Tourism And Hospitality: Strategic Responses

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Tourism And Hospitality: Strategic Responses

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Tourism And Hospitality: Strategic Responses

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Question:
Discuss about the Report for Tourism and Hospitality of Strategic Responses.

Answer:

Introduction
It is evident that the hospitalityindustry is one of the biggest and fastest growing industry in Australia. Thus, the organizations in this particular industry make huge investment for promotion of the products. For promoting the products, the hotels publish the advertisement regarding their latest products and services. The current report revolves around the advertisement strategies of Hilton, Sydney, which have been published on a magazine called “Conard”. The advertisement features the information about the products, expenditure, length of stay and other details. The report analyses the strategy used by the organizations and its effectiveness in the target market.
a) Describing the type of visitors/ Target market of the business
The organization Hilton, Sydney is one of the luxurious hotels in Australia. The organization mainly focuses on the cities across Australia. The price is normally the defining line between hotel and markets (Mar Alonso-Almeida and Bremser 2013). Hilton worldwide has 3,712 hotels. The magazine also reveal that Hilton gains the enormous popularity in Australia due to its wide range of products. The magazine reveal that Hilton provides quality feature for business convenience such as Audio/Visual equipment, Business Centre, meeting rooms, photocopying services and many more. The organization focuses on the businessperson, the tourists from Asia, sportsman, celebrities and others who come for event, big campaigns and for other purpose.
The organization also looks at the certain areas that would make its loyalty programs attractive (Leung et al. 2013). As the organization is one the largest hotels in the world, the Hilton provide high quality of products. The organization creates a unique stay experience that cannot be imitated by any other hotels in Sydney. Furthermore, it has been identified that Hilton tends to implement a differentiated marketing strategy focussing on the Business Travellers. It focuses on the consumers who seek quality; however, business functionality as well. The above-mentioned markets are the major places where the organization targets to increase their sales and customer base. Hilton is equipped to serve best with wide range of location in both business hotspot, emerging economies and attractive holiday destinations.
Furthermore, to satisfy the needs and demands of the customers, the organization tends to make customisable business package and high range of technology providing for the requirements of rapidly increasing tech oriented travellers as well as businesspersons. It is also identified that much of Hilton’s advertising is based on the areas accessible to the target markets such as Airport and tubes. In addition, it is also reviewed that organization segments the needs of customers based on these two segment.In this context, Legohérel (2013) added that while focusing on the demographic segment, the organization focuses on income, occupation and socio-economic group as well as the family cycle.However, the organization is often seen to be targeting the business people as well as high disposable income people since the products and services from Hilton Hotel that match perfectly with the lifestyle, personalities and value. The below mentioned figure demonstrates the occupancy rate of the customers from the target markets of Hilton Hotel, Australia.

Type of customers

Type of services

Average room rate

Occupancy

Business persons

Premium Service

$303

34%

Tourists

Premium service

$303

29%

Celebrities

General Services

$23

21%

Sports man

Premium Services

$303

10%

People with Disposable income

General Services

$23

Table 1: Occupancy Rate of the customers at Hilton (2014-2015)
(Source:Di Foggia and Lazzarotti 2013)
b) Evaluating how well advertisement targets the market for the enterprise
The marketing strategies implemented by the organization Hilton has been effective for the organization itself as the sales margin globally increased to 19% , which is 6.9 % higher than the previous years (Mok, Sparks and Kadampully 2013). The sales team of the organization is fully involved in providing a differentiated selling platform for the portfolio of the brands. Hilton in Australia is determined to become the most integrated as well as relevant sales forces in the hospitality industry. The supply chain management of Hilton enhances the programs with the suppliers who provide products and services for everything a property requires, from rooms to public services. The effectiveness of advertising strategies implemented related with the AIDA framework of advertisement.
AIDA Model:
Attention: Hilton focuses on the communication strategies to make people aware of the latest products and services. In order to grab the attention of the customers, it represents the new features of the products in advertising.

Figure 1: AIDA model of advertising
(Source:Laškarin 2013)
Interest: In order to create buyer’s interest Hilton develops the ranges of products; thus, the offers and deals can be provided with offered services. For example, for the customers, the hotel provide free spa service, free fitness rooms, sight-seeing tours(Kattara and El-Said 2013).
Desire: The opening of new hotels in the downturn of the city. The hotel ran the exclusive launch events. The advertisement was published through social media. This initiative created the buzz for “people wanting an invite” for experiencing the new services (Lee and Oh 2013).
Action: The organization created global events such as football match, social media buzz, and celebrity endorsement.
Colour theory-
Warm colour: The warm colour include red, orange and yellow (Stensland 2013). These three colour are not generated by mixing with a colour. It indicates that the design to reflect passion, happiness and enthusiasm. The developed features of the products and services are published in warm colour to grab the attention of people.
Primary colour: The primary colour refers to hot colour, which is red and it is related to the fire, violence but it is also linked to the love as well as passion. In order to reveal the prosperity the primary colour is used. The growth status of Hilton is revealed by primary colour.
Advertising appeal-
Transfer: It helps to transfer ideas as well as emotions. Hilton provides special winter packages for the premium customers
Hidden fears: It refers to the fact of playing upon the individual’s insecurities. The customers do not have to worry about the services. The high quality products and features offered by Hilton make the stop worrying about anything during the stay.
Testimonial: Hilton makes the endorsement of the products and services by the celebrities and sportsman.
Conclusion
On the completion of the report, it can be mentioned that advertisement is one major strategies that can be implemented to grab the attention of the customers. Advertisement also helps to make people aware of the latest products and services. The industry leading hotel Hilton effectively uses the strategies to increase the market share and customer base.

Reference list:
del Mar Alonso-Almeida, M. and Bremser, K., 2013. Strategic responses of the Spanish hospitality sector to the financial crisis. International Journal of Hospitality Management, 32, pp.141-148.
Di Foggia, G. and Lazzarotti, V., 2013. Business implications of local development policies: The case of Dubai and the travel industry. Theoretical and empirical researches in urban management, 8(1), p.78.
Kattara, H. and El-Said, O. 2013. Innovation strategies: The implementation of creativity principles in Egyptian hotels. Tourism and Hospitality Research, 13(3), pp.140-148.
Laškarin, M., 2013. Development of loyalty programmes in the hotel industry. Tourism and Hospitality Management, 19(1.), pp.109-123.
Lee, S. and Oh, H. 2013. Effective Communication Strategies for Hotel Guests’ Green Behavior. Cornell Hospitality Quarterly, 55(1), pp.52-63.
Legohérel, P. ed., 2013. Revenue management for hospitality and tourism. Woodeaton: Goodfellow Publishers.
Leung, D., Law, R., Van Hoof, H. and Buhalis, D., 2013. Social media in tourism and hospitality: A literature review. Journal of Travel & Tourism Marketing, 30(1-2), pp.3-22.
Mok, C., Sparks, B. and Kadampully, J., 2013. Service quality management in hospitality, tourism, and leisure. Routledge.
Stensland, S. 2013. Landowners’ Perception of Risk Sources and Risk Management Strategies in Norwegian Salmon Angling Tourism. Scandinavian Journal of Hospitality and Tourism, 13(3), pp.208-227.

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