Devising a Digital Marketing Strategy for Hospitality and Tourism Industry
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This report discusses the significance of digital marketing in hospitality and tourism industry, academic literature pertaining to it, and comparative analysis of marketing functions of Marine Court and Haytor Hotel. It also covers effective digital marketing strategies and practices such as SEO and PPC.
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Contents INTRODUCTION...........................................................................................................................1 MAIN BODY...................................................................................................................................1 RECOMMENDATION.................................................................................................................11 CONCLUSION..............................................................................................................................12 REFERENCES..............................................................................................................................13
INTRODUCTION Digital marketing is described as the process of marketing done by companies for their products or services conducted through various electronic devices with the utilization of internet. The digital platforms that organisation utilize to promote their goods are website, mobile application, social media, emails and search engines. Digital marketing industry is referring as landscape because it is an electronic place where buyers spend their time in buying and engage themselves with firm's content (Valentini, and Zammit, 2017). Hospitality and tourism digital marketing is describedashowtheirvarioussegmentssuchasaccommodationservices,travelling destinations, restaurants and other business activities get promoted through digital platforms. The tourism and hospitality digital environment is consisting of external and internal factors which could impact their functioning in market. To get competitive advantage in the market these industries have to adapt new trends and developments which are taking place in their micro and macro environment. Marine Court and Haytor Hotel are two small sized hotels in UK (Top 25 Small Hotels — United Kingdom & Channel Island, 2021). Marine Court is one of the Grade II listed which is situated in UK and it was established in between the year 1936 and 1938. it is situated on the seafront at Bangor, Country Down, Northern Ireland. It has provided their guest various services such as luxury rooms, bar, restaurant and organising wedding as well as events. Haytor is also one of the small hotels in UK which is only 400 meters away from Torquay. The hotel also provides facilities to their customers such as terrace, garden, lounge, breakfast and others to attract more people. The following report covers the academic literature pertaining to digital marketing in hospitality and tourism industry. It also pays focus on the comparative analysis of whole marketing functions of the selected hotels. Furthermore, various digital marketing strategies and practices which are applied by chosen organisations along with their effectiveness are also being discussed in this report. MAIN BODY Academic literature pertaining to digital marketing in the tourism and hospitality industries Digital marketing has become very important in hospitality industry as many of the hotels have used it to promote their activities on online platforms(Rattayapimol, 2017). According to the World Tourism Organisation technologies are rising, interrupting and impacting the lives of 1
people in such a way that it indicates that humans are at the beginning of Fourth Industrial Revolution (DIGITAL TRANSFORMATION,2021). According to the article done by Nilead, digital marketing is crucial for these industries as it helps in spreading information quickly, enhance consumer engagement and provide simple ways to book places instantly (Digital Marketing In Travel And Tourism Industry, 2018). According to the recent data of 2020, around 87% adults in UK are using smartphones and the internet penetration rate is almost 72%. it has been estimated that an average citizen of the country spends approximately 148 minutes on their mobile phones. The utilization of smartphones has been increased after the pandemic as it has been observed that 46% of people accept that they are using their smart devices (30+ Smartphone Usage Statistics for the UK [2021], 2021). This statistic represents that how people have become addicted to use their phoneswhichencourageindustriesto promotetheirproductsor servicesthroughdigital marketing. In today's world of digitalization, it has become necessary for Hospitality and Tourism industry to develop their online presence stronger. The statistics of year 2020, represents that around 62% of UK companies have spent their budget on advertising digitally. It also shows that almost 45 million citizens of UK are active on social media. From the Credo and Enders analysis it has been evaluated that online marketer have invested around £13.4 billion in year 2018 in UK. It has also been observed that almost 60% of small business of UK have invested in paid digital advertising. The overall revenue generated by digital advertising in the year 2020 was around £15.6 billion (30+ Astounding Digital Marketing Statistics for Brand Optimization, 2021). These statistics shows that how businesses are adopting new digital ways and new trends to remain in marketforlongtime.Theyareengagingcustomersbycreatingcreativeandattracting advertisements on online platforms. The industry has adopted digital marketing strategies which has allowed them to remain in market for long time. There are multiple reasons such as increasing number of smartphone users, high social media engagement and low prices of digital marketing services which have resulted into adoption of digital marketing by various organisation. The bookings done by customers through online websites or applications have helped the companies in enhancing their sales. Digital marketing helps these industries to provide their customers a personal experience asitgiventhemopportunitytoconductsurveysbyaskingthemquestions.Itprovides 2
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organisations to interact with their customers by taking feedbacks about their experience instantly. This helps them in improving their services and build good relationship with their guests. It gives a platform to promote their services constantly and regularly in front of their customers. Digital marketing assist industry to create a brand awareness in the market which gives them competitive advantage over their competitors. The preferences of customers have also changed after COVID-19 which was pandemic occurred in the year 2020. More customers prefer to purchase products or services through online platforms which pressurised industries to innovate their marketing schemes and shift towards digital marketing more often. The coronavirus also enhanced the utilization of digital marketing among industries which helped them in connecting with their potential consumers (Melara San Román and Tena Blázquez, 2020). Traditional vs. Digital Marketing BasisTraditionalDigital MeaningTraditionalmarketingis definedasmarketingthat communicates with customers through traditional channels or media. Digital marketing refers to the promotionofgoodsand services using digital channels suchastheinternet, smartphones,display advertisements,andother digital media. InterruptionsConsumerscannotavoid seeing advertisements because they are obligated to do so. Allows customers to avoid or bypass advertisements that do not interest them. Comparative analysis of the overall marketing functions Digital marketing is the key for success for any business in the world of digitalization. In any business effective marketing strategies is very vital to create a brand image in the market, to attract more consumer base and to maintain loyalty. Marketing functions refer to the methods that organisations utilize to achieve their objectives through their chosen marketing structure (Guven, 2020). According to the American Marketing Association marketing is defined as organisational function and the procedure for developing, making connections as well as 3
delivering value to people along with managing relationships with them which could benefit companies. The marketing functions that hotels perform are advertising, sales promotion, public relationsandgeneratingnewbusinessforthemselves.MarineCourtandHaytorHotels implement various marketing functions which are different from each other. Comparative analysis of whole marketing functions of these selected hotels is discussed below in detail: BasisDescriptionMarine CourtHaytor Hotels ResearchCustomerbefore visiting any places for spendingtheir vacationsorfora businessmeetings chosethosehotels whichhavepositive reviewsaswellas amazinglocation. Hospitalityindustry havetoensurethat theyofferbetter facilitiesand locationstotheir clients.The marketingteamof hotelsmustevaluate whatfactorsmight attract more customer baseandthisthey have to invest in their researchdepartment (Kocićand Radaković, 2018). They could also take feedbacksfrom currentandformer guests.Incaseof MarineCourthotel, itsmarketingteam constantlymonitors thereviewsoftheir clientsontheir website(WELCOME TOTHEMARINE COURT,2021).The hotelalsohasa superbviewover BelfastLoughwith BangorMarina, Ireland which provide theirguestagreat experience. Ontheotherhand, HaytorHotel provides a traditional and elegant feel to its guestsasitisa Victorian Villa which wasbuiltin1853. The research team of thehotelanalysed thatcustomerprefer tohaveaunique experiencewhich motivates the hotel to maintaintheir historicalbuilding (TheHaytorHotel, 2021). 4
BasisDescriptionMarine CourtHaytor Hotels AwarenessIt is very important to keeppotential customersaware aboutwhatservices orproductsan organisationis offering. For hotels it is prominent to make theirclientsaware about their brans as it willbenefitthemin gaining more prestige and credibility in the market.The awarenessabout brandimprovesthe ratingsofhotelson onlinewebsitesand assistinenhancing consumerbase (Torresandet.al., 2017). In context of Marine Court hotel, it has a veryattracting websitewhich containsallthe information and also havetheirpresence onsocialmedia platformssuchas Facebookand Twitter. People could alsocheckthe reviews by its guests whohave experiencedits serviceson Tripadvisor (WELCOME TO THE MARINECOURT, 2021). Whereasincaseof Haytor Hotel has also maintained an online websitewhich contains all details of servicesofferedby thehotel.Thehotel keepupdateits customersthrough varioussocialmedia platformssuchas Facebookand Instagram(The Haytor Hotel, 2021). BasisDescriptionMarine CourtHaytor Hotels PromotionIt refers to advertising ofproductsor servicesbyvarious companiesthrough variousofflineand onlineplatformsto IncaseofMarine courthotel,it provides an exclusive offer and promotions whenpeopleenter their email address in Whereas in terms of Haytor hotel, it keeps update its former and present guest or other peoplethrough sendingthememail. 5
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attract more potential customers. For hotels itisveryvitalto promote their services inordertoenhance their profitability and to increase consumer base.Promotionis importantforhotels to conduct on regular basis because it helps inkeepingarecord abouthowthe businessin performing in market (Frickerand Deshayes, 2018). the box given on their website. By entering email address people couldgetregular updates of new offers provided by hotel on regularbasis (WELCOME TO THE MARINECOURT. 2021). The hotel provides a facility to enter email addressontheir websitewherean individual can fill up all details and Haytor contact them by email (TheHaytorHotel, 2021). BasisDescriptionMarine CourtHaytor Hotels RelationshipsTorunasuccessful business in hospitality industryitisvery crucialtomaintain goodrelationship with customers. As in caseofhotels previousguestsplay importantrolein promotinghotel image through word- to mouth strategy and IntermsofMarine Court hotel, the staff memberstreattheir guestswithrespect anddignitywhich makespeople welcomed. According to one of the guest the staff was friendly and roomsofthehotel werevery comfortable.They In context to Haytor hotel, it offersgreat facilitiestotheir guestswhichkeep themengageand motivatesthemto come again visit the hotel. As according to one guest’s wonderful experience of staying inhotelforfive nightssaidthatthe 6
alsobypostingon socialmedia(Ju, 2018). They also help increatingasable revenuebasewhich resultsingrowthof hospitalityindustry. Thehotelscan maintaintheir relationshipswith theirguestsby offeringthemsome loyaltyprogrammes orrewardthem regularly. wereofferedlotof biscuits with their tea and also given warm towels. The hotel also keptitspromiseby taking guests for sea view.Theguest experiencewasvery goodwhichmakes them to visit the hotel for fourth time and in futuretheywantto comebecausethe relationshipwhich hotelmaintainedis outstanding (WELCOME TO THE MARINECOURT. 2021). roomshaveavery elegantlooksand comfortablespace. The employees of the hotelwerealso humbleand cooperativewhich also make their stay delightful.The customeralso provided with all the facilities they wanted andbreakfastwas also very tasty which providethem amusingtaste(The Haytor Hotel, 2021). Digital marketing strategies and practices and their effectiveness According to Small Insights, in 2018 the most effective marketing strategy was social media which is around 18%. There are various strategies by which the selected hotels have enhanced their popularity among customers. Digital marketing strategies implemented by hotels are as follows: BasisDescriptionMarine CourtHaytor Hotels Searchengine optimization (SEO): Thismarketing strategy is one of the most effective digital marketingstrategies. It is the procedure of Themainaimof applying this strategy by respective hotel is to direct more internet traffic to their website Thisstrategyis effectivefor selected hotel as it grabs every personoftheir targetedaudienceno 7
improvingonline websitewhichcould help themingetting highlyrankedin search engines. whichcouldattract more customers. matterwhetherthey areintheirbuying funnel(Feinstein and Yadav, 2018). Pay-per-click advertising: itisanothermost powerfuldigital marketingstrategy which is defined as a paidformof promotingservices thatisbasedonan auction-based system. Themainadvantage of PPC is that it bid on keywords that the hotelswanttoshow upfortheir advertisement’s triggerswhena customersearchfor somethingincluding hotels'keywords (Reynolds, Peters and Davis, 2019). Thenthe advertisements appear on the top and if the buyerclickonthat link, they have to pay forit.Themain purpose of executing thisstrategybythe selected hotel is that it helpsitinreaching theircustomerswith transactional questions according to which the guests are ready to pay for their services. PPCisoneofthe mostcost-effective methodforpaid advertisements and it willhelpthese selected hotel to boost up their profitability. Content Marketing:Thisisalsoan effectiveonline marketingstrategy whichfocuseson engaging,reaching andconnectingwith The main aim of using this strategy by hotel is that it provides all thevaluable informationthatit wanttosharewith Itisoneofthe smartestdigital marketing tools which helpshotelin connectingcustomers through buying funnel 8
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customersthrough content.Thecontent postbythesehotels contains infographics, videos, blog post and moreattracting contentwhichkeep peopleengageon their website. theircustomers (Banik and Sengupta, 2019). This also helps inoptimizingtheir contentforsearch enginestoimprove theirpositionin search results. It also assistsinincreasing traffic and converting search into revenues. andalsoby implementing this the conversionrates becomedouble. Contentmarketing also provide people an opportunity to read all thefacilitiesoffered by various hospitality services which makes easyforthemto choosetheir destination. Email marketing:Thisstrategyisalso oneofthecost- effectivedigital marketingschemes. Thismainlyfocuses on keep engaging the existing consumers as wellashelpsin making new customer base. Itisavery effectivestrategyfor hotelsasithelpsin making people aware abouttheirservices, building brand image, remaininmindof people and motivates them to visit again if theyhavealready done(Magdinceva Sopova,Petroska Angelovskaand Takovska,2018). Throughemailhotel shareitsupcoming events,strategies, The main of purpose ofapplyingemail marketing is to remain inmindoftargeted customers,provide evident information to presentclients, personalizedcontent and coupons offering whichcouldkeep themcomingagain and again. 9
discountoffersand manymoreschemes whichcouldhelp them in engaging their customers. Socialmedia marketing: This is one the most popularandtrending wayofpromoting productsorservices onlineasmajor peopleusethis platformtoexplore new hotels. The social mediamarketing helpsincreating brandawareness amongpeopleand enhances conversions. Themostpopular socialmedia applicationsthat hotelsuseare Facebook,Twitter, Instagram,LinkedIn andvariousother platforms(Briones, 2019). Itprovidesthe selectedhotelan opportunityofdirect interactionwith their potential customers as it directs the content tothemeasilyand hotelscouldtake instant feedbacks. It ismost preferable digitalmarketing strategy used by these hotels as majority of people are engage in theseplatforms.The guestswhohave previously experiencedthe servicesofthese hotels also post details about their delightful stayonthesesocial media platforms. 10
RECOMMENDATION It is recommended to hotels that to expand their customer base they should advertise more through various digital marketing platforms. The hotels should invest in their research and development department in order to know what are upcoming trends in market. Hotels to remain in minds of their clients should come up with new services and offers which could help them in enhancing customer base. In this present time where COVID-19 has become one of the major factors, they must take all the precautions for their guest and implement sanitizers stations in all their area. They should recruit the staff who are already got vaccinated and use of mask as well as gloves must become mandatory. Hotels should take constant feedbacks from their guests on online platforms as well as by asking them directly so that they could improve their facilities according to customers' needs. Reflection From the above discussion about digital marketing in hospital and tourism industry I have evaluated that it has contributed majorly in the success of this sector. I have concluded that small and medium sized hotels should utilize the digital marketing strategies more often. I have also seen that many people use smartphones to explore more places to visit and prefer to travel as well as stay at those places which have good reviews on online websites. The investors have also invested in digital marketing advertisements. I have also examined that for gaining a competitive advantage over others it is very important for hotels to create awareness about their brand and invest their time in researching about the demands of customers. They should also implement potential promotional strategies to attract more customers towards them and could help in enhancing their profitability. They must maintain a good interpersonal relationship with their guests by treating them with respect as they will help the hotels in promoting their brand in public. I have also estimated that there are several ways of effective digital marketing strategies which could help organisation to make connection with their potential clients. According to my perspective if these digital strategies are executed in proper way than it could assist companies to expand information about their services to large base of customers. 11
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CONCLUSION From the above discussion it has been evaluated that digital marketing plays a vital role in enhancing growth for any business. For tourism and hospitality industry it has become essential to promote their services on digital platform as majority of population use their smartphones to explore things. It has also been observed from the above report that people prefer to visit those places which has good reviews on online websites. Hence, if become more important for hotels to provide best services to their guest in order to gain competitive advantage from their rivals. The small hotels to increase their presence could use several means of online promotion or digital marketing strategies. In the end it could be analysed that digital marketing in today’s world of digitalization has become very important part of organisations to enhance their profitability. 12
REFERENCES Books and Journals Banik, N. L. and Sengupta, G., 2019. The Effectiveness of Digital Marketing on Networking Sites of Social Media.International Journal of Business and Economy,1(2), pp.18-23. Briones, C. L. T., 2019. Digital Marketing as a Communication Tool in Emerging Businesses. InHandbook of Research on Digital Marketing Innovations in Social Entrepreneurship and Solidarity Economics(pp. 353-366). IGI Global. Feinstein, N. and Yadav, N., 2018. What's Up? What's Next? Identifying and Predicting Trends in Digital Marketing Innovations for Small and Mid-Sized Enterprises. InICSB World Conference Proceedings(pp. 1-8). International Council for Small Business (ICSB). Fricker, J. and Deshayes, L., 2018. Smart wearables and digital marketing strategies. Guven, H., 2020. Industry 4.0 and Marketing 4.0: In Perspective of Digitalization and E- Commerce. InAgile Business Leadership Methods for Industry 4.0. Emerald Publishing Limited. Ju,I.,2018.MarketingCommunication.TheInternationalEncyclopediaofStrategic Communication, pp.1-14. Kocić, M. and Radaković, K., 2018. The importance of digital marketing in the customer relationship management process.Marketing,49(1), pp.44-51. Magdinceva Sopova, M., Petroska Angelovska, N. and Takovska, M., 2018. Financing of innovative marketing activities for small enterprises in the tourism sector-case of the Republic of Macedonia. Melara San Román, M. D. P. and Tena Blázquez, A., 2020. Digital Marketing/Marketing digital. Rattayapimol, S., 2017. Digital marketing towards the leading change in Thai manufacturing company. Reynolds, K., Peters, C. and Davis, C., 2019. Above Board Storage and the Need to Revamp its Marketing Strategies.Journal of Case Studies, pp.NA-NA. Torres, R. and et. al., 2017. La efectividad del uso del marketing digital como estrategia para el posicionamientodelaspymesparaelsectorcomercioenlaciudadde Barranquilla.Investigación y Desarrollo en TIC,8(2), pp.3-5. Valentini, S. and Zammit, A., 2017. The Value of Engaging Customers through a Gamification Marketing Strategy.University of Bologna. [Online] 30+ Astounding Digital Marketing Statistics for Brand Optimization. 2021.Online Available through:<https://dontdisappoint.me.uk/resources/lifestyle/digital-marketing-statistics- uk/>. / 30+SmartphoneUsageStatisticsfortheUK[2021].2021.OnlineAvailablethrough: <https://cybercrew.uk/blog/smartphone-usage-statistics-uk/>. / DigitalMarketingInTravelAndTourismIndustry.2018.OnlineAvailablethrough: <https://nilead.com/article/digital-marketing-in-travel-and-tourism-industry>. / DIGITALTRANSFORMATION.2021.OnlineAvailablethrough: <https://www.unwto.org/digital-transformation>. / Top 25 Small Hotels — United Kingdom & Channel Islands. 2021.Online Available through: <https://www.tripadvisor.com/TravelersChoice-Hotels-cSmall-g186216>. / 13
The Haytor Hotel. 2021.Online Available through: <Haytor Hotel – Elegant boutique hotel in the heart of Torquay>. / WELCOME TO THE MARINECOURT. 2021.Online Available through: <Home - Marine Court Hotel>. / 14