A Comparison of Marketing Strategies of IHG and Hyatt Hotels

This report compares the marketing strategies of Inter Continental Hotels Group plc (IHG) and Hyatt Hotels Corporation, their product strategies, marketing position, sustainability and green messaging, and response to COVID-19 pandemic.

Title A comparison of
the marketing
methods of
multinational hotel
chains

INTRODUCTION
Marketing may be defined as the process of exploring, creating and delivering different
values in order to fulfil the need of the target customers in terms of goods and services. The
process of marketing include selection of target audience, selection of certain themes,
developing of advertising campaigns, design of products and packaging in order to attract the
buyer and many more(Slootweg and Rowson, 2018). The following report is based on two
companies i.e. Inter Continental Hotels Group plc (IHG) which is well known British
multinational corporation. The company was founded on 15 April 2003 by Juan Trippe and the
headquarters of the organisation is situated in Denham, Buckinghamshire, England. The another
company is Hyatt Hotels Corporation which is well known American multinational hospitality
corporation which was founded in 27 of September 1957 by Hyatt Robert von Dehn and Jack
Dyer Crouch. The headquarter of the respective company is situated in Chicago, Illinois, United
States. The following report is going to cover a comparison between the marketing strategies and
consideration which both the companies have made within their marketing regarding
sustainability and green messaging.
TASK
The choice of market is basically a market selection process in which an organisation
decided that in which market they have to invest and pursuing. One of the most important thing
that company have to keep in mind while doing a market selection is growth of the potential
market. The management of the Hyatt hotel corporation is belong to a hospitality and tourism
industry which has its hotels and resorts in the different areas of world (DePelsmacker,
VanTilburg and Holthof, 2018). The company focussed upon leading the market by offering best
quality of products and services to their customers. A dedicated team has been developed within
the organisation where they give their opinion on the different things working around in the
organisation which assist in meeting the requirement of both the guest and the firm itself as well.
In the recent time print media marketing method has been used by the Hyatt company in order to
promote their brand in the market. They promote with the help of newspapers, travel and
hospitality magazines, brochures, and flyers. But in the present time, the respective company
promote their brand by using Digital PR memes and digital marketing strategies. A specialized
team has been hired by the company that prepare attractive content for their social media

platform in order to attract more and more customers. On the other hand the Inter Continental
hotel group also focus on providing excellent and good quality of services to their
customers(Yang, 2018). In the recent times IHG company use the telemarketing and vocal
marketing method in which they attract the consumer with cold calling and SMS . This is being
considered as one of the most difficult as well as most effective traditional marketing method. By
using telemarketing method the success rate of conversion over cold-calling is merely 5-10 % for
the company. In the present time, video marking method and contextual marketing method has
been adopted by the company in which they create video You tube and on the other social media
method(Kozlenkova and et. al., 2021) .
Marketing position is basically a technique which are used by the organisation in order to
established a good and excellent image of the brand in the mind of consumer. For this both the
company use 4 PS of marketing. In accordance to the Hyatt hotel the product strategy which are
used by the company is that they offer luxury hospitality services to their customers. They offer
specious rooms banquet halls, gardens, Bars, restaurants, a wide range of food with delicious
cuisines to their customers. All the employees work within the company are well trained and
provide full satisfaction to their customers. Hyatt Zika and Zilara are the exclusive resorts by
them. In addition to this the management of the Hyatt hotel focus on the premium pricing
strategy for its product as they target high profile business class and upper class society people.
They also give discount to their customers on group booking and on the extended days. Apart
from this free meals, complimentary suites and many more has been provided by them to their
customers in order to satisfy them. Moreover to this, the presence of the Hyatt hotel is almost all
across the globe. They have developed around 679 properties under the same brand name and in
the present time they are present in almost 56 countries like Atlanta, Beijing, Boston, Manila,
Mumbai, San Francisco, Seol, and many more. Hyatt is the main operator of the system of
franchise. In addition to this man media channels are used by the Hyaat in order to ensure that
their customers are well of their hospitality services. Digital media methods and digital PR
Memes are used by the organisation in order tom promote their product in the market(Fadillah,
2019).
In accordance to the Intercontinental hotel group the product strategy which are used by
the company is that they also provide excellent quality of services to their customers. High
quality of product has been maintained by the management of the company by adding values

during different stages of the value chain. In addition to this the management of the Inter
Continental hotel group focus on hybrid strategy for pricing in order to obtain high value for its
product. Premium pricing, psychological pricing strategy and geographical strategy has been
used by the company. As company has number of different product ranges and group for this
they use psychological pricing strategy which assist in gaining higher sales. Along with this
geographical pricing strategy help them in setting up the price according to the area which help
them in continuous revenue growth. Moreover to this, the company have their presence all across
the globe(Agustini, Athanasius and Retnawati, 2019). They have its properties around in 100
country. The majority of its properties are in south America with more then 3781 properties, in
Europe they have around 642 hotels, in Asia they have around 498 hotels, North America 40 and
many more. In addition to this they mostly relies on word of mouth, but in the present time they
relies on word of mouse. This is being considered as one of the fastest way to reach to the
potential customers.
The services of the Hyatt are segmented on the basis of bundle of offerings and
ambience. Services like Spa, Gym,housekeeping and many more provided by them. The product
of the Hyatt company have targeted by them on the basis of income levels & bundled services
for this they use differentiating strategy, which help in fulfilling the needs of the consumers. The
respective company positioning themselves in the hospitality market as a prominent player. On
the other hand, the IHG segmented their services on the basis of people services. They
segregated their market in basically 5 class i.e. Luxury, upper upscale, upscale, mid scale,
economy/budgeted. They target upper upper scale people for their intercontinental hotels,
upscale for crown plaza and mid scale for holiday inn. They basically don't target the luxury
market, they provide luxuries services to their customers at a reasonable price(Soule and et. al.,
2021).
Regarding market sustainability, the Hyatt hotel identify the different barriers in order to
sustain in the market and develop different strategies in order to address them. Along with the
management of the company also identify the different potential like funding and many more to
develop in the market. On the other hand, Inter Continental hotel identifies the various ways of
cost saving and cost effectiveness which improves their sustainability and assist them to enjoy
the competitive advantage over their rivals.

Regarding marketing green messaging, the Hyatt hotel use most of paper marketing
strategies like hoardings, pamphlets, magazines and many more in their recent time. In order to
minimise the use of natural resources organisation has started implementing the use of digital
platforms in order to conduct their marketing operations. On the other hand Intercontinental hotel
use the telemarketing methods which harm the animals. In order to overcome form this issues
they start implementing the use of Digital PR memes on their different digital platform in their
marketing operations. By doing this, both of them improves their sustainability in the market and
develop a good image in the mind of consumer.
After the arisen of COVID 19 pandemic a huge negative impact has been seen in the
hotel industry, people don't go outside from their home because of this issue. This result in
decline in the sales of the both of the respective companies. Regarding this pandemic the Hyatt
hotel follow proper rules and regulation in relation hygiene which are developed by the
government. On the other hand Intercontinental hotel position themselves by offering different
discount to their customers in order to increase their sales. Along with this pick and drop facility
has also been provided by both the organisation.
CONCLUSION
From the above essay it has been concluded that there are different types of marketing
strategies which are available in the market which help the organisation in order to improve their
sustainability. This essay concluded that premium pricing strategy has been followed by the
Hyatt hotel for their products and on the other hand geographical and psychological pricing
strategies has been used by the intercontinental hotel for their product. This essay also
concluded a comparison between the marketing strategies which are followed by them and how
they position themselves in the market. Afterword, this essay conclude their consideration
regarding sustainability, green messaging and COVID 19

REFERENCES
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