Marketing and Customer Retention in the Hospitality Industry Analysis

This report delves into the critical aspects of marketing and customer retention within the hospitality industry, focusing on the strategies employed by companies like Wyndham Hotels and Resorts. It begins by exploring the application of the marketing mix (product, price, promotion, people, process, and physical evidence) in the context of hotel operations, highlighting how these elements contribute to attracting and retaining customers. The report then analyzes the characteristics of relationship marketing programs, specifically examining Wyndham's loyalty program, and evaluates its success in fostering customer retention through customer messaging, reward redemption options, and other features. Furthermore, the report proposes strategies for developing loyalty programs in a hypothetical hotel setting, including point systems, customer feedback mechanisms, and reward programs to enhance customer engagement and drive repeat business. The conclusion emphasizes the importance of customer retention for sustainable business growth and the role of effective marketing activities and strategies in achieving this goal.

Marketing and Customer
Retention in the Hospitality
Industry

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
The use of marketing mix in marketing strategies......................................................................1
Analyse the characteristic of organisation's relationship marketing programme and explain its
success or failure as a customer retention...................................................................................3
Propose strategies for development of loyalty programme in own business..............................4
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................7

INTRODUCTION
Marketing is considered as the significant activity that tends to fulfil the long and short
term needs of customers in terms of developing effective communication and relation among the
customer and company. In regard of this, customer retention depicts the capability of company in
terms of retaining customers for the longer period of time. It tends to undertake significant
marketing activities which is quite prime for the businesses that tends to develop effective
customer retention and satisfaction (Porcu and et. al., 2019). By undertaking the significant
loyalty programmes, hotels tends to improve prominent involvement of customers and retention.
For this, the prominent report is based on the Wyndham Hotels and Resorts which is an
international hotel chain and tends to run its hotel in Canada, Mexico, UK, USA, Turkey,
Germany and so on. In terms of this, the loyalty programmes which are offered by hotel is
lightning book, Wyndham rewards account and mobile check-in and check-out. The report tends
to undertake significant concepts in terms of effective marketing that tends to put significant
impact on the customer satisfaction undertaking the retention of customers by proposing
effective development of loyalty programmes.
MAIN BODY
The use of marketing mix in marketing strategies
Marketing mix undertake the effective marketing strategies which is useful for hotel in
terms of understanding the various factors and aspects of market trends and also leads to use
significant strategies to adhering the market trends. In regard of hospitality industry, marketing
mix is useful for company to use effective marketing strategy which is useful in attracting
various customers in terms of retaining them by offering premium services (Han and et. al.,
2019). In terms of Wyndham Hotels and Resorts which is the five star hotel and also tends to
operate its functions across the world in terms of maintaining its global identity to manage the
effective value of customers. In terms of Wyndham hotels and resorts prominent marketing mix
is mentioned as underneath: Product: Wyndham hotels and resorts tends to deal in offering luxury and effective
services regarding staying and accommodation to their customer within the competitive
market. For this, company tends to deal with other significant dimensions of offered
products that consider core products, facilitating, supporting and augmented products. In
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regard of this, core products tends to offer hotel rooms to their customers, facilitating
offer bars and online reservation services, supporting provide several additional services
including 24*7 room facilities and so on (Hyun and Perdue, 2017). Lastly, augmented
products tends to provide luxurious facilities. Therefore, these are useful for company in
terms of classifying their customers on the grounds of demands and needs which is useful
in retaining customers for the longer period of time. Price: Wyndham hotels and resorts is famous for offering lavish services that tends to
varied for the pricing strategies which are opted by the hotel to undertake the variety of
customers. For this, prominent services are offered by Wyndham hotels and resorts in
terms of premium price to offer wellness of guest. Meanwhile, middle class and price
sensitive customers tends to undertake price skimming strategy to retain their customers.
For this, Wyndham hotels and resorts undertake luxury and wellness in terms of focusing
on the prominent segment of people to retain them for long time. Promotion: Wyndham hotels and resorts tends to enjoy strong brand image with its
effective survival and also focus on the word of mouth in terms of prominent promotion
and advertisement (Adzoyi, Blomme and Honyenuga, 2018). For this, Wyndham hotels
and resorts offer various premium services which are related with effective growth and
development of company undertaking the effective pace 10% per year. Considering the
loyalty program of company is used as the promotional tool in terms of helping
customers for effective performance and publicity. Meanwhile, Wyndham hotels and
resorts tends to opt social media marketing to increase the effective value of their brand
and retain customers. People: Wyndham hotels and resorts has around 50k employees and also tends to
maintain effective and flexible working culture. For this, hotel tends to highlight the
prominent dedication to offer significant benefits for employees considering the
educational help, paid leaves and so on (Lu and Kandampully, 2016). Along with this,
effective benefits tends to increase the morale of employees as because of this, employees
tends to work in significant way by offering satisfaction to customers. Process: Wyndham hotels and resorts tends to offer online booking services to their
customers which is quite convenience for them. Respective hotel tends to launch app that
leads to enable their clients in terms of booking effective services in economic way. It
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also tends to reduce the need of front desk which is useful for check-in and check-out
functions. It is useful for Wyndham hotels and resorts in terms of rendering prominent
services that are quite easy and accessible in effective manner to accomplish effective
customer attention.
 Physical Evidence: It tends to undertake significant part which is quite intangible instead
of guest to stay in hotel in terms of offering services at the time of stay of customers
(Rahimi and Kozak, 2017). It include various services of Wyndham hotels and resorts
that are being identified in prominent way in terms of managing effectiveness of room
considering the customer services undertaking the needs and demands. Wyndham hotels
and resorts offer better exposure for their services in terms of offering additional benefits
for customer retention.
Analyse the characteristic of organisation's relationship marketing programme and explain its
success or failure as a customer retention
Relationship marketing tends to make things different and also undertake prominent
products and services in terms of developing effective campaigns for effective response for the
customer retention. It tends to develop significant level of satisfaction instead of sales transaction
undertaking prominent strategy which is useful in maintaining suitable involvement to create
partnership by undertaking the market context. In terms of Wyndham hotels and resorts,
customer retention is important for them undertaking the significant needs and demand its
loyalty service which is discussed as underneath:
Customer messaging: Undertaking the effective loyalty program used by Wyndham
hotels and resorts tends to manage their customers undertaking the prominent activities in an
effective way. For this, the suitable program is quite different in terms of awarding their
customers to manage accumulating points to stay (Ramphal, 2016). The prominent program is
based on the various offers in which they undertake prominent customers on continuous basis
undertaking significant services of Wyndham hotels and resorts in London and then offer
promotional offers to potential customers. Therefore, it is helpful for company to increase
customer retention and recalling their values.
Reward redemption options: In regard of Wyndham hotels and resorts, tends to prepare
effective website in which they offer prominent minute loyalty points that can be redeemed
effectively (WYNDHAM REWARDS, 2020). For this, program tends to offer effective comfort in
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terms of easing for its members as the loyal customers to get prominent benefits. Moreover, the
significant website for the real time information tends to grab in terms of enhancing the online
factors of customers. It leads to generate effective information which is useful for customers
regarding their buying decision for company to measure marketing results.
No processing fees: The prominent loyalty program of Wyndham hotels and resorts is
not tends to take any sort of processing fees as it is quite dependent on the stay of customers.
This feature is undertaken as the prominent program in terms of improving the functionality and
effective value of customers by which Wyndham hotels and resorts tends to reach towards their
objectives to retain their customers. Along with this, in terms of redeeming significant points that
are accumulated by customers depict that there is no restrictions in terms of offering extra edge
to their customers which is being valued (Simarmata and et. al., 2017). Therefore, the prominent
feature of loyalty program tends to offer effective brand loyalty and values because of soft
benefits.
Effective improvement in customer relationship management: The loyalty program of
Wyndham hotels and resorts is useful in offering and maintaining customer relationship as these
programs are developed for their loyal customers and also tends to improve prominent customer
base by enhancing the involvement of customers in an effective manner. This program is useful
in identifying the strengths and weaknesses by which Wyndham hotels and resorts is capable to
modify its offerings and various strategies.
Therefore, the prominent reason for the success of suitable loyalty program of Wyndham
hotels and resorts tends to undertake significant understanding of the demand and requirements
of customers. This program tends to take care of their customers by which customer retention is
developed by company itself. Along with this, Wyndham hotels and resorts for its loyalty
program tends to add major customer portfolio that leads to enable effective market competition
in prominent way.
Propose strategies for development of loyalty programme in own business
Prominent loyalty marketing strategy leads to motivate its customers regarding the visit
for the place again and again. It leads to consider effective strategies in terms of develop
customer loyalty. In London, new hotel is opened named “Calangute” which is the four star hotel
and its objective is to offer prominent luxury and quality services. Along with this, effective
loyalty program is developed by the managerial team of hotel which is willing to effective
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retention for their customers regarding the long time sustainability. For this, I need to consider
several strategies for effective management that are discussed as underneath:
Including significant points for visit: Undertaking the loyalty program for their
customers tends to get points for each and every stay. For this, effective points are accumulated
for stay of customers as because of this, loyal customers are treated in effective way. Moreover,
prominent points are treated as reward by their customers that tends to add effective values to the
mind of customer.
Effective customer feedback: Customer feedback is considered as the significant concept
to engage customers for the prominent running and functioning of company in terms of
enhancing effective services. For this, feedbacks are taken in terms of identifying the prominent
loophole of services which is useful in understanding significant areas by which customer
satisfaction can be increased (Han and et. al., 2018). Calangute hotel focus on the taking
effective feedback for hotel as it is newly opened and also need prominent changes in terms of
effective requirement and need for the prevailing customers.
Reward programs: It leads to depict the significant premium services considering the
benefits and discounts that leads to include new customers in terms of offering several benefits to
motivate their customers for prominent purchase (Jalilvand, 2017). In terms of Calangute,
beneficial and useful reward programs are offered to their potential customers including
scratching cards, rewards and point system and many more for several considerable options in
their store. Despite from this, it also tends to achieve success only when customers does not face
issues regarding technical errors at the time of redeeming for rewards.
CONCLUSION
By considering the above discussion, it is identified that customer retention is important
for the effective growth and development of business in terms of making environment more
sustain. Customer retention is undertaken as the major constraint in terms of involving customers
for the growth and development of company. In terms of this, marketing activities and
concerning strategies are developed in terms of leading more sales and involvement of customers
regarding the significant profitability that are being enjoyed by business. For this, marketing mix
is used in terms of considering the effective understanding for strategies and different aspects in
terms of identifying their market position considering the prominent changes that has direct
impact on the business functioning which is determined and executed respectively. Along with
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this, customer loyalty programs are developed in terms of offering prominent value to the loyal
customers that tends to increase the morale of customers. For this, loyalty programs are useful
for company in terms of making loyal customers and improving significant involvement of
customers for effective retention.
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REFERENCES
Books and Journals
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.
Han, H and et. al., 2018. How image congruity and satisfaction impact customer retention at
luxury restaurants: A moderated mediation framework. Social Behavior and
Personality: an international journal. 46(6). pp.891-904.
Han, H and et. al., 2019. Halal tourism: travel motivators and customer retention. Journal of
Travel & Tourism Marketing. 36(9). pp.1012-1024.
Hyun, S.S. and Perdue, R.R., 2017. Understanding the dimensions of customer relationships in
the hotel and restaurant industries. International Journal of Hospitality
Management. 64. pp.73-84.
Jalilvand, M.R., 2017. The effect of innovativeness and customer-oriented systems on
performance in the hotel industry of Iran. Journal of Science and Technology Policy
Management.
Lu, C. and Kandampully, J., 2016. What drives customers to use access-based sharing options in
the hospitality industry?. Research in Hospitality Management. 6(2). pp.119-126.
Porcu, L and et. al., 2019. Analyzing the influence of firm-wide integrated marketing
communication on market performance in the hospitality industry. International Journal
of Hospitality Management. 80. pp.13-24.
Rahimi, R. and Kozak, M., 2017. Impact of customer relationship management on customer
satisfaction: The case of a budget hotel chain. Journal of Travel & Tourism
Marketing. 34(1). pp.40-51.
Ramphal, R., 2016. A complaints handling system for the hospitality industry.
Simarmata, J and et. al., 2017. How to establish customer trust and retention in a highly
competitive airline business. Polish Journal of Management Studies. 16.
Online
WYNDHAM REWARDS. 2020. [Online] Available through:
<https://www.wyndhamhotels.com/wyndham-rewards>./
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