates in the mind of its customers i.e. the price they are

ready to pay for the services offered to them. Sustainable competitive advantage gives an

organization consistent success over time (Chaharbaghi and Lynch, 1999). InterContinental

Groups main competitive advantage is its exceptional online services that gives it an edge over

other hotels in the industry.

Positioning

Positioning is useful in creating and sustaining competitive advantage and helps an

organization to position itself in the minds of the customers in a clear and inimitable way. The

organization establishes different positioning criteria along which the services offered are

positioned (Adenso-Díaz and et.al, 2002). InterContinental Hotels uses this strategy to appeal to

its clients. It uses its corporate social responsibility to position itself as a socially responsible

organization in the mind of its customers to attract more customers as compare to its competitors.

Service Life Cycle

Hotels need to proactively administer the service mix it puts on offer by using an

appropriate selection of strategies. IHG has some of its service offerings in the growth phase of

its service life cycle. Its strategies are focused on influencing its customers to opt for its brand

instead of its competitors’.

Managing supply and demand

There is always a mismatch between the demand and the supply. The services offered by

a hotel may sometimes surpass the services demanded by its clients. Similarly the demand might

sometimes exceed hotel’s ability to supply those services. InterContinental Hotel Group the

capacity of the facilities, its supporting environment and the personnel in charge of the services

are in balance with each other. The process are so designed in the hotel that there are minimum

chances of occurrence of a blockage. Therefore managing demand and supply is very of critical

importance for hospitality and tourism industry (InterContinental Hotels Group Maintains

Competitive Advantage with Improved Responsiveness to Customer Needs. n.d.).

Focusing sales team

Recruiting an effective marketing team and a good sales force has always been the

priority of IHG.

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Customer services

InterContinental Hotels provide spa centres and beauty salons to its customers to indulge

themselves. The hotel chains have also opened many boutique shops, beauty product shops and

gifts item shops in their property to catch the fancy of more and more consumers.

E-mail marketing strategy

Under this strategy a confirmation mail is sent to the client after his booking has been

confirmed. The client can make more bookings using their mail accounts. With the help of this

InterContinental Hotels is able to connect to more customers. It also enhances relations between

the hotel and its customers (Mohr and Nevin, 1990).

Value Based Pricing

It means selecting a price in succession to developing estimates of market demand based

on how prospective consumers recognize the value of the product or service. IHG has always

used this pricing strategy and it has worked in its favour (Stiving, 2011).

Direct Marketing strategy

Interacting with the customers directly through the use of various forms of media is

called direct marketing. This strategy involves distributing catalogues, advertisement in

magazines, sending mails, face to face communication and etc. InterContinental Hotels puts

advertisements in travel magazines and also involve in face to face communication with its

customers who visit the hotel. This provides them first hand information about the services and

facilities of the hotel.

Service marketing

InterContinental Group’s hotels also provide different services like free pick and drop

facility from airports, concierge facility, butlers, city tours, baby sitting facility and etc at very

minimal rates. This catches the eye of the clients and create a positive impression in their minds.

Innovation and creativity

Innovation is the key to success in today’s changing environment. InterContinental

Hotels Group has brought innovation in its operations and actions. It acknowledged the fact that

there is mounting pressure on companies to give regard to the environment as customers are

becoming increasingly aware about environmental issues. They are constantly looking for new

ways to constructing and running their hotels in order to lessen any harmful impact on the nature.

The headquarters in UK and USA are good examples of this.

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Social media marketing

The buzz around social media marketing practices hasn’t gone unobserved by the hotel

and tourism industry. InterContinental Hotel’s website has Facebook, Twitter and LinkedIn tabs

that provides regular information to its clients. It also incorporated Flip.to which enables it to

update good and encouraging comments from recent happy visitors and display them on hotel’s

homepage. This improves the credibility of the hotel. Also it increases engagement and

communication with the visitors. Regular updates of eminent personalities who visit the hotel are

also made on hotel’s website (Zarrella, 2009).

Talent Management

Intercontinental Hotels lay emphasis on focus on employing and training the best talent in

the industry so they can serve their customer in the most effective manner.

Rewarding strategy

InterContinental Hotels sends birthday and anniversary goodies to its best customer thus

harnessing lifelong relations with the customers.

The role of network and customer relationship marketing strategies for

InterContinental Hotels

Relationship marketing is the process of creating, maintaining, and enhancing strong,

value-laden relationships with customers and other stakeholders. It’s aim is to provide special

benefits to selected customers. It will go a long way in building relationships. To achieve this

marketing strategy, a marketer has to keep in touch with regular customers, identify most loyal

customers, to provide additional services to selected customers, design special recognition and

reward schemes, and use them for building long term relationships. InterContinental Hotels

always keep eye on its standard customers and provides a range of additional benefits and

discounts to them (Brink and Berndt, 2009).

The key features in developing a squad to provide customer service are technical

proficiency, operational know-how and familiarity of specific field rather than concentrating on

interpersonal skills to add to client satisfaction. Maintaining a good relationship with the

consumers contributes to the loyalty towards business. A loyal consumer is required to have

positive attitude towards the services of an organization so that the relationship continues.

InterContinental Hotels always aims at gaining consumer loyalty for its hotel by providing best

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services and satisfying the needs of the customers. Customer satisfaction leads to the increase in

number of clients for the hotel as good experiences are always shared among family and friends.

It is important for an organization to evaluate customer’s needs and wants and work in that

direction. In order to meet the customer’s demand, the current services provided by the firm and

the required changes should be well understood by the organization (Aaker and et.al, 2004). The

feedback provided by the regular customers can direct the organization towards better

understandability of its client’s needs. Considering the feedback by the consumer earns their

loyalty and relationship and makes them realize their value in the organization. InterContinental

Hotels conducts various seminar, events, and occasional parties to enhance the relationship. The

maintenance of the customer’s information like birthdates and anniversaries and sending them

greetings helps to create friendly relations to interact with them in a better way. This makes the

customer more loyal towards the organization.

Recommend marketing and customer loyalty strategies for a hospitality or

tourism organization.

Achieving goodwill in market and maintaining the reputation by satisfying the existing

customer is a key feature to attract new customers. Along with quality product, a company

should have sufficient standard in the market which is created by efficient services. Various

surprising schemes and profitable offers creates loyalty for the brand and hence preserves theexisting customers. Studies shows that company can earn 1.7 times more profit by engaging

regular customers than ordinary ones, at the same time having occupied workers and engaged

consumers proceeds a profits of 3.4 times of the standard (Aaker, 2001). This is the process by

which a firm can compete with its competitor in best possible way and can generate loads of

customers. Some of the main insights in this regard are:

1 In normal practice an organization can lose up to 20% of its clientele simply by not paying

any attention on buyer associations. This figure might even go up to 80% in certain sectors.

Not every company acknowledges the repercussions of this wavering ratio. For instance, one

hotel retains 80 percent and the second hotel retains 70 percent of its guests. And annually

they draw 30 percent new guests. In the case of the first hotel, it is able to grow 10 percent

clients per annum but the second hotel has no growth (Diamantopoulos and Schlegelmilch,

1997).

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2 Incorporating intelligent promotional campaigns is a key factor in gaining the loyalty of the

guests. The cost incurred on such campaigns is optimal compared to the benefits it is going to

reap. Following strategies, if properly incorporated into the system, are bound to magnify

customer loyalty and have a radical impact on the business:

1. Remarkable Customer Service: The crux of hospitality and tourism industry is

providing unmatched services to the customers. The basic competition between hotels is based

on this fact that which group can offer better services than other. Word of mouth publicity

plays a very important part in promoting the services of a hotel. When a guest stays in a hotel,

he lives an experience (Armistead and Clark, 1994). He will tell about the facilities and service

offerings to his relatives and friends. Positive comments will work in favor of the whole

organization and similarly even a slight dissatisfaction relating to a particular service may ruinthe hotel’s image as well as hamper its prospective clientele. Complete devotion of the hotel

staff towards delivering high end services, being proactive, timely delivery and providing what

has been promised can lead to customers coming back to the hotel.

2. Minimizing Attrition: There is not even a single organization that doesn’t lose its

customers. But only some corporations realize this fact while many don’t. A large amount of

time, money and resources are employed by all the organizations initially to harvest long term

relationships with the guests. But over the time, while some lose interest or fail to do so, only

some are able to maintain it. The fundamental rule of developing a business is to retain its

consumer base and not lose them at any cost (Craven and et.al, 2002). Once this outflow is

minimized, a company can witness its growth at an increasing pace.

3. Recurrent Communications Datebook : This is a type of calendar which helps a

corporation to stay in regular contact with its clients. It’s a planned order of mail, proceedings,

phone calls, thank you, special offers, follow-ups, magic moments, and cards or remarks with a

special contact etc and it occurs frequently and routinely at definite points in the services, post-

services and pre-services process. This makes customers realize that they are important and

valuable for the hotel (Choi and Chu, 2001). They are kept informed and all their post services

qualms are cleared. This results in satisfaction and they would like to keep coming to the hotel.

4. Constantly being in mind of the customers: Like for any product, out of sight means

out of mind, same is the case for hospitality industry. Hotels need to keep reminding their

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customary clients about their presence. This can be done by regularly telling the customers

about the various packages and offers by dropping in a mail or a message. This will help a

hotel in preserving its old valuable clients. This is a great way to create faithfulness.

5. Reckon lifetime value: Recognizing the revenue generated by serving a specific guest

over a long period of time, say months or even years, a hotel can conveniently concern about

that guest and acknowledge his importance. This would help the management to quantify and

manage the actual operating costs it has to incur to preserve a particular customer. And this is

how InterContinental Hotels makes its financial arrangements (Khan and Jain, 2001).

6. Courteousness: This is a great way to improve the interpersonal skills of the hotel staff.

The top managers converse with their team members in a very courteous way and coach them

the manner in which the workforce is expected to deal with the guests. Certain standards of

communication are made and the staff is supposed to use those standard phrases while

interacting with the customers whether on phone or face to face. This makes an employee of

the hotel efficient in interacting with the guests in a pleasing and warm style. It also teaches

them to keep their cool in adverse situations and not to show their frustration in front of the

clients. This helps in strengthening the cord of relationship with the customers.

7. Service veracity: Exceeding customer expectations with respect to quality of services

and other aspects will ensure success for the organization. Hotels shall follow strict standards

of quality, authenticity and dependability. Integrity is of major significance in hospitality

sector. No one likes to be cheated and if the customers don’t get what they are promised then

this puts a question mark on the credibility of the hotel. Customers are bound to be drawn

towards a hotel that treats them with gentility. By compulsorily adhering to food and beverage

standards and providing only authentic and high quality food and drinks InterContinental

Hotels enjoy great amount of customer loyalty in the market.

8. Feedback; take it as it comes: A large number of customers don’t complain to the hotel

itself about anything that they deem unsatisfactory. But they will surely tell others about the

discrepancy. Feedback, whether positive or negative is very crucial for every organization.

Feedback helps the group to find out its shortcomings and subsequently ways to improve them.

Also positive comments boost the confidence of the staff and they would strive to excel in

those spheres as well. By keeping suggestion boxes and indulging in face to face interactions

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with their customary clientele regarding their services and facilities InterContinental Hotels can

work on improving and rendering good service.

Critically evaluate marketing communication strategies for hospitality and

tourism

This is step by step process that starts with designing the message to be communicated to

the customers. This is the subject matter of communication strategies. It is the message that is

going to appeal to the audience; therefore it should be attractive and reliable at the same time.

Communicating this message to the customers is the second step. It is the mode of advertising

the services to the target audience. Hospitality industry has at its discretion a range of

communication strategies which it can use for the purpose of creating awareness about its

services. As a large number of marketing tools are available in the present times, choosing the

appropriate communication strategy is very vital. This strategy can be called as Marcom.

Various tools are available in marketing communication function. Some organizations may

depend upon only one medium of communication whereas other companies might adopt a mix of

various mediums (Andersona and Vincze, 2000). A company can’t be definite about the

effectiveness of media mix it is using without the conception of Marcom strategy which is

associated with their general direction of strategic marketing. Following are the various

communication methods:a. ADVERTISMENTS: InterContinental Hotels Group by way of displaying its banner on

boundary wall of football matches and other similar events, and also by placing ads in travel

magazines can draw the attention of a number of people (Belch and Belch, 2004).

b.WEB SITE: The webpage of InterContinental Hotels shall contain complete information

about its services, facilities and packages on offer along with their charges.

c. DIRECT MARKETING (ONLINE AND OFFLINE): InterContinental Hotel Group is an

industry leader in online services. Customers can avail the benefit of making and altering

online reservations (Clow and Baack, 2001).

d. PUBLIC RELATIONS: Creating and harnessing relationships with the public generates

shared understanding between an organization and its audience. InterContinental Hotels

makes use of this strategy to appeal to the concerned parties

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e. TRADE SHOWS AND CONFERENCES: Companies are conducting press conferences

and sharing with the people their growth and other relevant aspects through media.

f. EVENT SPONSORSHIP: Sponsoring a big event or celebration is also a good way to

draw the attention of public.g. PACKAGING: In order to attract people during off season, hotels are offering lucrative

deals and packages.

h. CORPORATE SOCIAL RESPONSIBILTY: With increasing awareness among the

public with respect to environment and society, fulfilling one’s CSR is an effective

communication tool, to let people know of the core values of the organization (Berger,

2010).

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CONCLUSION

Thus from the above evaluation we conclude that innovative and customer focused marketing

strategies are of the utmost importance in hospitality sector as the competition is very fierce.

InterContinental Hotels with their Public Relations and online marketing strategy is already a

leader in the industry. But it should also try some other marketing strategy mix along with its

original strategies. Also keeping a check on what the competitors are doing is very crucial. It

should focus on exceeding the expectations of the customers by providing timely delivery and

also delivering what has been promised in order to harness customer loyalty (Cai and Hobson,

2004). The management should think beyond set standards and try to be a benchmark for other

hotels in the industry. With additional benefits, schemes and services provided by the

InterContinental Hotels, it can further enhance its iconic image and loyalty in the market

ultimately affecting the image of the brand.

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