An Analysis of Customer Satisfaction and Loyalty in Hospitality

This assignment is a comprehensive analysis of customer satisfaction and loyalty in the hospitality industry. It provides an overview of various research papers, case studies, and articles related to customer satisfaction and loyalty in hotels, restaurants, and other tourism-related businesses. The selected sources cover topics such as service quality, employee commitment, customer relationship management, and marketing strategies for improving customer satisfaction and loyalty.

MARKETING AND
CUSTOMER RETENTION
IN THE HOSPITALITY
INDUSTRY

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK ..............................................................................................................................................1
Loyalty Programme proposed by Alperton Intercontinental Hotel, a five star property ...........1
Evaluation of Loyalty Programmes............................................................................................2
Components of relationship marketing strategy.........................................................................4
The concept of loyalty in the context of hospitality....................................................................5
Marketing Plan formulated by Hotel Alperton ..........................................................................6
Integrated marketing strategy of communication adopted by Alperton hotel.............................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Marketing is an essential function carried out by business organisation in order to
promote their product and services in the market place. Customers are consider important
resource of any company as they are one which result them to earn high outcomes by satisfying
their demands and needs in effective manner. This report highlight the case of Alperton
Intercontinental hotel which is a five star property and has been recently established. Thus, they
have to introduce new concepts of marketing in the newly introduced outlets at various places. It
include high class restaurant, bar lounge, coffee shop. The assignment focuses on different
concepts of marketing in a hospitality industry and relationship of marketing strategy with other
functional areas. Apart from it, hotel have to introduce loyalty programme for the proposed
hospitality business and evaluate its efficient in current market condition. It also include there are
some specific role of the guest programs produced by hotel.
TASK
Loyalty Programme proposed by Alperton Intercontinental Hotel, a five star property
Loyalty plays a vital role and has become essential focus in the hospitality sector, as there
are number of uncertainties and high competition among same industry results into various
hotels to develop their own loyalty programs so that they can deliver high personalization and
smoothness in the business (DiPietro, Cao and Partlow, 2013). Different hotels have diverse
perspective and opinion related to loyalty, as some concentrates on providing discounts, rewards
as an incentive process whereas other focuses on that “guest loyalty” must be the key area in
order to deliver high quality services and recognition. The loyalty programme that can be created
by Alperton intercontinental hotel is described below: Selection of accurate partner: As Alperton is coming up various number of
constructions that include high class restaurants, bar lounge, coffee shop and a conference
hall. Thus, it is necessary to take decisions regarding while creating the effective loyalty
programme. This hotel can join the third party reward program and enjoy benefits arising
from it which include attracting large number of clients at the same time. Collaborating with CRM provider: In order to come up with unique offerings by the
hotel, it is necessary to introduce their self program by aligning with CRM provider.
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There are number of advantages associated with it which include CRM software aids in
conducting loyalty programme properly as well as have enable the hotel to deliver
services starting from management of guest profile to automated execution of post and
pre stay informations (Shi, Prentice and He, 2014). Introduction of personalized rewards: In response to some research that has been
conducted in relation to reward program, it has been observed that around 75% of the
travelling clients demand for high input n building their self reward program system. It is
very much important for the hotel to perform the market research in order to gather the
data information related to rewards. Hence, management of hotel have to Change their
offers according to the need that is directly linked in the increase of the clients joining the
proposed program (Bharwani, and Jauhari, 2013). Discounts and bonus Programmes: Hotel can proposed number of particular plan of
actions for example they can offer complimentary drink on purchase of set limit, spa
treatment, second stay free in restaurant. All these will provide opportunities for the hotel
to build customers for longer period of time and continuously increase their value at
sustainable point. Gifts and surprises: As Alperton Intercontinental hotel is launching different outlets that
involve restaurant, coffee shop, bar lounge and conference hall. Thus, they can device
number of decision related to gifts, offers and surprises. For instance, any customers is
celebrating birthday in the restaurant than they provide surprise in the form of cake,
bouquet. This will lead to creation of interest in the customer's mind and thus, it results in
creation of the regular customers of the hotel.
 The credit and payment function: Hotel must device simple payment strategies so that
customers do not face any problem related to this aspect. The customers should given
various choices related to payment and credit. For instance there should be option
available to reimbursement if any client cancels the stay and many others.
Evaluation of Loyalty Programmes
After formulating number of loyalty programs the results must be evaluated properly so that
proper actions must be taken if there are certain deviations. As the senior sales executive in Hotel
Alperton it is necessary to evaluate the loyalty programmes which are described below:
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 Retaining maximum number of customers: it has been observed that loyal customers do
expenditure more than 60% as compared to the new ones. Thus, proper loyalty programs
will allow the hotel to attract large number of customers in the market place and make
them retain for longer period of time by delivering high quality services and fulfilling
their demands in effective manner (Chen, Lee, Chen, and Huang, 2011). Construct effective personal relationship: It is the responsibility of the hotel to treat their
customers in proper manner by behaving with them in conducive way and perform
actions that make them feel that they are truly valuable for the company. Increase growth and reputation of the hotel: It is very much essential for the hotel
Alperton to establish their image in the market place as there are number of competitors
who are already present in the market place. Thus, Loyalty Programs not only focuses on
accepting client's appreciation but also maximise the feedbacks for the happy clients or
customers. It lead to make customer happy: As hotel have propose number of rewards, benefits that
are included in loyalty programs this is according to the customer's point of view. Thus, it
results in to satisfaction of the customer's demands and needs which is directly linked
with increasing the image of the hotel in the current market place. To improve the overall image and publicity: After proposing proper loyalty program for
the customers that direct results in constructing the healthy image in market place (Ro,
and Chen, 2011). It is required to improve the the overall publicity which is very much
necessary for the hotel Alperton as they are coming up for the fist time. To rise above competitors: there are number of competitors that are present in the market
place than too in hotel industry. Hotel Alperton have to face cut throat competition from
the various hotels that are performing will in their industry. It become necessary for them
to introduce loyalty programs in distinctive manner so that they can build the sustainable
image in the customer's mind. To gather guest data: the basic aim of the loyalty program also focus on collecting data
and information of the prospective customers in order to keep the record of all the
relevant and materialistic information. For instance offering loyalty cards hotel is able to
have all the information related to their clients so that all decision making must be totally
focused upon them. This data can be of various types that can be in numerical and non
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numerical information. It can be presented in percentage or simple form so that it must be
presented in understandable format.
 To increase the overall sales volume of the hotel: As the effective and efficient
implementation of loyalty programs will directly lead in increasing the customer's
retention ratio and also propose them different types of incentives to their customers in
order to persuade to avail the products and services of the hotel. According to some
study, it has been find out that clients are only approx 20% loyal to the particular and
specific retailer but it has also been concluded that they are around 60% loyal to the total
sales volume. All these actions results in to increasing the ratio of same purchases and
customers (Harrington, Ottenbacher and Kendall, 2011).
Components of relationship marketing strategy
As Alperton Intercontinental hotel, a five star property which had constructed recently
and hence, have to execute number of new marketing concepts. Marketing strategy defines the
plan of actions that has to be implemented in effective way. There is another concept of
relationship marketing that is formulated in order to construct the healthy and conducive
relationship with the customers in the market place. There are several components of relationship
marketing strategy that are discussed below:
 Complete information about the customer: it is necessary to have complete information
about the customer's preferences and demands so that they could formulate their plans
accordingly. Being a senior sales Executive, it is important to gather useful data nd
information by conducting various CRM activities, financial and sales records and the
result of marketing campaigns.
 Effective Communication system: Communication is a important process that exist
between customers and producers. Similarly, hotel well get benefited from taking
feedbacks from the clients and produce decision making process.
 Digital Marketing Techniques: Hotel Alperton have to execute number of nurturing
programs and execute number of developmental plans, products and services. On the
other hand must introduce different types of rewards to their customers that include
several aspects including offering to some prospective clients, continuous increasing the
effectiveness of services to their customers in order to make them happy and satisfied
(Li, and Keung Lai, 2011).
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The concept of loyalty in the context of hospitality
The loyalty is a potential concept that define the continuous proper and incentive plan of
actions that are executed by the producer in order to satisfy their overall demands and wants. In
this firm draft number of programs related to some rewards, gifts, incentives to their prospective
customers in the market place (Rishi and Gaur, 2012). A loyal consumers is consider most
important asset and resource so that increase the value of that particular company in order to
build the strong image in customer's mind. The main focus of the newly constructed hotel
Alperton that are establishing number of outlets in the marker. It is very much necessary to
propose such concept and aspects that is directly linked with increasing the overall image and
position in current market place. Customer's loyalty has become key factor for the survival of the
hotel industry thus management laws focuses on implementing such policies and procedures that
increase the action towards delivering such services and products so that customers' remain
satisfied and leads to maximising the satisfaction level at sustainable level.
Loyalty is termed as a “positivism concept”: According to it it has been consider that
loyal clients do not change their decision in respect to switching from one producer to another
due to modifications and alterations in services or prices. Customer's loyalty is known as win-
win condition for the company as well to the consumers as well. There is another concept that is
known as loyalty with the help of adapting technology aspects, as modern era is full of various
aspects related to working with number of innovative and advanced technology system hence, it
has been introduced to encourage customer loyalty process (Sigala, Christou and Gretzel, 2012).
From the above discussed it has been concluded that loyalty is the building block to excel
in their field and area so that they could able to survive in the market place for longer period of
time. Thus, nay company can draft number of loyalty programs that are beneficial for them.
Some are discussed below:
 Structure loyalty programs: in accordance to this aspect the company must formulate
membership based loyalty programs in which they can attract larger number of customers
in the market place and supply such services so that they could able to manage healthy
relationship with them.
 Continuous marketing efforts: it is indispensable that all loyalty actions must only
focuses on performing the continuous work tasks so that needs and preferences of the
customers are known. Hence, hotel can bale to conduct this through organizing several
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events or sending important mails that will deliver proper and correct information to the
company (Hsieh, 2012).
 Rewarding: Every loyalty program must assists in providing rewards to their customers
which provide them effective source of revenues and number of offers. For instance.
Hotel Alperton can provide reward in the form of providing free stay or nights to their
customers. On the other they may also offer number of vouchers that offers number of
services in the purchase of certain goods and commodities. On the other hand, number of
complementary drinks can be offer to their customers in the newly opened restaurant.
 Long Term loyalty programs: these loyalty programs are present for the longer period of
time which has been there to deliver long term benefits to their customers so that they
remain satisfied for longer period of time.
Marketing Plan formulated by Hotel Alperton
As Alperton is establishing number of outlets operating in different sections that include
bar lounge, coffee shop and restaurant. Thus, they have to develop the marketing plan ij order to
promote their existing business that are described below:
 Examining the current market situation: this step involves that hotel must perform
environmental scanning so that they can come to know about various factors that are
present in the market place and than take decision according to it. For instance, hotel
Alperton must locate number of competitors that are operating in the same industry, their
goals, strategies and other aspects that will impart influence on their image and goodwill.
Hence, hotel have to work in according to it (Rao, 2011). This step also involve current
trends that are prevailing in the market so that they can able to study various element
related to it.
 SWOT analysis: This is very much necessary in order to locate several internal threats
opportunities that are available in the market. This is required by the Hotel Alperton in
order to know their their key strengths and weak points so that they can work in response
to it. On the other hand there are number of opportunities and threats that may hinder and
foster the performance of the hotel. Therefore, it is necessary to perform SWOT analysis
to take decision in response to it.
 Framing of marketing aims and purposes: It is very essential to formulate objectives and
aims so that all work process must be performed in response to it. As it is a newly
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launched hotel it become necessary for them to work in accordance to set targets in
particular time period (Karatepe, 2011).
 Formulation of marketing strategies: Strategy are drawn in order to future event in
effective manner. It basically provide guidance that all work must be conducted in
accordance to it. It also involve important of Marketing mix that consist of place,
product, person, physical evidence, promotion and positioning. Thus, hotel have to make
plans in accordance to it so that proper implementation of the program must be done in
adequate way. Similarly hotel Alperton must make strategy related to their targetted
audience, market place and promotional actions that must be implemented by the hotel in
order to carry out their work process in the effective manner and way.
 Drawing action plans: The above drafted marketing strategy must be divided into small
actions plans that are focused upon certain aims and objectives that has to be fulfilled in
set time period (Sun and Kim, 2013). These action plans have definite objective so that
overall plans can be done in efficient manner.
From the above discussed marketing plans it has been concluded that Hotel Alperston to
formulate number of marketing strategies in order to meet and promote their products and
services in the market place so that they can bale to survive for longer period of time.
Integrated marketing strategy of communication adopted by Alperton hotel
Integrated marketing strategies are adopted by the company in response to build strong
image at the target audience so that the set and final messages can be delivered to the customers.
Thus, it is necessary to perform this function in proper and correct manner and has to be
performed in following steps that are discussed below:
 Locate constructive goals and objectives: Hotel Alperton must draft such purposes that
mention or highlights the purpose of performing marketing function in effective manner.
For example proper decisions must be taken in regarding constructing of consumer
loyalty and boosting of sales volume.
 Defining the focused customers. Every business organisation must have some group of
people that are their target audience, For example this hotel have to make decision
regarding their pubs that only people above 18 years will be allowed and many other. The
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focused audience make it easy for the hotel to make action plans accordingly and than
make procedures while keeping it in the mind.
 Evaluate the competitors strategy and than take actions accordingly: It is very much
important for the management of hotel Alperton to study the strategies of the competitors
that are posing high competition in front of them. Hence it enable them to locate their
competitive edge in the market place (Kim, 2011).
 Creativity: this is very much necessary in today' modern era that the business
organisations have to perform the tasks in some different and creative manner in order to
stand apart from others that are already present. Hotel have to be various much aware of
all the things that are happening in the surroundings and than form strategies according to
it.
 Communicate: this step involve communicating the idea and thought of the company to
the target audience so that they come know about their work process. There are number
of ways and medium that are available in the business environment which are used by the
company in order to transfer their ideas while performing communication process in
effective manner. This hotel can take advantage of number of social sites like Instagram,
Facebook so that they can focus large number of customers and show their presence in
market place (Wu and Ko, 2013).
From the above discussion it is clear that hotel have to adopt some communication
process so that communicate their process and transactions to large number of people. The
management have adopted Instagram as the source of social site through which they can
communicate their newly establishment in front of the customers. There are number of
advantages and disadvantages that are present in each of the source which have to evaluated by
the marketing manager so that they can opt for best possible option that will yield them high
returns and outcomes.
Solid marketing strategy is somewhere the critical build the brand, attract the new
customer and also maintain the loyalty. Customer loyalty is a key, marketing manager and
having executives as well which devote lot of time and resources which do build awareness and
also create ongoing, campaigns. Hospitality industry is such who mainly work on their content
and somewhere on their storytelling as well, as because this help in generating interest and
property which differentiate hotels from its competition (Kotler, 2013). Even though Alperton is
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that hotel who uses the marketing concept in effective way as they know they can earn higher
profit in great way and thus it leads to have a goodwill in market.
Hospitality industry uses the marketing concept in unique and creative way so that they can
attract the large population towards their hotel and Alperton is among those who is working hard
to attain its goals and objectives. Marketing help in bringing effective relation of customer and
hotel and Alperton provide there services in such way as traveller and many individuals becomes
existing customer for longer period too. Having better strategy and proper decision does help in
using marketing concept in great way and with such hotel make themselves stable in market and
earn higher standard with target too (Rai, 2012).
CONCLUSION
From the above discussed report it has been concluded that marketing is a essential
component that has to be carried in effective manner in order to promote the products and
services of the company. This report highlight the case of hotel Alperton that have recently been
set up with number of outlets that include restaurant, bar, coffee shop. Thus they have to draft
marketing plan in order to carry out in effective and efficient way. The loyalty program are
adopted by them so that they can retain their customers for longer period of time. On the other it
is crucial to maintain loyal clients so that they could maintain sustainable image and goodwill in
the market place. On the other hand, they have to frame several marketing mix policies in order
to promote their products and services among customers. They have drafted loyalty programs
that has to be evaluated in order to find out it outcomes and results.
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REFERENCES
Books and Journals
B. DiPietro, R., Cao, Y. and Partlow, C., 2013. Green practices in upscale foodservice
operations: customer perceptions and purchase intentions. International Journal of
Contemporary Hospitality Management. 25(5). pp.779-796.
Bharwani, S. and Jauhari, V., 2013. An exploratory study of competencies required to co-create
memorable customer experiences in the hospitality industry. International Journal of
Contemporary Hospitality Management. 25(6). pp.823-843.
Chen, C.M., Lee, H.T., Chen, S.H. and Huang, T.H., 2011. Tourist behavioural intentions in
relation to service quality and customer satisfaction in Kinmen National Park, Taiwan.
International Journal of Tourism Research. 13(5). pp.416-432.
Harrington, R.J., Ottenbacher, M.C. and Kendall, K.W., 2011. Fine-dining restaurant selection:
Direct and moderating effects of customer attributes. Journal of Foodservice Business Research.
14(3). pp.272-289.
He, Y., Li, W. and Keung Lai, K., 2011. Service climate, employee commitment and customer
satisfaction: evidence from the hospitality industry in China. International Journal of
Contemporary Hospitality Management. 23(5). pp.592-607.
Hsieh, Y.C., 2012. Hotel companies' environmental policies and practices: a content analysis of
their web pages. International journal of contemporary hospitality management. 24(1). pp.97-
121.
Karatepe, O.M., 2011. Service quality, customer satisfaction and loyalty: the moderating role of
gender. Journal of Business Economics and Management. 12(2). pp.278-300.
Kim, M.R., 2011. The importance of customer satisfaction and delight on loyalty in the tourism
and hospitality industry. European Journal of Tourism Research. 4(2). p.226.
Kotler, P., 2013. Marketing for Hospitality and Tourism, 5/e. Pearson Education India.
Rai, A.K., 2012. Customer relationship management: Concepts and cases. PHI Learning Pvt.
Ltd..
Rao, K.R.M., 2011. Services marketing. Pearson Education India.
Rishi, M. and Gaur, S.S., 2012. Emerging sales and marketing challenges in the global
hospitality industry: A thematic analysis of customer reviews from the world's top two tourist
destinations. Worldwide Hospitality and Tourism Themes. 4(2). pp.131-149.
Ro, H. and Chen, P.J., 2011. Empowerment in hospitality organizations: Customer orientation
and organizational support. International Journal of Hospitality Management, 30(2), pp.422-428.
Shi, Y., Prentice, C. and He, W., 2014. Linking service quality, customer satisfaction and loyalty
in casinos, does membership matter?. International Journal of Hospitality Management. 40.
pp.81-91.
Sigala, M., Christou, E. and Gretzel, U. eds., 2012. Social media in travel, tourism and
hospitality: Theory, practice and cases. Ashgate Publishing, Ltd..
Sun, K.A. and Kim, D.Y., 2013. Does customer satisfaction increase firm performance? An
application of American Customer Satisfaction Index (ACSI). International Journal of
Hospitality Management. 35. pp.68-77.
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Wu, H.C. and Ko, Y.J., 2013. Assessment of service quality in the hotel industry. Journal of
Quality Assurance in Hospitality & Tourism. 14(3). pp.218-244.
Online
Improving customer retention in the hotel industry, 2018 [Online] Available through
<https://customer-retention-in-hotel-industry-rfm-model/>
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