Marketing and Customer Retention: A Study of the Hospitality Sector

This report delves into the critical roles of marketing in the hospitality industry, emphasizing brand building, customer acquisition, and retention. It examines the marketing mix elements (product, price, place, promotion, people, physical evidence, and process) within the context of the Dorchester Hotel, a luxury establishment in London. The report explores the hotel's customer relationship management (CRM) strategies, particularly the Dorchester Diamond Program, highlighting its benefits like room upgrades, discounts, and loyalty perks. Furthermore, the report proposes the development of a new loyalty program for a hypothetical hotel chain, Star NV, outlining benefits such as credit card rewards, guaranteed availability, and complimentary services. The conclusion reinforces the importance of marketing and CRM in driving customer loyalty and organizational success within the hospitality sector.

Marketing and Customer
Retention in the Hospitality
Industry

Contents
INTRODUCTION...........................................................................................................................3
TASK...............................................................................................................................................3
Marketing mix.............................................................................................................................3
Relationship programme of hotel Dorchester contributing in success........................................5
The development of own loyalty programme..............................................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................8

INTRODUCTION
In hospitality industry, marketing played up important roles in brand building, attracting up new
customers and maintaining better customer loyalty in business. Customer tends to choose the
hotels in references to wide range of services. The role hospitality industry is considered to be
collection tourism another experiment as services (Ngacha, and Onyango, 2017). Marketers
should ensure proper brand recognition in the market in order to stay competitive in upcoming
global business environment.
The Dorchester hotel is five start luxury hotels built in year 1931 taking up London most
legendry properties. The hotel is located in stylish Mayfair just across the street from Hyde Park.
In this report there will be discussion on the marketing mix of the hotels along with customer
relationship marketing programs of Dorchester hotel. beside this report will have discussion on
proper strategies development for own hospitality company.
TASK
Company overview
The hotel set up in the tony Mayfair on corner overlooking for Hye Park with ionic
curved façade features geometric wrought-iron railings lining the balconies and yellow-and-
white awnings. The luxurious hotel has been all time favourite for elite society of London. The
hotel is summed up with 182 room and 65 suites and three penthouses. The hotel has the variety
of feature will be discussed in firm marketing mix giving up the clear idea of marketing
strategies.
Marketing mix
The strategy of marketing mix is defined as sect of tactical actions used by the firm in
different manner for promoting up brand (Han, Jongsik, . and Hyun., 2020.). The marketing mix
have inclusion have systematic 7 element that’s is product, price, place and promotion. Later on,
the marketing mix have been extended to people, physical evidence and process.
Product
The product or services are important aspect of business which is developed by company
for meeting out customer expectation and wants. In the hospitality industry hotel have to major
attention in developing in hotel service. the hotel is providing up traditional British experiences
with range in standard room ranging up from 280-square-foot (26-square-meter) Deluxe Queens
3

to 387-square-foot (36-square-meter) Executive Kings. In addition, amenities are modern such as
entertainment system, Wi-Fi, minibars, offering dining, classical and spa.
Price
The Dorchester hotel is paying up major focuses on providing up best services and product in
the luxurious manner. The firm have dedicated team working out company requirements of both
guest and company itself. Hotel is focusing on premium pricing strategy catering high profile
customers and upper-class social providing them experience for traditional British. This strategy
is successful in as customer ready to pay services being obliged (Adzoyi, Blomme, and
Honyenuga, , 2018). hotel is proving up with feasible deal and complimentary suites to fancied
customer.
Place
The hotel is located right across the street from Hyde Park in posh Mayfair lined with
luxurious properties such as sister 45 Park Lane. The stretch of road is busy having several lining
options including Nobu, Tamarind, and The Wolseley. The hotel is located in the main street of
London giving up easy accessibility to customers. The hotel is offering up 27*7 service it has 15-
20 minutes convenience accessibility for important areas such as British Museum, Westminster
Abbey, and the London Eye
Promotion
Promotion is concerned with tactical action and strategies increasing up appeal against customer
awareness to buy up the services. This is helping out in awareness regarding services encourage
sales and creating brand image which help out in increasing market share. The firm advertising
strategy is looking into higher customer satisfactions along with providing up customer
relationship management (Dzhandzhugazova, and et.al.,2016). The hotel is using the digital
media for promotion by making use of various social platform such as Facebook, twitter,
Instagram and other websites. The hotel has Diamond Program known as Dorchester Collection
Diamond Club promoting loyalty programme.
People
Customer service and employee satisfaction is an important aspect for hospitality
industry for serving the best possible services to customer. Customer service staff have the
major responsibility over carrying out different activities in organization. Dorchester have
4

highly competent and skilled employees who go through continuous learning and development.
Due to this policy hotel have high customer retentions and satisfaction in company.
Physical Evidence
This is concerned as the actually physical presence seen and experienced by customers.
The factor clearly contributes in quality perceive ness. In term of hotel Dorchester, rooms are
decorated with lavish traditional English residences, with details such as damask wallpaper,
luxurious upholstery and bedding, and ornate furniture (Bhargav., 2017). The room have swish
marble bathroom along with looking into Aromatherapy Associates. But there is no presence of
pool in the hotel which make the many businessmen, diplomats and socialites disappointed.
Process.
Hotel Dorchester is known for its traditional British luxury hotel which have sophisticated
process publication. The hotel is available to different travel sites through which room and
services can be booked. On the other hand, booking can be done by physically going to hotels as
there is proper receptions where customer have to provide proper verification documents by
giving valid government identity. Later on, everything will be don automatically.
Relationship programme of hotel Dorchester contributing in success
Customer relationship management is considered to be the strongest and efficient approach
helpful in maintaining and creating up the relationship with customers. This is helpful in
building up strong bonding with potential customer and customer retention. This helps firm o
have better anticipation regarding customer needs and wants providing out strategic advantage.
In the hospitality industry, hotel is looking into to develop various loyalty programmes as
lucrative policy allowing guest and customer to gain points on various visit to hotel. The guest
can have later on redeem the point inform of discount or free stay.
Hotel loyalty programmes is import aspect for customer loyalty recognized as prominent
factors in organizational success. For the completion of specific purpose Dorchester have need
to create up with strong and emotional customer connections by developing Dorchester Diamond
Program.
This diamond programmes gives up loyalty style benefits regarding room upgradation,
free breakfast offers, discounts, and credit to spend in the bar, restaurant or spa (Masouras,
Siakalli, and Papademetriou., 2016). The luxury travel concierge travel agency of the diamond
5

programmes which along different benefits to be share. in additional to the different perks and
upgrades outlines and offers an be available at differ websites accessing the email.
Benefits for suites
The Dorchester Collection Diamond Club have been benefits with guarantee to grade
upgradation have one-time booking trumping out the Virtuoso and AMEX FHR benefits. In
addition, the hotel will look into guest rooms and junior suites are –
 Guarantees in category upgradation of booking the rooms for guest along with
advisability of tie of arrival.
 Credit of 100 units of local currency as per once stay.
 There will be inclusion off daily full breakfast available in different outlet including the
room dining.
 In addition, there will be daily unlimited internet aces for unlimited number of devices.
Benefits for Virtuoso benefit
 Upgradation in check in will be available along with property specific amenity. There is
early check in and late check out are advisable.
 VIP welcoming along with escorting services in the rooms or suite will b provided to
guest.
 In this The Diamond Club Ambassador Team ready to assist guest 24/7 throughout their
stay at The Dorchester
 A no walk policy will be implicated in the premises.
Then all this loyalty benefits will be available by individual having diamond program travel
agencies. This means that loyalty programmes from travel agents Rather than consumer
directly.
There is need for this loyalty program of the hotel highly successful as the customer or guest
have not need to qualify any element for targets to avail various benefits of customer loyalty
services (KooYu, . and Han, 2020), There are certain factor making it out successful as
There is no requirement for individual to be part of existing customer community of hotel
for availing out the loyalty programmes benefits.
The travel agency will automatically highlight the hotel and its lavishing services meeting
out customer expectational and wants. Travel agent are palsying out role for marketing channels
as way of influencing and promoting hotel services among customer.
6

The hotel is working out hard in providing out service quality standards which will impact
higher way is customer retention.
Hotel is providing out VIP treatment with free breakfast offers, discounts, and credit to spend in
the bar, restaurant or spa. Guarantees in category upgradation of booking the rooms for guest
along with advisability of tie of arrival (Marin-Pantelescu, Toader, and Sorinel, , 2019). Credit of
100 units of local currency as per once stay. VIP welcoming along with escorting services in the
rooms or suite will b provided to guest.
Hence these service in hotel have worked out as effective tool in customer retention. This
have given up priority contributing in customer retention as booking out special treatments to
VIP customers. These programmes have major contribution customer satisfactions and
contributor customer retention.
The development of own loyalty programme
Star NV will be new business firm dealing in group of hotels in London situated in posh
area. The hotel will be organising the differentiated loyalty programmes to cater up the varied
guest segments. Each loyalty programmes will be designed in such manner of recognizing up
reward for frequent guest (Pesonen, Komppula and Murphy., 2019). Loyalty programmes will
be imparting value and rewarding experiences with multitude of benefits, privilege and existing
offer. The loyalty programmes will be presenting up a lot of opportunities and benefits
providing out customer will chance to increase up coins for incredible stay.
 Credit card of Star NV is which 10 point with redeem one sterling pound for hotel rooms
o properties, 15 point for 1 pound in restaurant as well as fitness club and gym
membership.
 There will be no annual fees on the card warning round 10% f cashback while spending
of around 15000 pound in 1st three month in hotel accommodation service.
 In addition, there can be earning of 500-pound cash backs after spending of 5000-pound
n any purchases in hotel facilities and accommodation.
 72 hours guaranteed availability
 Upgrade to the best room, including standard suites
 Complimentary parking on free night awards at participating hotels and resorts
All the member benefit
7

 In addition, every loyal member or user of hot will be getting up with standard and
complimentary internet, waiving of resort fees on awake stay, complimentary breakfast
for 2 with complementor WIFI.
 There will availability on late check out and early check in on the basis of availability
along with 1 category room upgradation.
 2 p.m. late checkout at participating locations
CONCLUSION
From the above file it can be conclude as marketing in hospitality industry is considered to
be collection tourism another experiment as services. The Dorchester hotel is five start luxury
hotels located in stylish Mayfair just across the street from Hyde Park. The hotel has the variety
of feature will be discussed in firm marketing mix giving up the clear idea of marketing
strategies.
The hotel is providing up traditional British experiences with range in standard room. The
firm advertising strategy is looking into higher customer satisfactions along with providing up
customer relationship management. It is the strongest and efficient approach helpful in
maintaining and creating up the relationship with customers. Hotel loyalty programmes is import
aspect for customer loyalty recognized as prominent factors in organizational success. Loyalty
benefits will be available by individual having diamond program travel agencies. Guarantees in
category upgradation of booking the rooms for guest along with advisability of tie of arrival
8

REFERENCES
Books and Journals
Ngacha, W.J. and Onyango, F.E.V., 2017. The role of a customer-oriented service culture in
influencing customer retention in the hotel industry.
Han, H., Jongsik, Y. and Hyun, S.S., 2020. Nature based solutions and customer retention
strategy: Eliciting customer well-being experiences and self-rated mental health. International
Journal of Hospitality Management, 86, p.102446.
Adzoyi, P.N., Blomme, R.J. and Honyenuga, B.Q., 2018. Customer Retention among Hotels in
an Emerging Market: An Employee-Based Perspective. In Advances in Hospitality and Leisure.
Emerald Publishing Limited.
Dzhandzhugazova, E.A and et.al.,2016. Innovations in hospitality industry. International Journal
of Environmental and Science Education, 11(17). pp.10387-10400.
Bhargav, S., 2017. A study on marketing mix of hospitality industry. International Journal of
Management, IT and Engineering, 7(9). pp.253-265.
Masouras, A., Siakalli, M. and Papademetriou, C., 2016. E-marketing in the Hotel Industry:
Marketing Mix Strategies. Springer International Publishing.
Koo, B., Yu, J. and Han, H., 2020. The role of loyalty programs in boosting hotel guest loyalty:
Impact of switching barriers. International Journal of Hospitality Management, 84. p.102328.
Marin-Pantelescu, A., Toader, M.I. and Sorinel, C.Ã.P.U., 2019. Customer Loyalty Programs
For The Hospitality Industry And Their Implications On Hotel Revenues. In Proceedings of the
INTERNATIONAL MANAGEMENT CONFERENCE (Vol. 13, No. 1, pp. 367-373). Faculty of
Management, Academy of Economic Studies, Bucharest, Romania.
Pesonen, J., Komppula, R. and Murphy, J., 2019. Plastic loyalty–Investigating loyalty card
programs for a Finnish hotel chain. Tourism Management, 73.pp.115-122.
Online
Dorchester Diamond Program Loyalty Club.2020.[online]. Available through,.<
https://www.luxurytraveldiary.com/2018/03/dorchester-hotels-loyalty-club-dorchester-diamond-
program/>
9

10

11

12