Marketing and Customer Retention in the Hospitality Industry

This report discusses the use of marketing mix in marketing strategies, analyzes the characteristics of an organization's relationship marketing program, and proposes strategies for developing a loyalty program in the hospitality industry. The report focuses on Park Grand Hotel, a gateway to fantastic hotels in London, and covers topics such as product, place, price, promotion, process, physical evidence, and people. It also explores the success and failure of the hotel's relationship marketing program and provides recommendations for improving customer retention.

Marketing and Customer
Retention in the
Hospitality industry

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
The use of marketing mix in marketing strategies......................................................................1
Analyse the characteristic of organisation's relationship marketing programme and explain its
success or failure as a customer retention...................................................................................3
Propose strategies for development of loyalty programme in own business..............................5
CONCLUSION ...............................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
The marketing is a basic phenomenon that is selected by the business in order to promote
and intensify the amount of sales and profit with certain continuity (Almohaimmeed, 2019). It is
also being used to advance strong commitment so that loyal and potential customer base is
developed within certain period of time. In addition customer's retention is the basic prospect of
marketing under which suitable outcome is developed that make positive changes in appropriate
manner. In this an organisation also uses different set of tactics and strategies under which
accomplishment of both short and long term goal is achieved in sustained manner. The report
below is based on Park Grand Hotel which is a gateway to collect fantastic hotels of London. It
is the most beautiful and modern hotel that offer all its comfort, ease and elegance. The report
below includes marketing mix, relationship marketing programme and a strategy that is used to
develop loyal program in business.
MAIN BODY
The use of marketing mix in marketing strategies
The marketing mix is a basic fundamental of marketing that is used by business in order
to enlarge the working effectively or in timely basis (Balasubramanian and Ragavan, 2019). It
also reflect certain set of actions and tactics that is utilised by business in order to promote and
intensify the effectiveness of business in adequate mode. It is actually being induced in order to
differentiate the offered products and services as from already present products in systematic
mode. It is a tool under which marketing objective will pursue as per dependence of targeted
market. It is also briefly explains below as:
Product: For hospitality organizations it is important that they provide the right services
to the customers (Bodey, Shao and Ross, 2017). There is different product and services that is
offered by Park Grand Hotel to its customer's and it is as free Wi-Fi services, 24*7 room
services, flourish bars and restaurant, meeting facilities, conference and many other facilities as
well under which reliable modifications in services is processed as per according to portfolio. In
addition services is processed by managing ethos so that better excellence is pursued with
particular comfort and flexibility. The major aim of this mix is to impart balanced feeling of
comfort and security that helps to maintain sustainability in constrained mode.
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Place: For the hospitality organizations selection of a location is of utmost importance
because a right location is very crucial for their success in attracting more customers and clients.
Park Grand Hotel operates its hotels all over the world and thus in this way is able to ensure that
it expands its range into a mass base of customers and clients. This is a strength of the hotel
which contributes to its higher-level of profitability and ensures that it is able to increase the
level of income. For the consideration of location the hotel takes into account factors like
Population, Demand of hospitality services in the area, Level of income of the customers etc.
After considering these factors it makes a choice of place for the hotel.
Price: Hospitality organizations are required to set an appropriate price for their different
services which are offered to the customers and clients. Thus, for Park Grand Hotel it becomes
very important that an appropriate price is set by it for its services. The hotel charges different
rates from its guests for their stay according to their preference of room. If they want to stay in
standard room then lower rates are charged and if they want to stay in luxurious rooms and suites
then higher rates are charged from them.
Promotion: Hospitality organizations should make sure that they use appropriate
promotional strategies which can allow them to target their customers (Dinçer and Alrawadieh,
2017). In Park Grand Hotel, the management uses traditional as well as modern methods of
promotion through discount offers, loyalty programmes etc. through which the customers are
attracted towards them. Thus in this way the hotel also modifies its different promotional
strategies so that the customers are actively targeted for the purpose of enhancement of revenues.
Process: It means the overall system of a particular organization. Hospitality
organizations are required to make it more efficient which can enable them to be able to manage
the customers and clients effectively. In Park Grand Hotel, there is a set system for the different
activities and they are carried out in a smooth manner. Thus the managers of the hotel are
required to make sure that the process can be made more efficient so that better services are
provided to the customers and thus they are highly satisfied and motivated.
Physical evidence: It refers to the physical elements which are present within an
organization. For hospitality organizations, it is important because it enables them to present a
right impression in front of the customers. Therefore, in the context of Park Grand Hotel it is
important that it presents its physical evidence in the right form such as Upgraded and Premium
Furniture, Superior Rooms for the guests which can present a right impression on the guests.
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This will put a right impression on the customers and clients and they will provide a positive
review of the hotel.
People: It refers to the staff of the organization. Hospitality organizations require their
staff members to stay motivated and contribute to the success of the company. Thus, in Park
Grand Hotel the staff members have to contribute towards the success by contributing to their
maximum potential. There is a requirement of upgrading the overall level of skills of the staff
members in the hotel so that they are able to stay motivated and achieve the goals and objectives
effectively.
Analyse the characteristic of organisation's relationship marketing programme and explain its
success or failure as a customer retention
Customer Relationship Marketing is a technique which is used by the organizations to
develop the right relations with the customers (Fatma, Khan and Rahman, 2018). Its use is made
by the firms so that they are able to appropriately form long-term relations with their customers
which can be quite beneficial for them in the future. The managers of Park Grand Hotel also
believe in developing the right relations with the customers which can thereby help them a lot in
ensuring them the desired satisfaction level.
The loyalty programme of Park Grand Hotel i.e. Premier Club Rewards have been quite
useful for the hotel because they can be used for ensuring that there is a higher-level of loyalty
among the customers of the hotel.
Loyalty programme of Park Grand Hotel-
Premier Club Rewards- Premier Club Rewards is the loyalty programme which is offered by
Park Grand Hotel to its various customers and clients. In it, the regular customers who regularly
visit the hotel are provided the following types of benefits-
 Silver Membership- In this membership, the benefits which are provided to the
members include points which do not expire, extended check-out and complimentary
room upgrade. This is the starting level of loyalty membership which is offered by the
hotel.
 Gold Membership- This membership provides superior benefits for the customers who
take it. The facilities which are provided under it are points which do not expire,
extended check-out, complimentary room upgrade.
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 Platinum Membership- This type of membership provides ultimate facilities to the
guests who regularly visit the hotel. The facilities which are provided under it are points
which do not expire, extended check-out, complimentary snacks, complimentary room
upgrade, complimentary newspaper, free local calls and faxes, complimentary use of club
lounge, complimentary laundry. This ensures that the guests are offered a superior
experience in the hotel.
Thus the customers of the Park Grand Hotel can use any one type of membership which is
provided here. Therefore this type of membership can ensure that the customers are able to get
superior and premium benefits for displaying their loyalty towards the hotel. In this way, they are
able to receive the value for the money which they have paid for staying in the hotel. Also this
enhances the reputation and goodwill of the hotel in front of the various customers. Thus in this
manner the hotel is able to ensure that it rewards its loyal customers who regularly visit the hotel.
The reasons for the success of the programme of the hotel are explained as follows-
 Benefits for the customers- Premier Club Rewards provides the customers with varied
benefits which they can use (Kaur, 2016). This ensures that the customers are highly
satisfied. Therefore the aim of the Park Grand Hotel is to ensure that the customers are
provided the desired benefits.
 Redeemable points- When the regular guests visit in the hotel they earn a lot of
redeemable points (Litvin, Goldsmith and Pan, 2018). Thus, in this way the customers of
Park Grand Hotel earn redeemable points through Premier Club Rewards. They can
redeem these points according to their choice.
 Special deals for the customers- Through the loyalty programmes the hospitality
organizations ensure that they provide special deals for their different customers (Ozuem,
Thomas and Lancaster, 2016). For the customers of Park Grand Hotel, Premier Club
Rewards offers various special deals through which they are able to get special deals.
 Connection with the customers- Loyalty programmes allows the hospitality
organizations to be able to connect effectively with the various customers and clients.
Therefore, In the context of Park Grand Hotel it is quite useful because its management
has been able to form a connection with the customers which has contributed to their
success.
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Propose strategies for development of loyalty programme in own business
The loyalty programme which has been developed by Park Grand Hotel is quite effective
to ensure that the customers and clients are retained. The strategies which can be used by the
hotel for the purpose of development in the loyalty programme are as follows-
 Attractive offers- There is a requirement for the businesses to ensure that they are able
to provide more attractive offers to the customers (Raimi, 2017). Thus in this way, Park
Grand Hotel has to ensure that it brings more attractive offers Premier Club Rewards
programme which will help in attracting more customers and clients towards the hotel.
 More coverage- In the hospitality sector, the businesses need to make sure that they can
cover more people in their loyalty programme (Sofi and Hakim, 2018). Therefore, In the
context of Park Grand Hotel it is quite necessary that it covers more customers and
clients as a part of its loyalty programme which will benefit it a lot in the future.
 Exclusive facilities- The customers and clients of the hospitality sector prefer that the
exclusive facilities can be provided to them which will help them a lot to be able to enjoy
the benefits of the loyalty programme. Therefore, In the context of Park Grand Hotel it is
very important that exclusive facilities are provided to customers as a part of its loyalty
programme.
 Partnership with leading brands- For the development of loyalty programme, the
hospitality businesses can partner with various luxurious brands which will enable them
to ensure that their customers can enjoy the products and services of these brands. Thus,
Park Grand Hotel can ensure that it develops its loyalty programme through ensuring
partnership with the various leading brands.
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CONCLUSION
It has been summarised from above report that customer retention is an essential aspect
under which profitable alteration is induced in systematic format. In addition to this marketing is
processed to enlarge market share and potential so that large number of customer's is attracted
with better suitability. It is also used to make affordable changes as with support of marketing
mix as it assist to make profitable alteration in certain mode. Furthermore, loyalty programme is
used by business to retain the customer's for longer period of time and also help to gain long
term benefits.
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REFERENCES
Books and Journals:
Almohaimmeed, B., 2019. Pillars of customer retention: An empirical study on the influence of
customer satisfaction, customer loyalty, customer profitability on customer retention.
Serbian Journal of Management. 14(2). pp.421-435.
Balasubramanian, K. and Ragavan, N. A., 2019. What are the key challenges faced by the
Malaysian hospitality and tourism industry in the context of industrial revolution 4.0?.
Worldwide Hospitality and Tourism Themes.
Bodey, K. L., Shao, W. and Ross, M., 2017. Localization and customer retention for franchise
service systems. Services Marketing Quarterly. 38(2). pp.100-114.
Dinçer, M. Z. and Alrawadieh, Z., 2017. Negative word of mouse in the hotel industry: A
content analysis of online reviews on luxury hotels in Jordan. Journal of Hospitality
Marketing & Management. 26(8). pp.785-804.
Fatma, M., Khan, I. and Rahman, Z., 2018. CSR and consumer behavioral responses: the role of
customer-company identification. Asia Pacific Journal of Marketing and Logistics.
Kaur, G., 2016. Customer Interface in Spiritual Tourism via “Synaptic CRM Gap”: An
Integrative Technology-Based Conceptual Model for Relationship Marketing. Journal
of Relationship Marketing. 15(4). pp.326-343.
Litvin, S. W., Goldsmith, R. E. and Pan, B., 2018. A retrospective view of electronic word-of-
mouth in hospitality and tourism management. International Journal of Contemporary
Hospitality Management.
Ozuem, W., Thomas, T. and Lancaster, G., 2016. The influence of customer loyalty on small
island economies: an empirical and exploratory study. Journal of Strategic Marketing.
24(6). pp.447-469.
Raimi, L., 2017. Understanding theories of corporate social responsibility in the Ibero-American
hospitality industry. In Corporate Social Responsibility and Corporate Governance.
Emerald Publishing Limited.
Sofi, M. R. and Hakim, I. A., 2018. Customer Relationship Management as Tool to Enhance
Competitive Effectiveness: Model Revisited. FIIB Business Review. 7(3). pp.201-215.
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