Strategy
Pricing Strategy
1. Different Hotels have different pricing strategy it is divided according to the type of customers they cater. For example: For ultra rich people they have special rooms & services (special suits) they charge a high amount of money.
2. For International Tourists they have special packages which include room charges as well as Sightseeing services. Since Tourists have different economic budget constraints they have different packages accordingly that is from high to medium price.
3. As the National Tourism plays a vital role in the Hotel occupation Business. So, the Hotels have got special pricing strategies for local tourists.
4. As the Hospitality industry’s major source of income is the meetings , conferences and ceremonies which are held in the hotels. So, hotels have different pricing strategies as per their requirements.
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As there is a lot of competition in attracting the consumer so different pricing is done by the hotels and some hotels are providing discounts and special packages for different professionals. For Example: Hyatt announced a flat discount on its daily room rate, as a ‘Monsoon Flash Sale’. The Hotel Chain will sell its rooms at a 50 per cent discount for bookings made between August 1–15, 2013 for stay between August 1 and October 31, and again from December 16 to January 10, 2015.The discount will be available for any length of stay, at all its 19 properties across the country. This would mean an upscale Hotel room at Hyatt may be priced at ₹4,000 or even less. Advertising
• The Hotel industry in India follows a mixed strategy of advertising, they go for online advertising through websites like Expedia.co.in , Yatra.com etc. where they give different promotional offers in terms of price discount and complementary services.
• They also go for advertisement through business magazines and newspapers.
• Through social media they advertise by spreading the promotional offers and various types of group
A great advertising policy set up by Apex allows external websites to post hyperlinks directing their traffic to Apex Hotels main website. This advertising strategy means that the website directing links to Apex can make a small amount of money for more traffic going towards Apex.
47% of Marriott’s rooms are in North American Limited Service, 30% are classified as North American Full Service, and the remaining 23% of its rooms are in the international segment (Marriott, 2015). Recognizing that travelers have a range of budgetary and amenities needs, Marriott operates its properties under a variety of different brand names, 19 in total, each of which has its own “price and service points” (Marriott, 2015). Most of Marriott’s brands are at the high end of the market, which includes such widely recognized luxury brands as the Ritz-Carlton, JW Marriott, Renaissance Hotels, Bulgari Hotels, Marriott Executive Apartments, Marriott Vacation Club, Edition Hotels, Autograph Collection Hotels, Gaylord Hotels, and Marriott Hotels (Marriott, 2015). These properties often command nightly rental rates that can run several hundred dollars a night and offer a wide range of amenities well suited for both business and pleasure travelers. These properties are classified as “Full-Service.” Marriott also offers a range of “Limited-Service” brands that do not contain as many amenities and tend to be much cheaper than the Full-Service line. Examples of these properties include Courtyard, Residence Inn, SpringHill Suites, and Fairfield Inn & Suites (Marriott, 2015). Even though these properties are considered Limited-Service, they do offer considerably nicer accommodations and more amenities than other types of budget motels and hotels. In contrast to many of the other hotel brands, Marriott International does not operate any midscale, economy, or budget
They had developed numerous marketing strategies such as launching a marketing campaign. The content of the campaign will able to engage their target market to travel, assist them to get the information of the destination. The purpose of Marriott International is to stand on the side of customers when they want to promote their product and services. They will want to connect with their customer and understand the weakness of their product and services, so that they can improve
Not everyone is the same, especially when it comes to expectations. Depending on a person's ethnic background, the necessities are different. It's the same type of idea for different cultures; Chinese, French, American etcetera all have different mindsets when it comes to what they want to see in a hotel during their stay.
The economic theory of supply and demand dictates that an excess of supply (hotels) to demand (customers) leads to a lower price consumers are willing to pay. This creates inelasticity within hotel pricing and places substantial pressure on management to meet the pricing needs of customers while providing an attractive and unique service. Hotel services are also intangible in nature, placing increased burden on hotel owners to utilise all available rooms through discounts and deals.
For the introduction, brief information regarding my purchase and the travel and tourism industry is presented. It was then followed by the explanation of the 2 chosen theories from two different chapters.
This can prove a very difficult balancing act for hotels, as many customers may have a more profitable stay for the hotel, but the chances of returning are far slimmer than another guest. In many cases, the short term yield is looked after more than the potential of a return customer, this in the short term increases profit, but risks losing a return customer. An example of this could be a couple on their honeymoon being preferred guests over a businessman who will be required to frequent the area many times, but with a shorter stay, the businessman may take his business elsewhere, or if accommodated for may bring much more revenue over a l...
Hotel room sales Distribution Channels have evolved over the years. As in past there are several key factors that constitute a successful distribution campaign, the digital era continues to evolve and hospitality continues to adapt with it. The identified distribution channels are divided into four parts. CRS (Central Reservation Systems) or so called voice channel continues to be biggest contributor. Followed by OTA (Online Travel Agents), also called wholesale and third party, that continues to increase its reservations share with increased use of digital devises. Then, the DS (Direct Sale) share, that includes the company own website that generates reservations. Finally, the GDS (Global Distribution System) that continues to increase due to the consolidation of system within this share as a factors driving the reservation and shrinking gap between global hospitality communities.
Market opportunities for breakfast cereals is vast, some segments of the market have been neglected, most notably that of the over-50’s. Insightful presentations were given at the “Older, Richer, Wiser” Conference that would suggest the over 50’s market segment is targetable.
Thanks to these factors, pricing becomes one of the primary uses with which hotels attract customers. However, due to customers’ independent nature, there influence over industry players is limited. In the high-end segment of hotels, price influence becomes even less as hotels find it easier to differentiate themselves from the competition and customers become less price sensitive coming to expect higher prices as a symbolism of superior quality and services. Lastly, corporate business and tour operators can exert more influence due to their large purchases but this affect is of a limited nature and does not extend across the whole
Many investments for infrastructure construction in the destination primarily designed for the business tourists (hotels, restaurants, transportation…) provide economic profits, and they can also be enjoyed by local residents and leisure tourists.
History of Hilton hotel has been very interesting as it started as Mobley Hotel in year 1919 a small building. Because, when the company started it had no plans or ideas of expanding, the sole purpose was to serve as a place for the travelers to stay where they can comfortably enjoy a night or few and carry on towards their journey. After twenty-seven years of business and hard work, this small hotel went nationally in eleven states within United States, known as Hilton. Currently they have four thousand worldwide properties, either directly owned or franchised (including third party), in seventy-eight countries. Hilton even though allows franchises but there policies remain the same and direct Hilton officials do all the upper level management. The company name Hilton understands for Hosp...
As the marketing consultant for a hospitality management company, it is often my responsibility to define target markets for various restaurants and hotels. In fact, I have been tasked with creating a fictional hospitality operation, to utilize as an illustration to define a marketing strategy and target market. In addition, I must identify and analyze the product life cycle of an organization that has been in business for a minimum of twenty-five years.
The hotel industry is by far one of the biggest business industries known to man in this era. The businesses of this industry are affected by many factors. The businesses environmental factors in external factors are demographic, economic, global, political, sociocultural and technological.
The pricing factor is almost hard to match by the hotel industry, as the consumer is becoming more demanding but also exigent in terms of low pricing. Switching costs range from negligible to high, but a factor that motels can’t substitute are the various benefits including spas, restaurants, or a community holiday feel brought with the package of any chosen hotel/motel. But the consumers in the US, for example, see the switch as more of a necessity rather than a choice, this puts them in an affluent position and the threat from substitutes is likely to diminish. The solution then lies in expansion where mitigation usually takes place, and therefore in turn threatens the substitutes by expanding in the new low cost and service field. Some of these low-cost hospitality choices have expanded thanks to technology and brought to life a new era of cost comparison.