Marketing in Hospitality: Analysis of Hilton Hotel and Thomas Cook

This report examines the application of marketing principles within the hospitality industry, using Hilton Hotel and Thomas Cook Travel as case studies. It begins with an introduction to marketing concepts and analyzes the impact of the marketing environment, including micro and macro factors. The report then evaluates the relevance of consumer markets, exploring consumer behavior and market segmentation strategies. It delves into the importance of the marketing mix, specifically focusing on the 4 Ps (Product, Price, Place, Promotion), and analyzes pricing strategies, promotional mixes, sales promotion, and public relations. The report also covers market research, including its relevance to service industry operations, the development of an advertising campaign, and the selection of appropriate media for marketing. Overall, the report provides a comprehensive overview of marketing strategies and their practical application within the hospitality sector, offering valuable insights into how companies like Hilton and Thomas Cook approach their marketing efforts.

Marketing in Hospitality Industry

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
1.1 Concept of marketing ...........................................................................................................3
1.2 Impact of marketing environment.........................................................................................4
1.3 Relevance of consumer market.............................................................................................6
1.4 Rationale for developing different market segments............................................................6
TASK 2............................................................................................................................................7
2.1 Importance of marketing mix................................................................................................7
2.2 Pricing strategies and policies...............................................................................................8
TASK 3............................................................................................................................................9
3.1 Role of promotional mix.......................................................................................................9
3.3 Role of sales promotion and public relations in promotional efforts....................................9
4.1 Relevance of market research to service industry operations.............................................10
TASK 4..........................................................................................................................................10
3.2 Advertising campaign for service industry.........................................................................10
4.2 Market research for an appropriate product and services...................................................11
4.3 Presenting different media for marketing ..........................................................................14
4.4 Implementation of marketing plan......................................................................................15
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................16

INTRODUCTION
Marketing plays an important role in the hospitality sector. The present report deals with Hilton hotel which is the third largest
hotel in hospitality industry. It presents the concepts of marketing. It also assesses the impact of marketing environment using macro
factors. Report evaluates the relevance of consumer markets and helps to understand the rationale for developing different marketing
segments. The report shows the importance of marketing mix in Thomas Cook Travel using 4 P's of marketing. It also analyses the
pricing strategies and policies of a company. The report also evaluates the role of promotional mix and analyses that sales promotion
and public relation play in promotional efforts. The report explains the importance of market research by enumerating benefits for
Thomas Cook Travel. The report also presents an effective campaign plan and conduct a market research for an appropriate product
and services. The report also analyses the suitability of different media for marketing appropriate products or services.
TASK 1
1.1 Concept of marketing
The marketing concept is the plan that every firm implements to satisfy the needs of customers in order to increase the sale and
help to maximize the profit. Now a days, most of the companies adopted marketing concept in order to increase scope of their
business. Marketing concept is based on four concepts which are described as below:
Product Concept: Hospitality sector provides a lot of products and services to satisfy the needs of their customers such as companies
make their holiday plans which include transport facility, hotels, food service, adventurous activities and attractive/ tempting
destination (Camilleri, 2018).
Selling Concept: This concept presents an idea that customers will not buy enough products until the selling efforts are not done.
Thomas Cook Travel makes too much efforts to increase the selling power such as advertising, providing brochures, etc.
Societal Marketing Concept: This concept presents an idea that hospitality industry should not consider only their customers need
but they should take care of the society's long term goals and it is called as sustainable marketing concept (Aquino, 2018). Thomas
Cook is also using this concept in order to increase their sales.

Marketing Concept: This concept helps to promote their hospitality products in the market using social sites, advertising and
whenever a new plan is organized by Thomas Cook Travel, they provide brochures which contain all details related to the programs.
1.2 Impact of marketing environment
Micro Factors: Micro factors such as suppliers affect the profit of Hilton hotel. They maintain a good relationship with them
and hotel provide almost their product form the suppliers and this suppliers are from 90 different countries. Hilton provides a variety
of products to their customers such as space for wedding, good quality of food products but sometimes, customers give huge impact
while changing their plans and it leads to bear a heavy loss for company (Tussyadiah and Sigala, 2018) .
Illustration 1: Micro Factors

Macro Factors: There are various factors that affect the marketing environment of Hilton such as demographic force which
include persons from different regions, caste and tradition that affect the environment of Hilton. Another factor such as social factor
that influence the external market of Hilton (Kukreja and Batra, 2018). Social factor such as family, friends and status this encourages
users. Different places or destination are definitely attract people and the beauty of this places encourages people to visit.
M1
Illustration 2: Macro Factors

BASIC POSITIVE NEGATIVE
Political Provides better opportunities
of holidays
New rules and regulations
affect the sales and profit.
Economical Customer purchasing power is
increased and hence, GDP
increases in the UK
Due to price inflation,
commodity price will raise and
customers take decisions not to
travel.
Social Youngster's life style impacts
positively on hotel because
they did not care about money
and spent well.
Different life styles of people
influence the profit and
revenue of hotels.
Technological New technology
implementation helps
customers to find the nearest
hotel.
Using technologies, customers
see the price chart of hotels
and chooses low budget hotel
and this will lead to bear loss.
1.3 Relevance of consumer market
As Black box model of consumer behavior presents consumer characteristics such as their life style, motives, perceptions and attitude
which are consider the main factor for consumer behavior. Hilton provides good quality of services and food to their customers in
order to satisfy their needs and increase their profit margin. Here, the culture of customers play another crucial role as people belongs

to different religions or caste as well as their life style is also different, that is why sometime they did not prefer that service and food.
For the market place, it is necessary to analyze the behavior of customers because providing facility according to their needs and
demands will be helpful to maintain long term relationship with them and increase the sales as well as maximizes the profit margin
(Schegg and Stangl, 2017). However, it is also evaluated that adverse consumer behavior will did not help to take good decision for
company and it may be lead to bear loss.
1.4 Rationale for developing different market segments
For entering in the market, it is necessary to know all market segments for Hilton. Hotel also uses these marketing strategies in
order to increase the profit. Basically, segmentation is needed for many reasons which are mentioned as below:
 Customer need: To fulfill the needs of customers, it is necessary to provide best products at different affordable price.
 Maximizes profit: Market segmentation is necessary for Hilton because it enhances the level of profit. By providing good
services and products at affordable price to customers, it will definitely help to enhance the profit level of a company (Khan
and et.al., 2017).
 Better opportunities for growth: Market segmentation is very helpful to grab the opportunities for Hilton's growth.
Segmentation helps to increase in sales power and provide new and better promotional ideas to increase the sales.
 Retain more number of customers: Through segmentation, Hilton can easily retain their old customers. Now a days, people
change their life style and they are busy in their jobs but by marketing products, business can easily retain their customers (Tan
and et.al., 2017).
 Better communication: Customers have different needs and demands, solution of each segments needs to be communicated
properly to them. This will help to solve individual problems and it is less costly for the hotel too.

TASK 2
2.1 Importance of marketing mix
Component of marketing mix Related application of Thomas Cook Travel
Product  Seasonal packages
 accommodation facilities
 best quality of food services.
 Transportation facilities.
 Adventurous tours.
Pricing strategy  During off season, it offer combination
packages which include to visit two
destination at same time.
 Company fix prices low as compared
to competitors price
 company also uses penetration pricing
strategy.
Place or channel of distribution Through online mode
Promotional element recommended Uses both traditional and modern method
 traditional method includes newspaper
and magazines.
 Company can uses modern method

such as through social sites, website,
advertising, brochures etc. this means
are more useful because half of the
people based on using latest
technologies.
2.2 Pricing strategies and policies
Thomas Cook Travel offer various tour and traveling offer to their customers because the rates are quite low from other
companies that is why people chooses this company. Thomas Cook Travel uses various pricing strategies in order to attract number of
customers and this strategies are mention below:
 Thomas Cook Travel agency offer packages at such a low and affordable price. The company plans according to seasons
which is the mostly like by many people. In this price strategy, the company offer package according to season such as in
winter it chooses those destination where people feel some warm weather and it is specially for old age people because
generally they did not like winter seasons (Martín, Mendoza and Román, 2017). The company also offer some adventurous
tour which is basically designed for youngsters.
 Another pricing method is penetration pricing which add more customers in the store. Under this pricing strategy, company
offer various tours package in such a low and affordable price so that every status of people can come and enjoy the trip. In
this strategy, customers who are looking for bargain will easily switch their mind with lowest price method.
 Third method of pricing which Thomas Cook uses is competitive pricing method, in this method, price are set or based on
what the rivals are charging to the customers. Thomas Cook take minimum charge to their customers as compared to other
companies, this will help it to attract more number of customers (Huang and Sarigöllü, 2014).
D2

Thomas Cook uses seasonality price strategy because it will help to attract more number of customers during whole year. As it
take minimum charges from its rival companies so it gives positive impact and help to increase its sale as well as maximizes the
profit.
TASK 3
3.1 Role of promotional mix
Promotional mix is used to promote the things to different areas of people. This activity help to know about the products and
services are offered by the company, but sometimes it also create negative impact on the environment of company. Thomas Cook
Travel agency uses various types of promotional activity in order to reach many customers such as by using advertisement method of
promotion, the company create awareness among people and this method is most useful to reach a wide audience (Buhalis and
Foerste, 2015). But on the other side advertisement did not answers all the customer's questions and it is not as good to take the final
decision by customers. Another promotional method used by Thomas Cook is personal selling which is highly effective and
interactive method. It help to maintain long terms relationship between customers and dealers and an effective communication skill
help to know detail about the product or services offered by the company but on the other hand it is not suitable on the situation when
there are thousand of important customer. For Thomas Cook Travel it is very necessary to use promotional activity but these may be
sometimes did not complete the need and questions of customers.
3.3 Role of sales promotion and public relations in promotional efforts
A) Sales promotion is done to get attention from customers by offering various discount and offer scheme on the new products. Five
types of sales promotion activity which is adopted by Thomas Cook are mention below
 Discount vouchers
 Coupons
 Combo offer on tour packages
 Sampling

 Continuity programs
Sales promotion is very beneficial for producers, intermediaries and consumers. Through sales promotions consumer get their
favorite item on discount rate and they should not pay any extra amount. Through promotional activity the new product or service are
easily sale to the customers which create positive impact on producer because their sale is increases. Using promotional activities,
inter mediators get also benefited because they are the person who sell the new item into market and as the sales increases there
commission also increases because they are hire at agreement basis (Huang and Sarigöllü, 2014).
B) Public relation is an important part of promotional tool for Thomas Cook Travel because the company uses this method in order to
reach wide number of customers. Using social media such as Facebook, Linkedin etc latest updates have been scheduled so that
people come to know about latest updates. By using newspaper, a small blog can be written so that people read that and know about
latest services offered by Thomas Cook. Advertisement is the another method which is uses as best and cheapest promotional tool
which reach variety of public and maintains good public relations.
4.1 Relevance of market research to service industry operations
Market research is the process of collecting data about peoples and then analyzes those data in order to understand the basic
need of people (Pavlou and Stewart, 2015). Thomas Cook Travel Agency also done market research in order to know the requirement
of their customers. It is most important for the company to get right product into market at right time. Through market research,
company can easily identify new market opportunities and it also help to solve the problems. Marketing research uses many
promotional method and it help to improve in selling activities. The basic role of market research in Thomas Cook Travel is mention
below:
 help in forecasting of sales.
 Help to let people know about their new packages related to tours.
 Help to determine the consumer needs and demand