Tourism and Hospitality Marketing: Marketing Process of Ramada Encore London Luton Airport Hotel - Case Study Example

Tourism and Hospitality Marketing: Marketing Process of Ramada Encore London Luton Airport Hotel NOTE TO READER This report was produced after conducting a study at Ramada Encore London Luton Airport Hotel to investigate and evaluate the marketing strategies used in the hotel. The marketing aspects that were investigated at the hotel were marketing mix and marketing communications. The report analyzes the aspects and makes recommendations on how they can be improved. The analysis has been done with the assistance of a literature review, which mainly utilizes academic sources (books). TABLE OF CONTENTS Note to Reader 2 Table of Contents 3 1. Introduction 5 2. MARKETING MIX: 8P’s FRAMEWORK 5 2.1 Product 6 2.2 Price 6 2.3 Place 6 2.4 Promotion 7 2.5 People 8 2.6 Process 8 2.7 Physical Evidence 9 2.8 Partnership 9 3. EVALUATION OF THE MARKETING COMMUNICATION OF THE HOTEL 9 4. RECOMMENDATIONS AND CONCLUSION 11 4.1 Recommendations 11 4.2 Conclusion 11 5. REFERENCES 13 APPENDICES 14 6.1 Appendix 1: Marketing mix Analysis 15 6.2 Appendix 2: Marketing Communications Evaluations 17 LIST OF FIGURES Figure 1: How pricing is done in a hotel 7 Figure 2: Illustration of marketing Communication mix 10 1. INTRODUCTION This report analyzes the marketing processes applied at the Ramada Encore London Luton Airport Hotel. The Ramada Airport Hotel is situated in Luton near the airport; it is bordered by a number of regional tourist attractions, which include Knebworth House, ZSL Whipsnade Zoo, Rex Cinema, Verulamium Museum and Hatfield House. The hotel is centrally situated and offers an easy connection to many major businesses such as Barclay’s Training Center, Siemens’ offices, and Gulfstream Service Center among others. The Luton Airport Hotel offers classic services at competitive and affordable prices. Although there are many aspects that can be analyzed under the marketing process of the Luton Airport Hotel, this report only touches two marketing aspects: marketing mix and marketing communications. The framework of the 8P’s of marketing has been used in the report to analyze the current marketing mix of the Luton Hotel. The framework has been used in totality to ensure that no aspect of the hotel’s marketing mix is left untouched. The analysis of the marketing communications in the hotel dwells on the effectiveness of online and offline marketing channels used in the advertisement of the hotel’s services. 2. MARKETING MIX: 8P’s FRAMEWORK The marketing mix of the Luton Airport Hotel can be analyzed by using the 4P’s framework that includes the product, price, place, and promotion. However, the 4P’s framework may not adequately bring out the marketing mix of the hotel since this hotel exclusively offers services and not products. Consequently, it is recommended to incorporate the other 4P’s to make the analysis complete. The other P’s to include in the marketing mix analysis are: people, process, physical evidence, and partnership. 2.1 Product The main products, which the Ramada Encore London Luton Airport Hotel deals in, are intangible and they include: restaurant services, meeting facilities, and concierge services. These are the core services on which the business of the Luton Airport Hotel is based. Products in the hotel industry are grouped into three main categories: facilitating, supporting, and augmented types. The facilitating and supporting products are the services that promote the main business of a particular hotel (Boella 2000, p. 279). The Luton Airport Hotel has most of the facilitating and supporting products that encourage the customers to visit the hotel on a regular basis. The facilitating products at the hotel include car parks, facilities for disabled customers, luggage storage, and cleanly-kept toilets. The supporting products in the hotel include: restaurant, guest center, and meeting facilities (see Appendix 1, Table 1). 2.2 Price The Luton Airport Hotel is a private enterprise whose main goal is to make profit. As a result, the hotel has to set prices that can allow it to cover the costs of operations and maintenance. The hotel should, at the end of the business period, have more receipts than expenditures to make a profit (see Appendix 1, Table 2). The prices set should also reflect on the prevailing competition and the amount that the customers around the Luton region are willing to pay for hotel services (Morrison 2009). With all these factors kept in mind, the Luton Airport Hotel’s prices are fair and they allow it to compete favorably with its competitors. 2.3 Place The place in the marketing analysis refers to the situation of the business that affects how it carries out its operations. The situation also affects how the business attends to its customers and how it reaches the sources where it obtains its raw materials and other inputs (see Appendix 1, Table 3). The Luton Airport Hotel is situated at a strategic place that helps it to reach its customers directly without the help of intermediaries (see Figure 1). However, to increase its sales, the hotel employs a few trained individuals who assist to market its services to its existing and potential customers. According to Churchill and Frankiewicz (2006), marketers and sales people assist service companies to improve their sales. Figure 1: How pricing is done in a hotel Adopted from Taylor (2008, p. 274) 2.4 Promotion The aspect of promotion in service industry refers to marketing activities that help the companies in the industry to advertize their products to the public (Fifield 2007). The Luton Airport Hotel does not have a properly-established marketing network that it can rely on to promote its services. The hotel only has a few marketers that promote its services locally in the region (see Appendix 1, Table 4). The hotel also has other advertisement programs, although they are not well-established. The management of the hotel believes that the strategic location of the hotel helps in promoting its services and products to its customers. 2.5 People People are one of the most important elements in the Luton Air Hotel. The services and products that are produced at the hotel are supposed to be consumed immediately. It is the people who do everything on behalf of the hotel. They produce the services, sell them to the customers and collect the money on behalf of the hotel. It is important to note that customers only buy from the people they like. The hotel should train its staff on personal selling and customer services to ensure that they handle customers in a friendly and professional manner (see Appendix 1, Table 5). The Luton Airport Hotel excels in this area as it has well-trained employees who know how to initiate a positive contact with the customers. This alone is considered a powerful marketing tool in the hotel as it retains a large number of customers (Stydom 2004, p. 195). 2.6 Process This is an element of the service marketing mix that addresses the urge of a service company to achieve the most desirable outcomes. Good outcomes, in a service company, may be achieved by ensuring that each employee offers the best products to the customers. The products must be uniform as any deviation may tarnish the name of the company (Gitman & McDaniel 2009, p. 296). At the Luton Airport Hotel, there are training and standardizing measures that are used to improve and maintain the quality of services offered to the customers. The management, through these measures, ensures that the quality of the services is uniform in all the departments (see Appendix 1, Table 6). 2.7 Physical Evidence The main material that is used in marketing Luton Airport Hotel is the building itself. The operations of the hotel are conducted in a luxurious building situated in a very attractive site. The parking space around the building, the signage around the hotel, and the design of the building itself are great attractions (see Appendix 1, Table 7). It is evident that many customers fall for the physical outlook of the Luton Airport Hotel before they get into it to enjoy its services (Groucutt, Forsyth & Leadley 2004, p. 402). 2.8 Partnership Every business organization has an opportunity to form alliances with other firms. Some organizations even expand their operations by taking over the businesses of other firms. When an organization is expanded, it stands high chances of enjoying the benefits of a large-scale economy (Inkson & Minnaert 2012, p. 371). The Luton Airport Hotel has a number of informal partnerships especially with its suppliers. At the moment, there is no need for it to get into any formal alliances as it is like a monopoly in its current location (see Appendix 1, Table 8). 3. EVALUATION OF THE MARKETING COMMUNICATION OF THE HOTEL The marketing communications at the Luton Airport Hotel is done using a number of tactical elements of marketing promotional mix. The management of Luton understands the importance of an extensive marketing program for the hotel’s products. It is through the application of this marketing mix that the hotel promotes its prosperity in the region. The marketing mix of the hotel is represented in the figure 2 below. Figure 2: Illustration of marketing Communication mix Adopted from Smith (2011, p. XVII) The first tool, advertising, is used by the hotel to inform large audiences about its products. The tool is considered one of the most effective marketing communications as it reaches a large number of potential customers in a short period (Koekemoer 2004, p. 21). The hotel uses advertising avenues such as magazines, billboards, and newspapers (see Appendix 2). Another tool that is closely related to advertising is direct marketing, which involves the usage of avenues such as email, catalogs, television, and radio. The hotel mostly uses direct marketing when dealing with a target group of customers. This method is cost-effective and it narrows down to a particular target market. The other three marketing communication tools are also used in Luton Airport Hotel, but not as much as advertising and direct marketing. The sample promotions are done through demonstrations and coupons (Shanker 2002, p. 164). The public relations at the hotel are built through event sponsorships and fostering trust with the public. The management of the hotel believes that by making the public trust in them, the hotel stands higher chances of convincing the public to buy its products. Lastly, the hotel promotes its products through personal selling, which in most cases, is done by its salespeople. The salespeople engage in one-to-one communications with the potential customers to convince them to try to consume the hotel’s products (see Appendix 2). 4. RECOMMENDATIONS AND CONCLUSION 4.1 Recommendations The marketing mix and marketing communication of the Luton Airport Hotel are slightly above average. The hotel uses a number of effective tools in its marketing management strategy to ensure that it gets maximum return on its investment. However, there a few adjustments that the hotel needs to make. This paper recommends that the hotel reduces the prices of its products to attract more customers. This strategy may assist the hotel to make more profits, which is the main goal of the business. The report also recommends that the hotel management incorporates social media sites into its marketing communication tools. It is evident, from the evaluation, that the hotel utilizes most avenues of marketing, apart from social media, when promoting its products. Social media, such as Facebook and Twitter, are cost effective and they bring attractive results when used in promotional activities (Hudson 2008). 4.2 Conclusion The analysis of the marketing mix of Luton Airport Hotel shows that it effectively utilizes the opportunities and resources it has. The hotel, as a result of its strategic location and the high-quality services it offers, makes it the most preferred restaurant in the entire region of Luton, especially at the airport and its surroundings. The management of the hotel relies on effective marketing communication to promote its products to the public. The management uses every avenue to reach the hotel’s potential customers. However, the management overlooks the use of social media sites as a promotional avenue. This report recommends that the management of the hotel should begin using social media sites in promoting the hotel’s products. The social media platforms are effective as they can reach a large number of potential customers at once; they also are cost effective. REFERENCES Boella, MJ 2000, Human resource management in the hospitality industry, Stanley Thorney, Cheltenham. Churchill, C, & Frankiewicz, C 2006, Making microfinance work: managing for improved performance, ILO, Geneva. Fifield, P 2007, Marketing strategy: the difference between marketing and markets, Elsevier, Oxford. Gitman, LJ, & McDaniel, CD 2009, The future of business: the essentials, Cengage Learning, Mason, OH. Groucutt, J, Forsyth, P, & Leadley, P 2004, Marketing: essential principles, new realities, Kogan Page, London. Hudson, S 2008, Tourism and hospitality marketing: a global perspective, Sage, London. Inkson, C, & Minnaert, L 2012, Tourism management: an introduction, Sage, Los Angeles, CA. Koekemoer, L 2004, Marketing communications, Juta Academic, Lasdowne. Morrison, AM 2009, Hospitality and travel marketing, Cengage Learning, Delmar. Shanker, R 2002, Services marketing: the Indian perspective: text and readings, Excel Books, New Delhi. Smith, PR, & Zook, Z 2011, Marketing communications: integrating offline and online with social media, Kogan Page, Philadelphia, PA. Stydom, J 2004, Introduction to marketing, Juta, Cape Town. Taylor, JB 2008, Economics, Houghton Mifflin, Boston, MA. APPENDICES APPENDIX 1: MARKET MIX ANALYSIS Table 1: PRODUCT General Product Bar and restaurant Facilities for disabled customers Elevator/lifts Air conditioning Luggage storage Safety deposit box Accommodation Double or twin room Special offer: Double or twin room Double or twin room with four days parking Double or twin room with eight days parking Double or twin room with 15 days parking Family room up to 2 adults and 1 child Parking Private parking available on site at affordable costs Reservation parking, but prior booking required, also at affordable prices Internet Cable internet available in every room in the hotel WiFi enabled in all areas within the hotel and offered at not charges Other Products Facilities for banquet or meeting Bureau services such as photocopying and fax Dry cleaning and ironing Airport shuttle available on request Concierge services Children who are under 12 years are not charged as they use the existing beds. However, there are no space for extra beds in the rooms Table 2: PRICE Bar and Restaurant Most of the products in the bar and restaurant department have got their own prices. However, the prices for the products range from £2.5 to £7.8. These prices are relatively low as compared to those of other hotels in the Luton area. Accommodation Double or twin room at £25.00 Special offer: Double or twin room at £20.50 Double or twin room with four days parking at £90.00 Double or twin room with eight days parking at £170.50 Double or twin room with 15 days parking at £200.00 Family room up to 2 adults and 1 child at £30.00 Other Products Facilities for banquet or meeting at £50.00 per 2 hours Bureau services such as photocopying and fax-price is based on the volume of the work to be done Dry cleaning and ironing-price is charged according to the types and volumes of work to be done Airport shuttle available on request at £10.00 Concierge services offered free of charge Table3: PLACE Less than 10 miles from Luton Airport Accessible by shuttle, bus and taxi Centrally located between major businesses and organizations Assessable to disabled customers and guests Furnished with internet to allow guests to connect easily with friends and relatives Located in a luxurious building that stands out on its own Ample parking space provided around the building of the hotel The description of the location present on print media such as magazines and newspapers The location present on the Luton Airport hotels website and tourist guide Table 4: PROMOTION Art, craft and design exhibitions and festivals London and Luton City guides Luton Hotels membership benefits Luton hotels website Volunteering programs within Luton Discounts on the Luton Airport products Free samples on products Luton Airport salespersons Social media, especially Facebook and Twitter, coming soon Table 5: PEOPLE Person Duty Director General Directs business Operations Manager Oversees the operations Head of Booking Deals with issues of reservations Human Resource Head Takes care of recruitment issues Personnel Head Takes care of employees’ welfare Finance Officer Financial matters Cashiers Assist finance officer to carry out financial activities Security Personnel Ensures maximum security within and around the hotel Marketing Head Coordination of marketing and promotional activities Catering Head Coordinates activities at the restaurant and bar sections Permanent Employees Works on a permanent basis Casual Employees Hired in high season when there is a lot of work at the hotel Table 6: PROCESS Children under the age of 12 may not be allowed to walk on their own within the hotel’s premises. They are supposed to be guided by their parents or guardians Reservations on parking and rooms are supposed to be made 48 hours before the actual visit Employees are supposed to remain friendly and professional to the customers Smoking is not permitted in the hotel except at the smoking designated zones within the hotel Prepayment and cancellation of arrangements are according to the types of services offered and rooms occupied The management reserves the right to pre-authorize payments through credit cards The hotel mostly accepts Mastercard, Visa and American Express Table 7: Physical Evidence Luton Airport hotels’ journals Leaflets and flyers Billboards Quarterly magazines for Luton hotels The hotel itself English Tourism and Hotel book Table 8: PARTNERSHIPS Luton Airport Hotel partners with the Luton Airport to get guests from the airport The hotel partners with suppliers who issue it with catering facilities and other equipment The hotel liaises with the environment authorities to ensure that the surrounding environment is kept clean The hotel partners with suppliers of food items that are used to produce its products The hotel is part of the Luton Airport Hotels APPENDIX 2: MARKETING COMMUNICATIONS EVALUATION The tools used in the Luton Airport Hotel to market the products of the hotel to the public were evaluated based on the five mostly used categories. However, it was found that the hotel uses mostly its website to inform the public about its existence and the current products, including the special category. The hotel uses the website to reach both the existing and potential customers. The website was evaluated to determine how effective the hotel is as far as marketing strategies are concerned. The factors that affect the efficiency of the website as a marketing tool are categorized into four: internal, technical, marketing and customer satisfaction. The tables below give elaborate analyses of the efficiency of the website. Table 1: INTERNAL FACTORS Site Maintenance and workability The site was easy to maintain as it is designed only for Luton Airport Hotel and its products The content of the site was updated on a daily basis to reflect on the changes that occur in the hotel The hotel employs several technicians, who ensure that the site is kept to date Skills and plan for maintenance The website is scheduled to be maintained daily The maintenance is done by the internal technicians Table 2: TECHNICAL FACTORS HTML usage It was discovered that HTML usage was above average The HTML was easy to access The content was self-explanatory and easy to understand Links The currency of links are good The links were kept up to date and are quite efficient The links were structured according to existing and upcoming events The links were properly spaced to avoid congestion Reciprocal hyper linking There were links to other hotels in the region There were also links to the hotel’s partners including the airport. The links directed the searcher to the main alliances of the hotel Ease of traffic control It was difficult to find relevant information It was discovered that traffic control kept fluctuating and it depended on the technician on duty Download duration The links took a short time to download the requested information The links were properly maintained The links were designed only with very important information to avoid congestion, which increases the download duration Table 3: MARKETING FACTORS Marketing Segmentation The hotel mainly focuses on local families and guests from the airport The hotel also focuses on accommodation and restaurant services Positioning approach The hotel positions itself as the most prestigious hotel in the Luton locality The hotel mainly focuses on middle and high class families and guests The hotel also posts itself as a preservation of English culture by the type of services it offers Relationship marketing Every marketing program within the hotel is well linked to the website The marketing activities are outlined in the site Database marketing The site shows membership of the hotel in the Luton Airport Hotels There was no proper connection between the website and the emails that could be applied in marketing Marketing evaluation The website provided a way by which customers could send their feedback in relation to the products offered The website also encouraged to the customers to give their suggestions on the improvements they would want done in the hotel Table 4: CUSTOMER SATISFACTION User Friendliness Since the site is only loaded with a little, but important information, it easy to access and navigate through The information in the site is readily available Speed The site responds at a fairly high speed The information sought is easily found Reliability of purchases Some reservations are made on the site There is guarantee of every transaction that is done on the site Currency of the content The information in the site was up to date The content is updated almost on a daily basis Attractiveness of the site The site is designed with different colors and pictures, which make it so attractive Read More