Marketing Report for a Budget Hotel


Marketing Report for a Budget Hotel

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In today’s rather hasty environment, the tourism industry is the most affected with the devastating economic and financial crises, which hit the global population. With the limited resources, tourists are looking for more opportunities to save their funds, while still enjoying their holidays. Marketing orientation and effective utilization of the marketing mix principles become the most critical strategies to revive the slowed down tourism sector by serving the needs of price-sensitive customers.

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Due to the intangible essence of tourism products, the hotel operators must appeal to the carefully segmented customers. Moreover, the special attention should be paid to the cooperation with the advertising agencies and efficient application of the available market information to modify the current trends for the benefit of the hotel operator.

This report is organized into four parts. The first part presents insights into the marketing orientation concept and how it can be applied to enhance the ability of the budget hotel chain, the Holiday Inn, to meet the needs of the price-sensitive customers. The second part focuses on cooperation with the advertising agency and the potential benefits it may yield for the Holiday Inn. Further, a separate section of the report is devoted to the critical analysis of the segmentation strategies to be applied by the Holiday Inn. Finally, the report concludes with the overview of the current trends in the European tourism market.

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The essential purpose of any tourism operator or company working in the tourism sector is to satisfy the wants and needs of the customers. As Shank (2004) remarks, “most successful organizations concentrate on understanding the consumer and providing a product that meets consumers’ needs while achieving organization’s objectives” (p.5). This fit between customer satisfaction and achievement of organizational goals is referred to as marketing orientation.

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The Holiday Inn should employ marketing orientation with the purpose to understand customers’ preferences and to be able to meet those preferences with the skillful use of the marketing tools and strategies. Shank (2004) outlines a number of specific strategies the hotel operators may use within the marketing orientation efforts.

For example, intelligence generation refers to the analysis of customers’ demands and monitoring of the external environment information. Intelligence dissemination includes sharing of information gathered through the intelligence generation stage. The third step within marketing orientation strategy involves responsiveness, which is reacting to the gathered information on customers with the purpose to improve decision-making in the process of designing new services as well as promoting existing offers to the targeted customers.

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