Marketing and Customer Retention in Hospitality: A Case Study

This report explores customer retention strategies within the hospitality industry, focusing on marketing mix elements, relationship marketing programs, and loyalty program development. It analyzes Claridge's Hotel in London as a case study, examining its marketing mix (product, price, place, promotion, people, process, and physical evidence) and the characteristics of its relationship marketing program. The report evaluates the success of these strategies as customer retention tools and proposes a loyalty program for a hypothetical new hotel, “Sunset Oriental,” emphasizing reward programs, redemption flexibility, and customer follow-ups to enhance customer engagement and competitive advantage. The conclusion highlights the importance of customer retention for sustained profitability and growth in the hospitality sector.

MARKETING AND
CUSTOMER
RENTENTION IN
HOSPITALITY
INDUSTRY
Table of Contents

INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Use of marketing mix in their marketing strategies....................................................................3
Analyse characteristics of organisation's relationship marketing programme and explain
success or failure as customer retention tool with reason...........................................................5
Propose strategy for development of loyalty program in own business.....................................6
CONCLUSION ...............................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Customer retention defines as a process of marketing in which organisation is working
for retaining their customers for a specified period of time. This helps in developing the regular
purchasing of the several products and services of the business enterprise. In this company can
follow the various strategies and tactics that helps in making and maintaining a long lasting
relationship with the users in marketplace and this will become a firm a loyal brand in the eyes of
people. In respect to this, marketing plays an essential role within the organisation in terms of
developing success and growth because it helps in attracting more and more customers so that
loyal and regular customers are developed that gives the profits and stability to the company
within marketplace(Mahmoud, Hinson and Adika, 2018). This project report is based on the
Claridge's hotel that is a five star hotel in London. This hotel has a long way connections with
royalty that sometimes referred to the Buckingham palace. As it conducts the loyalty program in
which they mainly provide the luxury privilege to their guests for retaining them to a longer
period of time. As it includes the explanation on the use of marketing mix elements to
developing the marketing strategies so that large number of customers are attracted. In this
characteristics of the relationship with marketing programme also included that helps as a
customer retention tool. At last developing the loyalty programme for the own business.
MAIN BODY
Use of marketing mix in their marketing strategies
Marketing mix is the foundation for every organisation by developing the tactics and set
of actions that is effective for promoting the brand and products within market. It is an
significant tool that is used to fulfilling the marketing objectives within target market. It includes
more values to the products and services that are offered to their customers that is fully based on
the cost of production, supply and demand in market, purchasing power of people, segmented
market that is comprises of direct and indirect components(Maggon and Chaudhry, 2015). In
case of Claridge's Hotel London, manager can develops the marketing mix so that they get the
successful results in marketing strategies that can be elaborated below:
 Product- It is an essential elements of marketing mix because company can earn profits
and growth by selling their products and services to the customers. In case of Claridge's
Hotel that is a five star hotel in London can offered the varieties of services to their guest

like Butler service, spa and wellness, Airport transfer etc. The hotel also offers the
Chauffeur service- in which customer arrive in style with our fleet of luxury cars and
professional drivers. Claridge's also renowned the beauty of its floral displays for their
guests.
 Price- It represents the prices of the products and services that the company charges to
their customers by selling their offerings. In case of Claridge Hotel London they offered
their services on high prices as it is a five star hotel. They offers their customers a
superior quality room that has 161 sq. ft. in this one king size bed, ironing board, wi-fi
services, entertainment services with their price between $ 676 per night.
 Place- Claridge's hotel is one of the leading hotel in London that also have global
presence. It is founded in the conventional London terraced house and it enhance their
business by expanding into the neighbouring house. It is situated in London at Brook
street, London that present as a epitome of timeless elegance. It has their branches on
London, India, US etc(Han and Hwang, 2018).
 Promotion- In this Claridge's Hotel can offer the best enjoyment and services to their
customers that matched the global lifestyle. In this they can used the various promotional
tool like trip advisor, television advertisement etc. to expand their business and exploring
awareness and facilities in the mind of customers. In their promotional activities hotel are
very attentive and always do improvements to get higher higher success and profits.
 People- As Claridge's hotel London can offered the amazing experiences to their
customers in the international market. It also provide the better opportunity to the society
people in marketing and sales department by effectively doing the recruitment. Due to
this hotel can get the experienced and skilled team that helps in generating the effective
outcomes to the company. In this manager of the hotel also provide training session
relation to customer retention so that they work effectively on this and get the positive
results that helps in gaining the competitive advantage and longer sustainability within
marketplace.
 Process- IN case of Claridge's London, they offered the varieties of services to their
guest that presents as a classic and luxury manner. In this hotel can offered the caring
services to their guest using technology like scanning, follow-ups etc. so that they can
share their issues effectively. This helps in enhancing the capital and profits of the

company. In this hotel can provide the booking facility to their customers via online and
offline process so that guest can booked their room as per their convenience(Parawansa,
2018).
 Physical evidence- The physical evidence of the Claridge's Hotel London is based on
their physical presence and their offering services that are tangible. This hotel is present
near the Hyde park that looks like a perfect blend of the luxury and style. AS they also
offers the varieties of services like Bars, cafe, restaurant, conference room with several
core facilities like intercom, valet parking, housekeeping, mapping room etc. that all
reflects the luxury in the eyes of the guest and represents as a best physical evidence(Han
and Hwang, 2018).
Analyse characteristics of organisation's relationship marketing programme and explain success
or failure as customer retention tool with reason
Relationship marketing is a marketing term that is used by the organisation to develop
and perform their direct campaigns or response so that they can retain their customers
effectively. It helps in providing the high level of satisfaction rather than only sales transaction.
As relationship management is consider to that strategy which reflects management of the
organisation in maintaining engagement with the several clients and partners for reviewing the
market relations. It is significant to the company to maximise the market ability so that contacts
related to guests and users are more transparent and effective. In this hotels organisation is
working for understanding the needs and desire of customers so that they can provide best
services to their customers. In this several features are included by the Claridge's London for
fulfilling the demands of the market and their customers(Porcu and et. al., 2019)(.
 Driving client messaging- It is an effective programme that is used by the Claridge's
Hotel London for managing the activities related to customers in an effective manner. In
this programme several rewards are given to the customers by collecting the points of
their stay. In this several Claridge hotels are engaged and in this they can manage the
customer portfolio in an effective way. It is based on the offers that the hotel can offers to
their customers for retaining the customers in London areas. For this they used the
promotional offer for that area and attracts and retain for longer period of time. It helps in
retaining and recalling the customers again and again(Tawinunt, Phimonsathien and
Fongsuwan, 2015).

 Simple payment redemption option- Claridge's hotel London has developing the
several website within which customer can redeem their loyalty programme points in a
minute. It also offers the extra pleasure and ease to their loyal customers. On the same
time these hotel website can provide the real time information to their customers that is
very convenient to guests and also looks impressive. As it is very helpful for the
customers in gathering the information so that they can take their buying decisions on the
basis their information(Adzoyi, Blomme and Honyenuga, 2018).
 Focus on customer relationship management- In this Claridge's Hotel London can
majorly focus on their customer relationship programs and effectively designs for their
loyal guests so that they can engaged with the hotel in an appropriate manner. Using this
programme help in identifying the strength and weaknesses so that Claridge's Hotel can
improve their services and this helps in gaining higher profits and revenues.
All these are the effective key attributes of Claridge's Hotel London in retaining the
customers because it is very helpful in analysing the demands and desire of customers so that
hotel can easily focus on fulfilling in an effective way. Following programme are very effective
in taking care of guests through which customer retention is maximised in the Hotel. In this
Claridge's loyalty program is placing an major role in enhancing their customer base that helps in
gaining the competitive advantage within the hospitality industry.
Propose strategy for development of loyalty program in own business
Within London a new hotel is to be opened named “Sunset oriental”. This hotel is of four
star and situated in the city centre of London. The main motto of this hotel is to fulfil the
customers demands and needs by offering the quality services and luxury experience. For this a
proper loyalty program is made by the top company management so that they can reatin their
customers for a longer period of time. This also helps the hotel to sustain for a longer time within
the competitive marketplace. To this manager can focus on several strategies to developing their
loyalty programme that can be shown below:
 Reward programmes- It is one of the best quality services that includes various types of
advantages and offers for attracting the new customers attentions so that they will enjoy
the hotel services in an effective way. In this they provide the varieties of offers to their
guest like scratching cards, points, etc(Han and et. al., 2019).

 No restriction on redemption points- In this customers cannot face any issue in
redeeming their loyalty points. In this clients get the minimum points i.e. 300 to redeem
their points for getting the services. This is related with the additional benefits to their
regular customers, due to this customer engagement and brand recognition is enhanced.
 Timely taking customer follow-ups- It is one of the significant strategy that is
developed by the management of the Hotel for attracting and retaining the customers for
the longer period of time. As this follow-ups are taking by the hotel experts to know the
reviews of the customers so that if there is a need of any improvement it can done very
effectively and efficiently. In this Sunset Oriental can highly focus on this strategy that
also includes in their loyalty program so that they can modify and develops their services
time to time as per the customers needs and demands so that they can gain competitive
advantage within the hospitality industry(Han and et. al., 2018).
CONCLUSION
From the above report it is to be concluded that customer retention within hospitality
industry is very essential for the organisation to generate high profits and growth within
marketplace for a longer period of time. In this company adopts the use of marketing tool so that
they can achieves their set target with proper perfection and effectiveness. As it includes the use
of the marketing mix so that successful results can be come out by developing the best strategy
in an effective and efficient way. In this marketing programme for customer retention is analysed
fully so that firm will easily understand the better sufficiency to retain the customers within
company. All this information is very helpful to developing own loyalty programme so that
customers will be retain for a longer period of time.

REFERENCES
Books and Journals
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Parawansa, D.A.S., 2018. Effect of commitment and customers’ satisfaction on the relationship
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