Marketing in Travel and Tourism

This report discusses marketing strategies in the travel and tourism industry, focusing on the case study of Mikado hotel. It covers target market segmentation, pricing strategy, promotional activities, and social media marketing. The report provides valuable insights for businesses in the hospitality sector.

Marketing in Travel and
Tourism

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Proposed target market of Mikado hotel.....................................................................................3
Pricing strategy of Mikado..........................................................................................................4
Promotional activity....................................................................................................................4
Social media activities.................................................................................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Travel and tourism marketing are related to properly coordinating business policies that is
of the private and public sector. That are operated on local, regional and international to achieve
the satisfaction of different groups. The report is based upon Mikado, which is a five-star luxury
hotel that provides hospitality and services to its customer. The study will explain proposed
target markets that are set by the hotel. It will further present the pricing strategy that is used by
Mikado. The report will also include the promotional activity that are related to sales promotion
and personal selling. Along with this it will evaluate the social media activity that are used to
promote the hotel.
MAIN BODY
Proposed target market of Mikado hotel
Hotel will use STP model to segments its customers effectively and to position itself
within competition.
Segmentation: The hotel segmented their markets in different category. It segments its
customers in the form of demographic, geographic, psychographic and behavioural. From all,
Mikado uses demographic segmentation in which company target people on the basis of age (25-
60), gender (both) and income (higher income people). Further, Mikado also focuses on
youngster and holiday seekers by offering special discounts.
Targeting: Target markets are the place where the purpose of hotel is to invest their money and
gets returns. Mikado uses differentiated as a targeting strategy by advertising through print and
media sources. Like they target the customers who are interested in specific type of service i.e.
providing free services. This also helps them to analyse the size and potential growth of the
customers. By this they can compete the market with something others than lower prices (Beerli-
Palacio, et.al, 2020).
Positioning: Positioning is to focus how to make their product and services better than
competitors to take competitive advantage in markets. Company has chosen a desired position, it
can take the steps necessary to deliver and communicate that position to target customers by
differentiation. This is done on the basis of products benefits, price, quality, use and competitors.
To make a good position in competitive world the company will find new and innovative idea

to get benefits from others. such that they can give 10% discount to their first five customers
which will attract most of the customers.
Pricing strategy of Mikado
Mikado uses penetration pricing strategy which means offering lower price of the product
as compared to their competitors. Mainly this strategy is used by those companies who are
entering into new markets. By using this pricing strategy they can attract large customers as
people want quality services at affordable price. The aim of Mikado is to use this strategy in
order to maximize profits (Hotel Price Positioning With Strategy. 2019). This chosen strategy is
used by quoted hotel to capture market share, create a brand loyalty towards customers and
driving their customers out of the market. Mikado's comply with this pricing method, as to raise
a loyal customer base through offering the most competitive price in the market and undercutting
rivals and well-known brands (Cheng and Shiu, 2019). This will help chosen business entity to
get its product and services easily accepted or adopted by customers. The use of penetration
pricing allows Mikado to generate a high volume of sales that compensate for the lower price.
For example to penetrate effectively among new target customers company will offer discounts
to their first five customers.
Promotional activity
It is the type of activity which is related to advertising, sales promotion, personal selling
and public relations. With the help of such activity, company is able to promote their own
products/service at global level (Kahne and Bowyer, 2018). In the same way, quoted business
also uses these tools to make it successful. The five essential elements of promotional mix are:

Advertising: It is the way by which organizations can promote themselves by banner
ads, text, and other forms. By using newspaper advertising Mikado can promote their business to
wide range of customers. The company can also advertise themselves on television by making
ads in unique way that include different styles, colour and sounds. They can also advertise
themselves on digital stage in the form of displayed over internet.
Public relations: This is used to target large number of audience with the help of press,
trade media and other. By using this, company will let other know about their brand story while
connecting with the customers. Like, the good public relation can be generated in the form of
article. If there is positive public relation then with the help of that company can connect with
target audience.
Direct marketing: It is related to face to face promotion of services and products. By
using this they can communicate to groups of people through email, catalogues and brochures. It
provides organizations a good and cost-effective way to reach their targeted markets in spite of
sending irrelevant messages. This helps company in building relationships with new customers
and can also result in increasing sales (Tajvidi and Karami, 2017).
Sales promotion: They are related to the prizes, sales staff, Discount, distribution
channels, coupons and contest to promote themselves. In Mikado sales promoting is selling
rooms to the people what they want at right price. For example, Mikado can promote by offering

20% in their rooms to regular customers and 15% to the person who have come for first time.
They can also build up good reputation by providing good facility and quality to its customers.
Personal selling: This is the type of selling which is done with the customers through
face-to-face. Like company can perform survey through which it identifies trends and then add
the same within their hotels.
Social media activities
This is related to activities that are related to the sharing of image, videos, texts and doing
paid media advertising. Social media is the fastest way by which the customers know about
hotels. Social media is the platform that become new trend for the Hospitality industry and it can
be helpful for them to advertise their hotel on the social media platforms like You tube,
Instagram etc. Benefits of the social media is that company can reach to their target customers.
For examples- if someone is looking for Hotel then add will be shown to those people. social
media is less costly and more effective as per the other tools of the advertisement. Hotel can
analyse the performance of the application that how many people are watching their
advertisement. For example social media platforms like Instagram, Facebook and twitter gives
opportunity to business to interact with that customers. Company has also provide necessary
information on its website that contribute in informing customers about the products and service
of firm (Tambuwun and et.al, 2019). Moreover it has make use of content and email marketing
to build strong relationship with diverse range of customers so that they are motivated to be part
of it rather than other competitors in market. It helps them to promote their business and create a
good and effective online presence. They also give an easy way for them to show their property
to attract large number of customers. It is the main thing that customer see when they have taken
decisions regarding the purchase. With the help of social media hotel can also impress their guest
by posting their photos . Facebook can help and give bunch of opportunity to advertise their
hotel. Facebook is indeed an necessary social media marketing formulation for the hotels(How
To Build Customer Relationships Using Social Media. 2021).
The hotel can build customers relationship using media by: Responding quickly: The organization can give fast respond to the problems or
suggestions that are needed by the customers. If they will get fast respond that will not
only result in happy customers but lead to additional revenue for the Mikado.

 Make efforts to engage with customers: Making fast respond is not only thing from
which the organizations can build good relations. The members of hotel must actively
engaged with the customers through social media. For example, not all the customers will
come up with the question few will see the post and like it and that is the duty of the hotel
to interact with them. Show your human side: The hotel must show a personal touch with their customers by
making their profiles funny and innovative. They can also use photos and name of the
staff with their hotel view.
 Hold contest or competitions: Rewarding their customers with time to time offers and
discounts will lead to way of building strong relationship.
 The organizations can also bring different schemes on valentine and Christmas day with
new and unique themes which will attract and large number of customers (Temelkov,
2020).
CONCLUSION
Marketing in Travel and Tourism are strategies made by the business to promote their
brand to attract large number of customers. Mikado provide five-star luxury hospitality for its
guests. From the above report types of proposed markets that are faced by the mikado are
explained. With assistance of above studies help the pricing strategy that is penetration pricing
used by organizations to promote themselves. By evaluation of above report promotion activity
related to the sales, advertising and personal selling and press contributed in achievement of end
objective of company. Lastly by the analysis ideas related to promoting their brand in social
media with how to build good relationship with customers are written.

REFERENCES
Books and Journals
Beerli-Palacio, et.al, 2020. Complementary services at hotels in accordance with their pricing
strategy and the price sensitivity of tourists. International Journal of Hospitality
Management, 87, p.102458.
Cheng, C. C. and Shiu, E. C., 2019. How to enhance SMEs customer involvement using social
media: The role of Social CRM. International Small Business Journal. 37(1). pp.22-42.
Kahne, J. and Bowyer, B., 2018. The political significance of social media activity and social
networks. Political Communication, 35(3), pp.470-493.
Tajvidi, R. and Karami, A., 2017. The effect of social media on firm performance. Computers in
Human Behavior, p.105174.
Tambuwun, R.R. et.al, 2019. PRICING STRATEGY FOR HOTELS IN MANADO: A
QUALITATIVE STUDY. Jurnal EMBA: Jurnal Riset Ekonomi, Manajemen, Bisnis dan
Akuntansi, 7(3).
Temelkov, Z., 2020. Overview of price discrepancies among hotels positioned in the same
category. Menadžment u hotelijerstvu i turizmu, 8(2), pp.11-23.
Online
How To Build Customer Relationships Using Social Media. 2021. [Online]. Available through:
<https://www.socialreport.com/insights/article/115001002743-How-To-Build-
Customer-Relationships-Using-Social-Media>
Hotel Price Positioning With Strategy. 2019. [Online]. Available through: <https://www.hotel-
online.com/press_releases/release/hotel-price-positioning-with-strategy/>
Promotional Mix Elements and Examples: An Actionable Guide. 2020. [Online]. Available
through: <https://blog.alexa.com/promotional-mix-elements/>