Marketing and Customer Retention of Hospitality Industry

This report discusses the use of marketing mix in the hospitality industry, analyzes the relationship marketing program of Hyatt hotel, and proposes strategies for loyalty program development. It provides insights into customer retention and marketing strategies in the hospitality industry.

Marketing and
Customer Retention of
Hospitality Industry

Contents
INTRODUCTION...........................................................................................................................................3
MAIN BODY.................................................................................................................................................3
The use of marketing mix (and extended marketing mix) its use in their marketing strategies...............3
Analyze the characteristics of the organization’s relationship marketing programme and explain its
success or failure as a customer retention tool with reasons....................................................................5
Proposing strategies for the development of a loyalty programme in for own business within in the
hospitality industry..................................................................................................................................7
CONCLUSION...............................................................................................................................................8
REFERENCES................................................................................................................................................9

INTRODUCTION
The relationship marketing is about forming long-term client relationships. It has been
commonly used and is known as the way visitors market themselves to the hospitality sector. The
concept of relationship marketing must be discussed prior to the beginning of the report. It is the
mechanism by which deep value-laden relationships with clients and customers are established,
cultivated and strengthened. Providing value that meets or exceeds consumer standards is the
crucial factor. Since competition is getting more severe and there's very little difference between
firms in the marketplace, hotels rely far too much on relationship marketing (Park and Tran,
2020).
This report based on the Hyatt hotel is a multinational hotel of hospitality industry that
manages and franchise luxury and business hotels, resorts and vacation properties. Hyatt has
over 100,000 employees around the world, serving almost 900 assets in 60 countries throughout
20 projects. Hyatt is among the country's greatest luxury hotels and operates the hugely admired
Park Hyatt and Andaz luxury hotel chains. The customer loyalty programme of the Gold
Passport is part of a broader dedication of Hyatt to make our customers feel much more
welcomed each day they visit. In this report consist of market mix and their strategies and
evaluation of characteristics of relationship marketing programme in context of selected
organisation. Along with provide conclusion of loyalty programme for the propose strategies
within the hospitality industry.
MAIN BODY
The use of marketing mix (and extended marketing mix) its use in their marketing strategies.
Marketing mix: Marketing mix is the method of developing and combining different
marketing principles to ensure the goals of the business in such a manner. A popular category
that started as that of the four Ps: product, price, place and promotion is sometimes referred to as
the word. In comparison to getting hung up on one post, successful marketing affects a wide
variety of fields. Using it can cover a wider public, and marketing experts are essential for
keeping focused on the issues that truly matter while having the four Ps in mind. While
introducing new products or rewriting current products, concentrating on a brand mix enables
businesses to make strategic choices (Chung, 2020). In order to make a significant component to

the hotel's marketing strategy, the marketing mix of The Iconic Hotel London is described
following.
Product: The Hyatt hotel provides services in hotels and resorts in hospitality industry. The
hotel also provides the opportunity to celebrate activities such as banquets, marriages, corporate
seminars, conference, etc. All its workers are quite well-trained with high productivity and
comfort to accept and support its clients. It offers a diverse range of accommodation options,
such as:
 Park Hyatt, Andaz, Grand Hyatt and Hyatt centred Full-Service accomodation
 Hyatt Position select-service accommodation
 Hyatt Room lengthened-stay accommodation
 All it-inclusive resorts offered by Hyatt Ziva and Hyatt Zilara
 All of its staff are well educated and deliver a higher level of customer satisfaction. An
exclusive resorts they have are Hyatt Zika and Zilara.
Price: Hyatt Hotels believes in a thorough understanding of the requirements of the customers.
By delivering outstanding goods and services in luxury surroundings, the company has been
focusing on putting good foot forward. Hyatt hotels rely on its goods' luxury selling approach as
they appeal to society's biggest corporate elite and upper class. The same approach has proven to
be a good one as the clients are prepared to pay the money for the services that are required.
Discounts on online booking or lengths of stay are also offered by Hyatt hotels. In addition to
these free meals, the consumer also gives extra suites and other attractive and achievable offers
that are fancy (Srivastava, Chandra and Sinha, 2018).
Place: As they are distributed over numerous nations in the world, Hyatt Hotels have a global
presence. It has its U.S. offices in Chicago. Initial Hyatt House was located at Los Angeles
International Airport, and the company has built six hundred and seventy-nine assets ever since,
distributed over fifty-four countries of the world. Hong Kong, Atlanta, Chicago, Manila,
Mumbai, Beijing, San Francisco, Seol, Boston and Tokyo are great attractions with one of his
hotels and restaurants. It also has a concrete median system that provides 24 * 7 services to all
visitors and other consumers in places such as the U.A.E, India, Germany, Australia, etc. The

business has many ties with conventional and digital tour operators that suggest a stop at any one
of its resorts or hotels in compliance with suitable sized.
Promotion: Hyatt has introduced a top-notch advertising campaign developed in particular to
create and retain special attention and brand recognition by fulfilling the consumer's every
possible requirement. For the good of its clients, it provides various schemes. Via a unique
membership card designated Hyatt Gold Passport, Hyatt recognizes the loyalty of existing
clients. It's a loyalty network giving members promotions and discounts. While their stay lasts to
more than 2 sequential days, voucher cards are given to clients. To guarantee consumers are
becoming aware of their hospitality facilities, Hyatt uses human media platforms. Hyatt has been
deliberately built to create and retain positive visibility when it comes to marketing and
consumer strategy, and brand equity is by word - of - mouth or indeed any method. This was
accomplished by Hyatt maintaining high customer loyalty and having outstanding management
of customer relationships (Maggon and Chaudhry, 2018).
Analyze the characteristics of the organization’s relationship marketing programme and explain
its success or failure as a customer retention tool with reasons
Relation marketing is a facet of Customer relationship management (CRM) relationship
marketing that based on customer loyalty and long-term customer experience instead of shorter-
term targets such as existing customers and shopping environment. The aim of relationship
marketing (as well as marketing communications) is to build solid, even emotional, customer
connections to a brand which can lead to aggressive sales, direct word-of - mouth advertising and
lead-generating knowledge from consumers. Relationship marketing compares with the more
logical method to marketing concept that depends on raising the size of direct sales. The return
on consumer acquisition costs in the behavioral approach could be inadequate. A client may be
persuaded to pick that brand once, but the client may not return to that product in the potential
without the need for a good partnership marketing plan. The characteristics of customer
relationship marketing programme of The Hyatt Hotel are presented underneath. The hotel has
divided its customer loyalty programmers into three segments (Mishra, 2020).
Gold: The Hyatt Gold Passport is a top-class reward scheme that provides a three-tier reward
points system. Its first standard is Hyatt Gold Passport membership. For every qualifying U.S.

dollar earned at Hyatt's hotel group, it is the basic minimum and will give you 5 Hyatt Gold
Passports stars.
Platinum: Hyatt Platinum membership is attained upon completing 5 suitable spends or 15
qualified nights in a calendar year. People will get, as a Platinum member, more than a Gold
member:
 A 15 percent point reward.
 A chosen room depending on accessibility following entry, whether spaces on upper
floors or accompanied.
 Verified form of bed upon check-in.
 High-speed in-room internet connectivity is free of charge.
Diamond: Hyatt Diamond membership, the highest point of Hyatt's Gold Passport, is achieved
after achieving 25 qualified nights or 50 valid stays in a calendar year. Compared to low levels of
the Hyatt Gold Passport, you can get more advantages as a Diamond participant:
 A bonus of 30 per cent points.
 Update, except suites, to the great hotel accessible upon entry.
 Special access (with free continental breakfast and afternoon hors d'oeuvres) to the
Regency Club or Grand Club lounge.
 Complete the following complimentary breakfast (in hotels without the need for a
relaxation club).
 Improvement to four suites a year (improvement verified at the time of booking for
qualifying paying nights).
 Welcome gift: throughout each visit, points awarded or foodservice facilities.
 High-speed in-room internet service is free of charge.
 Update the nighttime bed (Book, Gatling and Kim, 2019).
Success of loyalty programme of Hyatt Hotel as customer retention tool:
Hyatt is comparatively small (478 properties) comparison to other chain hotels, with
mainly luxury properties in large cities, and this is improving as the chain works on extending its
appropriate implementation mid-scale Hyatt Place and Hyatt House products. Per each dollar

invested at the hotel, members receive five points, or 500 miles on any of the more than 40
airline services. Six different types of hotels, ranging from as low as 5,000 and up to 33,000 for a
room, are dependent on redemption levels. In 2009, Hyatt's Gold Passport programme went
through a significant revamp, giving its top Platinum and Diamond team sport participants more
regular updates and free wi-fi. One special function enables participants to exchange awards to
reclaim prizes with every other participant of the Gold Passport programme (Tuan, 2018). Park
Hyatt, Andaz, Grand Hyatt, Hyatt Regency, Hyatt Position and luxury villas Suites / Hyatt House
are among the Hyatt products. This loyalty programme helps to Hyatt to increase customer
loyalty and attracting more customers to stay in hotel and take benefit of loyalty programme.
With the membership of gold, platinum and diamond gets different benefits that attract them.
With the help of loyalty programme Hyatt hotel generate more revenues and invest in hotel to
improve their services.
As per the Customer, Hyatt experience has been consistently pleasant. Not only does
Hyatt provide exceptional service and idealistic assets across the globe, but it also has hotels that
provide fantastic value-based withdrawals. In my view, Gold Passport distinguishes itself from
other programmers with fair levels of forgiveness, fantastic Points + Cash opportunities and the
simplicity and selection of alternatives adopted for a bargain and get into a very beautiful
building.
Proposing strategies for the development of a loyalty programme in for own business within in
the hospitality industry.
An effective strategy for loyalty programmers provides an insight and creates good customer
relationships through being transparent, flexible, and easy and providing incentives that not only
attract private individuals, and furthermore enable those consumers to find concrete steps that fit
with the organizational objectives of an organisation. A loyalty programme marketing strategy
will enhance the customer service, enhance customer satisfaction, and likely force actual
business outcomes if the above loyalty programmes best practices are implemented. The Hyatt
hotel use different types of strategies to maintain their loyalty programme in better manner
(Alhakimi and Ghaleb, 2019).

I am planning to set my hotel in hospitality industry and for this require using different
strategies to attract customers and supported to engage with customers for longer period of time.
There are mentioned different strategies that use by me for my hotel such as:
Reward Points are a fundamental element in customer loyalty and retention, wherein awarded
consumer points can enable them enter the hotels frequently. I will then use incentives to inspire
them and promote refers to collection as per my target market, which is international tourists
(Moliner and et.al, 2019).
Guest of honor: This strategy can use for redeem points for a free stay and send them to a
family member, who will then enjoy rewards throughout their stay, as one of the latest rewards
revealed earlier next year. At the next business picnic or family reunion, make sure you take note
of everybody's standing!
CONCLUSION
As per the above repot it has been concluded that Relationships Marketing is all about
forming long-term client relationships. It has been commonly used and is known as the way
visitors sell themselves to the hospitality sector. Marketing of relationships is important for the
ability to remain in close touch with clients. Brands may introduce new functionality and
services to satisfy customer needs by recognizing how consumers use the goods and services of
an organization and identifying potential knowledge gaps, further improving the relationship.
Marketing of partnerships is built around the concept of customer experience management
(CEM) that emphasizes on optimizing customer experiences in order to encourage greater brand
loyalty.

REFERENCES
Books and Journal
Park, J. H. and Tran, T. B. H., 2020. From internal marketing to customer-perceived relationship
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hotel management. Journal of Hospitality Marketing & Management. 29(6). pp.722-738.
Srivastava, S. K., Chandra, B. and Sinha, A. P., 2018. Effectiveness of knowledge management
on customer relationship management in hotel business performance. Journal of
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Maggon, M. and Chaudhry, H., 2018. Exploring relationships between customer satisfaction and
customer attitude from customer relationship management viewpoint: An empirical study
of leisure travellers. FIIB Business Review. 7(1). pp.57-65.
Mishra, R. R., 2020. Innovations in Hospitality and Tourism Industry: A Systematic
Review. International Journal of Transformation in Tourism & Hospitality Management
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Book, L., Gatling, A. and Kim, J., 2019. The effects of leadership satisfaction on employee
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Tuan, L. T., 2018. Driving employees to serve customers beyond their roles in the Vietnamese
hospitality industry: The roles of paternalistic leadership and discretionary HR
practices. Tourism Management. 69. pp.132-144.
Alhakimi, W. and Ghaleb, A., 2019. The impact of CRM components system on customer
retention in the telecom industry: a case of Y-Telecom in Yemen. Middle East Journal of
Management. 6(4). pp.378-409.
Moliner, M. Á. And et.al, 2019. Environmental Sustainability and the Hospitality Customer
Experience: A Study in Tourist Accommodation. Sustainability. 11(19). p.5279.