Importance of Promotion in the Hotel Industry-Free-Samples

Question: Discuss about the importance of promotion in the hotel industry. Answer: Introduction In the modern world, promotion is one of the important marketing mix elements that every organisation need to adopt. Promotion can help organisations to continue its business and extend it towards the public. The report focuses on the importance of promotion and the manner in which Centara Hotel can apply promotional methods to continue its growth in the hospitality sector of the industry. Centara Hotel is a famous hotel and resort provider located in Samui Island, Thailand. It provides identification of various hotels all across Thailand for the customers to enjoy an authentic experience. Centara Hotel was set up in 1980 and currently is the biggest hotel and resort based in the country (Centarahotelsresorts.com 2018). It main competitor include Amari Hotel also located on Samui Island, Thailand. Amari Hotel provides locations of hotels not only in Thailand but also in Bangladesh, China, Laos and other parts of Asia (Amari.com 2018). The report focuses on the use of promotion by bot h hotels in order to attract customers. The purpose of this report The purpose of this report is to analyse the promotional strategies adopted by Centara Hotel in order to promote itself in the market of Thailand. The report analyses the 4P's of marketing and focuses only on the promotion factor that is considered as important in the modern world. The relationship that exists between hotel industry and promotion is explained along with the top management competition and performance of a firm. Theoretical background Describe 4 Ps of Marketing According to Armstrong et al. (2015), the marketing mix strategy is based on the analysis of the important elements of marketing. This includes the product, place, price and promotion. In addition to these four P's, the marketing mix also consists of other elements such as the people, physical evidence and the process. These elements combine and provide organisations with an opportunity to improve its marketing strategies. In the case of Centara Hotel, the application of these elements is crucial for its survival and growth in the hospitality market of Thailand. As stated by Huang and Sarigll (2014) the marketing mix elements are important in the case of hospitality sector as it is considered as a developing sector and people tend to judge it by the elements present in the marketing mix. For example, the price of Centara Hotel is expensive as compared with that of its competitors, Amari Hotel. Therefore, the customers may be willing to back out from availing the services provided by Centara Hotel. At the same time, promotion is also important, as without proper promotion it can be difficult for Centara Hotel to lay a foundation in the minds of the customers. Hence, the importance of promotion can be discussed broadly. Explaining types of Promotion Hanssens et al. (2014) stated that one of the types of promotion that are used in hotels might include mass-market promotion. This promotional type is usually adopted by the big hotel names and uses the websites to reach the customers. With the help of the websites, a hotel such as Centara Hotel can reach a large number of audiences and promote the type of services it provides concerning searching for other hotels across Thailand. Other types of promotion include promotion through specialised agencies. The specialised agencies are the travel agencies that provide customers with an idea about the best hotels that exist in the market. Centara Hotel can be considered as an agency as it provides opportunities for the customers to continue searching for hotels across Thailand and Maldives. However, Sinapuelas, Wang and Bohlmann (2015) are of the opinion that these specialised agencies often have to compete with the new methods to gain the attention of the customers and the hotel industrie s. At the same time, hotels also provide discounts that are promoted via newspapers or social media sites. In the case of Centara Hotel, the discounts provided can help in the selling of more hotel rooms and therefore, the loyalty of the customers can be retained. Discounts provide a competitive edge for the hotels. Relationship between Promotion hotel industry Babin and Zikmund (2015) stated that tourism is one of the main sectors of the industry. The hotel industry is a sub-section of the tourism industry and the growth of the hotels is attributed to the type of promotional activities performed by the hotels. Therefore, the relationship that the hotel industries have with the promotion is the fact that the hotel industries cannot grow without proper promotion. The analysis shows that in order to establish itself in the industry, Centara Hotel needs to adopt various methods to reach the customers. The type of promotion that has been pointed out is instrumental in creating awareness among the customers. At the same time, communication plays a big role in the modern business environment (Sheth and Sisodia 2015). The promotion provides Centara Hotel with the ability to communicate with the people and ensure that the services offered by it are recognised and availed by the customers. Promotion can help Centara Hotel to identify the competitors , as the activities that lead to the promotion of the hotels are similar. Therefore, the competitors of Centara Hotel such as Amari Hotel need to adopt the same promotional strategies so that it can maintain competitiveness in the hospitality sector. Relationship between top management team composition and firm performance Hanssens et al. (2014) are of the opinion that in order to continue its growth in the competing business market, Centara Hotel needs to ensure that the performance of the hotel and resorts improves. This can be considered as the analysis of the internal activities of an organisation that may be pivotal in its growth and development. Team composition is important, as it can be effective in delegating the tasks to the people. Such a method of the delegation of the tasks is adopted by Centara Hotel so that the employees do not feel any type of pressure. Therefore, it is required that the team composition consists of people that are effective in working together and have an idea about the type of job that is required to be done. A proper team can help improve the performance level of a hotel and ensure more satisfaction from customers. Centara Hotel can also ensure that a competitive edge can be gained with the recruitment of talented individuals. Therefore, the organisational performanc e can improve the satisfaction of the employees. Conclusion It can be concluded that without promotion, an organisation cannot succeed to attract customers. The promotional tactics need to be such that it can establish a link with the hotel industries. In a hotel like Centara Hotel, the promotional strategies can be used to continue its promotion in the hospitality industry of Thailand. Promotion not only helps to attract customers but also provides an opportunity to a proper firm performance by recruiting skilled and talented employees. The competition with the rivals can be reduced if the hotel has a proper promotional plan that can be used to elevate its resources and performance in the market. Therefore, it is important that a hotel like Centara maintain a proper promotional strategy so that it can gain a competitive advantage in the market. References Amari.com 2018. Amari Hotels Resorts - Colours and Rhythms of Modern Asia. 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