Marketing Strategy in the Hotel Industry

Marketing Strategy in the Hotel Industry

Marketing Strategy in the Hotel Industry


Chapter One of Marketing Strategy in the Hotel Industry


The Hotel Industry is primarily a service industry providing a wide range of services ranging from the provision of accommodation, food and beverage to the provision of entertainment, sport and other leisure facilities, to travelers and tourists.

The Hotel Industry comprises of three industries which are:

·        Companies involved in constructing, developing and owing hotel buildings.

·        Companies involved in managing hotels.

·        Franchising companies which develop Hotel chains without being involved in either owing hotel building or managing hotels

From the customer’s prospective, A Hotel is said to be an institution of Commercial

Hospitality, which offers its facilities and services for sale either individually or in various combinations.

The services and facilities offered for sale by the hotel includes; the Hotel location, facilities for use by the customers, Services provided through the available facilities, the Hotel image and prices of products and services offered for sale.

The main aim of marketing in the Hotel Industry is to increase sales revenue, achieved by identifying and satisfying customer’s needs and wants which may range from personal, social and societal wants.

For effective marketing in the Hotel industry, certain marketing strategies need to be

developed, considering relevant and comprehensive information from within and outside the business, which should be checked regularly and updated when necessary.

Marketing objectives must also be set and they must be precise and quantified to show the life span for which they are to be achieved. They should be attainable, realistic and should moderate the business, serving as its basis for planning and decision making.

These objectives should depend on the needs and wants of its prospective and potential customers. Marketing strategies to be followed are:

·        Confirming Corporate Objectives

·        Writing Marketing Objectives

·        Selecting Strategic Business Units

·        Constructing a Strategic Marketing Mix.

·        Implementing, Controlling and Organising Marketing Strategy.


This project work is written to;

·        Enable hotels satisfy their potential and prospective customer wants

·        Help hotels achieve their business targets and objectives to the maximum.

·        Help hotels increase revenue generated from sales through identifying and satisfying customer wants.

·        Ensure effective marketing strategy is developed and followed in hotels.


Marketing Strategy is defined as the way business is positioned in the market place .It is the way business is perceived by the customers.

 Marketing according to Philip kotler the noted American marketing scholar, is defined as a social process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others.

The British institute of marketing, defined marketing as the management process responsible for identifying, anticipating and satisfying customer requirements profitably.

Marketing can also be defined as a set of tools which allow a company to achieve its aims.

A Hotel according to the proprietor’s act 1956 is defined as an establishment offering food, drink and if so required sleeping accommodation, without any             special contract to any traveler presenting him self, who appears willing and able to pay a reasonable sum for the services and facilities provided and who is in a fit state to be received.



Marketing is more than a set of skills and techniques used in the process of delivering mutual satisfaction .It is a way of doing business.

Marketing is able to provide three types of satisfaction, which are:

·        Personal satisfaction

·        Social satisfaction

·        Societal satisfaction

Personal satisfaction: is the gratification experienced from the consumption or ownership of a product.

Social satisfaction: occurs when the consumers immediate circle of acquaintances approve of the purchase. For instance, if a child tells his parent after a trip to a restaurant that he enjoyed it.

Societal satisfaction: occurs when the society as a whole approves of the purchase and consumption of the product.

Marketing Concept consists of 3 interdependent statements which are:

·        The consumer or customer should be the focal point for decision making.

·        Decisions made by the company should produce profitable sales.

·        Customer’s needs and wants should be recognized, organised and integrated to ensure they are met.


Marketing orientation is the term used to describe the way of doing business characterized by those companies who have adopted the marketing concept. Some other orientation undertaken by companies includes:

·        Production orientation

·        Sales orientation

Production orientation: Such companies approach business by concentrating on making quality products known to have sold well. Improvements are made on the production techniques and systems but little notice is taken of market changes and trends. This becomes a big problem later on as consumer needs is not static and therefore not met.

Sales orientation: in such companies, goods or services are produced with huge effort out into selling and promoting them. Profits are made through sales volume, but this can only bring short term success. If the product does not meet customer expectations or is of poor quality, then their will be no repeat business by the customers.

In companies that have adopted the marketing concept, customer needs are identified and products and services produced to fit them. Products are delivered to consumers in the right place through the right channels at a price that suits them, gaining profit through customer satisfaction.