Category: Free Essays

Abstract-

Marks & Spencer (M&S) is UK based one of the biggest retailers in the world, Over 895 store in more than 40 territories around the world are being operated by the Company. Plan A that consists of 100 commitments such as climate change, waste, sustainable raw materials, and fair partnership has been announced by M&S to become a world first environmental friendly retailer of the world by 2015. Company believes that it will=

Become carbon neutral
Send no waste to landfill
Extend sustainable sourcing
Help improve the lives of people in their supply chain
Help customers and employees live a healthier life-style

In January 2008, Marks and Spencer share price has fallen down by 18% following publication of their trading statement. Though it was a serious set back for their target to become a first environmental friendly retailer but in February 2010 M&S reconfirm that due to moral reason they will continue their project Plan A but it will be fully completed by 2015 instead of 2012.

The now iconic brown, reusable, environmental friendly bag was first introduced in 2007 as an early part of this plan. It is hope that this will reduce the use of plastic carrier bags over the next few years.

Importance of project planning:

Project planning is first and very important phase in project management which determines what the project is based on and what requirement does a project need to complete the project efficiently and timely. But it is understood that M&S has failed to get its target that were supposed to be completed by 2012.

Though project planning is very important and it has to be made before starting a project but it is mostly to bring some changes during the course of project. So, it is essential to update constantly and regularly.

If a project plan has been done on the basis of inadequate resources and information and if any inefficient person plans any project than that project will most likely to fail.

A project needs a team to do its entire task and tasks have to be specified on the project plan. Project planner has to provide formula for both to plan and to communicate what needs project has to done.

Project manager must be able to provide outline of the project both to plan and to communicate and necessary task of the project.

Apart from structure, several unrelated tasks have to be done according to needs.

So, it is essential to confirm that project must have work breakdown.

Priority of works has been explained below-

Work Breakdown Structure
Area-

M&S is a large company. Their project such as Plan A is a large retailer too where the company is investing ?200 million. Therefore the project has to be dealt by an efficient and experienced project manager.

Project Leadership-

Selection of Project manager is very vital stage to get success for a project. Project manager must be self-discipline. He/she must be able handle any good or bad situation such as coaching, technical difficulties, political pressure. He must have project management experience. He has to set his communicate goals clearly, manage the project team as a group, build relationship through communication and consideration.

Staffing Plan-

Staffing plan is pre-requisite stage to get success for a project. Determine the level of skills, identify experience requirements are two critical factor for a successful project.

Project organization-

Project roles and responsibilities documentation such as map Organizational Breakdown Structure (OBS) is one of the key stage for planning a project.

Publish and maintain organization chart; address conflicting goals and loyalities; promote team ownership of integrated solutions

Project Team Building-

Articulate a team building vision, objectives, and strategy; provide goals, supportive resources and tools, and meaningful measures of success; develop team ownership of this process

Identify criteria for successful team performance; articulate strategy and plan for achieving team goals; develop metrics and monitor status; invest to improve team dynamics and cohesiveness.

Conduct team sessions to improve communications and facilitate issue identification and resolution; build team identity; solicit and address team concerns

Recruitment, selection and training of personnel

Marks & Spencer has been Developing a long-running strategy / Evolving a family-friendly strategy for a large and diverse workforce. M&S recruitment, selection training of personnel has been made on the basis some key factors.

M&S human resource management issues can be analysed in terms of legal, moral and business consideration. With reference to the stated aims of recruitment, this consideration could be said to be:

Legal- To complies with anti-discrimination legislation.
Moral- To avoids unfair discrimination for moral reasons as well as obedience to the law.
Business- To ensures that all efforts are directed towards achieving corporate and not personal goal.

Marks and spacer believes in a systematic approach to conduct their recruitment and selection process on the basis of company human resource strategy and equal opportunities goal.

Equality of Opportunity for Everyone

M&S always emphasis on ensuring equality of opportunity for every member of M&S team. Promoting a working environment free from discrimination, harasement and victimisation. on the basis of:

gender, sexual orientation, marital or civil partnership status, gender reassignment
race, colour, nationality, ethnic or national origin,
hours of work
religious or political beliefs
disability
age

Raise staff awareness by designing and delivering training programmes that support the Equal Opportunities aims.

Comply with the law and communicate to our stakeholders the responsibility to protect both individuals and the company.

Personal effectiveness:

M&S personal effectiveness programmes consists of several things such as communication skills, confidence building, conflict management, creativity and innovation, personal presentation, presentation skills, time and pressure management.

Organizational change:

Efficiency and professional approach of the M&S staffs towards their work is making the company success. Dedicated human resources of the major source of competitive advantage.

The case with M&S is a scenario of rapid organisational transformation, which was based on a vision imposed on the company in a mainly directive fashion, down from the top, by its management and CEO, but which could potentially lead to a widespread change of attitudes and behaviours in the company. This change in the middle of the trading period was a risky action and would bring a big confusion for the staff, putting a high pressure on their performance.

Source- www.ivoryresearch.com

Power politics-

Though marks and spencers believes in equal oppoturnaities and fair trade they are trying to keep political connection. M & S recruited their new CEO who is an active and influential conservative leader. It is assumed that Convervative party is most likely to come to the power.

Conflict resolution-

Usually conflict is the result of poor communication which can be resolved with openness and mutual trust. M&S staffs always been trained to increase interpersonal communication skills.

Recruiting

M&S employed around 71,000 people in the UK, 75,000 worldwide. The company has the lowest employee turnover rates in UK retail, at 27% for customer assistants and 12% for management. Around 40% of our people have been with us for over 5 years and 22% for more than ten years.

Staff recruitment can become a major proposal task for any project. The project manager may need to utitilize member of his own staff or HR department to handle the many aspects of recruitment. But it can be a good idea to have a processs in place and a perhaps a few checklists to help organizing recruitment efforts. M&S has been using different types of techniques to recruit it’s staff. Some of the techniques are explained below-

The scale and scope of the opportunities on offer at Marks & Spencer is really higher than others competitors.

Trainee management scheme:

M&S claimed that their trainee management program is one of the pretty unique recruitment systems. Under this program trainee managers enables to reach commercial manager level within two years. On top of that those managers are getting best salary on the high street.

Graduate management trainee scheme:

Graduate Management Trainee scheme is one of the best in retail industry. This scheme has been recognised by TARGETjobs National Graduate Recruitment Awards 2009 which has been published in The Times.

Graduate Events-

M&S is regularly attending graduate events such as Cambridge career fair, leeds career fair, national graduate recruitment fair Olympia, National Graduate recruitment fair NEC.

Apart from that regular scheme M&S recruit their staff with a highly professional online recruitment process.

Selection Procedure-

Retailers like Marks and Spencer have complex recruitment needs and have to deal with high volumes of applications to fill a large number of similar positions. Marks and Spencer manages all applications for store jobs via WCN’s Applicant Tracking System. The system is based on complex two way integration with the Marks and Spencer HR system.

The system now allows candidates who are successful after applying and completing online tests, to book their own interview within an hour of completing their application. Stores input vacancies and give available assessment times on the Marks and Spencer HR system, this data is then transferred to the WCN system and displayed to candidates online. The functionality was launched in July 2006 and over 42,000 candidates were able to schedule their own interviews for Christmas vacancies that year.

It should be mentioned here that M&S e-recruitment software, which was innovated by WCN Plc, has been awarded 2007 winners of the Onrec.com Award for Best Technical Innovation in Online Recruitment. That award was their second achievement since introduce their recruitment software.

Training of personnel-

Marks and Spencer’s believe that en extra ordinary strategy must be made to get competitive advantages over the competitors. And this led to a need for change. The focus of change was on core areas These include quality, value and service. Customers also expect innovation (bringing in new ideas) and a shop they can trust.

Any innovative changes can be brought by the trained and creative staffs. Marks and Spencers trained it’s staff are at three levels.

Trainee managers who have just passed A-level
University student who have just passed their degree.
Experienced maangers from other areas.

Each manager requires a number of skills. These include team working, financial skills or leadership. Marks and Spencer is able to spot skills gaps. It matches current skills against those required for the job. Where these do not match, training can take place. At the end of every six months, an appraisal takes place. This is a discussion between manager and staff. It highlights where staff have improved. It also shows where more training is needed. This helps staff to construct a career path. This process creates a cycle of improvement.

Part-3 of the assignment

Teamwork, discussion of relevant concepts and theories

Teamwork is the joint effort by a group of people to achieve a common goal. M&S has been maintaining some kind of performance indicator to measure it’s achievement. Interpersonal behaviour is more important than interpersonal relationship to do a good teamwork.

M&S measures their teamwork with applying the principles of performance management to the groups behaviour. The emphasized on group performance rather than individual. They have set their reward system for group basis.

Some basic steps involves with group behaviour, these are explained below-

Team work-

Identifying what teamwork behaviours will lead to better performance. One way to identify target teamwork behaviours is to complete the ITPQ(TM) (Ideal Team Profile Questionnaire(TM)) instrument. This can be completed by the team, peer groups, staff, customers, senior management and others to provide a wide range of views of what would make the team successful.

Identifying and manage conflicting expectation of them between, say, management and customers.
Ask a wide perspective when setting behavioura goals for themselves, which should prove the quality of those goals.
Facilitate a dialogue within the team and with others outside the team on how to mprove performance.
Take a wide perspective when setting behavioural goals for themselves, which whould improve the quality of those goals.
Current behavior

Assessing which teamwork behaviors are currently being used. It is understood current behaviors may be influenced by some key factors, such as:

The Organizational structure
The performance of team members
Current circumstances
Feedback from people outside the team.

Many other factors One way to identify current behaviours is to complete the MTRi (Management Team Roles-indicator (TM) instrument.

This is completed by the individuals within the team, and it indentifies the roles they are currently performing which can be aggregated to show the collective team behaviours.

However, M&S have built trust and engagement and a shared sense of common purpose over time are reaping the reward in terms of motivated employees willing to go the extra mile, despite the tough environment.

Some of the M & S staff s have been interviewed to get some information about M & S in regards to managing staff. Most of the employees feel a strong sense of family within their teams, but some of them said manager’s attitude towards their staff is not appropriate. About 9 of 10 male and female colleagues believe their colleagues care about each other. Working together gives them a buzz and almost every staff believes teammates are very fun. Staffs are working at Marks and Spencer as their own business but they believe that company does care very little about that. Though some kind of reward has been given by the company but colleagues believe that reward is not adequate.

Everyone believes that dedicated staffs can make difference in the organization with reaching their goals and direction.

Marks and spencer always try to bring theory but in real life they are not practicing it properly. Some of the managers are very keen to empower their manager to achieve their target but some of them like to run their store with a dictatorship attitude.

Half of the interviewed staff says their managers are not open and honest in regards to work. Very few of them said they are getting appreciation for their good job. Everyone said that senior managers are visiting their premises very often even work on the sales floor. Senior manager’s attitude showing that they want to connect with the teams,

Leadership

The term ‘Leadership’ is easy to explain, In a practical field leadership is a very tough task. Behavioral attitude is first quality for a leader than skills. A good leaders are trusted and respected by his/her followers. Leadership is little bit different from the management. Planning, organization and communication skills are main responsibilities for management. Though leadership relies on management skills too, but more so on qualities such as integrity, honesty, humility, courage, commitment, sincerity, passion, confidence, positivity, wisdom, determination, compassion, sensitivity and a degree of personal charisma.

Leadership can be performed with different styles. Some leaders have one style, which is right for certain, situations and wrong for others. Some leaders can adapt and use different leadership styles for given situations.

The Greening of Marks and Spencer: An example of creative leadership

Stuart Rose, CEO of the M&S announced a policy document that will make M&S a first green retailer of world by 2015.

It commits the retailer to a range of specific actions at an estimated cost of some ?200 million over the next five years. The plan has been welcomed by a range of commentators. Yet, closer inspection suggests it is a shrewd concession to corporate responsibility rather than a radical move that might frighten traditional commercial investors. It can also be seen as an example of creative leadership.

In a flurry of personal interviews, Stuart Rose announced a hundred-point, five year plan for M&S that aims at re-engineering the company’s activities to meet a range of socially responsible goals from carbon neutrality, ethical-trading, sustainable-sourcing, and health-promoting products and projects.

He told the BBC that the company has estimated five year-costs of the plan to be in the region of ?200 million pounds. In one interview, Green in his ‘show and tell’ mode had brought along plastic bottles and a coat (purporting to ) incorporate the plastic from similar bottles after recycling.

M&S Leadership: Dictatorial leaderships history in M&S

M&S leadership has been dominating by men. Micheal Marks founder of M&S had the traits of an entrepreneur. As the leadership was passed on through the family, increased competition within the heirs led to emergence of stronger characters. Micheal’s son Simon Marks and later Simon’s brother in law Israel Sieff changed the leadership style towards a stronger dictatorial influence.

1998-99 period was a underperforming duration for M&S. About 40% of M&S share price has fallen down. As the Zara and Next took market share from the top end of the market while the same time value offering were attached by the supermarkets who were increasingly entering the same market.

Rose leadership-

In 2004 performance was poor, with customer defecting to competitors. Investors were uneasy and showing sighns of losing confidence.

Its leadership team does not encompass the right mix of skills, knowledge and experience to enable the company to regain its long-held position as a market leader. This was the scenario which Stuart Rose stepped into, when he became CEO of UK retail giant, M&S, in May 2004. Rose was determined to:

Make fundamental changes
Change from bureaucratic old fashioned organization into a modern dynamic force.
Implement the missing ‘Shared values’ to complete the transformational leadership model.

Rose’s leadership strategy- Engaging employees at all levels:

Before 2004, A major side effect of the loss of confidence in M&S was low employee morals. Rose focused on re-building employee pride and commitment. But he was also ruthless in removing some long-term employee perks which had grown to become rights. He introduced more professional, performance based contracts for staff which were desighend to reinforce and reward behaviours whicch support organizational performance.

Though Mr. Rose has been running the company with some dictatorial attitude but the results were striking. But above all, the success of these changes are founded on confidence and belief in Rtuart Rose as a leader.

M&S leadership- In-house practice

M&S has developed it’s leadership strategy with some extra ordinary key features to implement it through leadership training, coaching and development.

Tanith Dodghe, group HR director of Marks and Spencer mentioned this strategy as ‘this is not just leadership, its M&S leadership’

Motivation
Employee Motivation: Giving power to the people

Frederick Herzberg – Two Factor theory In 1957, Herzberg devised his ‘ motivation hygiene’ theory which stated that two groups of factors affect employee motivation. Herzberg said that certain elements in a job motivate people to do better. He called these elements ‘Satisfiers’. They include:

Achievement
Recognition
Responsibility
Advancement
Personal growth
Actual work itself

Other elements do not motivate people to work harder. These are referred to as hygiene factors. They are:

Pay and conditions
Status within the company
Job security
Benefits
Relationships with fellow workers
Quality of the company’s managers
Frederic Taylor- Scientific Management

Taylor worked as a factorysuperintendent in a locomotive factory in the USA. From carrying outstudies of how people worked making axles, he concluded that:

Employees were successful in getting jobs there because they knew

the managers, not because they were good at the job.

Employees did not work hard enough for fear of their friends losing

their job

Employers paid their employees aslittleas they could possibly get

away with

Employees were given little instruction of how to do their job and

it was often done badly. The amount and quality of products produced

was very poor.

Taylor said that his ideas would improve matters:

Money was the only thing that motivated employees to work hard. If

the workers were paid per item made, they would want to make more and

would work harder.

Trained managers should run the company and supervise employees with

firm but fair discipline procedures.

Employees must be properly trained to do their job
Employee should be properly and fairly selected for jobs through

tests and interviews. This is to make sure that the right person gets

the job.

How Marks and Spencer’s performance management/training and development systems have been influenced by the motivational theories M&S use Maslow’s theory by helping staff set and reach their goals at work, they encourage their staff and praise them when they are doing well and staff also receive rewards for good work. M&S use Herzberg’s two factor theory by treated their employees well by giving them a good salary, good working conditions and by giving them sick pays and pension’s schemes, they also give their staff responsibilities to make them feel like there are important to the company and motivate them. M&S use Mcgregor’s theory by having managers who have trust in the workers and help them improve and do their best and also by giving managers bonuses to motivate them. Marks and Spencer’s also use Taylor’s Scientific Management theory by paying its employees in order to work and by having able managers control the staff.

Cross cultural Issues in M&S-
M&S diversity

M&S has a diverse range of employee and they are maintaining a active equal opportunities policy. This not just to cover the recruitment and selection procedures but runs through training and development, apraisal, promostion opportunities and eventually to retirement.

We promote an environment free from discrimination, harassment and victimisation and work hard to ensure everyone is offered equality of opportunity to achieve their full potential. All the decisions we make relating to employment practices are objective, free from bias and based solely upon work criteria and individual merit.

The hospitality industry of india is expected to grow at a rate of 8.8% from 2007-16, placing India the second-fastest growing tourism market in the world. Progress like massive investment in hotel infrastructure and open sky policies which are made by the government are all aimed at propelling growth in the hospitality sector.

Hotel and hospitality industries are the biggest employment generators in the country. Towards helping its growth, the government should confer infrastructure status to the hotel industries, several taxation issues also need to be rationalised. Further permits and licenses which are required for the hotel operations needs to be rationalised by offering a “single window” mechanism.

The hotel industry is divided into 4 categories:

Large hotels

Medium hotels

Resort hotels

Small hotels

MARKET SHARE OF THE MAJOR HOTELS IN INDIA:
TIE -UPS OF INDIAN HOTELS WITH INTERNATIONAL HOTELS:

Most players, exempting of IHCL and EIH, have entered into marketing Tie-up with major international hotel chains. Thus we have Hyatt Regency which are tied up with AHL, Leela tied up with Kempinski and ITCH having a franchisee agreement with ITT Sheraton.

For the Indian hotel owners and international hotel chains the benefit is mutual, Tie-up with an international hotel chain will put the hotel on the global map. Associations with international brand play a major role in image building and attracting foreign tourists. However value of the international brand will get diluted if a foreign entity enters an agreement with several Indian companies.

MARKET SHARE OF TARIFF PLANS BY DIFFERENT HOTELS

Luxury hotels operate under single tariff structure whereby the foreign tourists are charged in dollar terms whereas the domestic guest is charged the equivalent amount in rupees. The luxury hotels earn about two-thirds of their revenue from foreign tourists. Leisure travellers constitute approximately 76.5% of the total tourist arrivals whereas business travellers constitute 21% of the total arrivals. The remainder is accounted by students.

Hotels benefit from rupee depreciation as over 60% of revenues in the luxury hotel Segment is in foreign currencies. Thus any depreciation of the rupee goes directly to the bottom line (FOREX income is also fully tax exempt), as none of the costs are directly linked to the exchange rate. The hotel debt environment is also improving. While many countries are hampered by a still sluggish economy, those with a low interest rate environment with relatively stable-banking conditions will provide opportunities for hotel investors to raise capital. For hotel lenders, from a risk/return basis, there has never been a better time to provide new capital to this industry in India.

CONTRIBUTION TOWARDS ECONOMY

The hotel and restaurant industry of India was Rs. 658.89 billion during 2007-08. Travel & Tourism Industry of India was valued at US$35.73 billion in 2007, contributing 3.56% to India’s GDP. The number of foreign tourists arriving to India reached 5.08 million compared with 4.45 million in the year 2006, showing growth of 14.16%. India’s share in international tourist arrivals at global level gradually improved from 0.46% in 2004 to 0.49% in 2005 and further to 0.52% in 2006 and 0.56% in 2007.

The number of domestic tourists in India was 526.57 million compared with 461.76 Million in 2006, showing growth of 14.03%. There are 1,437 hotels approved and Classified by the Ministry of Tourism, Government of India, with a total capacity of 84,327 hotel rooms as on December 31, 2007. Indian hotel industry is currently adding about 60,000 quality rooms, which are expected to be ready by 2012.

INTERNATIONAL TOURIST CONTRIBUTION IN INDIA

The foreign tourist arrivals in India increased at CAGR of 5.5per cent from 2.29 Million in 1996 to 3.92 million in 2005. Significantly, the bulk of international arrivals into India, both in 2004 and 2005, have been business travellers. Main reason for this increase has been following fundamental factors:

India’s strong GDP growth.

Opening of sectors of the economy to private sector/ foreign investment.

Strengthening of ties with the developed world.

Reforms in aviation sector which led to better connectivity with many countries (such as ASEAN) and created additional capacity on existing routes (for e.g. USA, Middle East).

Also, introduction of low cost airlines also contributed to the demand. The increase in International flights, seat capacity and frequency into the country and the decision to allow private airlines like Jet Airways and Air Sahara to fly overseas has had a positive impact on tourist and business arrivals into India, by way of providing additional seats.

3.1.2 NATURE OF COMPETITION:

It is the most competitive market .Business travelers drive over 70 per cent of the Indian hospitality business and the race to accommodate them, and do it well, is hotting up. But with current demand outstripping supply, hotels in the big cities have managed to up their rates to match those in Paris and London.

The major competition comes from the other companies in the same sector .so the rivals are to be found and make their primary and secondary strategies which makes the company competitive in the market. There are also pricing strategies which play fewer roles in competitive market and should think of the non pricing strategies which can be more competitive in the market.

The pricing of a hotel like this one is done on system called “rate of the day” based on demand. As the rooms get taken the price goes up and on a busy day a room like this one in Mumbai or Delhi will cost as much as you would have to pay for one in Paris or London.

Adding more facilities to the five star rated hotels like Wi-Fi, spas, gyms, online booking etc. to maintain their guest loyalties which give competitive advantage to its company.

To become competitive in the market the flexible pricing is the key. Some suggested steps to realign rates and segments to the changed market place; gain control of business; and increase profitability are:

Create an online booking presence.

Ensure that the hotel’s online booking engine is part of the hotel’s web site, and controlled by the hotel, not by a third party or GDS-based system.

Ensure that the online booking engine is the best and accomplishes the hotel’s goals.

Ensure that the online booking engine is easy to use from a customer’s perspective.

Expertly create and maintain an online distribution and maximization strategy to ensure the hotel’s visibility.

Promote and ensure that the lowest published rates are on the hotel’s own web site, to promote customer loyalty, as done with the airlines.

Establish a new market segmentation model, for greater control of the business. Eliminate RACK RATE and replace with SELL RATE, defined as Rack, Promotional, Consortia, and any other customer not affiliated with any discount.

A simplified sample version is:

Sell Rate

Corporate Rate

Group Rate

Weekend Rate

Establish the Sell Rate based on anticipated demand patterns, after the core business and group blocks are factored in. The rate fluctuates on a daily basis.

Set rates in all market segments within the range of your competitive set to establish positioning.

TAJ GROUP OF HOTELS:

A Tata company shall fully strive for the establishment and support of a competitive, open market economy in India and abroad, and shall cooperate in efforts to promote the progressive and judicious liberalisation of trade and investment by a country. Specifically, a Tata company shall not engage in activities that generate or support the formation of monopolies, dominant market positions, cartels and similar unfair trade practices.

A Tata company shall market its products and services on its own merits and shall not make unfair and misleading statements about competitors’ products and services. Any collection of competitive information shall be made only in the normal course of business and shall be obtained only through legally permitted sources and means.

Direct Competitors:

Oberoi Hotels

Oriental Hotels

ITC Welcomgroup

Hotel Leela etc.

Potential Target market : The upper class of the society is targeted. i.e. the richer people in the society. Their fares or tariffs are high as the luxuries provided by them are also standard and 5-star. Thus, this is in context to the Indian branches of Taj Hotels.

OBEROI GROUP OF HOTELS (EAST INDIA HOTELS LTD.):

Team Street is out with an investment idea that could help the portfolio in the current market conditions. The recent correction in the market has been sharp as the benchmark index or the Sensex has given up more than 7 percent from a recent high of 21,108.

OBEROI PROPERTIES RECOGNITION INTERNATIONALLY:

The Oberoi Vanyavilas, Ranthambore

Rated the 2nd best resort in Asia

Rated the 2nd best hotel in the World

The Oberoi Udaivilas, Udaipur

Rated the best hotel in Asia

Rated 4th best hotel in the World

The Oberoi Amarvilas. Agra

Rated the 2nd best hotel in Asia

Rated the 8th best hotel in the World

The Oberoi Rajvilas, Jaipur

Rated the 5th best hotel in Asia

Rated amongst the top 25 hotels in the World

Wildflower Hall, Shimla in the Himalayas

Rated the 5th best resort in Asia

The Oberoi Rajvilas, Jaipur

Rated No.1 hotel in Asia

Rated 2nd best hotel in the World

The Oberoi Udaivilas, Udaipur

Rated No. 2 hotel in Asia

Rated 4th best hotel in the World

The Oberoi Amarvilas. Agra

Rated No. 3 hotel in Asia

Rated 6th best hotel in the World

3.1.3 SWOT ANALYSIS

STRENGTHS:

1. Natural and cultural diversity: India has a rich cultural heritage. The “unity in diversity” tag attracts most tourists. The coastlines, sunny beaches, backwaters of Kerala, snow capped Himalayas and the quiescent lakes are incredible.

2. Demand-supply gap: Indian hotel industry is facing a mismatch between the demand and supply of rooms leading to higher room rates and occupancy levels. With the privilege of hosting Commonwealth Games 2010 there is more demand of rooms in five star hotels. This has led to the rapid expansion of the sector.

3. Government support: The government has realized the importance of tourism and has proposed a budget of Rs. 540 crore for the development of the industry. The priority is being given to the development of the infrastructure and of new tourist destinations and circuits. The Department of Tourism (DOT) has already started the “Incredible India” campaign for the promotion of tourism in India.

4. Increase in the market share: India’s share in international tourism and hospitality market is expected to increase over the long-term. New budget and star hotels are being established. Moreover, foreign hospitality players are heading towards Indian markets.

WEAKNESSES:

1.Poor support infrastructure: Though the government is taking necessary steps, many more things need to be done to improve the infrastructure. In 2003, the total expenditure made in this regard was US $150 billion in China compared to US$ 21 billion in India.

2. Slow implementation: The lack of adequate recognition for the tourism industry has been hampering its growth prospects. Whatever steps are being taken by the government are implemented at a slower pace.

3. Susceptible to political events: The internal security scenario and social unrest also hamper the foreign tourist arrival rates.

OPPORTUNITIES:

1.Rising income: Owing to the rise in income levels, Indians have more spare money to spend, which is expected to enhance leisure tourism.

2. Open sky benefits: With the open sky policy, the travel and tourism industry has seen an increase in business. Increased airline activity has stimulated demand and has helped improve the infrastructure. It has benefited both international and domestic travels.

THREATS:

1. Fluctuations in international tourist arrivals: The total dependency on foreign tourists can be risky, as there are wide fluctuations in international tourism. Domestic tourism needs to be given equal importance and measures should be taken to promote it.

2. Increasing competition: Several international majors like the Four Seasons, Shangri-La and Aman Resorts are entering the Indian markets. Two other groups – the Carlson Group and the Marriott chain – are also looking forward to join this race. This will increase the competition for the existing Indian hotel majors.

CHALLENGES FOR HOSPITALITY INDUSTRY

1. Shortage of skilled employees: One of the greatest challenges plaguing the hospitality industry is the unavailability of quality workforce in different skill levels. The hospitality industry has failed to retain good professionals.

2. Retaining quality workforce: Retention of the workforce through training and development in the hotel industry is a problem and attrition levels are too high. One of the reasons for this is unattractive wage packages. Though there is boom in the service sector, most of the hotel management graduates are joining other sectors like retail and aviation.

3. Shortage of rooms: The hotel industry is facing heavy shortage of rooms. It is estimated that the current requirement is of 1,50,000 rooms. Though the new investment plan would add 53,000 rooms by 2011, the shortage will still persist.

4. Intense competition and image of India: The industry is witnessing heightened competition with the arrival of new players, new products and new systems. The competition from neighboring countries and negative perceptions about Indian tourism product constrains the growth of tourism. The image of India as a country overrun by poverty, political instability, safety concerns and diseases also harms the tourism industry.

5. Customer expectations: As India is emerging as a destination on the global travel map, expectations of customers are rising. The companies have to focus on customer loyalty and repeat purchases.

6. Manual back-end: Though most reputed chains have IT enabled systems for property management, reservations, etc., almost all the data which actually make the company work are filled in manual log books or are simply not tracked.

7. Human resource development: Some of the services required in the tourism and hotel industries are highly personalized, and no amount of automation can substitute for personal service providers. India is focusing more on white collar jobs than blue collar jobs. The shortage of blue collar employees will pose various threats to the industry.

SWOT ANALYSIS OF MAJOR HOTELS:
TAJ GROUP OF HOTELS:
Strengths:

The group has enormous power and strengths, which makes it the best and competitive, some of them are:

It consists of 75 properties in 40 locations across India and 18 international hotels.

Its stylish variety of hotels like; Taj exotica, Taj safari, The gateway hotels, Ginger hotels, Jivas spa etc.

Its effective and efficient management techniques and staff.

Its brand name.

The presence of Taj Hotels, Resorts and Palaces in various countries like United Kingdom, France, Germany, Italy, Dubai, Singapore, Australia, Japan, Russia and the United States of America.

Securing management contracts at Palm Island, Jumeirah in Dubai, Saraya Islands in Ras Al Khaimah, Aldar Group in Abu Dhabi, UAE Langkawi in Malaysia and Thimpu in Bhutan.

The various initiatives taken like; rollout of Customer Feedback System, Tata Business Excellence Model, IT initiatives, Ginger hotels etc.

Weakness:

Taj hotels being such a big brand, has a lot of advantages but every big company faces some odds and so does Taj. Some of its weakness;

Its hard to maintain such a huge chain of subsidiaries and there are more chances of mishaps in management.

Its huge competitors like Oberoi, Leela, Oriental, ITC etc are also providing same facilities and thus it becomes a weakness for Taj hotels.

Its very costly for the Indians to afford the tariffs and service charges set by Taj hotels. Thus, they loose a major part of their market share.

They need a lot of investment.

As Taj hotels is a popular group, it is always in the eyes of the terrorists, as taj has already faced such an incident. Therefore, it proves to be a weakness some times, to be so popular.

Opportunities:

The Group is poised strategically to take advantage of the following situation:

In the backdrop of a healthy economy having its positive fallouts on the Tourism Sector leading to rapid growth in markets in India, South Asia and key gateway cities in source-market destinations.

Rapid expansion in both International and Domestic destinations, with top-of-the-line Luxury, Leisure and Business properties.

Meeting growing demand in the budget and mid-market segments.

Extending the product portfolio into related offerings viz. luxury residences, wildlife lodges and health spas.

Threats:

The threats identified by the Group are related mainly to the markets in which the Group operates and general factors related to the tourism industry. Significant among these are:

Cheaper international airfares, increasing affordability of travel to International destinations, especially South East Asia, Europe and Australia.

Growing presence of international hospitality chains competing in the Luxury and Business segments, to meet excess demand situation.

Appreciating Indian Rupee vis-a-vis the US Dollar, resulting in lower realisation on foreign exchange earnings.

Slowdown of international demand resulting in reduction of revenues.

OBEROI GROUP OF HOTELS:
Strengths:

Cost advantage

Asset leverage

Effective communication

High R&D

Innovation

Online growth

Loyal customers

Market share leadership

Strong management team

Strong brand equity

Weaknesses:

Bad communication

Diseconomies to scale

Over leveraged financial position

Low R&D

Low market share

No online presence

Not innovative

Not diversified

Poor supply chain

Weak management team

Weak real estate

Opportunities:

Acquisitions

Asset leverage

Financial markets (raise money through debt, etc)

Emerging markets and expansion abroad

Innovation

Online

Product and services expansion

Takeovers

Threats:

Competition

Cheaper technology

Economic slowdown

External changes (government, politics, taxes, etc)

Exchange rate fluctuations

Lower cost competitors or imports

Maturing categories, products, or services

Price wars

ITDC:
STRENGTHS:

One of the oldest five star hotels in India preferred by a vast number of tourists as well as localites.

Amenities provided are state of the art and of very high quality.

Staff is known to be very hospitable and supportive of their guests.

Has the largest conference hall in India and hence it’s the most preferred conference hall for most of the important conferences held in India.

Provides Privilege Card for their frequent guests which lure more number of people to become their regular customers.

It has New Delhi’s most magnificent Banquet venue.

The architecture is still considered as a benchmark to most of the buildings that are created today.

WEAKNESSES:

Prices are higher than other five star hotels in New Delhi.

There have not been many changes in the building since the time that it has been set up.

According to the guests the walls are dirty and the hallways are not maintained well which makes many of them think twice about coming back there.

It is quite far away (15kms) from the international airport because of which many guest opt for hotels closer for their own convenience.

They seem to rely on their past laurels and are not taking any new initiatives to satisfy their customers.

3.2 DEMOGRAPHICS OF BUYERS- MARKET SEGMENTATION:
CLASSIFICATION OF HOTELS:

Classification is based on many criteria and classifying hotels into different types is not an easy task. The hotel industry is so vast that many hotels do not fit into single well defined category. Industry can be classified in various ways, based on location, size of property etc. The main hotel chains of India are: The Taj Group of Hotels, the Oberoi Group and ITC Welcome group.

Some of the international chains are Hyatt, Marriott, and Le Meridian etc. these properties have also come up in India now.

1. Based on Location

City center: Generally located in the heart of city within a short distance from business centre, shopping arcade. Rates are normally high due to their location advantages. They have high traffic on weekdays and the occupancy is generally high.

Motels: They are located primarily on highways, they provide lodging to highway travellers and also provide ample parking space. The length of stay is usually overnight.

Suburban hotels: They are located in suburban areas, it generally have high traffic on weekend. It is ideal for budget travellers. In this type of hotel rates are moderately low.

Airport hotels: These hotels are set up near by the airport. They have transit guest who stay over between flights.

Resort hotels: They are also termed as health resort or beach hill resort and so depending on their position and location. They cater a person who wants to relax, enjoy themselves at hill station. Most resort work to full capacity during peak season. Sales and revenue fluctuate from season to season.

Floating hotels: As name implies these hotels are established on luxury liners or ship. It is located on river, sea or big lakes. In cruise ships, rooms are generally small and all furniture is fixed down. It has long stay guest.

Boatels: A house boat hotels is referred as boatels. The SHIKARAS of Kashmir and KETTUVALLAM of Kerala are houseboats in India which offers luxurious accommodation to travelers.

Rotels: These novel variants are hotel on wheel. Our very own “palace on wheels” and “Deccan Odessey” are trains providing a luxurious hotel atmosphere. Their interior is done like hotel room. They are normally used by small group of travelers.

2. Based on Size of Property

Small hotel: hotel with 100 rooms and less may be termed as small hotels.

Medium sized hotel: hotel which has 100-300 rooms is known as medium sized hotel.

Large hotels: hotel which have more than 300 rooms are termed as large hotels.

Mega hotels: are those hotels with more than 1000 rooms.

Chain hotels: these are the groups that have hotels in much number of locations in India and international venues.

3. Based on the Level of Service

Economy/ Budget hotels: These hotels meet the basic need of the guest by providing comfortable and clean room for a comfortable stay.

Mid market hotels: It is suite hotel that offers small living room with appropriate furniture and small bed room with king sized bed.

Luxury hotels: These offer world class service providing restaurant and lounges, concierge service, meeting rooms, dining facilities. Bath linen is provided to the guest and is replaced accordingly. These guest rooms contains furnishing, artwork etc. prime market for these hotels are celebrities, business executives and high ranking political figures. Example: Hyatt Regency, New Delhi.

4. Based on the Length of Stay

Transient Hotel: These are the hotel where guest stays for a day or even less, they are usually five star hotels. The occupancy rate is usually very high. These hotels are situated near airport.

Residential hotels: These are the hotel where guest can stay for a minimum period of one month and up to a year. The rent can be paid on monthly or quarterly basis. They provide sitting room, bed room and kitchenette.

Semi residential hotels: These hotels incorporate features of both transient and residential hotel.

5. Based on Theme

Heritage hotel: In this hotel a guest is graciously welcomed, offered room that have their own history, serve traditional cuisine and are entertained by folk artist. These hotels put their best efforts to give the glimpse of their region.

Example: Jai Mahal palace in Jaipur.

Ecotels: these are environment friendly hotels these hotel use eco friendly items in the room. Example: Orchid Mumbai is Asia first and most popular five star Ecotels.

Boutique hotels: This hotel provides exceptional accommodation, furniture in a themed and stylish manner and caters to corporate travelers. Example: In India the park Bangalore is a boutique hotel.

Spas: is a resort which provide therapeutic bath and massage along with other features of luxury hotels in India Ananda spa in Himalaya are the most popular Spa.

6. Based on Target Market

Commercial hotel: They are situated in the heart of the city in busy commercial areas so as to get good and high business. They cater mostly businessmen.

Convention hotels: These hotels have large convention complex and cater to people attending a convention, conference.

Example: Le meridien, Cochin, is a hotel with largest convention center in south India.

Resort hotels: These leisure hotels are mainly for vacationers who want to relax and enjoy with their family. The occupancy varies as per season. The atmosphere is more relaxed. These are spread out in vast areas so many resorts have solar powered carts for the transport of guest.

Suite hotels: These hotel offer rooms that may include compact kitchenette. They cater to people who are relocating act as like lawyers, executives who are away from home for a long business stay.

Casino hotels: Hotel with predominantly gambling facilities comes under this category, they have guest room and food and operation too. These hotels tend to cater leisure and vacation travelers. Gambling activities at some casino hotels operate 24 hours a day and 365 days.

Today’s ways of booking make it difficult to identify the purpose of the trip. Segment by default the individual bookings for short midweek stays as business. Identify as leisure the booking of a double room over the week-end.

As the new technology was developing, corporate travel departments, as well as the independent consumer, turned to travel agents to get the best discounts. As the GDS technology influenced booking and buying practices, additional segments were created, resulting in the following market segment model:

Rack Rates: Without any affiliations to warrant discounts, the Rack Rated customer paid the published rate, which was the highest rate.

Consortia Rates: This was the same customer who booked through a travel agent using the GDS and received a 5%-10% discount off Rack Rates.

Corporate Rates: Having met the hotel’s qualifying criteria, such as volume, businesses were guaranteed discounted rates.

Group Rates: With a block of rooms, rates varied based on time of year and the nature of the group.

Weekend Rates: Individual leisure travelers, usually within a drive distance to the hotel.

Promotional rates: These rates were originally used sparingly and used as a means to stimulate business by using discounted rates to anyone, regardless of affiliation.

Domestic Consumer is the largest segment of the hotels & motels industry in India accounting for 52.9% of the industry’s total value. The domestic business segment accounts for a further 24.4% of the industry.

ABSTRACT

Market Segmentation recognizes that people differ in their tastes, needs, attitudes, lifestyles, family size, and composition, etc… “It is a deliberate policy of maximising demand by directing marketing efforts at significant sub-groups of customers of consumers” (Chisnall, 1985: 264).

‘Segmentation involves viewing a heterogeneous market as a number of smaller, more homogeneous markets’ (Smith, 1956). ‘These smaller markets can be distinguished by different consumer needs, characteristics, or behaviour. For segmentation to be managerially useful, each segment needs to be accessible, measurable, and substantial’ (Kotler, 1980).

‘The report focuses on the particular case of “Tourism Australia”, which promotes Australia as a tourism destination internationally and domestically and delivers research and forecasts for the sector.’ (Tourism Australia, 2009)

Why segment a destination?
It identifies the destinations’ potential customers
It enables the organization and other travel agencies and tour operators to focus their marketing on the customers who will be most likely to buy the services that are on offer.
Enhanced profits for business
Helps improve customer service.
Kick-starts competition in specific parts of the market
INTRODUCTION

Tourism Australia is a statutory authority of the Australian Government, which promotes Australia as a tourism destination internationally and domestically and delivers research and forecasts for the sector.

Established on 1 July 2004, Tourism Australia brings together the collective skills and knowledge of four separate organisations: the Australian Tourist Commission, See Australia, the Bureau of Tourism Research and Tourism Forecasting Council. In a strategic planning process Market Segmentation is a stepping step which recognizes that people’s need, desire, and expect different characteristics from products or services that they experience or purchase.

Under the Tourism Australia Act (2004), Tourism Australia has a statutory obligation to help foster a sustainable tourism industry in Australia. Sustainable tourism is in the buzz now, and is one of the many key segments, that Tourism Australia focuses on.

The Tourism White Paper is an AustralianGovernment tourism initiative,designed to achieve industry growth and provide greater synergy across all areas. It provides framework for structural change to more effectively support Australia’s tourism industry.

‘Tourism Australia’ and their Market Segmentation:

Tourism Australia concentrates on Demographic and Psychographic segment wherein mainly it attracts youth travellers and other interests and leisure travellers.

1. Demographic

Understanding demographics is vital to service/product development and segmentation, especially with regard to understanding trends in the market place. Demography includes the study of age, sex, education, family status, life cycle etc., which acts as an excellent tool for a Destination Management Company or a Travel Board to attract more tourists and travellers to their country. In the case of Tourism Australia and this report I have chosen to concentrate on ‘Lifecycle’ laying emphasis on ‘Youth Market’.

1.1 Lifecycle:

1.1.1. The Youth Market:

They have lower than average incomes, high energy approach to travel; they are more likely to undertake “backpacker tourism, adventure sports, and other activities on offer that generate high adrenaline.

Focusing on ‘Tourism Australia’ as a potential attractor to the ‘Youth Market’ there are a few most appealing segments that the marketing team concentrates on.

1.1.1a. Nature is the most appealing experience to youth travellers with high appeal in all markets. Australia’s wild flora, fauna, its scenic beauty acts as a perfect getaway and holiday destination for youth of this generation. Australia has a lot on offer like sea, sand, sun, surf, bungee jumping, parasailing, etc., which attract youth’s and also see to it that they are connected to nature and still maintain the ecology.

1.1.1b. Coastal Lifestyle experience is also very appealing to youth traveller. It portrays a very classic Australia outdoor lifestyle and provides a whole lot of fun and thrill at the same time. Travellers get to meet new people, mix and learn the lifestyle of the locals and enjoy the fun environment the destination has to offer.

1.1.1c. Aboriginal Australia is of moderate appeal to youth traveller. The Aboriginal Australia is very historical and cultural, but not many are interested in undertaking this segment of tourism that the country has to offer. It calls for less interaction and very minimal socialising, whereas youth prefer the opposite. ( Aboriginal Tourism Australia ).

1.1.1d. Outback Australia and Food & Wine are less appealing to youth travellers and are not currently perceived as being unique to Australia. While the outdoor, relaxed nature of this experience has appeal, in general it is seen as an expected element of a holiday. There is an opportunity for Australia to promote accessible and affordable quality food & wine experiences to the youth market. There are opportunities to reposition these experiences for the youth market to make them more relevant to this segment (Marketing Resource, Tourism Australia, 2009).

1.1.2. The Family Market:

‘In accordance with segments created by Tourism Australia, the family market constitutes of the above average education and income, most affluent of the other lifecycles. They tend to be shorter-haul travellers because of their busy lifestyles work and also are mostly accompanied with children Most of the travellers falling under this category of the market focus on soothing vacation holidays, so that they are rejuvenated after a hectic schedule of work and life and are ready to get going till the next vacations’ (Marketing Resource, Tourism Australia, 2009).

1.1.3. The Mature Market:

‘Mature-aged travellers are defined aseither domestic or international visitors aged 55 years and over. They are well educated and affluent and more likely to seek out exploratory vacation activities. Most travellers in this segment of lifecycle segmentation are more likely to visit destinations and other attractions for either exploratory or research work’ (Marketing Resource, Tourism Australia, 2009).

1.1.4 The Senior Market:

The senior market consists of travellers are likely of all the above segments to seek out exploratory vacation experiences, much less likely to view vacations as opportunities for relaxation. Above average participation in natural sightseeing, they will be less active in outdoor activities. They rely more on printed material and television for travel opportunities and information. One of the most prominent holidays that travellers in this market look out to is “Cruise holiday”. Although the might be the smallest segment, special attention should be paid to the seniors market, as its members look for exploratory experiences and prefer value-added components such as guided services (Marketing Resource, Tourism Australia, 2009).

Limitations of Family/ Lifecycle approach:

This approach gives little or no explanation for differences in consumption patterns as compared to psychographic or lifestyles, demographics says nothing regarding motivations and the value structures which guide the travellers or visitors’ behaviour. (Moutinho, 2002)

2. Psychographic

This type of segmentation divides the market into groups according tocustomers’ lifestyles.It considers a number of potentialinfluences on buying behaviour, including the attitudes, expectations and activities of consumers.The main types of psychographic segmentation are: lifestyle (different lifestyle patterns), Activities, Interests and Opinions (AIO).

Purpose of visit classification enables Tourism Australia to identify the nature of its visitor base and to plan activities accordingly. It also enables the identification of geographical/seasonal variations in tourism by purpose.

In accordance with the case of analysing the segment markets of Tourism Australia, after the reading, I found that they segment their potential tourist market mainly on the basis of ‘Interests’. The following are the various sub-segments and niche markets classified:

2.1 Interests (Trip Segmentation or Activity Segmentation)
2.1.1. Backpacker Tourism:

‘International backpacker visitation has continued to increase by approximately 3% per year since 2000 to reach 566,000 visitors. There were 500,000 domestic backpackers in 2007?. (Backpacker Snapshot, 2009)

‘Spending more time in Australia, these travellers tend to explore considerably more of the country. Many backpackers participate in working holidays enabling them to stay longer in the country ‘(Tourism Australia Corporate, 2009).

2.1.2. Education Tourism:

An education tourism visitor can be associated as an international traveller whose main reason for coming to Australia is education and length of stay is less than twelve months.

This is a very attractive segment that was put forward by Tourism Australia in collaboration with tourism boards of other territories in the country, since Australia is one amongst the leading education grounds for many international students.

2.1.3 Taste and Try:

Travellers coming into Australia as “learners” are inexperienced travellers attracted to “trendy” well known destinations in and around Australia, like Melbourne, Sydney, Perth and Brisbane. ‘They highly depend on recommendations from experienced travellers, usually visit destinations with numerous attractions; they look out for sun, sea, sand and nightlife. The top travellers of destination motivation for the Taste & Try segment include: friends who have visited Australia and its tourist attractions and also to visit family who live at the destination’ (Australian Tourism Commission Report).

In 2006 the International and National Visitor Surveys undertook a survey specifically for Food and Wine Visitors. This survey probed awareness of Australia as a gourmet culinary destination.

“Food and wine visitors aredefined as any holiday or leisure traveller who stated that one of their reasons for taking the trip was to experience Australia’s food or wine”(Tourism Research Australia International and National Visitor Surveys, 2007).
2.1.4: Roots- Exploring the heritage

Travellers under this segment travel to places that they feel a connection to, through heritage. Travelling may include with or to visit friends and family. Most travellers under this segment show keen interest in to learn the local languages and are very concerned about various threats that the particular destination or country as a whole faces.

2.1.5: Adventure Tourism:

The sub- segment of Adventure Tourism has helped Tourism Australia to grasp a whole lot of travellers to come to the country and indulge in the various adventure sports and activities, which bring significant gains to regional and national economies.

According to the BTR International Visitor Survey, 2003, it was found that, nearly 2.2 million international travellers undertook adventure activities and spent 77.5 million nights in Australia in the year 2003. These travellers spent an estimated $6.7 billion in 2003 in Australia, accounting for 60 per cent of total expenditure by all international travellers.

2.1.6 Business Tourism:

Business tourists spend more money per night than holiday visitors. Their main mode of transport is air and car hire resulting in high-yield for the car hire industry and the airlines. These visitors provide improved business communication, and help to promote Australian products and services overseas. This in turn generates additional income and employment within Australia.

A research conducted by Tourism Australia, 2004, stated that business tourism is a very important high yield sector of the tourism industry. In 2003, visitors who travelled mainly for business purposes spent $11 billion in Australia, accounting for 17 per cent of all tourism expenditure in that year. Hence the segment proved vital and very fruitful to the organization and the destination (Source: Tourism Research Australia International and National Visitor Surveys, 2007).

2.1.7 Indigenous Tourism:

“Indigenous tourism is defined as participating in an activity that gives Indigenous people the chance to tell their story, in their way, sharing cultural insights, traditional practices and contemporary concerns with non-indigenous Australians and international visitors” (Robertson-Friend, 2003).

In 2003, about 5 per cent (214 000) of all international visitors visited an indigenous community and nine per cent (411 000) of international visitors experienced the Indigenous arts and crafts and cultural displays during their stay (Australia Tourism Research Report Volume 6 Number 1, 2004). The rise in the number of visitors visiting the country and looking for indigenous tourism is because of the appropriate segmentation and the marketing the specific program to the right target markets.

2.1.10 Cruise Tourism:

Larry Dwyer and Peter Forsyth state that Cruise Tourism is one of the major growth areas of world tourism (Dwyer and Forsyth, cited in Peisley, 1992; Hobson, 1993; Cruise Lines International Association, 1995).

“Cruise tourism has been identified as a key growth area within inbound and domestic tourism and Tourism Australia has increased its focus on this market segment. Cruise shipping as a segment, proved beneficial to the board.

A study conducted by Cruise Down Under, 2006 revealed that the total income generated by the cruise shipping industry in Australia was approximately $438.8 million in 2005/06 compared to $228.1 million in 2004/05, including direct expenditure of approximately $256.6 million” (Tourism Australia, 2009- Markets)

Limitations of segmenting the tourist market according to interests are that participation in a specific activity is a sound basis for defining a segment. It could simply be one of the several activities that constitute the overall destination experience. For example; the fact that 80% of tourists say they engaged in surfing at a destination does not mean that they see themselves as a special interest group of ‘surfers’.

Conclusion

Tourism Australia has a number of resources and opportunities available to assist tourism industry operators target leisure, business events and niche markets. Tourism Australia segments its market into all the four bases of segmentations that usually all marketers do.

It uses geographical- focuses on domestic tourists and visitors as well as international tourists and visitors. Tourism Australia runs special marketing programmes that focus entirely on domestic tourism, which can be interpreted as to how TA has segmented its market in and out of the country.

Demographic Segmentation is also used in their STP plan but, doesn’t yield high results as compared to the rest. Demographic segmentation doesn’t keenly concentrate on what a visitor is looking at, but just segments the market on actual figures like age, gender, incomes, family and its lifecycle, etc,.

The best and most efficient segment that Tourism Australia derived and uses it to its fullest is the Psychographic segmentation, with dedicated significance on ‘interests’ of the visitor. Various segments like, ecotourism, backpacker tourism, cruise tourism, spa and wellness tourism, beach tourism, golf tourism, adventure tourism and other such sub segments and types of tourism were created keeping in mind the previous year’s data and facts. On the basis of research and results, these segments were derived at which proved to be beneficial to the Australian Tourism Board in terms of monetary benefits as well as benefits to the visitor, where in they can easily identify their preferred segment.

Behavioural segmentation is also observed in the marketing and segmenting of the destination by Tourism Australia, with focus on social-status and occasions. Many new segments are created time after time, keeping occasions in mind, like, special tour packages on Boxing Day, Christmas and New Years, and also a special program that is dedicated to the aborigines of the continent Island.

After studying the bases of segmentation that Tourism Australia has put into practice and relating it to the past results, facts, figures and the various research’s that are undertaken to study how beneficial the whole segmentation process has been, it is quite a happy news for the Australian Tourism Board as well as for the Tourism Research Australia Organization.

the phenomenon arising from temporary visits or stay away from home outside the normal place of residence for any reason other than furthering an occupation remunerated from the place visited

The main activities of the tourism and hospitality industry are to help the people for their best comfort and entertainment in terms of service and extra facilities. The best service and quality can provide some extra brand equity for the organization. Airlines,hotels,travel industry all are hospitality and tourism related industry those are always looking forward for how they can provide the best service quality and flexibility for their target market.

Lickerish and Jenkins credit the sustained growth of tourism to the growth in disposable income and paid holiday; it is now the one of the fastest growing industries in the world. The world Tourism Industry expects international tourist arrivals worldwide to rise from 456m in 1990 to 660m in 2000 and 937m in 2010.(World Tourism Organization(WTO)1986).

1.1 Company Background

Radisson is one of the world’s leading global hotel brands. It delivers vibrant, contemporary and engaging hospitality that is characterized by its unique Yes I Can!SM service philosophy. First-class, full-service hotels with a range of World of Radisson features that have been created specifically to be empathetic to the challenges of modern travel, including its 100% Guest Satisfaction Guarantee.

Worldwide Portfolio

Radisson has a strong worldwide portfolio and continues to grow with a focus on adding key hotels in major cities, airport gateways, leisure destinations and other important locations. Radisson currently has over 430 hotels operating throughout the world with 103 contracted properties under development.

Radisson is expanding as a powerful, globally consistent, full-service hotel brand, offering vibrant, contemporary and engaging hospitality that is defined by its distinctive Yes I Can! service philosophy. All of our hotels and resorts offer a range of World of Radisson features that are empathetic to the challenges of modern travel.

Expanding global presence

Radisson continues to expand its presence in key destinations in The Americas, Asia Pacific and Europe, the Middle East and Africa, reaching new markets and customers in major urban and suburban locations, as well as near airports and business districts around the world.

Yes I Can! training program delivers

As part of its focus on guest satisfaction, Radisson offers one of the hospitality industry’s most dynamic guest service training programs called Yes I Can! This program translates the core of the company’s service philosophy for hospitality excellence to the front-line service employees in Radisson operations worldwide. Celebrating its 20 year milestone in 2007, Yes I Can! has become a central part of the Radisson culture, creating a point of difference for the brand.

Our goal at Radisson is 100% Guest Satisfaction. If you are not satisfied with something, please let one of our staff know during your stay and we’ll make it right or you won’t pay. It’s Guaranteed.

2.0 Marketing concept of Radisson

Carlson Sets New Marketing Strategy for its Radisson Brand: New Guest Room Concepts,

New Restaurant Concepts and New Service Concepts (3rd march 2010).They are thinking about the comprehensive strategy for the the Radisson Hotel. Radisson brand is number one Brand of the worlds leading brand.”Yes I can” strategy leading them to be a strong positioned by delivering very good quality service in hospitality industry. They are operating their business including some new concept for their service. Like new room, new restaurant concept and series of new service and customer loyalty program.

“We believe this is a great time to invest in the hotel business. With Ambition 2015, we have a comprehensive and compelling strategy to build the business,” said Hubert Joly, president and chief executive officer, Carlson.

Ambition 2015 will focus on four priority growth initiatives including(Ambition 2015 strategy):

Expanding Radisson as a powerful, globally consistent first-class brand.

Accelerating the growth of Country Inns & Suites By Carlson in four key markets: United States, Canada, India and Mexico.

Growing Park Inn as a winning mid-scale brand across theatres in key countries.

Continuing to grow in key emerging markets, with greater emphasis on mid-scale.

These strategies will be supported by savings in marketing, sales, distribution and technology. As part of its Ambition 2015 strategy, Carlson Hotels expects to increase the contribution from brand websites to 30 percent of revenue and to double the number of members in its “goldpointsplusSM ” loyalty program.

“With 422 hotels in operation and 90 in the contracted pipeline, Radisson is one of the most well-known and fastest-growing brands in the world, delivering market leading guest satisfaction and achieving superior RevPar penetration internationally,” said Hubert Joly, president and CEO of Carlson. “We have crystallized the success formula for the brand, improved it and are using it as the foundation for its future development.”

Radisson using market differentiates strategy and focus on service uniqueness with high cost. To differentiate their product they are following different kind of strategy for their customer loyalty and providing some extra facilities for their customers.

2.1 Marketing Strategy of Radisson

Under the leadership of its former president, Radisson’s strategy focused on growth and the firm added hotels at the rate of about one hotel every seven days. By 1997, Radisson’s “growth at any cost” strategy left Radisson with a significant diversity in hotel quality and an “unfocused” brand image. Alignment with hotel owners (more than hotel guests) also seemed to cause Radisson’s customer service and hotel management expertise to atrophy.

In 1997 and 1998, Mr. Brian Stage, Radisson’s President, and Ms. Maureen O’Hanlon, Radisson’s Executive Vice President, took several initiatives to drive the organization towards becoming a more customer-focused brand. In their words, they “re-discovered that their primary customers should be the guests — not the owners.” Some of these initiatives included a service guarantee, a guest satisfaction measurement program, an employee satisfaction measurement program, and an information technology initiative. Stage and O’Hanlon were committed to creating the systems and programs that would bring Radisson into the 21-st century as a truly “customer-driven learning organization.” Their goal was to make Radisson the “most trusted and respected brand worldwide.” They were hopeful that these initiatives would make a significant contribution to helping Radisson achieve these goals. Service Quality Performance Metrics

Radisson uses four service quality performance metrics based on room comment cards solicited from hotel guests:

Willingness to return — percent of customers who indicate that they are willing to return.

Percent advocates — percent of customers who indicate a willingness to recommend Radisson Hotels to others.

Percent defectors — percent of customers who indicate that they are unwilling to return.

Percent complaints — ratio of complaints to room nights.

Information systems, under the leadership of Radisson’s Vice President of Knowledge Resources, Mr. Scott Heintzeman, produces a “dashboard” for each hotel that includes these and other more financial measures. The one-page dashboard is Radisson’s “balanced scorecard “for each hotel. These measures are often supplemented with ad hoc marketing research. This paper focuses on the service guarantee initiative, the four strategic service quality performance metrics that support the implementation and evaluation of that initiative, and a new measure called “employee motivation and vision” that was found to correlate highly with Radisson’s service quality performance metrics.

RADISSON’S SERVICE GUARANTEE

The Service Guarantees Concept Hart2,3, Hill4, and others5,6 have argued persuasively that service guarantees can help many firms to position themselves in the market by clearly defining their value proposition to customers and employees. Service guarantees also “stress” front-line workers to deliver high-quality service the first time, encourage customers to voice their complaints to the firm, and motivate and enable workers to quickly discover and recover dissatisfied customers. Hays and Hill7 at the University of Minnesota developed a model (Figure 1) to show how service guarantees affect service quality and, ultimately, business performance. In this model, they argue that a strong service guarantee improves customer satisfaction, service quality, and customer loyalty through three intervening variables: Marketing Communications Impact, Employee Motivation and Vision, and Organizational Service Learning. These are defined in the following paragraphs.

Figure 1. Service guarantees and business performance

Marketing communications impact (MCI)

Business performance (BP)

Employee motivation and vision (EMV)

Service guarantee strength (SGS)

Customer satisfaction Service quality Customer loyalty (SQL)

Organizational service learning (OSL)

Marketing Communications Impact (MCI) A strong service guarantee will have both offensive and defensive marketing impact. Offensively, firms can use a service guarantee to proclaim the reliability of their high quality service and thus attract new customers. Defensively, a service guarantee not only enables companies to recover unsatisfied customers but also encourages dissatisfied customers to complain, thus allowing the firm to recover those customers. Employee Motivation and Vision (EMV) – A strong service guarantee motivates employees to fulfil the guarantee and to satisfy customers. The guarantee clearly defines the employee’s job as satisfying customers – not just taking reservations, checking out customers, or cleaning rooms. It can also inspire a new vision for service quality when employees are challenged to really satisfy customers’ true needs. Hill8 quotes one senior European executive who proclaimed that “our service guarantee defines the mission for our firm.” Organizational Service Learning (OSL) – A strong service guarantee can help organizations discover dissatisfied customers and learn from them in order to improve service quality. Organizations with a strong service guarantee will tend learn how to satisfy customers faster than organizations without one. When marketing communications impact (MCI), employee motivation and vision (EMV), and organizational service learning (OSL) are improved, then service quality, customer satisfaction, and customer loyalty (SQL) should also improve. Business performance (BP) will improve as a result of improved SQL.

2.1.1 Guerrilla Marketing

When using social media for marketing it is not about broadcasting – it’s about engaging. The most successful campaign is the one that engages and activates the most people to become the brand’s ambassador.

The Radisson Blu Hotel brand with hotels in over 200 locations world-wide has started such a campaign. It seems to have started mid-May but is reaching its tipping point these days and is spreading fast.

It’s actually a very simple competition. They are giving away “the greatest holiday in the world”, probably inspired by the best job in the word. And the greatest holiday on Earth is 365 free nights at any Radisson Blu hotel in the world that the winner can use over the next five years. All you have to do to participate is signing up and telling the world why you should win.

It’s then up to the users to get as many people as possible to vote for them but each person can vote once every day. The one with the most votes at the end of the competition on July 24th will be the winner of the 365 free nights at any Radisson Blu. Simple and effective. Last Sunday night about 1500 people had signed up and now, on Wednesday, there are about 3000 people competing. And those 3.000 people are now all actively promoting their spot in the competition and the hotel brand at the same time. Not bad!

To encourage people further Radisson has enabled sharing options for twitter, face book and a number of other social networks and lists ideas on how people can promote themselves offline. One important thing is lacking though, which is a badge to put on a blog that automatically updates the ranking and encourages people to vote.

2.1.2 Viral Marketing
Radisson Hotel is providing the Best Online Rate Guarantee for their customers.

Radisson.com, their homepage is customer’s home base for the best savings. they deliver customers best online rates guaranteed. Customers can get the best online rate for their stay and they will get the best rate online – they guarantee it. When customer books their reservation on Radisson.com, they can be confident they have gotten the best rate for their next visit.

How It Works

If you find a rate on another website that is lower than the best rate on Radisson.com – and the rate is for the same date(s), same room type, same number of guests, at the same hotel and same rate terms or restrictions – let them know and they will honour the lower rate AND discount that rate by 25%.

Qualifying Rates

Radisson’s “Best Online Rate Guarantee” applies only to online rates available to the general public. Group rates, corporate rates, wholesale rates, affinity/association rates or rates which are part of a travel package do not qualify.

Radisson Customer Service will verify the rate meets all of the Best Online Rate Guarantee terms and conditions. Once confirmed you will receive the lower rate and 25% discount.

Radisson guarantees that Radisson.com will have the best online rate available to their guests.

3.0 Public Relation Method

March 24th, 2008, Radisson Hotel, “Effective Business Solutions” seminar

On 24th of March, the Bulgarian “Cash” newspaper arranged the “Effective business solutions” seminar in Radisson Hotel. The event was focused on ERP and CRM systems in order to help managers of trading and production companies raise the efficiency of their business processes. The top IT leaders were invited to present their products and Neme schek Bulgaria was one of them. In their exposition, the specialists of Nemetschek Bulgaria emphasized on the simple adaptation of their system ( Customer Center) to the customer’s needs.

Radisson Hotels Reviews Public Relation Prior To Launch

Radisson Hotels is reviewing PR for its main hotels brand and is in the advanced stages of hiring an agency to launch a five-star hotel in Manchester.

PR manager Jacquiline Willers said the company had seen pitches from four agencies and settled on a shortlist of two for the Manchester brief, with local agency Mason Williams and London-based Pineapple PR in contention.

Fillers refused to discuss fees for the two briefs, but said: ‘We have budgets for the Manchester project and for a two-year contract to help the Radisson Edwardian brand. It may be that one gets the Manchester job and the other the wider brief.’

‘At the moment, we’re not looking at other agencies for the two-year contract, but that may change,’ she added.

Radisson Edwardian has previously used Brighter PR for its PR work. The agency is not involved in the current pitch process. Willers said the brief for the Radisson Edwardian Hotel Manchester will involve activity to drive bookings and awareness ahead of its opening in June 2004. The company claims the Manchester hotel will be the first five-star hotel ‘in the centre of the city’.

However, Manchester’s Lowry Hotel – which falls just outside the city centre in neighbouring Salford and accommodated the England football team last weekend for its friendly against Denmark – currently dubs itself the city’s only five-star hotel, sparking speculation of a feud between the two hotels.

But, Rocco Forte Hotels UK marketing director, Murray Thompson, played down talk of a spat, saying the opening of the Radisson in the city would ‘make life easier’ for the Lowry: ‘Manchester is saturated with three- and four-star hotels and it will no longer be just us saying it’s worthwhile to pay for luxury,’ he said.

Radisson SAS Hotel, Dubai Deira Creek, has appointed Stephanie AbouJaoude as its Public Relations and Communications Manager.
The property is an established landmark on the Deira Creek side and was re-branded Radisson SAS this month.

Lebanese-Canadian, AbouJaoude, takes up her new role following three years as Public Relations and Communications Executive at the InterContinental Hotel, Dubai where her main duties involved media relations, advertising and maintaining the corporate identity of the brand.

“Stephanie will spearhead all elements of internal and external communications. She will also oversee the property’s marketing programmes,” said Andreas Fluckiger, General Manager, Radisson SAS Hotel, Dubai Deira Creek.

“Her comprehensive knowledge of this property is a real asset to us and she will play an integral part in establishing this hotel under the Radisson SAS brand.”

Radisson SAS Hotel, Dubai Deira Creek has 287 guest-rooms, including 39 suites, 16 food and beverage outlets as well as meeting and events facilities.

3.1 Relationship Marketing

Radisson is part of the Carlson Hotels Worldwide system of hospitality properties which include Regent International Hotels, Radisson Hotels & Resorts, Park Plaza Hotels, Country Inns & Suites By Carlson, and Park Inn hotels. The parent company, Carlson Companies Inc., also owns and operates Radisson Seven Seas Cruises and T.G.I. Friday’s restaurants. A world leader in Relationship Marketing, Carlson maintains a consumer loyalty program known as Gold Points Rewards.

As one of the leading global hospitality companies, Radisson operates, manages and franchises 435 full-service hotels and resorts, representing more than 102,000 guest rooms in 61 countries. From its franchise partners and strategic allies, to every manager and employee at every hotel, the Radisson organization is committed to providing personalized, professional guest service and Genuine Hospitality

With its focus on total guest satisfaction, Radisson employees undergo one of the hospitality industry’s most dynamic guest relations training programs called ‘Yes, I Can!’ This program translates the core of the company’s service philosophy for hospitality excellence to the front-line service employees in Radisson operations worldwide. After more than a decade, ‘Yes, I Can!’ has become a central part of the Radisson culture, creating a point of difference for the brand in the manner with which customers are served.

Radisson hotels are named after the famous French explorer, Pierre Esprit Radisson, who visited many parts of the Upper Midwest and Canada during the 17th century.

Radisson Gold Rewards offers guests the opportunity to earn and redeem Gold Points® within an exclusive network of leading brands. Members who earn Gold Points can redeem them for free night stays, airline miles, luxury cruises, merchandise, meals, and more. In addition to all of Carlson’s brands, other major national partners in the Gold Points Rewards’ network include Thrifty Car Rental, The Flower Club and FTD.com.

Currently, Gold Points are earned at all Radisson hotels in the United States, Canada, the Caribbean, Mexico, Central and South America. Residents of these countries can earn points at Radisson SAS and Radisson Edwardian hotels in Europe as well. Members of Radisson Gold Rewards earn 1,000 Gold Points per night, up to 10,000 points per stay.

Radisson is continuing to add new hotels and resorts in key international business and leisure destinations. Examples of the company’s highly successful partnerships include the development of Radisson SAS hotels and three other Carlson hotel brands in Europe, the Middle East and Africa, and Radisson Edwardian Hotels in the United Kingdom.

Global presence and expansion into new markets is a key part of Radisson’s heritage. Radisson opened the first American-managed hotel in Moscow and today has several locations throughout Eastern Europe. Radisson’s recent entry into the United Arab Emirates, Lebanon and Saudi Arabia in December 2002, expanded the brand’s global presence to 61 countries.

3.2 Customer Loyalty

At Radisson, they are always looking for ways to give customers that little something extra. That’s why they offer Goldpoints Plus (goldpoints plusSM). It’s the rewards program that’s tailor-made for customers and their needs.

goldpoints plusSM

Free nights

· Enjoy free hotel nights starting at just 15,000 points.

· Combine a few Points + Cash for an Award Night.

Miles

· Exchange your points for miles with over 20 airlines.

Prepaid Cards

· Cash in your points for Visa® or MasterCard® Prepaid Cards.

Express Awards

· Redeem points at the hotel for Express Awards like movies, room upgrades and more.

Make a Donation

· Gift your points to the World Childhood Foundation or to offset your CO2 emissions.

And some more attractive programmes those are really help them to get a loyal customer.

100% Satisfaction

If you aren’t satisfied with something, please let one of our staff know during your stay and we’ll make it right or you won’t pay. It’s guaranteed.

Global Locations

With over 400 Radisson locations worldwide, our doors are always open to you. Ready to greet you with our signature “Yes I Can!”TM service.

Free High-Speed Internet

We don’t just want you to stay with us, we want you to connect with us. That’s why unlimited high speed Internet is free with your stay.

Full Service Restaurant and Room Service

Hungry for satisfaction? You’ll get it when you enjoy a meal in one of our full service restaurants. If you prefer to stay in, help yourself to something from our room service menu!

Business Centers

It’s easy to stay on the job even when you’re traveling. Our business centers are fully upgraded to fit the way you work today.

Pool and Fitness Centers

Spend your downtime shaping up in our modernized fitness centers or take the plunge poolside and stay fit when you’re on the go.

Meeting and Banquet Facilities

Whether you’re planning a business meeting or a family celebration, we’re here to help. With the space and the services that will make your event special in every way.

4.0 Effectiveness of Marketing and Public Relation strategy

Change and innovation is a very big factor for the hospitality and tourism industry. World is changing so fast and technology as well and organizations are bound to follow the all things in terms of their business activity. They need to follow and need to change their marketing or business strategy based on the change of other activities in the market. which is very effective for the brand and for the business as well.

One of the leading brands in the hotel industry is Radisson which is very careful about their target market and their brand image. They are working with their strategy with innovation and change which make their customers loyal and more dependant and trustable.

The marketing strategy for Radisson is really effective in terms of the public relation. Because

They are making their customers more aware about their extra facilities and service quality.

As an example, Carlson announced the global roll out of five new room concepts (march 3,2010)- And Relax, Naturally Cool, New York Mansion, Ocean and Urban. All of the concepts share a vibrant and contemporary design, the use of bold colours and lighting, and a comfortable feeling.

The plan also set up a variety of service concepts covering the key touch points of the guest experience including, for example, Business Class and three-hour laundry. Business Class will offer customers the best available room, breakfast, turn-down service, upgraded bathroom amenities, a daily newspaper and other amenities depending on the market.

Effective Integrated Marketing Strategy

Integration marketing happens when two different, but complementary offers are made in succession, or when a “Unit of Marketing Value” is placed in front of an existing traffic stream. Radisson offers “sleep number” beds in many of their rooms. These beds allow guest to adjust the firmness to their liking. In this case, the integration is that, as a Radisson customer, they are entitled to receive “Free home delivery, setup and removal” OR “$150 worth of accessories” on select Sleep Number beds. The promotion is co-branded to reinforce that being a Radisson client has its special perks and privileges – that they are looking out for customer’s well-being even when they are not staying at their hotel. In fact, they want the experience of sleeping in customers own bed to mimic the experience of sleeping in their bed. Integrated marketing is happening all around the guest all they have to do is look for it.

5.0 Recommendation and conclusion
According to the marketing strategy of Radisson hotel it is clear that their using the differentiation strategy where the cost of the product or service is high in terms of the quality service. To differentiate their brand they are following some unique and a bit costly service for their customers. And they are making loyal customers to provide some extra facilities. There are also following some customer loyalty programs. Like they are using goldpoints plusSM program as a customer loyalty program. Which is includes with Free nights, Miles, Prepaid Cards, Express Awards, Make a Donation.

And some more attractive programmes those are really help them to get a loyal customer.

100% Satisfaction
Global Locations
Free High-Speed Internet
Full Service Restaurant and Room Service
Business Canters
Pool and Fitness Canters
Meeting and Banquet Facilities

So they are getting loyal customers and serving very quality service with some extra facilities and differentiating their brand than others.

But regarding the cost of their service they are losing some price sensitive customers in the market and from their target market in terms of substitute hotels or competitors. So it will be a good strategy to be a bit flexible about the price which can give them some more amounts of loyal customers.

It has won business and customer awards from around the world. Virgin Atlantic stands at the second largest international airline to come under the British Long Haul category. Virgin Atlantic holds a United Kingdom Civil Aviation Authority Type A Operating License, which permits it to carry passengers, cargo, and mail on aircraft with 20 or more seats. It is based out of Crawley, England. Virgin Atlantic operates a fleet of 38 aircrafts: 13 Boeing 747s and 25 Airbus A340, with a pending 6 orders of Airbus A380, and 23 orders of Boeing 787 to be delivered in 2013 and 2011 respectively. Over 9000 people are employed by the company. Virgin Atlantic has been known for it’s dfferent slogans, as shown. in the past: “Mine’s bugger than yours,” “4 Engines 4 Long haul,” “Avoid the Q,” “Keep Discovering – Until You Find The Best,” “No way BA/AA.” Virgin Atlantic not only provides the product and service, but adds its own style, and personality to it, which most corporations lack.

Geographical market

The airline industry is classified into four categories by the Department of Transportation (DOT): International – Plans require 130 or more seats, and usually travel without many limitations destination-wise, and have an annual revenue of one billion or more American Dollars.

National – Airlines with capacities of about 100 – 150 people, with an annual revenue between $100 million and $1 billion;

Regional – Largely only used for short haul flights, these usually constitute of a total revenue less that $100 million;

Cargo – Airlines that primarily deal with transportation of goods, rather than passengers.

PEST Analysis
Political Factors

State owned airlines are particularly affected by these factors. Parts of their business has to be done with consideration regarding routes, free seating for ministers, etc. Private airlines do this as/when it is convenient, and would not go out on a limb. Archaic laws apply on State owned airlines regarding labour regulations, retirement age, etc. which decreases management options due to the strength of the Union, and the controlling of the government. This affects the quality of the service delivery & therefore these airlines have to think of innovative service marketing ideas which overcome their problems, while keeping them in the running against private airlines.

Economic Factors

Business cycles control a large part of the industry. At peaking phases people indulge themselves in travel and fares can be increased. However at economic recession, air travel is considered a luxury, and use of it is often decreased considerably, which leads to minimising business for the airlines, and lower rates.

The terrorist attacks known by their date, September 11, led to a global recession, with the depression of the consumers. The loss of income for airlines led to higher operational costs due to lower demand and higher insurance costs, which increased after the terrorist attacks. This left the industry with little choice but to lay off employees, which increases unemployment, decreases consumer spending, thus decreasing their sales. Even the SARS outbreak in the Far East was a major cause for slump in the airline industry.

Social Factors

The changing travel habits of people have very wide implications for the airline industry. In UK, there are varied income groups, with varied ethnicities. The airlines have to recognize these individuals and should serve them accordingly. The destination, kind of food etc all has to be chosen carefully in accordance with the tastes of their major clientele, while keeping the variety in mind.

Another good example would be the case of South West Airlines which occupies a solid position in the minds of the US air travelers as a reliable and convenient, fun, low fare, and no frills airline. The major element of its success was the augmented marketing mix which it used very effectively. What South West did was it made the environment inside the plane very consumer friendly. The crew neither has any uniform nor does it serve any lavish foods, which indirectly reduces the costs and makes the consumers feel comfortable.

Technological Factors

Internet alone has drastically changed the airline industry. Air Sahara has introduced a service through the internet, wherein the unoccupied seats are auctioned one week prior to the departure, as an example.

Also, most airlines provide many internet based services to its customer such as online ticket booking, updated flight information & handling of customer complaints

THE COMPETITION

As an independent airline, Virgin Atlantic successfully competes on all of its routes with most of the industry’s major national carriers. These include British Airways, bmi british midland, American Airlines, Continental, Delta and United on transatlantic routes; BA and SAA to South Africa; BA, ANA, Cathay Pacific and JAL to the Far East; BA to Delhi.

THE COMPETITORS SALES AND PROFIT TRENDS

The airlines industry is very competitive, although the barriers of entry for new airlines are lower in a market with a lack of government regulation. A deregulated market occurs when a government does not dictate airfares, route networks, and other operational requirements for airlines. Deregulation has produced far greater competition and because of this, average fares tend to drop 20% or more. [4] The competition, combined with the freedom of pricing, limit a new airline from competing at it’s stage, but also acts as a major constraint on profitability for established carriers, which tend to have a higher cost base.

TABLE 1: Top 25 Global Airlines Revenue 2006

Airline Lists

2006 Revenues (Million US)

%

Air France KLM

28,945.00

10.28

Lufthansa

24,903.70

8.85

AMR Corporation

22,563.00

8.02

Japan Airlines System Corporation

18,905.40

6.72

UAL Corporation

17,882.00

6.35

Delta Air Lines, Inc.

17,171.00

6.10

Continental AG

13,128.00

4.66

Northwest Airlines Corporation

12,568.00

4.47

All Nippon Airways Co., Ltd.

11,765.80

4.18

US Airways Group, Inc.

11,557.00

4.11

British Airways Plc

10,654.60

3.79

Qantas Airways

10,272.20

3.65

Singapore Airlines Limited

9,119.30

3.24

Southwest Airlines Co.

9,086.00

3.23

Air Canada Inc

8,934.40

3.17

Korean Air Lines Co., Ltd.

8,328.60

2.96

SAS Group

8,236.90

2.93

Cathay Pacific Airways Limited

7,823.80

2.78

Emirates Group

7,423.20

2.64

Iberia

6,473.80

2.30

Alitalia-Linee Aeree Italiane S.p.A.

5,927.50

2.11

Virgin Group

3,518.10

1.25

TAM S.A.

2,515.50

0.89

Air India

2,060.80

0.73

ExpressJet Holdings, Inc.

1,679.60

0.60

Total

281,443.20

100.00

Source : Datamonitor (www.computerwire.com)

MARKET SHARE:

The Company’s Market Share:

Year
Total passengers carried
Total cumulative

1984

124,711

124,711

1985

245,404

370,115

1986

289,060

659,175

1987

464,196

1,123,371

1988

626,319

1,749,690

1989

619,506

2,369,196

1990

837,136

3,206,332

1991

1,044,760

4,251,092

1992

1,239,011

5,490,103

1993

1,398,834

6,888,937

1994

1,679,403

8,568,340

1995

2,029,624

10,597,964

1996

2,293,802

12,891,766

1997

2,806,538

15,698,304

1998

3,201,795

18,900,099

1999

3,622,402

22,522,501

2000

4,280,513

26,803,014

2001

4,105,115

30,908,129

2002

3,808,687

34,720,689

2003

3,850,578

38,571,267

Source: http://www.virgin-atlantic.com/en/gb/allaboutus/ourstory/forstudents.jsp

Target Markets:

Virgin Atlantic offers very individualized services to their customers, due to their belief in the importance of individuals. Virgin Atlantic has targeted upper class customers who are primarily business passengers traveling on transatlantic routes. Virgin Atlantic realized the opportunity to gain a considerable market share through effective marketing of their “quality, fun, innovative, honest, and caring” airline.

Business travels are often those who travel several times through a year, and often tend to purchase upgraded services, which is beneficial for the airline. On the other hand, leisure travelers are less likely to purchase these premium services as they are usually price sensitive. In times of economic uncertainty or sharp decline in consumer confidence it is expected for the amount of leisure travelers to decline.

The Company’s Sales and Profit Trends:
Y/E April 2003 2004 2005 2006 2007

TURNOVER ?1401m ?1272m ?1630m ?1912m ?2140m

PROFIT ?15.7m ?20.9m ?20.1m ?41.6m ?46.8m

SWOT Analysis
Strengths
Weaknesses

-Brand image

-Increased traffic

-Financial strength

-Declining market share in key markets

-Lack of scale

Opportunities
Threats

-Expanding passenger traffic in Asia

-Increase in trans-pacific cargo

-Partnership with ANA

-Cargo price-fixing investigation

-Rising aviation fuel prices

-Terrorist attacks and scares deter passengers

from flying

Source: Virgin Atlantic Datamonitor

Strengths

Strong brand image

Virgin Atlantic is a part of Richard Branson’s Virgin Group, which has strong brand image, and is known across most of the world.

Increased passenger and cargo traffic

Virgin Atlantic recorded higher passenger and cargo traffic in 2006, as compared to

2005. The number of passengers carried by the company rose by 3.7% to 4.5 million.

The quantity of cargo and mail carried increased by 9.1% to 163,165 tons.

Strong financial position

The company has witnessed strong revenue growth in fiscal 2006. It recorded revenues of ?1,912 million in fiscal 2006, an increase of 17.3% from 2005. The operating profit of the company was ?41.6 million during fiscal year 2006 as compared to ?20.1 million in 2005. Moreover, the operating margin of the company also increased from 1.2% in 2005 to 2.2% in 2006.

Privately Owned

Virgin Atlantic is privately owned; therefore, decisions can made quickly.

Weaknesses

Declining market share in key markets

Despite strong brand image and improved financial performance, Virgin Atlantic’s market share has declined in most of its markets in 2006. Its market share in New York, East Coast, Caribbean, India and China has declined from 25%, 21%, 59%, 23% and 22% in 2005 to 24%, 17%, 57%, 18% and 8%, respectively, in 2006.

Lack of scale

The company operates 27 destinations whereas, its top competitors British Airways and

Thai Airways International operates 148 and 600 destinations worldwide.

Opportunities

Expanding passenger traffic in Asia Pacific

Driven by increased economic activity in emerging Asian countries such as

China and India, demand for air travel to the Asia Pacific is rising. Virgin Atlantic already has significant presence in this region and is well positioned to benefit from increasing air travel to Asia.

Increase in trans-pacific cargo

The outlook for trans-pacific cargo market is positive. During 2006-2009, the market is expected to increase by an average of 7%, an increase from a 4.3% average annual growth recorded during 1999-2004. Because Virgin Atlantic operates Virgin Cargo, a worldwide air cargo business, this will allow opportunity for the company to further strengthen its market position in cargo.

Partnership with ANA

In September 2006, Virgin Atlantic announced that it has teamed up with one of the world’s ten largest airlines, All Nippon Airways (ANA), which allows Virgin Atlantic passengers to fly to Japan on ANA’s domestic services. This new arrangement with ANA would enable the company to offer better service to its customers.

Threats

Cargo price-fixing investigation

The US Justice Department and the executive body of the European Union have launched an investigation into allegations of price-fixing in the air cargo industry in February 2006 and one of the company’s investigated was Virgin Atlantic. If the company is found to have participated in price-fixing, it may have to pay a significant fine and investor confidence could also be impacted.

Rising aviation fuel prices

Due to the rising oil prices globally, the prices of aviation fuel have increased substantially. This could impact Virgin Atlantic’s margins as it is mostly reliant on air freight business.

Terrorist attacks and scares can deter passengers from flying

When terrorist attacks occur, it places fear in potential customers, and can deter individuals from flying.

SEGMENTATION

Virgin Atlantic has two primary segments: Upper Class, and Economy class, with Economy Class segmented further to Premium Class, and Regular Economy, consisting of regular economy fare and coach fares. The premium class includes a separate economy cabin for full fares and option to pay extra for chauffeur driven cars and clubhouse lounges. The Upper Class is generally comprised of males between 35 to 45 years of age and that earn more than $75,000 a year. The Premium Economy is used evenly by business and leisure travelers, usually around 40 years of age.

Marketing mix:
Product

For an airline, a marketing mix must be developed keeping both in-flight services, and ground services in mind, while also considering it as a tangible product, as well as a service.

On the ground, transportation to and from the airport, online bookings, and check in services as well as duty free shopping, and parking options.

In-flight services are most customers’ primary focus. Staff training becomes essential here, to allow customers to feel approached as they would appreciate, in order to to form customer loyalty and satisfaction.

Price

Most airlines use competitive pricing for both economy and business travellers. The ticket fare is divided like so:

Basic fares; subject to availability, class and destination.

Insurance; standardised.

Inland Aviation Travel Tax (IATT); depending on the country intended to travel to.

Passenger Service Fee (PSF); standardised.

Also airlines use seasonal pricing. Tickets are usually more expensive when purchased during peak seasons such as holidays.

Promotion

In the UK advertising consists primarily of TV, press, magazines, outdoor posters and taxi sides, all featuring our distinctive logo. Advertising allows awareness to be raised of current products, their improvements, and new products, as well as appeal to consumers personally. Postal service allows more direct advertising to target markets and consumers, while informing known customers of improvements.

During traditionally low seasons, tactical promotions and price advertising are also used to maximise aircraft capacity.

Virgin Atlantic operates a frequent flyer programme, flying club to encourage loyalty in existing flyers.

Virgin also markets to travel agents, who are the primary distributors of their airline seats. Along with the usual advertisements, the sales team offers various trade incentives, familiarization trips, and educational/social event deals.

Conclusion:

Marketing is, very evidently, the Virgin Antlantic’s key strength. However, the airlines limitations in destinations, is restraining their growth increase. Richard Branson, himself suggested that Virgin Atlantic will be able to reach market-leader reputation if expand from the trans-Atlantic routes, to across the world, while keeping its service, which acts as its key difference between them, and the rest.

Tourism is defined by Burkart & Medlik as: “the phenomenon arising from temporary visits(or stay away from home)outside the normal place of residence for any reason other than furthering an occupation remunerated from the place visited”

Lickorish and Jenkins credit the sustained grouth of tourism to the grouth in disposable income and paid holiday;it is now the one of the fastest growing industries in the world.the world Tourism Industry expects international tourist arrivals worldwide to rise from 456m in 1990 to 660m in 2000 and 937m in 2010.(World Tourism Organization(WTO)1986).

1.1 Company Overview

Radisson is one of the world’s leading global hotel brands. It delivers vibrant, contemporary and engaging hospitality that is characterized by its unique Yes I Can!SMservice philosophy. First-class, full-service hotels with a range of World of Radisson features that have been created specifically to be empathetic to the challenges of modern travel, including its 100% Guest Satisfaction Guarantee.

Worldwide Portfolio

Radisson has a strong worldwide portfolio and continues to grow with a focus on adding key hotels in major cities, airport gateways, leisure destinations and other important locations. Radisson currently has over 430 hotels operating throughout the world with 103 contracted properties under development.

Radisson is expanding as a powerful, globally consistent, full-service hotel brand, offering vibrant, contemporary and engaging hospitality that is defined by its distinctive Yes I Can! service philosophy. All of our hotels and resorts offer a range of World of Radisson features that are empathetic to the challenges of modern travel.

Expanding global presence

Radisson continues to expand its presence in key destinations in The Americas, Asia Pacific and Europe, the Middle East and Africa, reaching new markets and customers in major urban and suburban locations, as well as near airports and business districts around the world.

Yes I Can! training program delivers

As part of its focus on guest satisfaction, Radisson offers one of the hospitality industry’s most dynamic guest service training programs calledYes I Can! This program translates the core of the company’s service philosophy for hospitality excellence to the front-line service employees in Radisson operations worldwide. Celebrating its 20 year milestone in 2007,Yes I Can!has become a central part of the Radisson culture, creating a point of difference for the brand.

Our goal at Radisson is 100% Guest Satisfaction. If you are not satisfied with something, please let one of our staff know during your stay and we’ll make it right or you won’t pay. It’s Guaranteed.

2.0 Concept of Marketing

Carlson Sets New Marketing Strategy for its Radisson Brand: New Guest Room Concepts,

New Restaurant Concepts and New Service Concepts

ORLANDO, Fla. (March 3, 2010) – As part of its Ambition 2015 plan, Carlson today unveiled a comprehensive strategy for its Radisson brand. As one of the world’s leading brands, Radisson is being positioned to deliver vibrant, contemporary and engaging hospitality characterized by the Yes I Can! service philosophy. The positioning is being supported by a series of innovations including new room concepts, new restaurant concepts and a series of new service concepts focused on the guest experience. The strategy for Radisson will entail an investment program of up to USD 1.5 billion in North America, focused on establishing flagship hotels in key U.S. cities and on upgrading the existing portfolio.

It aims to expand its portfolio by at least 50 percent by 2015 to more than 1,500 hotels in operation.

“We believe this is a great time to invest in the hotel business. With Ambition 2015, we have a comprehensive and compelling strategy to build the business,” said Hubert Joly, president and chief executive officer, Carlson.

Ambition 2015 will focus on four priority growth initiatives including:

Expanding Radisson as a powerful, globally consistent first-class brand.
Accelerating the growth of Country Inns & Suites By Carlson in four key markets: United States, Canada, India and Mexico.
Growing Park Inn as a winning mid-scale brand across theaters in key countries.
Continuing to grow in key emerging markets, with greater emphasis on mid-scale.

The strategy entails continuing the growth in key emerging economies such as Brazil, Russia, India and China, where it has gained significant strength. For example, Carlson is the largest and fastest growing international hotel company in India with 79 hotels in operation or contracted at the end of 2009.

These strategies will be supported by investments in marketing, sales, distribution and technology. As part of its Ambition 2015 strategy, Carlson Hotels expects to increase the contribution from brand websites to 30 percent of revenue and to double the number of members in its goldpointsplusSM loyalty program.

“With 422 hotels in operation and 90 in the contracted pipeline, Radisson is one of the most well-known and fastest-growing brands in the world, delivering market leading guest satisfaction and achieving superior RevPar penetration internationally,” said Hubert Joly, president and CEO of Carlson. “We have crystallized the success formula for the brand, improved it and are using it as the foundation for its future development.”

As part of this strategy, Carlson announced the global roll out of five new room concepts – And Relax, Naturally Cool, New York Mansion, Ocean and Urban. All of the concepts share a vibrant and contemporary design, the use of bold colors and lighting, and a comfortable feeling.

The global strategy also includes two new restaurant concepts. Filini will offer an upscale, sophisticated Italian cuisine, while rbg is a bar-and-grill concept in an inviting, contemporary setting.

The strategy also introduces a range of service concepts covering the key touch points of the guest experience including, for example, Business Class and three-hour laundry. Business Class will offer customers the best available room, breakfast, turn-down service, upgraded bathroom amenities, a daily newspaper and other amenities depending on the market.

As part of this strategy, the Radisson brand will be tiered across the upper upscale and upscale segments. Radisson Blu will be applied to the upper upscale segment and Radisson “Green” will be applied to the upscale segment. Both will share the same brand essence – vibrant, contemporary and engaging – the same style and many of the service concepts. The differentiation will primarily be location based – key location in a primary city versus a secondary market. It will typically be reflected in the level of investment that goes into the property.

The strategy will include the implementation of the brand’s new global standard operating procedures, a new quality assurance program and intensive training programs. The strategy will be supported by investments in marketing, sales and distribution as part of the overall Carlson Ambition 2015 plan.

2.1 Marketing Strategy of Radisson

Under the leadership of its former president, Radisson’s strategy focused on growth and the firm added hotels at the rate of about one hotel every seven days. By 1997, Radisson’s “growth at any cost” strategy left Radisson with a significant diversity in hotel quality and an “unfocused” brand image. Alignment with hotel owners (more than hotel guests) also seemed to cause Radisson’s customer service and hotel management expertise to atrophy.

In 1997 and 1998, Mr. Brian Stage, Radisson’s President, and Ms. Maureen O’Hanlon, Radisson’s Executive Vice President, took several initiatives to drive the organization towards becoming a more customer-focused brand. In their words, they “re-discovered that their primary customers should be the guests — not the owners.” Some of these initiatives included a service guarantee, a guest satisfaction measurement program, an employee satisfaction measurement program, and an information technology initiative. Stage and O’Hanlon were committed to creating the systems and programs that would bring Radisson into the 21-st century as a truly “customer-driven learning organization.” Their goal was to make Radisson the “most trusted and respected brand worldwide.” They were hopeful that these initiatives would make a significant contribution to helping Radisson achieve these goals. Service Quality Performance Metrics

Radisson uses four service quality performance metrics based on room comment cards solicited from hotel guests:

Willingness to return — percent of customers who indicate that they are willing to return.

Percent advocates — percent of customers who indicate a willingness to recommend Radisson Hotels to others.

Percent defectors — percent of customers who indicate that they are unwilling to return.

Percent complaints — ratio of complaints to room nights.

Information systems, under the leadership of Radisson’s Vice President of Knowledge Resources, Mr. Scott Heintzeman, produces a “dashboard” for each hotel that includes these and other more financial measures. The one-page dashboard is Radisson’s “balanced scorecard “for each hotel. These measures are often supplemented with ad hoc marketing research. This paper focuses on the service guarantee initiative, the four strategic service quality performance metrics that support the implementation and evaluation of that initiative, and a new measure called “employee motivation and vision” that was found to correlate highly with Radisson’s service quality performance metrics.

RADISSON’S SERVICE GUARANTEE

The Service Guarantees Concept Hart2,3, Hill4, and others5,6 have argued persuasively that service guarantees can help many firms to position themselves in the market by clearly defining their value proposition to customers and employees. Service guarantees also “stress” front-line workers to deliver high-quality service the first time, encourage customers to voice their complaints to the firm, and motivate and enable workers to quickly discover and recover dissatisfied customers. Hays and Hill7 at the University of Minnesota developed a model (Figure 1) to show how service guarantees affect service quality and, ultimately, business performance. In this model, they argue that a strong service guarantee improves customer satisfaction, service quality, and customer loyalty through three intervening variables: Marketing Communications Impact, Employee Motivation and Vision, and Organizational Service Learning. These are defined in the following paragraphs.

Figure 1. Service guarantees and business performance

Marketing communications impact (MCI)

Business performance (BP)

Employee motivation and vision (EMV)

Service guarantee strength (SGS)

Customer satisfaction Service quality Customer loyalty (SQL)

Organizational service learning (OSL)

Marketing Communications Impact (MCI) A strong service guarantee will have both offensive and defensive marketing impact. Offensively, firms can use a service guarantee to proclaim the reliability of their high quality service and thus attract new customers. Defensively, a service guarantee not only enables companies to recover unsatisfied customers but also encourages dissatisfied customers to complain, thus allowing the firm to recover those customers. Employee Motivation and Vision (EMV) – A strong service guarantee motivates employees to fulfil the guarantee and to satisfy customers. The guarantee clearly defines the employee’s job as satisfying customers – not just taking reservations, checking out customers, or cleaning rooms. It can also inspire a new vision for service quality when employees are challenged to really satisfy customers’ true needs. Hill8 quotes one senior European executive who proclaimed that “our service guarantee defines the mission for our firm.” Organizational Service Learning (OSL) – A strong service guarantee can help organizations discover dissatisfied customers and learn from them in order to improve service quality. Organizations with a strong service guarantee will tend learn how to satisfy customers faster than organizations without one. When marketing communications impact (MCI), employee motivation and vision (EMV), and organizational service learning (OSL) are improved, then service quality, customer satisfaction, and customer loyalty (SQL) should also improve. Business performance (BP) will improve as a result of improved SQL.

2.1.1 Guerrilla Marketing

When using social media for marketing it is not about broadcasting – it’s about engaging. The most successful campaign is the one that engages and activates the most people to become the brand’s ambassador.

The Radisson Blu Hotel brand with hotels in over 200 locations world-wide has started such a campaign. It seems to have started mid-May but is reaching its tipping point these days and is spreading fast.

It’s actually a very simple competition. They are giving away”the greatest holiday in the world”, probably inspired by the best job in the word. And the greatest holiday on Earth is 365 free nights at any Radisson Blu hotel in the world that the winner can use over the next five years. All you have to do to participate is signing up and telling the world why you should win.

It’s then up to the users to get as many people as possible to vote for them but each person can vote once every day. The one with the most votes at the end of the competition on July 24th will be the winner of the 365 free nights at any Radisson Blu. Simple and effective. Last Sunday night about 1500 people had signed up and now, on Wednesday, there are about 3000 people competing. And those 3.000 people are now all actively promoting their spot in the competition and the hotel brand at the same time. Not bad!

To encourage people further Radisson has enabled sharing options for twitter, face book and a number of other social networks and lists ideas on how people can promote themselves offline. One important thing is lacking though, which is a badge to put on a blog that automatically updates the ranking and encourages people to vote.

2.1.2 Viral Marketing
Radisson Hotel is providing the Best Online Rate Guarantee for their customers.

Radisson.com, their homepage is customer’s home base for the best savings. they deliver customers best online rates guaranteed.Customers can get the best online rate for their stay and they will get the best rate online – they guarantee it. When customer books their reservation on Radisson.com, they can be confident they have gotten the best rate for their next visit.

HowIt Works

If you find a rate on another website that is lower than the bestrate on Radisson.com – and the rate is for the same date(s), same room type, same number of guests, at the same hotel and same rate termsor restrictions- let them know andthey will honour the lower rate AND discount that rate by 25%.

Qualifying Rates

Radisson’s “Best Online Rate Guarantee” applies only to online rates available to the general public. Group rates, corporate rates, wholesale rates, affinity/association rates or rates which are part of a travel package do not qualify.

Radisson Customer Service will verify the rate meets all of the Best Online Rate Guarantee terms and conditions. Once confirmed you will receive the lower rate and 25% discount.

Radissonguarantees that Radisson.com will have the best online rate available to their guests.

3.0 Public Relation Method

March 24th, 2008, Radisson Hotel, “Effective Business Solutions”seminar

On 24th of March, the Bulgarian “Cash” newspaper arranged the “Effective business solutions” seminar in Radisson Hotel. The event was focused on ERP and CRM systems in order to help managers of trading and production companies raise the efficiency of their business processes. The top IT leaders were invited to present their products and Neme schek Bulgaria was one of them. In their exposition, the specialists of Nemetschek Bulgaria emphasized on the simple adaptation of their system ( Customer Center) to the customer’s needs.

Radisson Hotels Reviews Public Relation Prior To Launch

Radisson Hotels is reviewing PR for its main hotels brand and is in the advanced stages of hiring an agency to launch a five-star hotel in Manchester.

PR manager Jacquiline Willers said the company had seen pitches from four agencies and settled on a shortlist of two for the Manchester brief, with local agency Mason Williams and London-based Pineapple PR in contention.

Willers refused to discuss fees for the two briefs, but said: ‘We have budgets for the Manchester project and for a two-year contract to help the Radisson Edwardian brand. It may be that one gets the Manchester job and the other the wider brief.’

‘At the moment, we’re not looking at other agencies for the two-year contract, but that may change,’ she added.

Radisson Edwardian has previously used Brighter PR for its PR work. The agency is not involved in the current pitch process. Willers said the brief for the Radisson Edwardian Hotel Manchester will involve activity to drive bookings and awareness ahead of its opening in June 2004. The company claims the Manchester hotel will be the first five-star hotel ‘in the centre of the city’.

However, Manchester’s Lowry Hotel – which falls just outside the city centre in neighbouring Salford and accommodated the England football team last weekend for its friendly against Denmark – currently dubs itself the city’s only five-star hotel, sparking speculation of a feud between the two hotels.

But, Rocco Forte Hotels UK marketing director, Murray Thompson, played down talk of a spat, saying the opening of the Radisson in the city would ‘make life easier’ for the Lowry: ‘Manchester is saturated with three- and four-star hotels and it will no longer be just us saying it’s worthwhile to pay for luxury,’ he said.

Radisson SAS Hotel, Dubai Deira Creek, has appointed Stephanie AbouJaoude as its Public Relations and Communications Manager.
The property is an established landmark on the Deira Creekside and was re-branded Radisson SAS this month.

Lebanese-Canadian, AbouJaoude, takes up her new role following three years as Public Relations and Communications Executive at the InterContinental Hotel, Dubai where her main duties involved media relations, advertising and maintaining the corporate identity of the brand.

“Stephanie will spearhead all elements of internal and external communications. She will also oversee the property’s marketing programmes,” said Andreas Fluckiger, General Manager, Radisson SAS Hotel, Dubai Deira Creek.

“Her comprehensive knowledge of this property is a real asset to us and she will play an integral part in establishing this hotel under the Radisson SAS brand.”

Radisson SAS Hotel, Dubai Deira Creek has 287 guest-rooms, including 39 suites, 16 food and beverage outlets as well as meeting and events facilities.

3.1 Relationship Marketing

Radisson is part of the Carlson Hotels Worldwide system of hospitality properties which include Regent International Hotels, Radisson Hotels & Resorts, Park Plaza Hotels, Country Inns & Suites By Carlson, and Park Inn hotels. The parent company, Carlson Companies Inc., also owns and operates Radisson Seven Seas Cruises and T.G.I. Friday’s restaurants. A world leader in Relationship Marketing, Carlson maintains a consumer loyalty program known as Gold Points Rewards.

As one of the leading global hospitality companies, Radisson operates, manages and franchises 435 full-service hotels and resorts, representing more than 102,000 guest rooms in 61 countries. From its franchise partners and strategic allies, to every manager and employee at every hotel, the Radisson organization is committed to providing personalized, professional guest service and Genuine Hospitality

With its focus on total guest satisfaction, Radisson employees undergo one of the hospitality industry’s most dynamic guest relations training programs called’Yes, I Can!’This program translates the core of the company’s service philosophy for hospitality excellence to the front-line service employees in Radisson operations worldwide. After more than a decade,’Yes, I Can!’has become a central part of the Radisson culture, creating a point of difference for the brand in the manner with which customers are served.

Radisson hotels are named after the famous French explorer, Pierre Esprit Radisson, who visited many parts of the Upper Midwest and Canada during the 17th century.

Radisson Gold Rewards offers guests the opportunity to earn and redeem Gold PointsA® within an exclusive network of leading brands. Members who earn Gold Points can redeem them for free night stays, airline miles, luxury cruises, merchandise, meals, and more. In addition to all of Carlson’s brands, other major national partners in the Gold Points Rewards’network include Thrifty Car Rental, The Flower Club and FTD.com.

Currently, Gold Points are earned at all Radisson hotels in the United States, Canada, the Caribbean, Mexico, Central and South America. Residents of these countries can earn points at Radisson SAS and Radisson Edwardian hotels in Europe as well. Members of Radisson Gold Rewards earn 1,000 Gold Points per night, up to 10,000 points per stay.

Radisson is continuing to add new hotels and resorts in key international business and leisure destinations. Examples of the company’s highly successful partnerships include the development of Radisson SAS hotels and three other Carlson hotel brands in Europe, the Middle East and Africa, and Radisson Edwardian Hotels in the United Kingdom.

Global presence and expansion into new markets is a key part of Radisson’s heritage. Radisson opened the first American-managed hotel in Moscow and today has several locations throughout Eastern Europe. Radisson’s recent entry into the United Arab Emirates, Lebanon and Saudi Arabia in December 2002, expanded the brand’s global presence to 61 countries.

3.2 Customer Loyalty

At Radisson, they are always looking for ways to give customers that little something extra. That’s why they offer Goldpoints Plus (goldpoints plusSM). It’s the rewards program that’s tailor-made for customers and their needs.

goldpoints plusSM

Free nights

i‚· Enjoyfree hotel nightsstarting at just 15,000 points.

i‚· Combine a fewPoints + Cashfor an Award Night.

Miles

i‚· Exchange yourpoints for mileswith over 20 airlines.

Prepaid Cards

i‚· Cash in your points for VisaA®or MasterCardA®Prepaid Cards.

Express Awards

i‚· Redeem points at the hotel forExpress Awardslike movies, room upgrades and more.

Make a Donation

i‚· Gift your points to theWorld Childhood Foundationor to offset yourCO2 emissions.

And some more attractive programmes those are really help them to get a loyal customer.

100% Satisfaction

If you aren’t satisfied with something, please let one of our staff know during your stay and we’ll make it right or you won’t pay. It’s guaranteed.

Global Locations

With over 400 Radisson locations worldwide, our doors are always open to you. Ready to greet you with our signature “Yes I Can!”TMservice.

Free High-Speed Internet

We don’t just want you to stay with us, we want you to connect with us. That’s why unlimited high speed Internet is free with your stay.

Full Service Restaurant and Room Service

Hungry for satisfaction? You’ll get it when you enjoy a meal in one of our full service restaurants. If you prefer to stay in, help yourself to something from our room service menu!

Business Centers

It’s easy to stay on the job even when you’re traveling. Our business centers are fully upgraded to fit the way you work today.

Pool and Fitness Centers

Spend your downtime shaping up in our modernized fitness centers or take the plunge poolside and stay fit when you’re on the go.

Meeting and Banquet Facilities

Whether you’re planning a business meeting or a family celebration, we’re here to help. With the space and the services that will make your event special in every way.

4.0 Effectiveness of Marketing and Public Relation strategy

Hotels & Resorts is committed to change and innovation in all key areas including its growth

strategy ,operations, franchising, sales and marketing and technology, to operate with maximum effectiveness in a highly competitive business environment . Technology will undoubtedly continue to develop andRadisson Hotels should continue to progress along with it to stay on top of the

service industry as one of the best global hotelcompanies out there.

ORLANDO, Florida – As part of its Ambition 2015 plan, Carlson today unveiled a comprehensive strategy for its Radisson brand. As one of the world’s leading brands, RadissonA® is being positioned to deliver vibrant, contemporary and engaging hospitality characterized by the Yes I Can! service philosophy. The positioning is being supported by a series of innovations including new room concepts, new restaurant concepts and a series of new service concepts focused on the guest experience. The strategy for Radisson will entail an investment program of up to USD 1.5 billion in North America, focused on establishing flagship hotels in key U.S. cities and on upgrading the existing portfolio.

“With 422 hotels in operation and 90 in the contracted pipeline, Radisson is one of the most well-known and fastest-growing brands in the world, delivering market leading guest satisfaction and achieving superior RevPar penetration internationally,” said Hubert Joly, president and CEO of Carlson. “We have crystallized the success formula for the brand, improved it and are using it as the foundation for its future development.”

As part of this strategy, Carlson announced the global roll out of five new room concepts – And Relax, Naturally Cool, New York Mansion, Ocean and Urban. All of the concepts share a vibrant and contemporary design, the use of bold colors and lighting, and a comfortable feeling.

The global strategy also includes two new restaurant concepts. Filini will offer an upscale, sophisticated Italian cuisine, while rbg is a bar-and-grill concept in an inviting, contemporary setting.

The strategy also introduces a range of service concepts covering the key touch points of the guest experience including, for example, Business Class and three-hour laundry. Business Class will offer customers the best available room, breakfast, turn-down service, upgraded bathroom amenities, a daily newspaper and other amenities depending on the market.

As part of this strategy, the Radisson brand will be tiered across the upper upscale and upscale segments. Radisson Blu will be applied to the upper upscale segment and Radisson “Green” will be applied to the upscale segment. Both will share the same brand essence – vibrant, contemporary and engaging – the same style and many of the service concepts. The differentiation will primarily be location based – key location in a primary city versus a secondary market. It will typically be reflected in the level of investment that goes into the property.

The strategy will include the implementation of the brand’s new global standard operating procedures, a new quality assurance program and intensive training programs. The strategy will be supported by investments in marketing, sales and distribution as part of the overall Carlson Ambition 2015 plan.

“We have seen the power of the brand internationally and the very attractive return from renovating to the new standards,” Joly said. “The brand is poised for significant growth around the world and we expect to grow the portfolio to at least 600 hotels by 2015.”

Media interested in getting insight into Carlson’s new global vision and corporate strategy are invited to view the live webcast of Hubert Joly’s opening keynote atwww.carlsonhotelsmedia.com/ambition2015at 4:30 p.m. ET. A replay of this webcast will be available starting at 8 p.m. ET, Wednesday March 3, 2010.

Effective Integrated Marketing Strategy

Integration marketinghappens when two different, but complementary offers are made in succession, or when a “Unit of Marketing Value” is placed in front of an existing traffic stream. Radisson offers “sleep number” beds in many of their rooms. These beds allow guest to adjust the firmness to their liking. In this case, the integration is that, as a Radisson customer, they are entitled to receive “Free home delivery, setup and removal” OR “$150 worth of accessories” on select Sleep Number beds. The promotion is co-branded to reinforce that being a Radisson client has its special perks and privileges – that they are looking out for customer’s well-being even when they are not staying at their hotel. In fact, they want the experience of sleeping in customers own bed to mimic the experience of sleeping in their bed. Integrated marketing is happening all around the guest all they have to do is look for it.

5.0 Recommendation and conclusion
References

www.radision

http://www.hotel-online.com/News/PR2010_1st/Mar10_RadissonPlans.html

http://www.greatestholiday.radissonblu.com/

http://www.nemetschek.bg/press/index.htm

http://www.discoverfrance.net/Boutique/Travel/Hotels/Chains/Radisson.shtml

SERVICE GUARANTEES AND STRATEGIC SERVICE

QUALITY PERFORMANCE METRICS AT RADISSON

HOTELS WORLDWIDE

Arthur V. Hill

*

, Susan Geurs, Julie M. Hays, George John, David W.

Johnson, and Richard A. Swanson

Case Analysis: “Customer-Driven Learning at Radisson Hotels Worldwide”

ReferencesAl, L. (1993). Service guarantees in outpatient clinics: a case study. Health Care Management Review, 18 (3), 59-65. Cahill, D. J., & Warshawky, R. M. (1995). Beyond competence: unconditional guarantees as a customer-service tool. Journal of Customer Service inMarketingand Management, 1 (3), 67-77. Hart,”

Bibliography

http://travel.yahoo.com/p-hotel-360091-radisson_ambassador_plaza_hotel_and_casino-i

As the tourism is important industry in Hong Kong, more and more travel agencies use different marketing strategies to attract tourists. These travel agencies have like Hong Thai travel and Smart Holiday. Hong Thai Travel is a big organization. It is established in 1966, and now has more than one thousand employees. On the other hand, Smart Holiday is a small organization. It is established in 2007, it’s been only two years since it established. They can be existence together through use different marketing strategies. In this proposal, I will compare Hong Thai travel and Smart Holiday can be existence reasons together. I would focus on Hong Thai and Smart Holiday in Hong Kong to deeply know about the marketing strategies, that’s mean I would like to compare on marketing strategies of Hong Thai and Smart Holiday as well as what factors will affect /attract tourists, what promotion channels will use for tourists and so on.

By using questionnaires, 140 tourists will be asked, in other to investigate which one may attract tourist between Hong Thai and Smart Holiday. Relationship between factors such as package price, travel agency location, service quality and so on. Besides, I will use the data collection method to finish this proposal like communication approach. Beside, sampling method was used by this proposal. I will through interview, telephone, e-mail, internet to study and analysis the marketing strategy of Hong Thai and Smart Holiday. And I would like to use those methods to test what are strategies usefully. In additional, I will be refer to some relevant literature to analysis and study about marketing strategies, such as Medial Tourism Business Plan (Medial Tourism Business Plan 2009) and some reasons lead to consumer to choose travel agency (V. C. S. Heung and R. Chu 2000: 52-59).

Aim

A comparison of Hong Thai Travel and Smart Holiday concerning about the aspects of marketing strategies is conducted and information regarding of that is going to be shown in this project in which some elicitations hopefully can be given out. Besides, because the marketing strategies must be affect travel agencies sales, I have interest to study their marketing strategies.

Background

Hong Kong travel agencies developed very rapidly. In the past, Hong Kong has only large organization of travel agency, such as Wing On Travel agency, Hong Thai travel agency and so on. In some survey showed that tourists are rather well education with 34 percent having post secondary school and another 37 percent university qualification or above. (Eturbonews 2009) More and more people have money to travel because much more peoples have high education and they have some pressure in working. Also, they want to reduce a lot of pressure through a trip. Therefore, the travel industry needs larger. In travel agencies, large organizations of travel agency has use difference preferential price to attract more peoples. Besides, small organization of travel agency has use difference marketing strategy to attract more peoples, therefore, these operation are increasingly successful. Now, Hong Kong has more than 133 travel agencies. It is including small and large organizations of travel agency. In the past ten years, Hong Kong has only 105 travel agencies. It meaning travel industry developed very rapidly.

In some travel agency make a survey in the past twelve months, 37 percent of tourists went to mainland china and Macau, 34 percent of them want to north and northeast Asia that including Taiwan, 15 percent of them went to south and Southeast Asia. (Eturbonews 2009) It meaning china trip, north trip and south trip and so on, it is very popular trips. Also, travel agency can make above trips to attract peoples. It is a selling point for tourists.

In smart holiday travel agency, it is focus on to provide Southeast Asian line for tourist because this line trip has cheap cost price. So, Smart holiday travel agency can establish more and more stores from one to eleven branch stores. Also, south and Southeast Asia line trips have big development areas.

In some travel industry survey, it showed that when Customer chose trips, they are considering reliability of the branch, price, quality, customer services and popularity. So, in this situation, Hong Thai travel agency has above superiority. it is large travel agency which have much more experience in operation. So, it can make tourists reliability and satisfaction.

For the recently tourism, more and more competitors have different marketing strategies to enhance their sales. Such as Hong Thai Travel and Smart Holiday. They are use different methods to attract consumers. In aspect of Hong Thai Travel, it is established in 1966, and now has more employees around thousand. A branch stores was distributed in different location like Kowloon, Hong Kong, New Territories, Macus and China. There are 30 branch stores because Hong Thai Travel is a big organization. In additional, based on Nielsen Media Index Hong Kong Report of 2001 to 2008 show that Hong Thai Travel has maximum tourists in Hong Kong. Hong Thai travel is a full services travel agency. It provides tour packages, cruise planning to single and groups. Hong Thai travel focus on tourists throughout Asia including Hong Kong, Singapore and so on. Hong Thai of Hong Kong is a full service agency, it offer group and single tour packages, cruise packages to a variety of destinations, ticketing and hotels and more. Hong Thai travel offers the best level of travel services and quality of tourism to customer. It offers quality services as a strategy that it leads business attracts more tourists. It includes business and personal travel. Hong Thai travel agency is a one-stop travel department store to offer wide travel products and services. Travel agency managing director Mr.Jackie Wong is widely recognized as one of the leader in travel industry of Hong Kong. Hong Thai motto “we make it for you”, that is Hong Thai’s commitment to continuous to develop better and more innovation and services. In aspect of Smart Holiday, it is established in 2007, which is it’s been only two years since it established. Although Smart Holiday is only two years operation experience, it has been own important position in travel agency. Smart Holiday have 11 branch stores that was distributed in different place such as Kowloon, Hong Kong and New Territories. Hong Thai Travel and Smart Holiday have different selling point. In aspect of Hong Thai Travel, it always provides much more different trip line to consumer. Thus, Tourists have more choice about tourism.

Hong Thai vision has become the customer’s most beloved travel agent. Hong Thai’s have ability to develop new products to their success. They work closely with tourism boards and handling agencies worldwide to bring the newest travel destinations to customers. Hong Thai’s a place of open communication and preferred place to work in. Hong Thai’s provide concrete service guarantees, namely is “department guarantee”, “price guarantee”, and “Itinerary guarantee”. These promises make their customer worry-free since they always book their trips months in advance. They match up potential opportunities and threats from external environment with their strength and weakness in internal competence, forming strategic initiatives in four aspects. It includes financial, customer, internal business process, learning& growth. They use “customer touch point” strategic for the customers.

Its mission is innovative, receptive to changes and socially responsible in offering high quality travel services. In aspect of Smart Holiday, it only focuses on to provide Southeast Asian line for tourist. Because of Smart Holiday is small travel agency, there trip price is cheaper than other big travel agencies. Its mission is providing high quality travel services and cheaper price tourism. Smart holiday enhance network marketing for their successfully. Much smaller travel agency tells us clearly that the market has played an important role and they maintain close contact existing customers and attract new customers. Smart holiday ensure that the company name, logo, message and tone in consistent from a communication tool in other to help strengthen the brand recall. Smart holiday should build a links to their website, blog and social network throughout all their communication channels. And, this makes it easy for interested reader to find out more about their company and what their can provides. Smart holiday use an event marketing tool to manage their event, and promote it via their social networks. Smart holiday can provide some discount incentives in shopping event and customer appreciation.

Above information’s is very important for me. I will refer to above information to compare their marketing strategies, and I would like to know they can be existence reasons together. On the other hand, travel agencies are affected by economic environment factor and social-culture environment factor and so on. For example, a travel agency sale was affected by economic environment badly.

Objectives

Below are the main points of the objectives of this research:

Comparison of 4’p marketing strategy of Hong Thai Travel and Smart Holiday (place, price promotion and product)

Examine the reasons why they join the trip from that channel? (Hong Thai Travel and Smart Holiday)

Examine the relationship between factors (package price, travel agency location, service quality, training between staff etc.)

Study the consumer behavior of Hong Thai Travel and Smart Holiday

Examine the most beloved tourism lines? (in Hong Thai Travel? In Smart Holiday?)

Compare travel services in Hong Thai and Smart Holiday ( customer services quality)

Examine Smart Holiday can be existence reasons( have lower cost? Focus on Southeast Asian line?)

Research Methods

I will use the data collection method to finish this proposal like communication approach. Beside, sampling method was used by this proposal. I use sampling method because it is lower cost. In additional, it has greater accuracy and greater speed.

Questionnaires:

During doing the project, I need to do a research for collecting the data from manager of Hong Thai and Smart Holiday and some tourists. Therefore, I decide to design the questionnaires for research with my focus group. I will discuss some questions about collecting the data which I want to know from interviewers. Also, I need to think that what kinds of format of questionnaire that will help me to analysis the data more easier, for example, yes/no questions or open-ended questions. After decision in the choice in format of questionnaire, I then print out some questionnaire and make an outdoor research by face to face method or by uploading the questionnaires onto the internet for collecting the useful data. 100-200 interviewers will be asked about the questionnaires.

Sampling: First I sample the tourists which are in stores of Hong Thai and Smart Holiday. Those places are many tourist visits that place every day. After that, I sample the manager of Hong Thai and Smart Holiday. When I am doing the survey at that moment, I use convenience sampling the tourists or managers who are male or female.

Internet:

The Internet is the worldwide, publicly accessible network .On internet, I can find lots of information such as news, also many other services including e-mail, file and sharing. About my report, I will find the primary data or the second data though the discussion areas of internet, on discussion area, I can find the specify one such as travel agencies area .On this area, I can leave the message to people who are the travel lover or I can see whether there are tourist in discussion website, waiting for their response within some days.

Sampling: I use the convenience sampling, because I do not know who are on internet, I post the questionnaires on internet and they will doing the survey who are telling me are tour guides. Another way is searching the tourist on the internet forum, I focus on the tourism part to find out the tourist.

Telephone:

Tele-interviewing is simple process of using a telephone interview as a means of collecting data about the interviewees’ experience in tourism and lifestyle. I can get the information about the customers’ satisfaction of tourism though telephone. By telephone, I find friend, family member, colleague, classmates etc. Moreover, different people have different explanations, so, their response to my questions will have different results. Those in formation just only for my reference to more understand tourist and I can gather some primary data about the marketing strategies of Hong Thai and Smart Holiday.

Sampling: I will use the quota sampling, first I may be told to Hong Thai and Smart Holiday to ask about the marketing strategies, To interview tourist who are stay in at home at that moment, ask about the marketing strategies of they think.

E-Mail:

Send the data and questions by e-mail which include my university name, course name, subject title, major questions and our purpose are to tourism hobbyist, leader, tour guides and other relevant persons.

Sampling: I will use the quota sampling, first I may be told to Hong Thai and Smart Holiday to ask about the marketing strategies, I sent e-mail to above travel agencies in Hong Kong because I want to know their marketing strategies. Also I do not expect they are asked the question about marketing strategies.

Interview:

I gather the information by using face to face interview. Interview is a procedure designed to solicit information from a person’s oral responses to oral inquiries.

I will utilize structured interview for gathering the data from interviewees in that research. I am going to prepare the questions that will be asked before going out. During setting questions on questionnaires, I have to analyze the current situations in the Hong Kong so as to make the questions on questionnaires more updated. Besides of this, I also decide whether the dialogue will be recorded or not. As interview need to be allow by managers, I will send them a require letter, wish they will allow me to conduct interview. Or, maybe to interview tourist who are stay in travel agencies at that moment, ask about the marketing strategies of they think.

Project plan

Please refer to other paper

Critical review of relevant literature

The literature review is focused on information search. Referring to that topic, I shall take about travel marketing strategies and choice of Hong Thai and Smart Holiday.

According to Hong Kong General Chamber of Commerce in 2006, HKGCC Judging Panel said that now is Hong Thai Travel has successfully marketing strategies. It shows that Hong Thai Travel has successfully identified a market role and provided “love seeking tour” to specific group of consumers who expect companions. Using by a strong innovative culture, Hong Thai Travel is able to develop new gimmicks continually, adding value to its traditional services, and enhancing its leadership in a highest competitive market. Thus, the company can success is demonstrated by remarkable achievement in Hong Kong (HKGCC 2006).

After that, Tourism Consultative Council suggests that travel agency may encourage innovation in future. Travel has an integral element in marketing strategies. I think that an integral element can use in marketing strategies of Hong Thai Travel and Smart Holiday Travel. If travel agencies has integral element of marketing strategies, it will explore how this will impact areas of manpower and technology in tourism market (the Tourism Consultative Council 2003).

On the other hand, according to Medial Tourism Business Plan information, it shows that Travel agency should offer consumer VIP services and it ensures the highest level of consumer services. Besides of the product strategy, in aspect of promotion strategy, travel agency may hire a professional manager to generate publicity that reinforce their images and attract more consumers by focusing on consumer satisfaction. Thus, it may expect to achieve strong word-of-mouth advertising as consumes share their tourism experience with their close friends. Hence, it may be to minimize advertising cost through this way. Moreover, travel agency can use the internet to promote themselves, they can invest in a best-in-class website that is designed to appeal to the sensibilities of upscale consumers. Other way, travel agency can make limited use of direct mail by creating an extremely high quality mail piece that will be send to the consumers. In aspect of sales strategy, Medial Tourism Business Plan suggests that travel agency may employ professional case manager who will be first point of contact with prospective consumers. Thus, it can encourage up-selling of their VIP services. Above strategies might be use to Hong Thai and Smart holiday (Medial Tourism Business Plan 2009).

In additional, there are many reasons lead to consumer to choose travel agency. A total of 183 Hong Kong consumers were surveyed and were asked to rate 29 attributes that might affect their choice of travel agency for all- inclusive package tours by V. C. S. Heung and R. Chu. The results showed that 29 attributes were affected about choice of travel agency in travel agency reputation. V. C. S. Heung and R. Chu said that Travel agency reputation was rated as the most important attribute in travel agency selection, followed by ‘word-of-mouth communication’ and ‘staff attitude’. V. C. S. Heung and R. Chu suggested that might use seven factors to analysis choice of consumer. Also, Hong Thai and Smart Holiday are use seven factor to analysis choice of travel agency of consumers. It includes namely, Interactive Agent Quality, Formal Communication, Overall Convenience, Pricing, Product Features, and Image. Those factor can use to analysis marketing strategies to consumers (V. C. S. Heung and R. Chu 2000: 52-59).

Besides of above strategies and some information, Susskind, A. M., M. A. Bonn, and C. S. Dev suggested that travel agency must let consumer has trust and trustworthiness of an information sources as well as booking channel (Susskind, A. M., M. A. Bonn, and C. S. Dev 2003: 256-64). Nysveen H suggested that travel agency has on line booking channel, which should be security and trustworthiness. So, Hong Thai Travel has online booking services, which website should be based on added values first of all aimed at the reduction of risk and uncertainty (Nysveen, H. 2003:113-127).

On the other hand, Susan Segal-Horn suggests that manager needs to improve operational efficiency which through programs, such as total quality management, time-based competition, and benchmarks. Also, both smaller and large organization may changed how they performance of the activities, to eliminate efficiency and enhance customer satisfaction and successful the best practice. In order to keep pace with changes in the productivity of border management has accepted the continuous improvement, empowerment, change management, and so-called learning organization. (Susan Segal-Horn 2001: 75).

In additional, Combes, G.C. and Patel said that the internet offers a potentially low-cost Retail distribution channels to reach customers 24 hours a day anywhere in the world. In addition, as the transfer of customer transactions to electronic channels, the detailed data that can be stepped up to collect Targeted advertising and marketing work, and reduce other operating expenses. The Internet has increased the price of access to information and products, so that Clients determine the best treatment, in the online and traditional channels to improve their communication with suppliers. Hence, Hong Thai travel and Smart Holiday is open 24 hours communication channel for their customers. (Combes, G.C. and Patel 2000: 1)

After that, Susan Segal-Horn implies that companies are success that only it can create different strategies, and the need to save the strategic. So, Hong Thai travel and Smart Holiday are must provide greater value to customers or at a lower cost to create a higher value, or both. Arithmetic superior profitability is as follows: to provide greater value, enabling the company to charge higher average unit prices, higher efficiency resulting in lower average unit costs. Lower or higher prices in the cost of time to the creation, production, marketing products and services to them, such as according to customer requirements, can improve the final product assembly and train their employees.( Susan Segal-Horn 2001: 74).

Besides, Shohreh A. Kaynama, PhD and Christine I. Black, suggests that many service industries, travel agents believe the Internet is an opportunities and threats. So, some of the smaller agencies like Smart Holiday Travel Agency will choose to use the internet merely as a medium of communication, in order to promote with their business Static web site or as a way to receive e-mail with the customer. These small establishments Wish to participate in the competition and offer highly specialized travel services to customers and attract customer’s attention. Other traditional travel agencies are in a state of transition. These hybrid organizations also provide individual customers by focusing on Walk in and telephone services, while at the same time through their Web sites to develop automated reservation and booking system. Hence, it can increase company benefits. (Shohreh A. Kaynama, PhD

Christine I. Black, MLS 2000:65).

Medical tourism- the concept of traveling far and wide for better medical treatment is not a novel idea, only the term. The globalization of the health care sector and the massive demand for low cost-high quality treatment in recent times has caught the attention of many developing countries that have the adequate resources and potential to meet these demands. The profitability and the lucrative nature of the medical tourism business has now put this trade, high on the agenda of both the Indian government and the private health care providers.

Today, medical tourism has become a commonplace practice with a large number of people around the world since usual constraints like language, finance, difficulties in global travel and fear of the unknown are no longer acting as barriers to the tourists who seek medical treatment in foreign countries. Countries like India, Singapore, Malaysia etc have developed strategies specifically with the aim of tackling such issues and rendering themselves as the ideal medical tourism destinations.

Although India is emerging as the ‘hot-spot’ medical tourism destinations within the Asia-Pacific and other regions of the world, it seems to be facing tough competition from other big players of this industry who have projected an equally good reputation for themselves and are reaping the benefits of this business. Therefore, it is imperative for India to continuously rethink and reform its marketing strategies to gain competitive advantage and increase its market share in the health care sector.

It is an undisputed fact that medical tourism is a rapidly growing industry and creating inroads into the Indian economy. There are a large number of stake holders in this industry in South East Asia including countries like Singapore and Malaysia. There are various marketing strategies being used for propagating this industry. My endeavor would be to seek the gaps that exist and suggest remedial action.

Being from the medical fraternity and having had the opportunity to treat a number of overseas patients, the concept of medical tourism has generated a great deal of interest in me. I believe that there are some deficiencies in the marketing strategies for health tourism in India that need to be looked into and improvised. The aim of my research would be to propose marketing strategies that would boost the Indian Medical Tourism for the future.

3. Preliminary review of literature

There are three sections of the literature review:-

i) Historical aspects- inception and evolution

ii) Medical tourism in India- the present scenario

iii) Probable concerns and pitfalls of the Indian medical tourism industry.

3.1.1 Historical aspects- Inception and Evolution

The concept of constructing health complexes around hot springs goes back to as old as the Sumerian civilization (circa 4000BC) where health care facilities comprised of grand elevated buildings with flowing pools. The hill tribes of Switzerland of the area presently know as St. Moritz, during the Bronze Age (circa 2000 BC) recognized the benefits of bathing and drinking in iron-rich mineral springs. The discovery of bronze drinking cups used by them in thermal springs in Germany and France possibly signifies health pilgrimages within these cultures.

As per written historical accounts, bathing and healing complexes were erected around therapeutic springs in Mesopotamia, India, Greece and China. The concept of medical tourism emanated as trips to sacred baths and hot springs. However, it is the Greeks who have to be given the credit for laying the foundations for medical tourism networks.

3.1.2 Greek medical tourism.

Asclepius was considered to be the god of medicine according to Greek mythology. In his honor, Asclepian healing temples had been constructed throughout Greece by the 4th Century BC. These temples were established near the mineral springs which were considered to be the prime “Healthful” Locations. The system of medical tourism during this period was as follows:-

Patients and their attendants came to Asclepia temples seeking treatment for various ailments. At Epidaurus, the port temple, treatment included gymnasia, palaestra (exercise area), bathing springs and a ‘dream’ temple. There was a retinue of priests, caretakers and stretcher carriers who attended to the patients before they were granted final appointment with the mighty priest. Patients made sacrificial offerings according to their status- the poor left shoes; Alexander the Great left his breastplate.

3.1.3 Roman Medical Tourism

The hallmark of ancient Roman medical tourism centered around hot water baths called Thermae. These centers of medical treatment were posh establishments. Some of these centers comprised of art galleries conference halls, theatres and sometimes sport stadia. Because of the active trade with Asia, the Roman baths augmented medical tourism activities like Chinese medicine, Ayurvedic massage and various aspects of Buddhist spiritual healing at some Roman Thermae.

3.1.4 Japanese Medical Tourism-Onsen.

ONSEN means hot mineral springs in Japanese. Medical tourism in Japan centered around these hot mineral springs which were enriched by surrounding volcanic soil. It attracted a variety of people including hunters, fishermen, farmers and warriors. It was believed that these mineral springs were effective in alleviating pain, healing wounds and recuperation. A thousand years later, this form of medical tourism in Japan is still an ongoing phenomenon.

3.1.5 Indian Medical Tourism.

India has been the home ground of alternative system of medicine for the past 5000 years. Aspects of medical tourism include yoga, eastern cultural, spiritual and medicinal compilation with meditation thrown in. India has been a Mecca for alternative medicine practitioners. A new boost was given to health tourism in the 1960’s with the “New Age” movement in the US. This New Age movement seeks “Universal Truth” and the attainment of the highest individual human potential and is characterized by an individual approach to spiritual practices and philosophies and the rejection of religious doctrine and dogma. With this movement, India had once again become the most sought after destination for thousands of western pilgrims. India’s deep commitment to health care infrastructure and technology furthered the mass influx of medical tourists. India is now one of the world’s oldest medical tourism destinations and has gained popularity over the years over other destinations.

3.1.6 European Medical Tourism.

European medical tourism came into existence with the rediscovery of the Roman baths in the 16th century. With the rediscovery of the Roman baths, Baden Baden , Aachen and most notably Bath, became spa towns. By the 1720’s the spa towns came to be frequented by Aristocrats and gentlemen of leisure from other parts of Europe and even royal patronage. Michel Eyquem de Montaigne, French royal inventor of the essay was the most noteworthy medical tourist of this time. He traversed the continent for 9 years for the cure of his gall bladder problem. He is widely believed to be the father of luxury travel and has helped to write one of the earliest documented spa guides for European tourists.

3.1.7 Health Tourism-New world.

English and Dutch colonists in the 1600’s, constructed log cabins near mineral springs in the newly discovered Americas. By 19th century the American reformists made it a habit to travel to remote Western springs that were rich in medicinal properties.

Today, there are no physical, economical and cultural barriers that separate nations from one another. Coupled with the flattening global economy, ease of international travel and lenient trade policies has opened the vistas of medical tourism destinations around the globe. This has made affordable health care availability to patients who find it difficult or impossible to access such health care facilities in their own countries. Inflated health care costs are driving the patients to medical tourism destinations like Thailand and India for sophisticated procedures at a fraction of the price. Long waiting periods for medical treatment is another factor that is making patients seek treatment abroad. Also, lack of comprehensive medical insurance has attracted thousands of patients to seek treatment abroad.

Medical tourism today has become a global phenomenon with many countries expanding their offerings, including unique tourism opportunities for example South Africa is promoting medical safari in a big way.

3.2. MEDICAL TOURISM IN INDIA – The present scenario

Medical Tourism India or Health Tourism India is a developing concept that has gained tremendous popularity and is attracting people from all over the world for their medical and relaxation needs. The treatments most commonly include knee transplant, cosmetic treatment, dental treatment and cardiac surgery. India is now a favorable medical tourism destination as its infrastructure and technology are at par with USA, UK and Europe, enabling it to provide treatment centers and hospitals that are best in the world with world class facilities. These factors coupled with visits to some of the most alluring and awe-inspiring places of the world have brought about the merging of tourism with medication giving rise to the concept of Medical Tourism.

India is promoting health tourism through depicting the “high-tech healing” of its private healthcare sector. The Indian government is marketing the concept of traveling to India for cheaper and world-class medical facilities to foreigners, with the intention of encouraging the growing Indian medical tourism industry. The policy of the Indian government to merge medical expertise and tourism was announced during the 2003-04 budgets when the finance minister Jaswant Singh propounded India to become a “Global Health Destination”. According to a study conducted by Confederation of Indian Industry (CII), the field is so lucrative that it has the potential to become a $2.3 billion business by 2012. Around 150,000 foreigners visited India for treatment during 2004 and since then, this number has increased by 15% every year.

In recent times, India has emerged as the “Global Health Destination” due to the following advantages:

1. Medical services are provided at almost 30% lower cost than the Western countries and are the cheapest in South-east Asia.

2. India has a large population of doctors and paramedical staff who have good knowledge of spoken English. Therefore language is a major comfort factor that attracts so many foreign tourists to visit for the purpose of medical and health tourism making it easier for overseas patients to relate well to Indian doctors.

3. Indian doctors expertise in various surgical procedures including cardiac surgeries, liver transplants, orthopedic surgeries and other medical treatments.

4. Indian hospitals offer a wide array of high quality treatment procedures comprising of joint replacements, cardiothoracic surgery, dental care, cosmetic treatments and more.

3.3. Probable concerns and pitfalls of Indian medical tourism industry

Review of literature suggests the following concerns that need attention if one has to augment and boost the medical tourism sector.

Concerns of the consumers

Some of the consumers feel that India is unhygienic, polluted and bureaucratic. There is no appropriate accreditation system for the hospitals. Concerns about medical insurance which is underdeveloped, inadequate and has few global players. overseas companies refuse reimbursements. There are also concerns about terrorism, communal unrest and bad connectivity between cities and towns. While some of these concerns are genuine, most of them are mere perceptions.

Concerns of the promoters

From the promoters point of view, the concerns that have emerged revolve around lack of regulations concerning ethics and systemic support, lack of infrastructure deficiencies like electricity, power supply and water, inadequate land reforms, taxation anomalies, funding constraints, implementation lacunae and bureaucratic bottlenecks.

4. RESEARCH QUESTIONS AND OBJECTIVES.

India seems to be an emerging medical tourism destination offering great opportunities in terms of creating new jobs and generating sources of revenue for the Indian economy. It is therefore imperative that the impetus gained so far should not be jeopardized and measures should be adopted to improve the present situation by developing and implementing new strategies.

Research questions

1. What is the present state of Indian medical tourism? – indicating assessment of the present situation.

2. What are the drawbacks or felt impediments of the medical tourism trade sector? – indicating an analytical structuring of the data.

3. What are the ways to improve medical tourism in India through better marketing strategies? – an assessment of the lacunae in the existing marketing strategies.

4. Is the government doing enough to support the medical tourism industry? – an assessment of the governmental leaning towards the industry.

Research objectives

1. To develop pragmatic marketing strategies for health care institutions involved in medical tourism in India.

2. To assess the impact of the government action on the present marketing strategies for foreign patients.

3. To make a marketing plan model for the Health tourism industry in India

5. RESEARCH PLAN

Research perspective

My research approach is based upon the words of the renowned anthropologist Clifford Geertz “man is an animal suspended in webs of significance he himself has spun. I take culture to be these webs, and the analysis of it is not to be an experimental science in search of law but an interpretive one inn search of meaning” (Jewell,S.2010). It therefore forms an interpretivist approach. Since the medical tourism industry is a business and management perspective, any research into this field would fall into the gamut of positivist and interpretivist approaches. My research is essentially a qualitative one since my data collection is mainly secondary in nature. Furthermore, my research is theory forming where in I shall be using the inductive approach to analyze the data. My research also involves the assessment of factors of concern that are related to the health tourism industry of India. It would be my effort to sift out the relevant factors and analyze them from the point of view of developing marketing strategies.

Research design

The approach that best answers my research questions fits into the modified cross sectional design. Here, the research design revolves around the collection of data that is occurring naturally over a designated period. My research design also involves mainly quantitative data and some qualitative data too. My research is based upon observation and document analysis. The cross sectional design also gives information on aspects of who, what, how many, where, and the how and why.

Data collection methods

I shall be collecting my data through analysis of secondary data. I also intend to submit questionnaires to the stakeholders and the major players of the medical tourism in India with the aim of seeking relevant data that would help me in answering my research questions and fulfill my research objectives.

Secondary data: the secondary data would be collected through the following;

Written materials- various websites, websites of homepages of key players, magazines and journals, books and publications. I would also be looking for government publications, laws and acts related to this subject.

Non-written materials- media, television etc.

Most of the data from outside the individual organization will yield information about the medical tourism industry. While, data that is collected from the organizational websites would give information on how things are done within the organization and their modus operandi.

ii. Questionnaires: I will be sending the questionnaires to all the major players in the Indian medical tourism industry. The questionnaires will be used to obtain data for quantitative analysis in order to assess the functioning of various medical tourism facilities in India. The idea of using questionnaires is that a large quantity of data can be made available covering a wide range of database for quantitative analysis. A good amount of objectivity can be incorporated and the results would be of valid and reliable nature.

Analysis of data

Having collected all the qualitative and quantitative data, I would subject it to appropriate analysis and apply relevant statistical tests of significance to ensure that the results are valid, reliable and give a reasonable level of generalisabilty. I aim to deduce the relevant marketing strategies being used and to assess their impact on the industry. I shall be presenting the analyzed data in the form pie diagrams, bar charts and other forms of statistical presentations.

LIMITATIONS
Validity and reliability

Since my data is mainly secondary in nature it is presumed that global players in the me dical tourism industry would not putting false data to propagate their business ventures. From this point of view my data would be valid as well as reliable. As my data is being collected from internet, websites of various stake holders, magazines etc. I am confident that stake holders at this level of global competitiveness would not be putting up false data or information for promotional activities that could jeopardize their reputation. However, the limitations of validity and reliability I foresee to come across would be from the questionnaires I would be sending to the stake holders. The disadvantage I feel I would face using the questionnaires is that some people may not respond, may take a long time for returning back and the response rate cannot be predicted. However despite these limitations, I expect to be able to generate valid information and data for quantitative analysis. I shall be sending these questionnaires to the concerned stakeholders through their homepages and their websites and try and elicit as much response as possible from them.

Generalisabilty

My research design is based upon the study of an industry and does not impinge upon a case study research. All factors being studied can be considered as offshoots of a single industry. For e.g. the legislation aspects would be covering the entire industry and not a single institution or a hospital. Secondly, my aim is to give broad based generalized guide lines on the recommendations for improving medical tourism in India. My attempt therefore would be to collect and analyze data from where generalisabilty can be achieved.

ETHICAL CONSIDERATIONS

I will abide by the Coventry University BES ethical guidelines. I will conduct my research honestly and present all the data accurately. I will get the low risk approval form signed by my supervisor to get his approval before I begin my research.

I shall take all precaution to ensure and respect the rights and integrity of subjects if any.

I shall treat all the data confidentially and would ensure that it would not be used for any other purpose other than that intended.

Since my data collection is mainly secondary in nature, my research work is considered to be a low risk from the ethical point of view. I shall keep all the raw information on ethics and the data collected for audit purposes.

PLAGIARISM

I will paraphrase; reference and cite the sources used by me, to acknowledge the work of others and avoid any sort of plagiarism.

The hospitality and tourism industry is one of the world’s prevalent industries and also the most fragmented with large number of small business. The contribution of hospitality and tourism industry to GDP can be measured in the terms of the revenue generated by tourists (Bardgett 2000). The industry promotes international understanding and gives support to local handicrafts and cultural activities. It is a very important section of a nation’s economy, particularly in terms of its involvement in the direction of earnings through foreign exchange, production of extra wages and creation of job opportunities. The high flood of foreign tourist traffic has increased demand for certain economic production and distribution activities. The hospitality and tourism industry in today’s date is one of the most diverse, exciting, challenging and important industries in any part of the world. It offers career opportunities that are dynamic in nature.

A very essential quality in this industry is to possess a driving interest towards one’s customer service and a strong sense of professionalism. And not just that what one also needs to know is that, what tourism is, keeping in mind the economic, environmental, social and cultural impacts on it. One needs to know its relationship with other industries, the roles and responsibilities that the organization carries as a whole and as well as of individual staffs.

1.1 Marketing of tourism and hospitality industry

Marketing is a delicate combination of art and science (Mahoney, 2005). It is described by Kotle as a management procedure accountable for recognizing, expecting and pleasing client necessities gainfully.

An enormous variety of misconceptions are rampant about marketing, the most widespread is its misunderstanding next to selling and advertising. If one looks closely these are nothing more, but types of endorsement or promotion and hence being only a part of marketing. Marketing includes of much more, such as product/service development, place, pricing etc. It requires information about those attracted in what you are offering, such as their likes, where they buy and their limits of expenditure.

1.2 SWOT/ TOWS Analysis

Another important aspect that follows strategic formulation is the evaluation of the adopted measures and one of the best ways to do so is by using both SWOT followed by the TOWS analysis. TOWS Analysis is a modified form of SWOT which is used as a standard business analytical tool. The alphabets in both TOWS and SWOT are representation of the words Strengths, Weaknesses, Opportunities and Threats.

The analysis of the external environment (threats and opportunities), and internal environment (weaknesses and strengths),can help one realise beneficial techniques that can be made use of by the entire organization, a department or a team. Apart from this, SWOT/TOWS analysis can also be used to come up with a course of action, a marketing campaign, or even evaluate ones skills and experiences. (Warnell, 1995)

Identifying Strategic Options: As mentioned earlier SWOT or TOWS analysis helps to draw a better judgement of the strategic choices that are present and since “strategy” is the art of determining how one can “win” in business; it is a very important step in the evaluation of any organization or industry.

This process of evaluation helps us find answers to questions that further help us explore our strengths, weaknesses, opportunities and threats.

Strategic Discussion

Through the use of marketing strategy an organization can concentrate its limited resources in the best manner possible so as to increase the profits and be at an advantage as compared to the other organizations. The main goal behind every marketing strategy should be customer satisfaction. The selected marketing strategies are dependent on a variety of components, such as quality, innovation, brand building, marketing expansion, focus, product development, social responsibility, etc.

On similar grounds if we talk about Ryanair we can very well see that how the airline completely stands out as a special business from the point of view of the corporate culture it follows. Despite of being an airline it earns through the sale of complimentary products and services that it offers it customers on and off the plane. The company is well liked by its customers for its low cost and admired by its employees for the high salary it gives them. So hence alongside pleasing its customers which is very essential for any business it is also focusing on keeping its staff happy, content and loyal which is an equally important strategy very well thought of. Apart from that the airline makes use of secondary airports rather than primary ones which in turn helps in reducing the expenditure costs leading to higher benefit or profit margins.
And hence it can be seen that the chosen organization is doing very well as far as selection and implementation of its marketing strategies is concerned. This comment can be substantiated by the results of PEST analysis and SWOT/TOWS analysis.
PEST analysis of Ryanair
SWOT /TOWS ANALYSIS FOR RYAN AIR
Strengths
Weaknesses

Low airport charges

High service performance

A uniform fleet: low maintenance cost

Poor customer service

Long distance between airports and destinations.

Poor relationship with staffs

Opportunities
Threats

Credit crunch: People switch to low cost airlines

More countries joining Schengen States

Depreciation of US dollars: planes are now cheaper

Customers are price sensitive

Increase in oil prices

Other airlines are reducing costs

Increase in air traffic control charges

Growth of other substitutes

TOWS MATRIX
(Weihrich 1982)

Internal Elements

Organisational strengths

Organisational weaknesses

Strategic options

Strategic options

External Elements

Environmental opportunities (and risks)

SO

S2 + O2

Routes expansion

S3 + O3

Order new planes

WO

W3 + O1

Jobs security for staffs

Environmental threats

ST

S1 + T1

Continue to cut fares

S2 + T3, T5

Increase frequency of popular routes

WT

W1, W3 + T3

Focus on staff training

W2 + T5

Reduce cost of airport transfers

From both of the above shown methods of evaluations it can be seen that credit crunch which generally considered as a big threat is grabbed as a seemingly big opportunity by Ryanair, for it attracts its customers by the focus it keeps on the ‘reduced cost price’. And this as can be seen is used by Ryanair as a mean to earn profit.
The SWOT table above gives us a brief yet a very indepth summary of not just the internal but also the external analysis of the airlines with highlights of the firm’s strengths and weaknesses so as opportunities and threats. Based on SWOT, a number of strategic options can be suggested to Ryanair in the form of a TOWS matrix, such as route expansion, ordering new planes and hence increasing frequency of popular routes, focusing on the staff training, which in turn will act towards attracting more customers, offering its staff job security, it can go on further in reducing its prices(which has so far really worked wonder for the airlines).
Hence through our evaluations we can see that no doubt Ryanair seems to be doing wondrous work as far as marketing strategies are concerned but there are still a lot many more ways in which it can increase the overall turnover even more, such is the wonder of using apt and multiple marketing strategies.
3.0 Implementation of a strategy using tactics

The concept of the marketing is based on the premise that the firms should determine consumer wants and needs before designing products and services. Hospitality and tourism industry brings together the latest developments in the global operations using contemporary management principles (Borden, 2001).

3.1 Marketing Strategy

The marketing strategy, ought to be viewed as a cover up of support planned to be a magnet as well as provide the customer or visitor (Naik, 2003). There are various types of strategies that come into play such as competitive strategy, market and resource based strategy, quality and innovation, growth strategies. It is now necessary that one of these have to be used at a time but generally combinations of these are used to achieve optimum results.

3.1.1 External Mix – It consists of the 7P’s as well as the external environment. The marketing mix can be controlled by the firm whereas the external environment cannot be. Every industry tries to develop marketing strategies utilizing marketing mix that will establish sustainable competitive advantages leading to long term growth and profitability (Brian, 2003; Zeithaml, Bitner, & Gremler, 2003).

Product: The product of the marketing mix includes the tangible goods and all of the services that accompany that good to produce the final service or product. More than products it is the various services that make the industry stand ahead of others.

Talking about Ryanair, it is doing seemingly well as far as the ‘product ‘ aspect is concerned, for its air service and hospitality are no doubt loved by the customers due to the low cost price and well trained and well paid staff.

Price: price is the value placed on the service or a product. The tourism and hospitality sector should establish their pricing based on the companies objectives and the target market. One cannot have high fee structures for low-fare airlines. Secondly it is very important to base the prices on the complete cost of production, delivering, promoting as well as managing the services provided. Price doesn’t comprise of only the tangible benefits but also the intangible benefits like satisfaction.

Ryanair seems to be doing really well as far as the price of its service is concerned for its customer no doubt love the airlines for it low air fare prices.

Place: This aspect of the strategy includes the distribution and logistics of producing a product or service and making it available to the final customer. The location of the hotels, restaurants, etc is determined by considering the cost of the resources such as labor, raw material and real estate. In addition it is important to have access to proper transportation. So therefore the first and the most important element to be considered is the location of the hotel or the restaurant. Places away from the central city must be avoided as they would not attract tourists who would want to explore the main city/ town area.

The place aspect here could not be incorporated as this is an airline that we are talking about, but still we can for sure bring to light the cost expenditure that the airline is saving by the use of secondary airports rather than the use of the main or primary ones.

Promotion: It provides customers with precise and apt information to assist them decide whether to visit. It represents the various aspects of marketing communication, that is, the communication the information about the product with the goal to generate a positive customer response. The information provided by the company should be of significance and sensible use to the likely or existing guest and also precise because only satisfied customer would want to come again and use the same services.

People: This is the fifth P of the marketing mix. It is essential that one should have a good, educated and friendly employees. For an organization to have a winning edge over others it is very essential that it recruits the right staff and trains them appropriately for the delivery of the services. Based on the interactions with employs the consumers make opinions and deliver perceptions of the service that was provided to them. Hence it is of utmost importance that the staff should have apt interpersonal skills, attitude, and service knowledge to provide the best service to the consumers who are paying for it. Thus it makes it imperative to have a highly qualified staff to add that extra special touch to the services so that customers who comes once, comes always.

This, the airline has no doubt very skillfully taken care of by training it staff very well apart from paying it well too.

Process: It constitutes of the schemes used to aid the organization in the process of service deliverance. Timely and excellent quality services are not the only ingredient but the process behind the making of these services is also of importance. Both hospitality and tourism industry have behind the scenes services like kitchens, water boilers, air handling units, maintenance departments, etc. This should be ensured that a customer never come to know about the smooth or ruff running of the process. Same and equivalent services should be provided at all times.

These the airline could think of improving on as far as the benefits and services offered by the airlines to its consumers both on and off the flight.

Physical Evidence: this again is a component which gives the consumers the opportunity to make judgments about the organization. This no doubt is an essential component of the service mix as based on the sight of the service that is being provided a perceptual impact is made on the consumers about the organization and the service being provided. The organizations that claim to be energy efficient should show it to their customer the process they followed to make their building and services environment friendly. When a customer knows the process behind the delivered service they feel more at ease. For example: if a hotel does vermin-composting to make all biodegradable waste into manure, they should take the guest and children on a eco-walk and show them the pit. This will not only make a good name for the organization but also teach people how to conserve environment (Borden, 2001).

This as has been mentioned before too a number of times the airlines has focused on very well by its low cost air tickets and its well trained and well paid staff, skilled staff.
3.2 Interactive Marketing

‘Technology has necessarily altered how companies and their customers communicate, not just online but across other medium’ (Novak & Hoffman, 1997). Consequently interactive thinking needs to be at the heart of all marketing strategy and interactive channels at the heart of all marketing delivery. A company that has developed an easy to use web site with content and appropriate services to its audience is only part-way to achieving successful Internet marketing outcomes (Agrawal, Arjona & Lemmens, 2001)

This concept focuses on the ever changing trends in the field of marketing . The definition that had been given by John Deighton at Harvard, talks about interactive marketing being an ability which facilitates the organization in having one on one interaction with its customers on a continuous basis. The concept is in no way synonymous with the concept of online marketing, although there is debate that internet technology facilitates the process of interactive marketing to a great extent. The organization can with ease keep a record of all the data related to its customers, can have access to its numerous clients and consumers at the click of a mouse and can interact with them on a day to day continuous basis using the speed of the internet.

3.2.1 Objectives for Interactive Marketing Communications

An interactive marketing communications plan usually has three main goals:

(1) Use online and offline connections to steer or draw guests passage to a web site. This method is commonly referred to as traffic building.

(2) To use on-site communications to bring an effectual point to the guest which helps form customer behaviour or achieve a required marketing outcome. The message delivered on site will be based on traditional marketing communications objectives for a company’s products or services.

(3) To mix all communications methods to assist attain marketing objectives by supporting mixed-mode buying. (Novak & Hoffman, 1997).

Ryanair has made use of this strategy by making available to its customers the facility of online booking system, which is not only of convenience to its customers but also greatly reduces the extra cost price as compared to telephone booking. Though it could still go beyond online booking and explore much more options such as customer feedback, special offers, blog site etc on its website by making use of this strategy.
4.0 Conclusion

Customer satisfaction in hospitality and tourism industry is very much prejudiced by the way in which the service is delivered. It is a very important fraction of hospitality and tourism management and can be done successfully and well, with classiness and skill, if one keeps in mind the important essentials of marketing. ,This the airline seems to have taken care of in the most skilled manner possible by making use of the various above mentioned strategies.

Apart from that what also is important is the evaluation of the marketing efforts. A framework for evaluation could help in shaping which essentials are most important to evaluate. It is hardly ever probable or cost efficient to assess all elements. After this it is very important to compare results with one’s objectives and to in the end determine the needed changes in the strategic plan. This in a great way contributes towards improving the efficiency of the strategies that are being used by recognizing the present dissimilarities between real outcomes and anticipated performance. All this in turn will surely help determine the most probable and expected causes for the triumph or crash to achieve the set goals and objectives.

What marketing strategy is best used to counteract the effects of a potential recession on the four star hotel industry in the UK economy?
Contents (Jump to)
Background and Research Aims
Literature Review
Proposed Methodology
Research Strategy and Resources Required
References
Background and Research Aim

Financial Management (2008) reported that, at a recent CIMA forum for financial directors in the UK, the majority of the delegates believed that the global economic crisis has had far reaching impacts, and will most likely cause a recession in the UK in the near future. This is a view which it widely matched by Campaign (2008), which argues that the coming economic downturn is likely to have adverse impacts on all industries in the UK as consumers, and hence businesses, reduce their spending. However, this article does not advocate that businesses simply give up on attracting new custom, arguing that the businesses with the most successful and creative marketing strategies are likely to be the ones who not only survive any potential recession, but also benefit from it.

As such, it is clear that there are two main potential strategies for hotels as the economy begins to contract. They can either choose to contract their operations, focusing on operational efficiency and aiming to cut costs wherever possible, or they can look to use the recession as an opportunity to increase their competitiveness over and above their rivals. This can be achieved via a focus on improved efficiency, costs, quality, or general marketing. However, the argument of Campaign (2008) above tends to indicate that marketing is the main method by which hotels, and businesses in general, can differentiate themselves and maintain revenue and market share in the face of a recession.

Both of these strategies are equally valid, however this piece will aim to focus on the more positive of the two: the use of a marketing strategy to counteract the effects of a recession on the UK hotel industry. The hotel industry in the UK is very broad, ranging from the cheap and basic one and two star hotels, up to the extremely luxurious five star offerings which grace many major destinations. However, the majority of attention tends to focus on these two ends of the spectrum, with little thought being given to strategic development and planning for the mid range hotels such as four star offerings. As such, this piece will concentrate specifically on the four star segment, in order to determine what factors drive consumer demand and business success in this segment, and how these factors can be used to develop a marketing strategy to help four star hotels in the UK handle the impact of a recession.

Literature Review

Many hotels have already started planning for a recession, particularly in the United States, where the economy is in a more advanced stage of recession than the UK. As such, there is value to be obtained from looking at the strategies taken by hotel chains in the US. In particular, Ricca (2008) considers the strategy of the Wyndham Hotel Group, which intends to improve its marketing in order to boost its performance, as well as looking to improve its inventory management and service levels. In addition, the chain will look to boost the use of its loyalty program, helping to grow the company’s brand identity as well as to drive revenue higher in the short term (Ricca, 2008). Another useful study from the literature comes from Barsky and Nash (2008) who reveal that higher end and luxury hotels tend to perform better during a recession when compared to other classes of hotel. This implies that the four stars may be able to improve their performance by aiming to become more exclusive. In addition, Barsky and Nash (2008) argue that hotel should not aim to cut back on prices and services in a recession, but instead they should aggressively market themselves and focus on customer service, in order to be more competitive than others in the market.

Further to this, a major study by O’Neill and Mattila (2006) found that the net operating margin of a hotel tends to be driven most strongly by its average occupancy level, and that the average price per room was less significant. However, this study also showed that the market segment in which the hotel operated; the hotel’s age; any affiliation to a major brand; and a hotel’s size and location also had strong effects on financial performance. This is based on data from the last slowdown in the hotel industry, in 2002, when global terrorism and the dot com crash saw many hotels in trouble. The hotels which performed best in that year were the ones which focused on driving strong occupancy, rather than looking to cut back in size or expenditure. However, O’Neill and Mattila’s (2006) study shows that the mid range hotels were the ones which suffered most in the last slowdown. Looking at the current economic context, Lloyd-Jones (2008) argues that the current state of the economy, combined with the general consensus amongst analysts that a recession is quite likely, means that hotels need to start preparing now. As such, Lloyd-Jones (2008) recommends that property managers should look to use the full range of their marketing strategy, right across the 7Ps, to achieve the most profitable balance between occupancy levels and room rates.

Proposed Methodology

Unfortunately, given the uncertain nature of the economy, and the fact that no one can accurately predict the nature and severity of any potential recession, it is difficult to be prescriptive about the ideal strategy for a hotel to take to mitigate the effects of said recession. As such, this piece will arguably need to take an approach more in line with contingency theory, where it can make specific recommendations based on the circumstances of individual hotels. This implies that the main methodology should be to use interviews with hotels who are preparing for a potential downturn, as well as those with experience at surviving previous downturns. By determining what strategies, if any, the most successful chains are using to overcome a potential recession, it should be possible to develop a detailed typology of the potential strategic choices hotels can make to deal with economic downturns, and the circumstances in which each strategy is most appropriate.

In order to give this typology academic value, it should be firmly based in an existing academic framework. The framework chosen for this paper is the ‘7Ps’ extended marketing mix. The 7Ps are based on the 4Ps introduced by McCarthy (1960): Product, Price, Promotion and Place. However, the 7Ps extends this to include another three factors. Whilst there is some debate over what these factors should actually be, with various writers proposing People, Processes, Physical Layout, Provision of Service, and Physical Evidence; this piece will focus on the three determined by Booms and Bitners: People, Processes and Physical Layout (Kotler and Keller, 2005). This 7P framework will be used to construct the typology, and also to drive the interviews.

The interviews will be semi structured interviews, conducted with some senior members of staff from a wide selection of four star hotels throughout the UK. Semi structured interviews have been chosen because they will allow the interviewer to investigate the desired range of topics, whilst also giving the interviewee the chance to provide additional details or to clarify certain points. The main themes for the semi structured interview will be:

To determine whether the interviewee has worked at a hotel during a previous recession and the steps they took to overcome that recession.
To determine what steps, if any, have been taken to prepare for a potential coming UK recession.
To determine the extent to which these steps are marketing focused.
To determine which of the 7Ps the interviewee deems most important in using marketing to overcome the effects of a recession.
Research Strategy and Resources Required

In order to fully ground the typology in the theoretical framework, it will be necessary to obtain a full understanding of the 7Ps framework and its application to hotel marketing. This will be achieved via a complete review of the literature around marketing and the hotel industry. As such, it will be necessary to spend a significant amount of time using libraries and online resources to review a wide range of literature on the subject. This research should also involve a detailed study of the literature around the effects of a recession on consumer demand, and strategies which businesses in general can use to handle a recession. This will be of use in helping to validate the potential strategies which emerge from the interviews, and generally in helping to direct the interviews.

Ideally, the interviews will all be conducted via the telephone. This will save on travel costs and time, as well as making the process run smoother. Initially, a large number of four star hotels, around fifty, will be contacted by phone or e-mail, to enquire about the possibility of interviewing senior staff. This will hopefully allow for at least ten interviews with senior staff members across the UK. Once agreement has been obtained, the relevant staff members will be contacted to arrange an appropriate time, and length of time, for the interview. It is expected that this will simply require a telephone and a quiet room where the interviewer is unlikely to be disturbed. A recording device will also be useful, to help with transcribing the interviews later. As the data will be mainly qualitative, there will be little need for any statistical analysis tools, and an appropriate research paradigm will be selected as needed. All interviewees will be informed that the interview is being recorded, but all respondents will be guaranteed complete anonymity.

References
Barsky, J. and Nash, L. (2008) Are luxury hotels recession-proof? Hotel & Motel Management; Vol. 223, Issue 10, p. 14.
Campaign (2008) Creativity won’t lose its value, even in recession. Campaign; Issue 16, p. 20.
Financial Management (2008) UK FDs braced for downturn. Financial Management; June 2008, p. 6.
Lloyd-Jones, A. R. (2008) The Prognosis for Hotel Occupancy and Average Rate in a Slowing Economy. Real Estate Finance Journal; Vol. 24, Issue 1, p. 29-33.
McCarthy E. J. (1960) Basic Marketing: A Managerial Approach. Homewood IL: Irwin.
O’Neill, J. W. and Mattila, A. S. (2006) Strategic Hotel Development and Positioning. Cornell Hotel & Restaurant Administration Quarterly; Vol. 47, Issue 2, p. 146-154.
Ricca, S. (2008) Wyndham: Recession strategies in place. Hotel & Motel Management; Vol. 223, Issue 10, p. 1-62.