Marketing Plan: Analysis of the Hotel Industry and Strategic Planning

This report provides a comprehensive marketing plan for the hotel industry, analyzing various factors that impact its operations. It begins with an introduction to the industry, followed by an overview of current trends, including booming global tourism and the influence of virtual communities. The report delves into both external (PESTLE analysis) and internal factors affecting the industry, such as customers and the board of directors. A detailed SWOT analysis identifies the strengths, weaknesses, opportunities, and threats faced by the hotel industry. The report also covers STP strategy, including segmentation, targeting, and positioning, along with the application of the marketing mix. Furthermore, it includes Porter's Five Forces analysis and recommendations for the industry. The report aims to provide strategic insights for effective marketing in the hotel sector.

TASK-Creation of a Marketing Plan
Marketing Plan
10/25/2019
Hotel Industry
smrc

Abstract
This report is based on the marketing plan of the hotel industry. The Various factors that
might impact the working of the hotel industry are covered in this report. The flow of the
report starts with the introduction to the hotel industry which is followed by the current trends
of the hotel industry. Then there are various internal as well as external factors affecting the
working of the industry. Along with this the report also covers the proper pestle analysis as
well as SWOT analysis of the industry. The competitor analysis and STP analysis are also
very well covered in the report. This is then followed by conclusion to the report.

Contents
Abstract.......................................................................................................................................................2
Introduction.................................................................................................................................................6
Trends in the Hotel Industry........................................................................................................................6
Booming global tourism..........................................................................................................................6
Virtual communities................................................................................................................................6
Factors affecting hotel industry-..................................................................................................................6
External Factors.......................................................................................................................................7
PESTLE Analysis........................................................................................................................................7
PESTEL ANALYSIS-........................................................................................................................................7
Political Factors-......................................................................................................................................7
Economic Factors.....................................................................................................................................8
Social Factors.......................................................................................................................................9
Technological Factors..........................................................................................................................9
Environmental Factors.........................................................................................................................9
Legal factors......................................................................................................................................10
Internal factors affecting hotel industry-...................................................................................................11
 Customers......................................................................................................................................11
 Board of Directors (BOD)-..............................................................................................................11
 Government...................................................................................................................................11
SWOT analysis...........................................................................................................................................11
Strengths of Hotel Royal:.......................................................................................................................11
 Provides secure Place Away from Home....................................................................................11
 Contributes to the Economy......................................................................................................12
 It Provides Employment.............................................................................................................12
 High-Profit.................................................................................................................................12
WEAKNESS OF HOTEL INDUSTRY...........................................................................................................12
 Hotel Charges............................................................................................................................12
 Unfavourable Tax Rates.............................................................................................................12
Opportunities to the Hotel Industry......................................................................................................12
 New policies...............................................................................................................................12
 New customers from online platform........................................................................................12

Threats to the hotel industry.................................................................................................................13
 Less innovative products...........................................................................................................13
 Improving strengths...................................................................................................................13
STP STRATEGY-..........................................................................................................................................13
Segmentation........................................................................................................................................14
Location.................................................................................................................................................14
Size........................................................................................................................................................14
Preferred Amenities..............................................................................................................................14
Traveller Type........................................................................................................................................14
Targeting:..................................................................................................................................................15
Positioning-............................................................................................................................................15
Smart Objectives of Amazon company-.....................................................................................................15
a) Growth objectives..........................................................................................................................16
Branding objectives:..............................................................................................................................16
Profitability objectives:..........................................................................................................................16
ANSOF Matrix of hospitality industry........................................................................................................16
Product development............................................................................................................................17
Diversification........................................................................................................................................17
Market Penetration...............................................................................................................................17
Market development.............................................................................................................................17
Apply Tools of marketing mix-...................................................................................................................17
Products:...............................................................................................................................................18
Positioning:............................................................................................................................................18
Process:.................................................................................................................................................18
Packaging...............................................................................................................................................18
Pricing:...................................................................................................................................................18
Place;.....................................................................................................................................................19
Promotion:.............................................................................................................................................19
Porter’s Five forces Analysis......................................................................................................................19
Threat of new entrant:..........................................................................................................................19
Threat of substitute products:...............................................................................................................19
Bargaining power of suppliers:..............................................................................................................20
Bargaining power of customers:............................................................................................................20
Recommendations.....................................................................................................................................20
References.................................................................................................................................................21

Introduction
The hospitality is experiencing enormous variations and burden over the previous
decades(Zagade and Fernandes, 2018).
What main trends have been uniformly changing the industry and where is hospitality going
in the future?
Online travel agents usually have three basic impact on the hotel industry. Among these
impacts, first one is regarding their role in modifying various distribution channels. They are also
responsible for diverting values away from people. Second impact mentioned the notorious
behaviour of various brands. It means that these companies have replaced the hotel brands to a
great extent. In the end, the third one is that, they are responsible for building harmonious
relationship with travellers.
Trends in the Hotel Industry
Booming global tourism
More people travels because of low cost carriers, the people travel across the world at a very
reasonable price. Various new markets have confirmed that their GDP started increases at a
very high rate, which helps in planning their citizens to travel across the world.
Virtual communities
Various Social networks or TripAdvisor have had a reflective effect on customers. These
networks help in providing more transparency and helps in providing better quality of the
services hospitality companies.
Factors affecting hotel industry-
There are various factors that affect the hotel industry. These factors are categorised in
External factors or internal factors;

External Factors
 External factors are also termed as the macro factors. The Market environment has all the
factors, which may affect the decision of the organization. The external factors (Bernini and
Guizzardi, 2010) may affects in the internal settings of an organization.
PESTLE Analysis
The factors which can affect the organisation indirectly:-
 Political
 Social
 Technological
 Economical
 Legal factor
 Environmental
PESTEL ANALYSIS-
Pestel Analysis for the industry is the superlative and new way to find various factors which
may affect the hotel industry. Various factors like social and environmental play an important
role in the strategic management. However, economic factors are divided into many legal
factors. The various factors also include the political factor, economic, social and
technological factors, the PESTEL analysis helps in understanding these factors:-
Political Factors-
Political factors have a major role in finding the different factors that can impact the, Hotel
Royal’s long term profitability in a country or the particular market (Saavedra-Rivano, 1979).
Hotel Royal is effective in accommodating in more than 10 countries and providing itself to
various types of political environment and system risks(Moonsri and Moonsri, 2019).
 Political stability and need of accommodating sector in the country.
 Various Regulations in hotel industry.
 Bureaucracy and interference in lodging industry by government.

 Legal structure for contract procedure.
 The protection of intellectual property of the industry
 Trade regulations & tariffs related to industry
 Laws related to accommodation.
 Regulation relating to prices
 Taxation - tax slabs and deductions
 Minimum Wages to the labour class.
 Regulations relating to work
 Schemes regarding benefits of employee.
 Regulatory measures regarding industrial safety.
Economic Factors
Various economic factors including inflation rate, savings rate, interest rate, forex rates and
other economic cycles usually assist in the estimation of aggregate demands along with
investment in any viable economy. Apart from these, certain other factors such as competition
among major players also play a vital role in the aggressive impact of the firm(Turner and
Guilding, 2012).
 Kinds of economic mechanism in the economy
 Governmental interventions in the market and the services related to it
 Exchange rates of the base country
 Quality of Infrastructure in accommodating industry
 Advantages of base country and Services sector.
 Skill level of management in accommodating industry.
 Level of education in the economy
 Cost of the labor
 Restricted income
 Rate of unemployment in the economy
 Inflation rate in the country

Social Factors
Social factors involve social culture and other processes of performance of certain activities
are responsible for affecting the industrial environment. Beliefs and attitudes of the general
public plays a major role in how the service providers at Hotel Royal understand the
customers of a market and how they make the message relating to market for accommodating
industry customers(Leroux and Pupion, 2018).
.
 Level of skills in the population
 Different hierarchy and structure of power in the industry
 Education level and the standard in the Hotel Royal
 Culture in the economy
 Wider character of the society. Some societies promote entrepreneurship
 Attitudes of the management as well as tourist
 Leisure interests
Technological Factors
An industry shall take various steps in performing the technological analysis in the industry also
it should check the speed at which technology affect that industry. Slow speed will give more
time while fast speed of technological disruption may give a firm little time to cope and be
profitable. Technology analysis involves understanding the following impacts -
 Current technological amendments by Hotel Royal competitors
 Impact of technology on product offering
 Cost structure impact in accommodating industry
 Rate of technological diffusion
Environmental Factors: Profitability of any enterprise is determined by various market
conditions. And different market conditions include diverse environment standard. In fact,
usually states inside any country have their own environmental standards and relevant liability
laws. As, in the United States, Texas and Florida has their different liability clauses and
varied environmental laws in case of environmental hazards. Similarly there are lot of

European nations which are know for providing health tax benefits to companies operating in
renewable sector(Leroux and Pupion, 2018).
 Weather and associated systems.
 Climate change and vulnerability
 Laws for regulation of environmental pollution
 Regulation regarding air and water in the hospitality sector.
 Recycling mechanism.
 Waste disposal and management.
 Behavioural changes regarding green and ecological products.
 Endangered and vulnerable species
 Adoption of renewable energy.
Legal factors- various countries have a number of regulations in the form of legal compliance.
There are counties where legal framework and relevant institutions are not that much robust to
protect intellectual property rights of their organisations. There must be careful evaluation of
such factors before entering into that market as these factors can cause serious repercussions.
There are list of various legal factors that Hotel Royal should consider at the verge of entering
new market:
 Provisions of Anti-trust law in Hospitality industry and relevant regulations overall in the
country.
 Provisions of Discrimination law
 Copyright, patents / Intellectual property law related laws and statutes.
 Adequate regulations of Consumer protection and e-commerce.
 Employment laws and various mechanisms.
 Health and safety law
 Regulations regarding data protections
Internal factors affecting hotel industry-

There are some internal factors that may affect the hotel industry.
 Customers- Customers plays a key role in the hospitality industry. The service provider
should focus on providing good customer service, Quality products at good price, nice and
clean environment to attract the tourist, that help in increasing their profit margin(Bernini and
Guizzardi, 2010).
 Board of Directors (BOD)- Board of Directors play an important role in managing
the hotel industry(Farhangmehr and Sim[otilde]es, 2001). Board of Directors are pillar of any
organisation that helps industry to grow. It helps them in making high profit margin, in
expanding the business or providing high turnover.
 Government- Government also play an important role in the hotel industry, as these
factors may affect the industries. Tax rates by the government, security deposits, deductions
provided by the government etc.
SWOT analysis
SWOT analysis is a technique which helps in identifying the factors that may affect the
industry, in context of Hotel Royal.
Strengths of Hotel Royal:
 Provides secure Place Away from Home- The hotel industry have many well -mannered
spaces. With a various range of hotels across the world which ranges from boutique type
hotels to the well recognised name brands along with other hotel that will fulfil the customer’s
needs(Hotel Industry Research Progresses At Cornell, 2013).

 Contributes to the Economy:Industry that provides important financial control,the hotel
industry has ability to mutually coordinate along with local economy. The local attractions
that attracts the tourist, but it’s the hotels that help them to stay there.
 It Provides Employment: The hotel industry has enormous scope and provide
employment to many people.(Mohammad Arabzad an, 2012) Hotel industries provide
employment to various local peoples, which help them to earn their livelihood.
 High-Profit: The hotel industry needs huge initial capital, but the cost of labour is lower,
and the profit ratios are higher.
WEAKNESS OF HOTEL INDUSTRY
 Hotel Charges-The charges of the hotels are so high that the average person are not able
to afford the same. Hence, hotels are trailing its customers to competition in the industry.
 Unfavourable Tax Rates-In some countries, the tax rates are not favourable to the hotel
industries which, make the cost of services very high. These unfavourable tax rates down the
market because it makes the cost high(The Future of the Restaurant Industry, 2016).
Opportunities to the Hotel Industry
 New policies– Various opportunities will make field for all the participants of the hotel
industry. It provides a new opportunity to provide the advantages of new technology and help
in gaining the share in the market.
 New customers from online platform – In the past few years, the industry has invested
large amount of money into the online channel. Due to this investment, The investment has
opened various opportunities for the hotel industry (V, 2016). In the coming years the