Marketing in tourism

Consumer involvement is the perceived personal importance and interest consumers attach to the acquisition, consumption, and disposition of a good,

Marketing in tourism

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Task 1 - Research Planning for Decision Making

Task 2 Questionnaire Design and Fieldforce Instructions

Task 3 - Information for Marketing Decisions






Growth in tourism globally has forced some standardization in the facilities made available to guests at the establishments. This ensures that guests can have a good feel of what to expect. An increase in business travel too has come about as businesses have gone global. A substantial amount of traffic is generated through these business travelers and the growth in this segment is directly linked to the growth in international business at the hotel location.

Global hotels and motels, not including casino hotels, generated a volume of business at the level of $ 488.6 billion in 2006. Revenue contribution of other accommodation providers who provided accommodation and food services are included in the estimate. This was a rise of 6.4% over the revenue of the earlier year. By the year 2011, the hotel and motel revenue is expected to rise by 31.2% to reach $640.9 billion. The biggest contributor is Europe, contributing 41.8 % by value. Hotels & motels industry generated revenues of $ 90 billion or 18.4 %.

Marketing researchers need a broad understanding of marketing in order to communicate and work effectively with marketing professionals. The main research objectives in marketing are to suggest that unstructured and informal research designs are likely to be used when attempting to arrive at a more clear description of an apparent problem; to indicate that exploratory research designs are typically used when researchers are trying to identify a potential marketing opportunity.




The hospitality industry is about providing hospitality to travelers. The hospitality typically includes accommodation, food, beverages and other recreational facilities.

The hotel should concentrate and keep up the good work even if the business is already strong. Each relevant factor needs to be rated according to its importance- high, medium, or low for the business as a whole. This Hotel Industry utilizes the latest marketing principles and information technology updates to get a respectable position in the world market. In the face the worldwide economic recession, the guests have become more sensitive to price which calls for effective formulation of the pricing strategy.


Task 1 - Research Planning for Decision Making


A hotel is an establishment which provides paid lodging usually for a short time. These establishments often provide additional services such as a restaurant, swimming pool, health club and even child care. Conference and meeting rooms are also provided by some for conventions and meetings for groups.

The Grande Bretagne Hotel is a 273-room hotel (Standard 233, Executive 30, Suites - 10). It is located on the corner of Marloes Road and Cromwell Road in West London. The hotel opened in March 2007. It is of a four star standard with rooms of approximately 29 square meters.

Each room has minibar, remote control TV with choice of satellite channels, radio, in-house movies and extension speaker in bathroom, direct dial telephone with connection points by both bed and writing desk. Individually controlled air conditioning and heating, well lit adequately sized desk area, hairdryer and dual voltage shaver outlet, toiletries in bathroom, trouser press, hospitality tray.

The executive rooms and suites additionally include a generally higher quality of furnishings and fittings selection of magazines bathrobes and a higher standard of toiletries, telephone in the bathroom.

It is part of a French national hotel group that has 45 hotels in France and last year started expanding into Europe, four hotels have already been opened in Paris, Berlin, Madrid and London and the company is actively seeking sites in other major European capitals.

The Grande Bretagne Hotel's mission is to provide quality hospitality services to its guests in a comprehensive and cost competitive manner.

«The hotel should concentrate and keep up the good work even if the business is already strong» (Hotel Front Office Management by James A. Bardi March 2006, Hardcover, 4th edition). Each relevant factor needs to be rated according to its importance- high, medium, or low for the business as a whole. The Grande Bretagne Hotel Industry utilizes the latest marketing principles and information technology updates to get a respectable position in the world market.

Every business with the global prospects in the multi dimensional, volatile atmosphere has to introspect its strategies taking into consideration the strengths, weaknesses, opportunities and threats. The hotel industry also tags along the line and has to undertake smart and innovative moves to woo its clientele who expect best possible service at competitive rates.

Though the sales and market conditions are changing rapidly, the marketing principles are not changing. Hotel owners and managements tend to be more inclined towards marketing and sales rather than cost control, constantly seeking to maximize room sales - double- bed occupancies. All this may fail and such a scenario may result in profit problem on cyclic basis, which may sometimes lead the hotel into liquidation or forced sale.

The required first step in SWOT analysis is the definition of the desired end state or objective. The definition of objective must be explicit and approved by all participants in the process. This first step must be performed carefully because failure to identify correctly the end state aimed for leads to wasted resources and possibly failure of the enterprise.

Strengths are attributes of the organization that are helpful to the achievement of the objective. Weaknesses are attributes of the organization that are harmful to the achievement of the objective. Opportunities are external conditions that are helpful to the achievement of the objective. Threats are external conditions that are harmful to the achievement of the objective.

The aim of any SWOT analysis should be to isolate the key «issues» that will be important to the future of the hotel; and that subsequent marketing planning will address.

Following diagram indicates the Strengths and Weakness Analysis of the Grande Bretagne Hotel.



  1. England's rich cultural heritage
  2. International hotel chain
  3. All rooms have suite facilities
  4. Demand far exceeds Supply
  5. Global economical turn-up
  6. New business opportunitiesWeaknesses
  7. Capital intensive
  8. Lack of adequate Man power
  9. Regional imbalance of hotels
  10. Long gestation period
  11. Poor infrastructure and cleanliness
  12. Huge labor turnover
  13. Less corporate ownershipOpportunities
  14. Boom in tourism
  15. Privatization of airlines
  16. Increase in disposable incomes
  17. Boost in tax concessionsThreats
  18. Sensitive to disturbances in the country
  19. Competition from other European countries
  20. High service and luxury taxes may render England as an unviable destination.
  21. Lack of trained entrepreneurs

SWOT analysis allows author to formulate the main objectives of the Grande Bretagne Hotel:

- Increase sales volume.

- Increase revenue.

- Achieve or increase profits.

- Increase or maintain market share.

- Eliminate competition.

Factors influencing price-determination:

- Production and distribution costs.

- Substitute goods available.

- Reaction of distributors.

- Reaction of consumers.

Profitability is driven by efficient operations mainly, as many costs are fixed in nature. Several recent changes in the industry causing profitability pressures. Growth in internet reservation channels has helped improve the industry occupancy rate of hotels. However, it has caused a cost pressure too. Increased sales through these intermediaries has allowed them to charge higher amounts of commissions and degraded the ability of the players to control pricing or the presentation of their products. Indirect competition through alternative forms of holiday accommodation, are increasing. Holiday homes, timeshare accommodation and such other shared accommodation schemes are biting into the shares of the mainstream hotel and motel industry.

The outlook for the hospitality market in England is optimistic and will continue to remain so, in my opinion. The economys buoyancy, initiatives to improve infrastructure, growth in the aviation and real estate sectors and easing of restrictions on foreign direct investment will fuel demand for hotels across star categories in the majority of markets. Several international chains have been established or enhanced their presence here. England is one of the worlds fastest growing tourism markets.

External environment

Economic Environment

Positive forces include the generally prosperous economy that is currently in place, full employment, rising wages, and low inflation, leading more people to be able and willing to spend money and to get away for some time. The Grande Bretagne Hotel offers an affordable alternative to a flyaway destination. There are conference, banqueting and leisure facilities.

Geographical/Competitive Environment

The Grande Bretagne Hotel has:

- The brasserie/coffee shop seating 120 people and open for all day dining and an a la car

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