Marketing in Travel and Tourism

This study explores the market segmentation, target marketing strategies, and positioning strategies used by Hyatt Hotel in Birmingham in the field of travel and tourism. It discusses how the organization segments their consumers based on demographics, psychographics, behavior, and geography. It also examines the types of target marketing strategies used by the hotel and the positioning strategy employed by the firm. The study concludes by highlighting the importance of these strategies in the success of the hotel.

MARKETING IN TRAVEL AND
TOURISM

Table of Contents
INTRODUCTION.......................................................................................................................................2
MAIN BODY..............................................................................................................................................2
How organization segments their consumers...........................................................................................2
Types of target marketing strategy used by Hyatt hotel, Birmingham.....................................................4
Positioning strategy used by firm............................................................................................................5
CONCLUSION...........................................................................................................................................6
REFERENCES............................................................................................................................................7

INTRODUCTION
The current study is based on Hyatt Hotel, is established in city centre of Birmingham,
England. This hotel stands at a height of 75 meters and has 24 floors with 319 guest rooms. It has blue
glass exterior façade and stands across road from global convention centre. It was built and run by Hyatt
regency Birmingham Ltd.
MAIN BODY
How organization segments their consumers
Market segmentation is the procedure of dividing a target market into smaller or more
defined categories (Bruwer, Roediger and Herbst, 2017). It divides people and consumers into
units that share similar features such as needs, demographics, interests or locations. Tourism
business market segments are created by one or combination of different elements, such as age,
socio economic status, geography and motive. Different types of segmentation can be used by
tourism business, mentioned below:
Demographic segmentation-
It is one of the most basic and commonly used kinds of market segmentation can be used
by tourism enterprises, it refers to statistical data about group of individual (Gavens and et.al.,
2019). Age, Income, family situation, gender and education are the most important elements of
this segmentation. On the basis of these components tourism business management take decision
to divide their target market and then decide how to serve their services or products accordingly.
All above examples are helpful for segmenting business to consumer’s audiences.
Psychographic segmentation-
This categorizes people and consumers by elements that relate to their characteristics and
personalities (Dixit, Lee and Loo, 2019). Personality traits, lifestyles, attitudes and psychological
influences are the factors included in this segmentation that are slightly more complex to
determine than demographics because they are subjective. They are not data centered and needs
research to comprehend and uncover. It considered as another way to categorize people or guest

by factors that relate to their traits and personalities, psychographic segmentation focuses on less
obvious details. Tourism business targets their market after considering their personality traits.
Behavioral segmentation-
Tourism market is far too big and diverse to reach effectively, marketers in this sector use
segmentation to better comprehend consumer’s needs and allocate marketing dollars effectively
(Chong and Lee, 2017). Good segmentation is based on extensive quantitative investigation
focusing on wide numbers of individual and grouping them together based upon shared features
such as behavioral patterns, demographics or cognition ratings. This segmentation focuses on
how people act; it requires tourism business to know about their consumers actions. These
activities relate to how an individual interacts with their brand or to other actions that happen
away from their brand.
Geography segmentation-
It is the simplest kind of market segmentation; geographic segmentation categorizes
people based on geographic borders. It can be refer to a specific geographic boundary such as
ZIP code or City or type of area such as type of climate or the size of city (Saleem, Eagle and
Low, 2018). It considered as common strategy can be used by tourism business when marketers
serve people in specific area, or when they broad target market has varied preferences based on
where they are established. Marketers of Tourism business grouping potential consumer by state,
region, nation or even neighborhood.
In context of Hyatt Hotel, Birmingham they can use demographic and Psychographic
segmentation. By using different segmentations strategies, Hotel segments their consumers in
effective manner. They are mostly defined by different booking behaviors and price sensitivity of
hotel passengers. Organization segment their target market based on age, attitudes and other
elements before offering services or products that is quite beneficial in term of increasing
profitability and productivity.
Types of target marketing strategy used by Hyatt hotel, Birmingham
To gain the attention of consumes and retain them for longer tourism companies can used
different kinds of target marketing approaches such as undifferentiated marketing or Different

marketing targeting. For different group, organizations create marketing mix plan with
appropriate strategy because they have number of consumers with specific characteristics and
attitudes. Undifferentiated marketing is one of the best target marketing strategies, according to
it, there may be no strong differences in clients traits. Alternatively, cost of creating a separate
marketing mix for separate audience outweigh potential gains of meeting people needs more
exactly. Under these situations firms will decided to create a individual marketing mix for
overall market. This strategy will occur by default, organizations which lack a marketing
orientation will practice this strategy because of poor consumer knowledge.
Different segments can be determined but tourism companies may not sever all of them.
Some may be unprofitable or out of line with firm’s business strengths. Organizations can target
just one segment with a single marketing mix. It comprehends needs as well as motives of
segment consumers and creates a specialized marketing mix.
In context of chosen organization, Hyatt Hotel, Birmingham can used differentiated
marketing strategy or multi segment targeting. They design marketing mix for many segments
that meets accordant to their desires and requirements in systematic manner. By using this
strategy, firm essentially design marketing mix for different segments (Klein and et.al., 2019).
Differentiated marketing strategy exploits differences between marketing segments by creating
a particular marketing mix for and every segment. By following multi segment targeting
approach serves two or more well established segments and creates a distinct marketing mix for
each one of them in systematic manner. It is most required after target market strategy because it
has power to increase profitability, generates sales volume, economies of scale and larger market
share in marketing as well as manufacturing. The advantage of this strategic is that it helps to
gain attention of consumers and increase sales rather than before. On the other hand, it required
greater product design, inventory, production, advertisement, management and marketing
research costs that directly impact on financial performance of firm. Another potential cost is
cannibalization, which happens when sales of new services cut into sales of hotel’s existing
facilities. Before deciding to use this target marketing strategy, Hyatt hotel compare costs and
benefits of differentiate strategy to those of concentrated and undifferentiated targeting.

Positioning strategy used by firm
Positioning refer to concept of marketing that outlines what a tourism business will do to
make their accommodation services and goods to target market. It comprise with the most
essential principles that play vital role in success of Hyatt Hotel (Walsh and Dodds, 2017). In
marketing field, positioning is the procedure of creating a positive image or identity in mind of
target consumers for services; it also said one of contemporary innovative communications.
There are principles of positioning available, which can be use by firm.
Unique selling proposition-
According to this principles of positioning, organization find something new and
different for their consumers in order to gain their attention and retain them for longer period. It
refer to the statement that describes how services or company is unique than competitors.
Risk reversal-
Accordant to this principle, company differentiate their brand, they need to do something
that its competitors will have no power to do. It is a hedging approach that protects a short or
long position by utilizing call and put options.
Inordinate value-
It means that company must offer right deal to its target market which allows them to
make comparison between existing and new one. By making comparison between two services
offered by different companies, consumer take right decision and drive towards purchasing
products or services of Hyatt hotel.
Clear, concise and complete consumer education-
In order to satisfied the needs of consumers and gain their attention, marketers of tourism
organizations teach and show their target market concern about needs and perspectives. With the
help of skilled team, workers within firm communicate with clients via using different
communication tools, take their opinion and show some care as well as permit them love what
they know.
Importance of positioning-

Service or company positioning is really very important components of a marketing plan,
because it help to get success of company and increase their sales rather than before. With the
help of this element Hyatt hotel can be able to get success as they reach at target market and
generate awareness about their services in effective manner which aid to drive people towards
purchasing services. Brand positioning aids cater persuasive sales tools to business development
unit need to close and nurture more sales. It helps to provides value to target market, gives them
something to get interested in and can mostly convince them to purchase from people.
Positioning strategies can be developed and conceived in a different of ways, it can be
derived from object attributes, application and competition or features of item class. Hyatt hotel
in Birmingham can use services characteristics or consumers benefits as positioning strategy. As
it mainly focused on uniqueness of service and client benefits. They can improve services and
product standards rather than before which is quite beneficial for overall business growth and
success more than competitors in same sector.
CONCLUSION
From above analysis, it has been concluded that by using suitable and beneficial
positioning, targeting and segmentation strategy Hyatt Hotel, Birmingham gain success as it
help to increase their consumers based, enhance productivity level and increase sales rather than
past few years.

REFERENCES
Book and Journals
Bruwer, J., Roediger, B. and Herbst, F., 2017. Domain-specific market segmentation: a wine-
related lifestyle (WRL) approach. Asia Pacific Journal of Marketing and Logistics.
Chong, Y. and Lee, G., 2017. Grouping hotel restaurant customers based on a behavioral scoring
model: An exploratory study. 31(10). pp.85-97.
Dixit, S.K., Lee, K.H. and Loo, P.T., 2019. Consumer behavior in hospitality and
tourism. Journal of Global Scholars of Marketing Science. 29(2). pp.151-161.
Gavens, L and et.al., 2019. Market segmentation tools provide insights into demographic
variations in bowel cancer screening uptake. J Epidemiol Community Health. 73(8).
pp.778-785.
Klein, K and et.al., 2019. Brand Positioning Based on Brand Image–Country Image
Fit. Marketing Science. 38(3). pp.516-538.
Saleem, M.A., Eagle, L. and Low, D., 2018. Market segmentation based on eco-socially
conscious consumers’ behavioral intentions: Evidence from an emerging
economy. Journal of cleaner production, 193. pp.14-27.
Walsh, P.R. and Dodds, R., 2017. Measuring the choice of environmental sustainability
strategies in creating a competitive advantage. Business Strategy and the
Environment. 26(5). pp.672-687.
Online
4 Principles of Positioning. 2014. [Online]. Available through:
<https://thebiznavigator.wordpress.com/2010/09/15/4-principles-to-positioning/>