Marketing and Customer Retention in the Hospitality Industry

This report explores the use of marketing mix and relationship marketing in the hospitality industry, with a focus on customer retention. It analyzes the characteristics of a customer loyalty program and its success as a retention tool. The report also proposes strategies to develop a loyalty program in the hospitality industry.

Marketing along with
Customer Retention
within Hospitality
Industry

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
1. Use of marketing mix with marketing strategies.....................................................................1
2. Analyses of characteristics of organisational relationship marketing programme as well as
explanation of success or failure as customer retention tool.......................................................4
3. On the basis of conclusions from the above, proposing strategies to develop the loyalty
program in the business within hospitality industry, that will be opened after completion of
LMU BA Top-Up hospitality management course......................................................................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Marketing refers to an action that covers buying, promotion, distribution, selling, etc of
product, programme or service. At same time, customer retention is an activity to engage active
customers to continue purchasing commodities, services and programme from the company. The
concept of marketing along with customer retention are key for hospitality companies as these
assist on generating awareness about the brand among target audience and continuing business
practices to generate revenues and making profits. The report is prepared on Corinthia Hotel
which is located in London, United Kingdom (Corinthia Hotel, 2020). The hotels offers made to
measure facilities and services to its guests and retain them through a customer loyalty
programme that is named as “Discovery”.
The report includes topics such as usage of marketing mix in marketing strategies,
analysing features of relationship marketing programme of company and explanation of its
failure or success as customer retention technique. At last, strategies to develop the loyalty
programme are proposed that will be opened in the industry after completion of the course.
MAIN BODY
1. Use of marketing mix with marketing strategies
Overview of company
Corinthia Hotel is a hospitality company which is established on triangular site of
London, UK. The hospitality company was established in 1885 with the mission of providing
guests and customers with “Craftsmanship of Care'. It offers multiple services to customers so
that they step out of daily routines and enjoy privileges including early check-in, compliment
room upgrade, hotel credit till £200 and late check-out. “Discovery” is a customer loyalty
programme of the hospitality organisation (Customer loyalty programme of Corinthia Hotel,
2020). Discovery members experiences a property which truly reflects traditions addition to
culture of the location while enjoying all kinds of advantages of loyalty such as room upgrades
together with comfort enhancing perks.
Marketing mix in marketing strategies
Marketing mix can be termed as collection of variables which an enterprise uses for
carrying out the set marketing strategy addition to customer needs. In Corinthia Hotel, marketing
mix us used to create awareness and sell offerings to target population. By using marketing mix
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in marketing strategies, business managers develops the strengths and limits weaknesses,
improve profit collaboration among partners and functional units, become more competitive as
well as adaptable in target market (Bovsh, Hopkalo and Komarnitskyi, 2020). The extended
marketing mix with marketing strategies in context to Corinthia Hotel is as follows:
Product: It can be tangible, intangible, or both depending on the firm as this explains
about the needs, wants, requirements, and demand that consumer have so that it can be identified
and fulfilled. Corinthia Hotel provides excellent products that includes comfortable beds,
tea/coffee maker, refrigerator, curtains, free newspaper, side table and hence forth. At same time,
its services are courier services, satellite TV, conference and bed room with latest technology,
baby care facilities, credit card facility and so on. and services like room service, housekeeping,
etc. to its customer as needed by them. While devising marketing strategies, all the available
products and their characteristics that have powers to attract audiences are considered by
marketers (Boadu and Achiaa, 2019).
Price: It is a very important factors as it determines many things. The price that a
consumer pays for the product or service taken comes in it. Managers of Corinthia Hotel believes
in standard services and delicious food at fair prices. For this, the company have adopted
premium pricing strategy in order to offer or deliver value related prices and services. With this
strategy, the administrators delivers its distinguished customers with best possible services at
premium rates that benefits marketers to implement marketing strategies effectively,
Place: It is the thing that is dependent on the location, distribution channel and other
factors like that. Corinthia hotel is located at a place which is epicentre of the UK and because of
this it enjoys a great share of market. It has a well established and organised channel of
distribution which makes it convenient for consumers (Chou and Chuang, 2018).
Promotion: It refers to promoting the things that a firm deals in. Corinthia is a well
placed and established hotel so it spend a great amount but in a researched manner in
advertisements, marketing, and sales. As it is promoting well and can be seen at a lot of places so
it makes a mark on the subconscious minds of customer which can be very beneficial when they
are spending on a similar service as they could remember the hotel advertisements and this will
be helpful for it as it can capture a good share of market in a short time and that too for a long
time.
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Physical evidence: These are factors that could be seen by the customers themselves
without saying them to see but a firm make their attention shift by focussing on these factors.
Corinthia Hotel does a lot of research and analysis so as to identify the things that it can do to
make the physical evidence factor go in its way. The building and its infrastructure are widest
physical evidence of the hospitality entity. At same time, its services that are intangible but
provides guests with great ambience and lasting physical experience are also evidences that
motives customers to return back as well as retain the experience for longer durations (Della
Corte and Del Gaudio, 2020). Moreover, some other physical evidence of hospitality business
includes Discovery which is customer loyalty programme, standard amenities and Corinthia app.
With these physical evidence, managers devise and implement marketing strategies to gain
success.
People: Human resource or employees that are customer service staff, attitude, behaviour
and attitude which reflects the company or perceived by target audience. An organisation can not
image strong brand image without productive, good and competent people as they listen
customers and communicates their concerns, feedbacks, comments and requirements to higher
authority. In Corinthia Hotel, thousands of people work in different department for the purpose
of achieving their individual objectives with business goals. In order to develop people, human
resource professionals of the hotel uses training and development strategy to prepare employees
for taking wider roles and enhancing skill set to meet requirements in future. Addition to this, the
managers also uses compensation strategy to encourage its people to take suitable actions which
benefits the organisation (Fernandes Sampaio, Hernández Mogollón and de Ascensão Gouveia
Rodrigues, 2020).
Process: It is mechanisms, processes, flow of activities addition to procedure which are
part of delivering demanded products and services to customers. When a business have effective
process then it ensures repeatedly delivery of same standard product or service to customers. In
Corinthia Hotel, all the processes are represented by value chain. At same time, to make process
of company a competitive edge, managers have adopted strategy including convenience so to
make processes accessible for guests from their own perspective. Moreover, Administrators of
Corinthia Hotel have adopted strategy of reducing waiting time so that guests do not have to wait
for long hours to avail the services.
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2. Analyses of characteristics of organisational relationship marketing programme as well as
explanation of success or failure as customer retention tool
Relationship management programme is a promulgation that is used by firm to attract,
serve and retain customers for longer durations. It can be among business to customer or
business to business (Koo, Yu, J and Han, 2020). In Corinthia Hotel, the aim of relationship
management programme is to devise healthy partnership and kinship among staff and patrons. It
assist in maintaining effective relations with customers and making it successful to retain them
for future. It is jut not related to applying some technology or practice, rather its is a tactic to
learn or gain more knowledge about needs, attitudes, behaviours, perceptions and choices of
customers so to devise and maintain fruitful relations with them. One of relationship
management programme or customer loyalty programme adopted by professionals of Corinthia
Hotel is Discovery that includes following characteristics:
 Exclusive programme: Discovery is an exclusive programme that is made for making
enjoyable and experince of customers incredible.
 Incredible local experiences: Discovery is characterised as the programme that provides
truly experiences that reflects culture as well as tradition of the place while making
loyalty or relationships more stronger.
 Element of surprise: The loyalty programme, Discovery is much about the company
showing loyalty to its members because it is about earning customers loyalty to brand. It
includes surprise as well as delight rewards, local gifts in the room and many other
surprises for customers (Lee, Pires and Rosenberger III, 2017).
 Simplicity: The programme is simple, clear together with easy to understand. In
Corinthia Hotel, point of Discovery is making and managing personal relationships with
brand rather than with programme itself. With this, managers makes flexible and simple
check-Ins or check- outs and helps members to save around 10% on room rates.
Customer retention is seen as a new growth. In Corinthia Hotel, Discovery is successful
relationship management programme or customer loyalty programme which act as customer
retention tool as it keeps audiences engaged with products and services of business. It meets all
the requirements of customers including easy check-ins, flexible payments and many more. The
programme helps the company to improve its customer base and make strong brand position by
analysing, understanding and delivering demanded customer services along with encouraging
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customers to return back to experience room upgrades, local gifts, incredible experiences and
guaranteed room availability (Michopoulou and Moisa, 2019). The programme also maintains
healthy and ongoing relations that leads to improving retention of clients as well as increases
acquisition of audiences at reasonable cost. It do not jeopardise current relations and ensures
proper transition of prospective person to loyal addition to long term client of Corinthia Hotel.
3. On the basis of conclusions from the above, proposing strategies to develop the loyalty
program in the business within hospitality industry, that will be opened after completion of
LMU BA Top-Up hospitality management course
As above discussed, it is analysed that marketing mix is used by administrators in
marketing strategies for the purpose of producing desired responses from target market.
Relationship management programme assist an entity to maintain ongoing engagement with
clients and customers (Mokhtaruddin, Wel and Khalid, 2019). Strategy development is
concerned with researching and ascertaining strategic options, then selecting most effective one
and determining how to allocate resources with the company to reach identified heights. In
context to Corinthia Hotel, it is analysed that the managers are planning to develop the loyalty
programme within hospitality sector. Development of customer loyalty programme of firm helps
managers to retain customers, increase growth addition to improving reputation or image of
brand. Some of the strategies that will be opened after competition of particular hospitality
management course are as follows:
 Enhancing Loyalty program membership: Within the strategy, Corinthia Hotel will
offer new customers various incentives while enrolling as reward to become member or
joining the programme. Also, wide types of personal information will not be asked as
more focus will be towards gathering information that is required. Current members or
customers will be rewarded to share the word along with fostering interaction with brand.
 Education and rewarding to employees: In a customer loyalty programme, employees
of firm plays key role because of which it becomes necessary to company to improve
skill set of their employees for developing the loyalty programme. In case with Corinthia
Hotel, educating and rewarding employees will be a fruitful strategy to develop
“Discovery”. In order to spread words for the programme it is significant to improve
knowledge of the loyalty programme for them and business (Rawat and Kumar, 2017).
In case, when loyalty programs fails to enrol many people, motivating employees and
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improving their skill sets of human resources to enrol the most possible customers will
help in improving the loyalty programme.
CONCLUSION
From the report, it has been concluded that hospitality institutions makes efforts for
marketing together with retaining customers for longer time. Marketing mix is a instrument that
considers multiple elements which go for promoting a brand along with its offerings. It allows
managers to devise profitable marketing strategies and decisions at all level. All companies have
relationship management programme that assist managers to maintain ongoing engagement level
with all the prospective and potential audiences. The strategies which will be opened for the
purpose of developing organisational loyalty programme for customers are Education and
rewarding to employees addition to enhancing Loyalty program membership.
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REFERENCES
Books and Journals:
Boadu, K. and Achiaa, A., 2019. Customer Relationship Management and Customer
Retention. Customer Relationship Management and Customer Retention (October 20,
2019).
Bovsh, L., Hopkalo, L. and Komarnitskyi, I., 2020, May. Leadership in the Client-Centred
Service of Hospitality. In 6th International Conference on Social, economic, and
academic leadership (ICSEAL-6-2019) (pp. 128-135). Atlantis Press.
Chou, Y. C. and Chuang, H. H. C., 2018. A predictive investigation of first-time customer
retention in online reservation services. Service Business. 12(4). pp.685-699.
Della Corte, V. and Del Gaudio, G., 2020. marketing in tourism. The Routledge Handbook of
Tourism Experience Management and Marketing, p.249.
Fernandes Sampaio, C. A., Hernández Mogollón, J. M. and de Ascensão Gouveia Rodrigues, R.
J., 2020. The relationship between market orientation, customer loyalty and business
performance: A sample from the Western Europe hotel industry. Tourism and
Hospitality Research. 20(2). pp.131-143.
Koo, B., Yu, J. and Han, H., 2020. The role of loyalty programs in boosting hotel guest loyalty:
Impact of switching barriers. International Journal of Hospitality Management. 84.
p.102328.
Lee, H. C., Pires, G. D. and Rosenberger III, P. J., 2017. The moderating effect of cost
orientation on RMO adoption in the hospitality industry. International Journal of
Economics and Business Research. 13(1). pp.57-71.
Michopoulou, E. and Moisa, D. G., 2019. Hotel social media metrics: The ROI
dilemma. International Journal of Hospitality Management. 76. pp.308-315.
Mokhtaruddin, S. A., Wel, C. A. C. and Khalid, N. R., 2019. Employee Rhetorical Sensitivity as
a Mediator in the Relationship Between Customer Orientation and Customer
Retention. The South East Asian Journal of Management.
Rawat, K. and Kumar, T. R., 2017. The Mediating Role of Customer Satisfaction in the
Relationship between Service Quality and Customer Retention. Asian Journal of
Research in Social Sciences and Humanities. 7(10). pp.401-410.
Online:
Corinthia Hotel. 2020. [Online]. Available through:
<https://www.corinthia.com/london/>
Customer loyalty programme of Corinthia Hotel. 2020. [Online]. Available through:
<https://www.corinthia.com/discovery/>
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