Marketing in Hospitality: An Analysis of Four Seasons Hotel Strategies

This report provides a comprehensive analysis of marketing within the hospitality sector, using the Four Seasons Hotel as a case study. It begins with an introduction to marketing concepts in the hotel industry, emphasizing the importance of brand image and customer relations. The report then examines the influence of the marketing environment, including macro and micro environmental factors, on the hotel industry, with specific reference to the UK market and the impact of factors like Brexit and technological advancements. The significance of consumer markets is evaluated, focusing on consumer decision-making processes and the impact of cultural and psychological factors. The report also explores the reasoning behind market segmentation, the elements of the marketing mix (product, price, place, promotion, people, process, physical evidence, partnership), the promotional mix, advertising campaigns, public relations, sales promotion, and market research. The analysis highlights how Four Seasons Hotels applies these marketing strategies in the context of its luxury brand and global operations.

Running head: MARKETING IN HOSPITALITY
Marketing in Hospitality
Student’s name:
Name of the university:
Author’s note:

1MARKETING IN HOSPITALITY
Table of Contents
Introduction......................................................................................................................................2
TASK A...........................................................................................................................................2
1.1 Discussing ideas of marketing for hotel industry......................................................................2
1.2 Analysing the influence of the marketing situation on the hotel industry.................................3
1.3 Evaluating the importance of consumer markets in the hotel industry.....................................4
1.4 Discussing the reasoning for developing various market segments..........................................5
2.1 Analysing the significance of elements of the marketing mix to the hotel industry.................6
2.2 Analysingthe policies and pricing strategies related to the hotel industry................................8
4.4 Analysingthe application of marketing strategy for an appropriate service..............................9
TASK B.........................................................................................................................................11
3.1 Evaluatingthe implication of the promotional mix..................................................................11
3.2 Plan for a compatible advertising campaign for hotel industry operation...............................12
3.3 Analysing the implication that public relations and sales promotion do in promotional effort
.......................................................................................................................................................13
4.3 Assessing the suitability of various media for marketing of hotel..........................................14
TASK C.........................................................................................................................................14
4.1 The importance of market research to hotel operations...........................................................14
4.2 Undertaking market research for hotel industry......................................................................15
Conclusion.....................................................................................................................................15
Reference List................................................................................................................................17

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Introduction
Marketing is an important aspect of any service industry for ensuring success. The
management of a hotel, it is very significant to do marketing in order to retain existing customers
and to develop the market. The aim of the study is to highlight the aspects of the marketing in the
hospitality sector in organising strategies to deliver the marketing plan. In the first part of the
study, the concept of marketing will be explained and in the latter part, marketing mix,
promotional mix and marketing cycle of the service industry will be described. In order to
continue the study, Four Seasons Hotels has been chosen. This is a privately own hospitality
company and it operates more than 43 countries (Fourseasons.com 2017). Headquarter of this
hotel is in Toronto, Canada.
TASK A
1.1 Discussing ideas of marketing for hotel industry
In the hotel industry, marketing is very important in order to meet the desires of the
consumers. In hotel services, varieties of services are part of the marketing, like dining,
restaurant, leisure and accommodation. As stated by Lilienet al. (2013), hospitality sales are
quite different from the selling of consumers goods as in hotel industry, marketers have to sell
tangible products and intangible products too. The success of the marketing depends on the
feelings of the customers and hotel industry is mostly created for tourism. In the hotel industry,
the brand image is very important along with customer services. Marketers in hotel industry want
to create brand recognition so that customers visit their hotels again and again. Repeat in
customers visiting can increase the revenue of the hotel. Four Seasons Hotels management

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believes that relationship with customers can create stable revenue base. Four Seasons Hotel
does promotions during certain times when the business needs the boost and through promotions,
they introduce offers and discounts. Four Seasons Hotel uses marketing myopia as the hotels’
management strictly views the marketing from the standpoint of specific selling of the services.
1.2 Analysing the influence of the marketing situation on the hotel industry
Marketing environment of a company consists of the external and internal factors that can
affect the organisation’s ability to develop and continue successful relationship and transaction
of an organisation’s target customers (Goffenett et al. 2016). It has been noticed that marketing
environment can impact hotel industry as well and macro environment influences in the hotel
industry as consumers’, employees and agencies all can suffer from this. Four Seasons Hotel has
its hotels also in the UK and political factors of immigration laws can impact on the hotels. In
the hotel industry, people with disabilities can have the employment opportunity in the hotels.
Employees in some of the sectors as per the UK laws have paid and unpaid holidays. Moreover,
in economic factors, UK’s GDP has been going down; however, the tourists from all over the
world come in the UK. However, in the UK, the demand for luxury hotels has been decreased
due to the impact of Brexit (Bowie et al. 2016). In the UK, the hotels with lower prices have
been increased in last two years. In addition, social factors of demographic elements, such as
age, income distribution and ethnicity pose a significant impact on hotels. Moreover, the cultural
beliefs and consumerism can impact on the hotel industry as people's behaviour in spending
luxury hotel is important. Technological factors are important for hotels nowadays because the
hotels put their advertisements on social media and online in order to reach maximum guests. In
order to make bookings, many customers use mobile-based apps and e-commerce. Advanced

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technologies in smart rooms and customers services have been influencing the hospitality
industry.
Microenvironment factors in the hotel industry are also important, first of all, customers’
factors in marketing environment of hotel industry are significant as customers are the first
priority in hotel industry. Hotels can develop market messages to attract the company’s
customers. Suppliers of the hotel industry are food suppliers, accommodation furniture suppliers
and raw materials suppliers and hotels need to source the finance. Owners of the hotel industry
are the mainly management that take the internal decisions and marketing decisions of the hotels.
Owners’ main objective is to meet the organisational goals and customer satisfaction (Hollensen
2015). In the hotel industry competition is very high and the hotels use marketing strategies in
order to survive in the market.
1.3 Evaluating the importance of consumer markets in the hotel industry
Customers show differences in their preferences and tastes due to different features and
purchasing habits. In case of UK hotel industry, the consumer's show distinguishes the difference
in opting for a preferred hotel. Consumers’ decision-making process starts with need recognition
and in this stage the consumers identify their problems. In the second stage, customers search for
the information and in the hotel industry, customers search for their convenient hotel. Moreover,
customers evaluate the alternatives that are available in the market. In the next stage, consumers
make the purchase and these can be divided into routine, limited and extensive. In the last step,
post-purchase evaluation and it can arise from cognitive dissonance (Hoque 2013). Post-purchase
satisfaction leads to second-purchase of the products.

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Four Seasons Hotel researches about the consumers' market and they find that consumers market
is large and vast with segregating the consumers in age, culture and income level. According to
Wood (2014), customer culture is related to the psychological and sociological impacts on the
buying of the services and products. In the UK hotel industry, the force of power of customers' is
high as switching cost for the customers is low. Customers have many options to choose the
hotels and personal influences as well as external factors impact on the buying behaviour of the
customers. In 2016, hotels in the UK saw the occupancy of 84% and this growth from previous
years had been 0.4% (Pwc.co.uk 2017). Moreover, revenue per available rooms showed the
growth of 2.3% in 2016 in the UK. According to Black Box model, marketing mix and other
external factors of the industry provide stimuli to the customers and buyers' mind take influences
from values, learning, perception and lifestyle. Decision-making process of buyers' comes from
problem-solving, information search and evaluation (Hollensen 2015). Four Seasons Hotels do
the marketing in order to impact on the different stimuli of the consumers. Customers try to
accumulate the values that the hotel is offering and they take their decisions.
1.4 Discussing the reasoning for developing various market segments
Key marketing strategy for an organisation is to make a segment of the markets as
customers have different characteristics. As stated by Leung et al. (2015), market segmentation
is the method of dividing the potential consumers into several groups.Before making a marketing
plan, hospitality organisations need to understand the market segmentation as it makes sense to
make group to similar customers’ group (Armstrong et al. 2014). Four Seasons Hotels must have
different market segmentation as this divides the market in identifiable group and marketing
team can target the desired customers with marketing mix strategy. The hotel should not expense
much on advertisements for the wider customers and segment the market allows the customers to

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expense only on the identified customers. In case of the hotel industry in the UK, the
segmentation is important as buyers' capability is different. Segmentation allows the business to
reach precisely reach to defined consumers (Leung et al. 2015). Market segmentation is mainly
four types, demographic, geographic, psychographic and behavioural. Segmenting the market
will allow Four Seasons Hotels to use resources accurately. Geographic segmentation is based on
customers’ location, regions and in demographic segmentation; it is based on age, gender,
occupation and socio-economic conditions of the customers. Moreover, the behavioural
segmentation, customers are targeted through their benefits they sought and loyalty status.
Market segmentation is the important process for the hotel industry as the hotels can target only
one or two groups rather than targeting all customers. Marketers of the hotels can get advantage
by money, time and resources in cost-effective manner. Marketing segmentation can reduce the
risk of ineffective and unsuccessful marketing campaign.
2.1 Analysing the significance of elements of the marketing mix to the hotel industry
Products:
Hotels provide the services and facilities of customer services to the guests and the
services provided by the hotels are guest's room, food and beverage, banquet rooms, health and
wellness facilities and executive lounges. Four Seasons Hotel provides the services of
accommodation, food, conference facilities and express check-in and out services. The hotels try
to provide the exact services for which the guests visit in their hotels.
Price:
As stated by Scott (2013), defining the correct price is important for the hotel industry in
the UK as the competition is high. Hotel services like accommodation, parking and food prices

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should be competitive. Hotels prices differ as for the quality of the hotels. Four Seasons Hotels
fall into the category of luxury hotels and the prices are high in this hotel. Four Seasons Hotels
take the strategy of premium pricing and packaging.
Place:
The hotels should be accessible to the guests easily. In the hotel industry, the customers
have to travel to the hotels and place or location should be accessible. Four Seasons Hotels are
near the metropolitan cities and the hotel management take direct methods to take the booking.
Four Seasons Hotels are in Hampshire and in London and they are five stars hotel.
Promotion:
Sales and marketing team in the hotels can take different methods of marketing as they
can take the strategy of the brochure, television commercials, hotel websites, scratch pads and
logo and most importantly, through mobile-based apps (Goffnettet al. 2016). Four Seasons hotels
provide advertisements through social media and they offer discount pricing in booking at the
lean season. Four Seasons Hotels take the strategy of sponsorships and event organising to reach
maximum customers.
People
Hotels are always reliant on the employees and in the hotels depend on the employees
very much. Four Seasons hotel provides training to the employees and having the right
employees in proper places can improve the business. Individuals can employ the marketing
activities and staff can provide customer satisfaction.
Process

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Process of the hotel industry is related to daily activities of accommodation, food, and
cooking, cleaning, linen arrangement and many others. In the hotel industry, the process of
operation leads to the customer satisfaction and the management ensures that the process must go
smooth.
Physical evidence
Physical evidence of the hotel can be online experiences, branding, hotel building and
customer satisfaction. Physical evidence of the organisation can also be the marketing materials
and physical products of the organisation (Goffnettet al. 2016). Four Seasons hotel is big name
in the global market and they can in hotel industry, customers pay for tangible and intangible
products and services.
Partnership
Partnership in the business can help the organisation to flourish. However, Four Seasons
hotel does the partnership with the local suppliers for the raw materials and in advertising
purposes.
2.2 Analysingthe policies and pricing strategies related to the hotel industry
It has been observed that pricing is based on demand and competition in the hotel
industry in the UK (Minazzi 2015). The element of pricing strategy is based on the financial
objectives of the hotel. Four Seasons Hotel uses pricing strategy of demand-oriented and they
take the competitive pricing. Moreover, Four Seasons Hotel falls under the category of five-star
hotels. In market pricing adjustment, the hotel Four Seasons decrease the pricing in lean seasons.
In Peak Season, when the hotel's demands are high and the hotels charge high prices, in

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Christmas or in sports events. In off-season hotels take low pricing and they provide discount
pricing. Moreover, in shoulder season (between peak and off), the hotels take reasonable pricing
and the hotels try to attract new business.
Price skimming can be defined as marketers’ pricing strategy when an organization sets a
relative high price for services and products at initial stage and then lowers the price over time.
In addition, penetration pricing is opposite of skimming, whereas the marketers set lower pricing
at initial stage and then higher the price over time. Moreover, in hotel industry, competitive
pricing strategy, management of hotel sets the price as per the competitors’ prices when the
competitors offer the same services or products (Hollensen 2015). Additionally, loss leader
pricing strategy makes the pricing of the services or products at very low and it is aggressive
pricing in order to grab the market and attract the customers. Value-based pricing strategy sets
the prices primarily, however, not exclusively and price is set based on customers’ perceived
values.
Pricing policies are based on high demands in most of the hotels as in the UK; most of
the hotels are slashing the prices as Brexit impact on economic downturn in the UK. Seasonal
fluctuation in pricing is common in the hotel industry and hotels management take tactical
pricing decisions.
4.4 Analysingthe application of marketing strategy for an appropriate service
Four Seasons Hotels are going to start the exchange of currency facility in the hotel for
the international tourists. This facility is quite new and will be helpful to the tourists who will
visit the hotels.

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Communicating the staffs: The hotels need to communicate the staffs about the new
services and the management must ensure that employees must understand the business growth
through this. The management will ensure that the staffs have skills in exchanging the money.
Objective: Four Season Hotels set the objective of achieving the growth rate of 5% in
international tourists in the UK
Resources: Four Seasons Hotels need to assess the resources in order to start the
exchange of currency in hotels. The management needs to tie-up with a bank and they need to
take permission from government agency whether they can start the digital distribution of
currency. The hotels must have the infrastructure in starting new advantage with salespeople
(Walker 2016).
Promotions: Four Seasons Hotels will increase the social media advertisements on
Facebook, Twitter and Instagram. On social media, they want to share the new services they are
going to offer to the international customers. In their websites, they can share the new services.
The right way of digital marketing can increase the growth of customers.
Implementation of milestones
Milestones Start date Budget Responsible
department
Set up currency
exchange facility
department
1st January 2018 $ 14,000 Management (Board
of Directors)
Website designing to
launch new services
15th January 2018 $2,000 (Sales and Marketing)

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advertisements
Social media
promotions
15th January 2018 $3,000 (Sales and Marketing)
Recruit new
employees in finance
department
30th January 2018 $1,000 (initially) Human Resources
Table 1: Implementation of milestones
(Source: Self-develop)
TASK B
3.1 Evaluatingthe implication of the promotional mix
Hotels need to understand the needs of promotions and the channels they want to take.
Advertising is one the ways to promote the services of the hotel industry and sales promotion is
another way to promote the services. As opined by Atwal and Williams (2017), various
promotional elements have been undertaking by the hotels in the UK with branding elements.
Four Season hotels in the UK are going to introduce the exchange of currency at the hotel itself.
This strategy needs to be successful by the hotel management and it can be helpful in generating
revenue more. Four Seasons hotels are mainly taking the strategy of social media advertisements
in promotions of the new services. Social media are present in almost of all countries and this is
cost effective to reach maximum target customers. Four Seasons hotels are also going to provide
website link and booking links on the social media pages. Four Seasons hotels can sponsor the
international sports team in order to increase the brand loyalty. Promotional mix is important as

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marketing tools have strengths and weaknesses of their own. Marketing strategy can ensure
success and it can impact on organisation's bottom line.
3.2 Plan for a compatible advertising campaign for hotel industry operation
In the hotel sector, planning is an important part and in selling the accommodation services in
the UK market, the advertising campaign is needed (Hoque 2013).
Four Seasons hotels are planning to put advertising campaign and in the first step, the
management of hotel needs to identify the target customers to whom they want to make target.
Moreover, the competitors’ pricing in the same industry needs to evaluate as the other hotels can
offer the low prices. Before putting an advertisement, it is needed to understand the audiences
and the key messages that the advertisement will provide.
The second step is to identify the communication channel through which the
advertisement will follow. Four Seasons Hotel can choose social media platform as
advertisement channel.
The third step is to determine the objectives of the advertisement and the goals of the
promotional campaign are different from the marketing campaign of the organisation. The main
objective of the advertisement of Four Seasons Hotel is to inform the people about discounts.
The organisation is going to start the currency exchange facility to the customers.
Four Seasons Hotel needs to evaluate the budget of the advertisement. Four Seasons
hotels can determine the cost breakdown also.
Social media platforms Time Budget
Facebook January -February $1800

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Twitter March-April $1600
Instagram January -April $1500
Table 2: Plan for social media advertising of Four Seasons Hotels
(Source: Self-develop)
3.3 Analysing the implication that public relations and sales promotion do in promotional
effort
Marketing of an organisation helps to make a profit and increase customer base. Four
Seasons Hotels take the sales promotion strategy as to generate the positive customer perception.
As opined by Wu and Ko (2013), sales promotions can be taken as promotional activity that the
organisation does apart from advertisement campaign in order to sell the services. Sales
promotions of Four Seasons Hotels are included rebate, discounts and coupons facilities. In the
mobile app, these hotels provide huge discounts on early bookings on offseason. On the other
side, public relations are related to the information that the organisation provides to the
customers, stakeholders, public and employees (Tseng et al. 2015). PR can create a positive
image of the brand in case the organisation has been facing an issue. Four Seasons Hotel has PR
team in order to handle media-related activities. They also maintain a good relation to the
customers on social media platforms through sharing positive news. On the social media pages,
the poor reviews of the customers need to manipulate by the PR team.

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4.3 Assessing the suitability of various media for marketing of hotel
Four Seasons Hotels provide the accommodations, food, parking facility and restaurant
services. In the hotel industry, competition is high and Four Seasons hotels can use different
media in order to reach the customers. Television advertisements help to reach the huge number
of people as most of the UK people use television. Print media like newspaper advertisements
help to reach maximum people and customers can find it later in the newspaper also. Magazines
can also help to reach a huge number of people as the fashion and news-based magazines are
famous in the UK (McGivern 2013). Billboard is one such outdoor medium and it helps to reach
a large number of people, however, it is expensive medium. Through social media, the hotel
sector can reach maximum people as this is cost-effective and it can appeal global audiences as
well. Other online media advertisement, like PPC (pay-per-click) advertisements are getting
famous.
TASK C
4.1 The importance of market research to hotel operations
In The UK, hotels in the industry in which they are operating must do market research in
order to do marketing. Customers choose a hotel for various reasons, location, quality, customer
services, parking and pricing. Four Seasons Hotels need to do the market research as market
research helps to recognise the issues and opportunities in the market. As suggested by
McQuarrie (2015), market research provides information about the competition, market share
and customer satisfaction level. Most importantly, market research can help Four Seasons Hotels
to formulate the marketing strategy by understanding the promotional mix, pricing and services
offered in the industry. In addition, marketers can understand the customers' needs through

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market research and effective communication mix can be understood by the marketers. Four
Seasons Hotels can improve the selling activities and promotional campaigns through marketing
research. Most importantly, demands in the market can be identified and selling territory of the
hotels can easily be recognised. Market research can also be facilitated to forecast the sales.
4.2 Undertaking market research for hotel industry
Market research will help Four Seasons Hotels in order to understand the response of the
customers and guests. Market research can be carried in two different ways, through primary
data and through secondary data. Four Seasons Hotels have customers all over the globes and
they have hotels in more than 43 countries. However, in the UK, they have 5 hotels in various
places. Primary research method can be done in order to understand the customers' responses.
The survey will be the better choice in order to conduct primary research. 10 MCQ type close-
ended questions will be prepared in order to do primary research. This question can be uploaded
Facebook page of the hotel and customers or users will be asked to provide their responses. First
200 responses will be taken who will be given all 10 questions’ response. The sample size will
be kept 200. Data will be analysed through quantitative data analysis techniques and findings can
be presented through pie-charts and bar graphs.
Conclusion
It has been observed that the basic part of marketing is to understand the needs of the
consumers and deliver the services according to this. Marketers need to identify these factors and
they should monitor customers' reviews. Additionally, potential customers should know about
the hotel and marketers must aware the customers about a hotel's offerings. In the UK market,
the competition is high and marketing is the only option left to the hotels to reach potential

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customers. Social media or digital marketing is cheap and Four Seasons Hotel can do this in
order to be a cost-effective campaign.

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