Marketing and Customer Retention in Hospitality Industry

This document discusses the significance of marketing and customer retention in the hospitality industry. It explores the concept of customer loyalty programs and provides strategies for developing one in your own business. The case study focuses on Leonardo Royal London Tower Bridge hotel and its successful loyalty program, Leonardo Advantage Club.

MARKETING AND
CUSTOMER
RETENTION IN
HOSPITALITY
INDUSTRY

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Marketing mix.............................................................................................................................3
Characteristics of organisation relationship marketing programme...........................................5
Build strategy for development of loyalty program in own business.......................................6
CONCLUSION ...............................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Marketing refers to the set of activities in which business enterprise focus on customers
short term and long term needs and according to this create a connection between people and
other clients so that high values can be gained by the organisation. Customer retention is refers to
that ability of the company that shows the power of retaining customers for a longer period of
time. In this activities related to marketing is very significant for the enterprise because it is
helpful to retaining the customers and satisfies them. Within the hospitality industry, companies
can associate with the loyalty programme for maximising their customer retention and
engagement for the success(Mahmoud, Hinson and Adika, 2018). Within the project report
concept related to marketing with their impact on customer satisfaction in the context of
Leonardo Royal London Tower Bridge London. This report is based on the famous hotel i.e.
Leonardo Royal London hotel that is located in the London City centre neighbourhood and near
the beach. It looks like a luxury hotel in the London that offers the varieties of services to their
customers under the scheme of their loyalty program that helps in retaining existing customers
and attracting new customers attention so that they can place the well position within the
competitive marketplace.
MAIN BODY
Marketing mix
Marketing mix refers to an effective marketing strategy that is adopted by the businesses
to understand the latest trends of the market and used strategies so that all this adhered to the
marketing tendency. Industry like hospitality industry is adopted by the organisation for adopting
the suitable marketing strategy so that large number of customers get attracted towards this
sector and also firm will get the loyal customers. In case of Leonardo Royal London Tower
Bridge London that is a five star hotel in London that are working for managing the customers
by retaining them in an effective and efficient manner(Han and Hwang, 2018). For this elements
of marketing mix can be elaborated below:
 Product- Leonardo Royal London Tower Bridge London can deals in offering the
varieties of luxurious services to their guest. In this Leonardo Advantage club is a loyalty
program that is develops by the Leonardo Royal London Tower Bridge to maintain their
position within the rival market. As this Hotel is dealing in some major aspects of

products like core products, supporting products, facilitating and augmented products. In
core goods this hotel offers the hotel rooms to their customers, in this online booking
facilities are also provided. Under supporting product additional services are provided
like 24*7 room facilities, late checkouts etc. In this augmented product or services
luxurious benefits are provided to guests. This product determinants helps the hotel to
divide their customers as per their needs and requirements. To retain customers for a
longer time Leonardo Royal London Tower Bridge can use their loyalty program that can
helps in retaining customers effectively(Mohammed, Rashid and Tahir, 2017).
 Price- As Leonardo Royal London Tower Bridge is generally recognised as a service
provider to the customers in lieu of receiving some price. In this hotel can work for
retaining customers and offering them luxurious services on premium price so that helps
in making the loyal guest for the company. In this Leonardo Royal London Tower Bridge
can also focus on middle class people by using the price skimming technique so that
middle class clients can also enjoy the services and retain with the hotel.
 Place- The Leonardo Royal London Tower Bridge can offer their luxury services in the
London that is well recognised for their luxury services in an creative way. As there
members are also belongs to the London so that they can manage their operations
effectively for succeeding the world class position. As this hotel can offer their services
within the Europe and most preferably in the city centre London, by using their loyalty
programme that is Leonardo Advantage club they can retain their customers so that sales
and profits would be maximised.
 Promotion- Leonardo Royal London Tower bridge is well established hotel in London
that is a strong brand position within marketplace so that they can highly focused on the
mouth publicity and social media advertisement. In this loyalty program of hotel i.e.
Leonardo advantage club is also helpful to attracts the large base of customers. This helps
in developing loyalty among the customers mind regarding brand so that they can retain
with the hotel for a longer period of time(Boella and Goss-Turner, 2019).
 People- In this Leonardo Royal London Tower Bridge offers the several services to their
customers for satisfying them in the competitive market. This helps in improving the
sales and process in an prominent way. In this hotel managers plays a significant role in
encouraging their staff members so that they all work effectively for getting effective

outcomes. In this hotel can hire the experts that can associate with the investors and
market so that they get the data related to competitors which is helpful in their success.
 Process- In this Hotel Leonardo Royal London Tower Bridge provides the online
facilities to the public for booking and giving their reviews. In this hotel can develops
their own website that helps the customers to get the information effectively and
conveniently. This will remove the front desk requirement because the check-in and
check out services can be done digitally. This will attracts the customers and retain them
for a long duration of time.
 Physical evidence- in hotels the major part is based on the services which are intangible
in nature. On the other hand the customers who are get the services at the time of their
stay. In this physical evidence of the hotel Leonardo Royal London Tower Bridge is their
services that is effectively reflect in managing the cleaning of rooms so that customers
are getting the high class service as per their requirements. In this Leonardo Royal
London Tower Bridge can mainly emphasis on their interior ambience as a pe5rt of their
luxury services that helps in customer retention(Sanjeev, 2016).
Characteristics of organisation relationship marketing programme
In part of the report is based on the relationship marketing that is based on customer
relationship management in which organisation is highly focus on retaining the customers for the
longer period of time. This depicts the high level of satisfaction rather than focus on sales
transactions. In this relationship management prominent strategy is adopted that is very
prominent to make a customer engagement in the competitive market. This term is very
important for the organisation to enhance the company position within marketplace and grabbing
the customer attention appropriately. In this firm will tends to focus on understanding the
various services by analysing the customers needs and desires so that they can retain and attracts
the customers easily. It involves the major characteristics that helps in fulfilling the needs of
customers in prominent manner in the current market area(Zopiatis and et. al., 2017).
In terms of Leonardo Royal London Tower Bridge that is the leading five star hotel in
London that focus on following the traditional way in their working to reaching their prominent
reward programmes that is helpful in getting the higher position within marketplace. In this hotel
also offers their family guests a family moments and also organise the events and party for their
guests that attracts the customer attention towards the company and they again booked the hotel

in their vacations for enjoying better experience. In this guest need to stay at least one nights and
more that is helpful in creating the good memories(Chou and Chuang, 2018). In this some
characteristics are included for retaining the customers by the hotel that can be shown below:
 As hotel can run their own loyalty programme i.e. “Leonardo Advantage Club” in which
hotel can provide the varities of offers to their customers that is effective for retaining
them. In this they can also organised the events that is prominent for the hotel to earn
higher profits. This hotel also offers the luxurious accommodation, fine dine as a
complimentary.
 Hotel also provide the luxurious services on high elite price and for this they can target
their high class customers.
 IN this Hotel also provide complimentary services and several attractive services to their
target customers so that they can retain guest for more time.
 In this Hotel staff put more emphasis on their royal booking in terms of making their
position better in the marketplace.
 Further hotel also ask for valid identification of the customers during check-in and check-
outs so that no misunderstanding is created this will attracts the customers in terms of
security(Han and Hwang, 2017).
As from the above discussion hotel can focus on improving their customer retention on a
regular basis so that they can get huge customers and also place the higher position within
marketplace. As focusing customer retention on the regular basis hotel can enhance the trust
level of their guests that helps in develops their connections with the customers. In this Leonardo
Royal London Tower Bridge does not need more to develops their customers services as they
highly satisfied the needs of customers with perfection that will attracts the customer attention to
high extent. In this concerned hotel can take the regular follow-up of their customers that
develops the transparency and flexibility between customers and organisation At last it is
considered that the marketing strategy that is followed by hotel is very effective in retaining
customers and gaining competitive market.
Build strategy for development of loyalty program in own business
In the city centre of London a new hotel is to be opened ' Vrieto'. This is a type of three
star hotel that work with the major objective of working for fulfilling the needs of customers by
offering them quality and luxurious services. In this management of hotel have developed the

loyalty programme for their customers so that they will retain to the company for a longer period
of time. To this they can develops the several strategies that can be elaborated below:
 Adding the points on customers per visit- In the loyalty programme of the hotel
customers are getting some points on their booking. And these points can increased on
their every stay and because of this they get special treatment. As these collection of
points are treated as the rewards for the guests that helps in creating value of the hotel in
the mind of customers(Alnawas and Hemsley-Brown, 2019).
 Timely follow-ups- In this Hotel staff can timely take customers follow-ups so that they
would engaged with the company for the longer period of time. This also helps in
satisfying the needs of customers and enhancing the brand image in the marketplace. As
it also helps the hotel to improve their quality of services as per the customers needs.
 No regulation on points redemption- In this customers have no limitation in redeeming
their collect points. This is the effective benefit only for the regular customers. Or their
new customers can redeem their points after their third stay. This helps in engaging the
customers for a longer period of time and also attracting the new customers(Fernandes
Sampaio, Hernández Mogollón and de Ascensão Gouveia Rodrigues, 2020).
CONCLUSION
To the above explanation it is to be concluded that customer retention is a significant
term for the organisation because it helps in gaining higher success within the same industry. It is
regarded as the important determinant for the company that assist in engaging the customers for
a longer period of time. In this marketing strategies and activities are developed in an effective
way that lead to maximise the sales and customers base so that business enterprise may enjoy
higher profits within the same industry. This inculcates the marketing mix terms that helps in
understanding the several strategies so that organisation can do improvements to sustain in the
marketplace. In this firm will do modifications in those aspects that have direct affect on the
enterprise and implemented accordingly. In this Customer loyalty programmes are configured to
boosting the sales and retention of customers in a repetitive manner. Within the hospitality
industry loyalty programme play an essential role in engaging the customers for a longer period
of time.

REFERENCES
Books and Journals
Alnawas, I. and Hemsley-Brown, J., 2019. Market orientation and hotel performance:
investigating the role of high-order marketing capabilities. International Journal of
Contemporary Hospitality Management.
Boella, M.J. and Goss-Turner, S., 2019. Human resource management in the hospitality
industry: A guide to best practice. Routledge.
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.
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.
Han, H. and Hwang, J., 2017. In-flight physical surroundings: Quality, satisfaction, and traveller
loyalty in the emerging low-cost flight market. Current Issues in Tourism. 20(13).
pp.1336-1354.
Han, H. and Hwang, J., 2018. Growing competition in the healthcare tourism market and
customer retention in medical clinics: New and experienced travellers. Current Issues in
Tourism. 21(6). pp.680-702.
Mahmoud, M.A., Hinson, R.E. and Adika, M.K., 2018. The effect of trust, commitment, and
conflict handling on customer retention: the mediating role of customer
satisfaction. Journal of Relationship Marketing. 17(4). pp.257-276.
Mohammed, A.A., Rashid, B.B. and Tahir, S.B., 2017. Customer relationship management and
hotel performance: the mediating influence of marketing capabilities—evidence from
the Malaysian hotel industry. Information Technology & Tourism. 17(3). pp.335-361.
Sanjeev, G.M., 2016. Innovations mount up in the Indian hospitality industry: summing
up. Worldwide Hospitality and Tourism Themes.
Zopiatis, A. and et. al., 2017. Quality, satisfaction and customers’ future intention: The case of
hotels’ fitness centers in Cyprus. Journal of Quality Assurance in Hospitality &
Tourism. 18(1). pp.1-24.