Marketing in Travel and Tourism

This document discusses marketing strategies in the travel and tourism industry, focusing on the case of Hyatt Hotel in Birmingham. It covers topics such as customer segmentation, target marketing, and positioning strategies. The document provides insights into how Hyatt Hotel segments its customer base, the type of target marketing strategy it employs, and its positioning strategy.

Marketing in travel And
tourism

Table of Contents
Marketing in travel And tourism..................................................................................................1
INTRODUCTION.......................................................................................................................3
Discuss how Hyatt hotel segments its customer base..................................................................3
Type of Target Marketing Strategy..............................................................................................4
Positioning Strategy.....................................................................................................................5
CONCLUSION............................................................................................................................7
REFERANCES............................................................................................................................7

INTRODUCTION
Hyatt Hotel is a American multinational hospitality company. This was founded in
1957 and is headquartered at Chicago, Illinois, US. Products of the hotel are hotels and resorts
and this company serves around 900 locations with approximately 100000 employees in the
world. This report includes marketing of the Hyatt Hotel, Birmingham.
Discuss how Hyatt hotel segments its customer base
A customer base segmentation is based on the technique that can be divided the
consumer group with similar needs, common buying behaviour’s into segments. The
segmentation can be occurred on the basis of target marketing which become more effective
and efficient in term of promotions (Krishnan, Patatoukas and Wang, 2019). Market segments
for Hyatt hotel is still the foundation of setting the pricing strategy which mainly defined by
customer behaviour, price sensitivity of hotel’s client. It allows for uniquely price each
segment as per customer type.
Hyatt hotel is mainly adopting the segmentation strategy in the business for identifying
specific need and requirement of consumer (Yoon, Ferreri and Ramsing, 2019). It is becoming
great idea of differentiating the market easily. There are different ways to categorise customer
base segmentation within Hyatt hotel.
 Geographical segment: it can be identified that customer based on which country, city,
medial market and even neighbourhood. A hotel in Hyatt might draw most of customer
from America so that it helps for analysing variation in sales and provide better
facilities as per need or requirements.
 Demographic segment: It is also important for including variables such as educational
level, age, gender, martial status and race. This type of segmentation is useful for
providing data of segment. However, it can be identified the customer buying power
on basis of income (Yoon, Ferreri and Ramsing, 2019). Furthermore, it is useful for
identifying consumer prospective and believe towards organization.
 Price-benefit segment: It help for identifying the people seek when they are buying
product and service. It is closely related to the consumer satisfaction level. in this way,
Hyatt hotel include benefits which comprises of recognition, comfort, attention,
prestige and low price.

 Usage segment: this type of segment is mainly covered the large group of hotel
services. Hyatt hotel is focused on the customer visit and also considered as first
priority (Yoon, Ferreri and Ramsing, 2019). Under segment customer, it can be
categorised under enterprise, simply either intention to use hotel facilities as well as
services.
As per discussion, it concluded that customer-base segmentation is one of most common
approach for Hyatt hotel which help for modifying, designing new facilities and attraction.
Activity program, holiday packaging and other type of service quality measurement. However,
Sensitive price is common issue to customer, Hyatt hotel setting right price which supported
with benefits to increase profit margin (Yoon, Ferreri and Ramsing, 2019). As consequences,
it easily fulfilling their price expectations enterprise consumer purchase item that satisfy the
quality expectation of traveller. Furthermore, Hyatt hotel allow for marketing programs to
focus on the Subset of prospects that are likely to purchase item or service (Bozkurt and
Bozkurt, 2019). The ultimate goal of Hyatt hotel with that is clearly to work towards an ideal
market segmentation. However, Hyatt hotel must consider the different segmentation to focus
on the client selection activities. It plays important role for identifying the critical element
which help for building an effective customer relationship. In order to differentiate and satisfy
need of diverse hotel consumers.
Type of Target Marketing Strategy
Target market refers to market which is targeted by the company for the purpose to
give and serve its services. Target Marketing involves breaking market into segments and then
limit efforts of marketing for a few selected market segments (Sun and Lee, 2018). This is that
market for which company designs and develops its services.
Haytt is a hospitality company operating under tourism and travel industry. Target
Marketing which is used and employed by such companies are based on income potential of
the target market, Ability to serve and competition and cost spend by the company. Other than
this sales and expected profit from the target market is also used for target market strategies of
the tourism company.

From above strategies income potential of target market is what the financial level of
the target market and on the basis of their income potential what they can spend for the
services of tourism industry (De Pelsmacker, Van Tilburg and Holthof, 2018).
Ability to serve is the ability of the hotel to serve and where it can serve its services.
This is because hotel is one such service that customers need to come to hotel in order to use
its services, this is why ability of hotel to serve at a particular location and to a target market.
Competition is also a basis for target market many times' hospitality companies make
their strategies for target marketing on the basis of target market selected by their competitor
(Winston and Weinstein, 2016). What cost can company spend for its services is also
important factor means company targeting market for premium services will have to spend
high cost on its services.
Hyatt Hotel employed differentiated targeting strategies. This is based on the potential
income of the customer and bundled services of the hotel (Hung, 2017). In this Hyatt hotel
have its hotels divided in 3 star/ 4 star and 5 star. This enables customers to choose the service
they want to choose to accord to their pay capacity. Hyatt hotel, Birmingham is a 4 star of
Hyatt Company. This is known as Hyatt Regency Birmingham, this hotel is located in the
centre of city and offers varied services for its customers. Services is better than 3 star hotel
and includes free wi-fi, indoor pool, air conditioning, laundry services for its customers.
Services offered in this hotel are less than as compared with 5 star hotel of Hyatt (Ball and
et.al., 2018). On the basis of income this can cater needs of above middle income customers of
Hyatt.
Positioning Strategy
Positioning strategy refers to influencing perceptions of the customers regarding a
product or brand relative to the competitors of the brand. The objective behind positioning of a
brand is that consumers can perceive this in a certain way in which company want its
customers to perceive.
Some important principles of Positioning are as follows-
Unique Selling Proposition

This means that company offers something which is unique and something which
competitors of the company are not able to provide (Hu and et.al., 2018). This requires
company to find something special in their product to communicate to or to create something
special in their product for its customers.
Risk Reversal
This means that company should do something which competitors of the company
does not have guts to do.
Inordinate Value
This principle of positioning suggests that company should offer the right deal and
leave it to customers for the comparison.
Clear, Complete and Concise Education
Customers of the product should be availed with right knowledge about the product, its
value and special feature (Liu and Mattila, 2017). Company should ensure that customers do
not have any questions related to the product. Customers should be taught, shown about the
details and ensure that they love what they know about the product.
Positioning plays a very important role in the success of a brand. Some reasons which make
positioning important for the success of the brand are-
Positioning creates Market Differentiation
Through positioning brand can differentiate itself in the market (Lordkipanidze, 2018).
Differentiation is a key aspect for the company to achieve and increase rate of success.
Positioning of the brand helps company to stand out from the market and attract customers
towards brand.
Make it easier to buy from the Company
This is easy for customers to understand what they need or desire than compare it with the
offerings and features of the product company is providing (Nella and Christou, 2016). This
makes it easier for customers to buy from the company which offers them what they need.
Compete on Value
Brand positioning is more about value than the price of the product. Through brand
positioning company can compete with its competitors on the basis of value rather than on the
basis of price of the product (Neirotti, Raguseo and Paolucci, 2016).

Justifies Pricing Policy
Market positioning helps in communicating value of the brand and on the basis of
value provided by brand company can justify its pricing policy.
Positioning of brand by Hyatt Regency, Birmingham is as prominent player in the
hospitality industry (Porcu and et.al., 2019). This focus on being culturally rich brand, this
means that brand values and communicate values of the culture to its customers as well. In this
Hyatt Hotel give importance to local community where it is operating. Through this it attracts
its customers by showing value of their culture in the hotel includes their culture and traditions
in the services of hotel. The very basic example of this can be interior of the hotel according to
local culture and traditions of the community to attract customers (Yang and Zhao, 2018). In
this Hyatt hotel have understood and identified importance of culture in life of individuals and
made it a value of the hotel and its services.
CONCLUSION
On the basis of above analysis it can be concluded that strategies for hospitality
industry in tourist industry related to its marketing are different from other industries. Reason
behind this is that this industry is required to attract customers towards it to buy and use its
services where it provide them.
REFERANCES
Books and Journals
Sun, K. A. and Lee, S., 2018. Effects of franchising on industry competition: The moderating
role of the hospitality industry. International Journal of Hospitality Management. 68.
pp.80-88.
De Pelsmacker, P., Van Tilburg, S. and Holthof, C., 2018. Digital marketing strategies, online
reviews and hotel performance. International Journal of Hospitality Management. 72.
pp.47-55.
Winston, W. and Weinstein, A., 2016. Defining your market: winning strategies for high-tech,
industrial, and service firms. Routledge.
Ball, L and et.al., 2018. Evaluating the implementation of a farmers’ market targeting WIC
FMNP participants. Health promotion practice. 19(6). pp.946-956.
Hu, H. H and et.al., 2018. Strategies for new product diffusion: Whom and how to
target?. Journal of Business Research. 83. pp.111-119.
Liu, S. Q. and Mattila, A. S., 2017. Airbnb: Online targeted advertising, sense of power, and
consumer decisions. International Journal of Hospitality Management. 60. pp.33-41.

Nella, A. and Christou, E., 2016. Extending tourism marketing: Implications for targeting the
senior tourists’ segment.
Yang, K. and Zhao, J., 2018. The expansions of Chinese companies in foreign hospitality
industry. In The Hospitality and Tourism Industry in China. (pp. 89-114). Apple
Academic Press.
Neirotti, P., Raguseo, E. and Paolucci, E., 2016. Are customers’ reviews creating value in the
hospitality industry? Exploring the moderating effects of market
positioning. International Journal of Information Management. 36(6). pp.1133-1143.
Hung, C. L., 2017. Online positioning through website service quality: A case of star-rated
hotels in Taiwan. Journal of Hospitality and tourism management. 31. pp.181-188.
Lordkipanidze, R., 2018. The Strongest Key to Global Hospitality.
Porcu, L and et.al., 2019. Analyzing the influence of firm-wide integrated marketing
communication on market performance in the hospitality industry. International
Journal of Hospitality Management. 80. pp.13-24.
Bozkurt, B. and Bozkurt, B., 2019. Understanding the Customer', Debates in Marketing
Orientation.
centricity.
Krishnan, G.V., Patatoukas, P.N. and Wang, A.Y., 2019. Customer-base concentration:
Implications for audit pricing and quality. Journal of Management Accounting
Research. 31(1). pp.129-152.
Yoon, C., Ferreri, J. and Ramsing, N., 2019. Starting small: pathways to customer