Hospitality and Tourism: Market Analysis of Raffles Group Hotels

This report provides an in-depth analysis of the Raffles Group within the hospitality and tourism industry. It begins with a background of the industry in Singapore, highlighting the significant role of tourism and the competitive landscape. The report then focuses on the Raffles Group, including its brands like Raffles, Fairmont, and Swissotel, examining their market segmentation strategies across geographic, demographic, psychographic, and behavioral dimensions. The analysis covers their marketing efforts, including online content, innovation, and promotional offers. Furthermore, the report explores the influence of local attractions on customer decisions and the impact of media and the internet, including online reviews and social media, on consumer expectations. The conclusion summarizes the group's global presence and its strategies for attracting customers, emphasizing the importance of media and airline partnerships.

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HOSPITALITY AND TOURISM MANAGEMENT
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Introduction
Hospitality and tourism industry is one of the largest and the fastest growing industry
in the international boundary. The industry has been estimated to create almost 328million of
employment and supportive organisation in the year 2020. The industry makes significant
contribution towards the growing economics of different nations in various ways such as
hotel service, tourism services and airline service. Based on these factors the study presents
information about marketing and segmentation of the Raffles group and other hospitality
organisation.
1. Answers
a. Background of the industry
The hospitality industry of Singapore has been dramatically directed by tourism sector
in the past few years. In this context, the industry is facing huge competition from the global
perspective, for which they are to needed to deliver not only a place to reside in but a also
kind of customer fulfilment of demand through a provision of quality and standard customer
satisfaction (Bhati & Pearce, 2017). In this aspect, the tourism receipts in Singapore increased
by almost 3.9% with S$26.8bollion owing to the growth of tourist arrival across the country
(Mason, 2015).
Background of the company
The Raffle group of hotels includes Raffles, Fairmount and Swissotel that are the
three most popular luxury hotel chains in Singapore. These hotel chains are historic collection
that located in the major cities and resort location around the world consisting of: The Savoy
in London, Raffles Singapore, Fairmount San Francisco and The Plaza. These hotel chains
including Raffles group, Fairmount hotels are the major leaders of the international
hospitality sector that provides distinctive collection and reputation for quality standards.
These hotel chains focuses on differentiation based methods for target high status customers
(Raffles, 2018). These strategies are designed to attract effective customers amongst the
target market niche.
In order to make promotional efforts Raffles group, Fairmount and Swissiotel uses a
different strategy that is based on a global campaign on the historical ambience of the hotel.
In this aspect, the hotel services offers. They have been using online content for spreading the
awareness about the internal design innovation of the hotel. In this the levels of innovation
entailed fro, theatre playhouse, museum, a number of luxurious brand shops to attract

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customers. Innovation is the major way for Raffles hotel chains as an effort to address
promotions. Apart from these, they are also offering complimentary night’s stay and USD
$25 hotel staying discount for dining and Spa faculties for staying at Raffles hotels and
resorts (Law et al., 2015).
b. Market segmentation and marketing effort of the company
Geographic
These hotel chains operate amongst 95 countries all around the world, Raffles operate
in Singapore, and Fairmount operates in Thailand as well as Bangkok and Swissiotel
functions in New York areas mostly. Raffles group of hotels are located at Singapore which
are the major jewel hotels in Singapore that are named after the father of modern person in
Singapore. Swissotel and Fairmount are segmented in such a way that it will easily attract the
tourist.
Both these hotels are ideally located at the heart of the financial areas with 30 minute
car ride from Singapore and New York airport therefore, making it easily accessible for the
tourist visiting Singapore and New York respectively (Kim, Woo & Uysal, 2015). Fairmount
is planned to undeform a restoration program to retain the historical speciality of the hotel to
attract more local and international customers. In this, it has been seen that the market has
been valued ay USD 534.02 million that is estimated to increase by the year 2021(Yen &
Tang, 2015).
Demographic
Accor hotels are the one of leading hotel chains including Raffles group, Fairmount,
Swissiotel and many more. Swiisotell provides the finest private rooms around different
location with a dual expertise and benefits for the customer. Fairmount is active in local
communities that are committed to provide suitable development by providing customers
with comprehensive programs. In Singapore are using internet website and mobile
application to offer services to the affluent high class travellers who are visiting Singapore on
and off purpose during the process of travels.
These hotel chains such as Swissotel have global presence all around the world in
areas such as Europe, America, and Middle East. The philosophy these hotels are to provide
services based on natural resources for the wellbeing of the consumers. The hotel chain is
mostly famous in China, Singapore and USA, for delivering high status service with premium

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price (Tsao et al., 2015). The hotels mainly target men and women aged in between 30-65
years and young people aged in between 18-25 years.
Psychographic
For attracting huge number of customers, they have shifted their marketing strategy to
a method of differentiation and innovation to attract more number of customers. Swissotel
has intentionally built the structure in an old classic way to provide a nostalgic feel to offer an
innovative Fairmount culture for differentiating it from other luxurious hotel (Kiráľová &
Pavlíčeka, 2015). For satisfying the requirements of the customers, Raffles ensures that the
employees are not over stresses while providing high level of customer satisfaction. All the
employees interact with the customers understanding their psychology. Recently these hotels
chains are increasing in number in terms of boutique hotel that are merging the various
location of the city. It is due o increasing accommodation of online sales and travels that
consumers are motivated to prefer online travel accommodation for these hotels.
Behavioural
Swissotel mainly target New Year or any festive season when they can have more
number of customer’s over the year since that is a moment of celebration. Moreover, with the
growth of boutique hotel chains in Singapore, the group of Raffles hotels including Swissotel
and Fairmount are too much interested in understanding the trends that influences the
cognitive decision making process. In this context, Fairmount uses their pricing and service
strategy by comparing with the other hotels they attract customers. Therefore, these hotel
chains as a category of gifts will market themselves in a heavy way during this time. The
group of hotels offers various discount and seasonal service for attracting more customers
(Wong, Musa & Taha, 2017). They also offer additional luxury services for their customer’s.
c. Local attraction influencing the decision of the customers with the help of hotels
Like all popular tourist destination Thailand offers wonderful local attraction
experiences for the travellers. The location is populated with phenomenal island that are
suitable traveling. Natural attraction like beaches, national animal sanctuaries can attract the
decision of tourist to visit these locations. Fairmount Raffle’s group international is located at
the crossroads of the Thailand that are helpful in attracting visitors to the hotels.
The hotel is positioned in such a way they provide special local attraction near to
their resort attracting visitors. In this context, hotel chain and online tourists suppliers
collaborates with each other to provide service to the customers in an economically stable

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way to influence their decision (Yen & Tang, 2015). For tourist travelling is like relaxation
from the daily routine. The hotels located in the nearby locations of the national wild life
sanctuary and islands can easily attract the consumer to their hotels. Apart from online flight
bookings infant offers hotels with the reservation in collaboration of the hotel chain. Yes
airline and airport services are tagged with the hotel services. The Fairmount hotel of raffles
group has key partnership with airlines where the applicable benefits ae dependent on the
special offer provided by the hotels. Base miles are given to the customers on the basis of
prevailing rates set by the hotels and valid promotions.
d. Effect of media and internet on consumers expectation
Internet and social media are fast growing component that are incorporated within the
marketing application. Apart from these online ratings of consumer generated reviews given
on the trip advisor website have a positive influence on the hotel revenues that may have a
negative impact on the gross profit of the hotel (Bhati & Pearce, 2017). In this context, hotel
that has higher rating of star with display of luxurious service are probable to get more
advantages from online display on their gross profit. Customers are likely to be impressed by
the ratings as customers prefer satisfactory hotels at a low cost. On the contrary hotels with
limited degree of competition have more benefits from the online display on their profit.
It is the online review and pictures distributed through social media and internet
retailers like Exordia, Booking.com have progressive characteristics attached to the social
media. In this travellers have the opportunity to contrast the pries and consumer reviews for
different hotels (Mason, 2015). These reviews have a definite impact on the perceived quality
of the hotel by which consumers mitigate the uncertainty about the quality of the hotel and
their requirements as well as suitability of accommodations.
Conclusion
Therefore, from the study it is evident that hotel chains in Singapore are the largest all
around the world that provides 2500 hotel room services across 95 locations around the
globe. Their service and delivery are keenly tagged with the media and airline partners with
additional benefits for the consumer. Apart from these, hotels set up in such locations that are
closer to local attractions thereby helping the visitors to avail their services.

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Reference list
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https://www.raffles.com/singapore/about-hotel/
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