Marketing Hospitality Assignment Sample 2024
Introduction:
The report aims to critically evaluate and justify the existing marketing theory and concepts to demonstrate the connections between marketing theories and the international hospitality section. The significance of experimental marketing concepts and theory in regard to international hospital brands will be formed. In order to fulfil the objectives, Hyatt Hotels Corporation, also known as Hyatt Hotels and Resorts is chosen. The connection to its offerings will be drawn in regards to experiential marketing concepts and the model, the 4Es Of Experience Marketing. Hyatt is a well-known hospitality brand that focuses on managing and franchising luxury and business hotels, vacation properties and resorts. It has a global reach of over 1350 hotels and all-inclusive properties in 69 nations throughout six continents (Hyatt, 2024). Under the core brand, it has multiple brands that cater to diverse guest segments such as Hyatt Regency, Grand Hyatt, Hyatt Centric, Park Hyatt, Andaz, Hyatt Ziva and Hyatt Zilara. It is known for providing high-quality accommodation, personalised services and upscale experiences. The main sections of the report are Critical Evaluation and Synthesis of Experiential Marketing and Communications Plan.
Section 1: Critical Evaluation and Synthesis of Experiential Marketing
In this section, a critical evaluation and reflection on how experiential marketing theory is imperative for hospitality brands to provide experiences for consumers will be evaluated considering Hyatt Hotel Manchester’s recent event, Thursday Treasures, which is well-crafted from cherished family recipes.
The 4Es of Experience Marketing:
Critical evaluation of experience’s definitions, advantages and disadvantages to consumers and businesses:
The term ‘experience’ is nuanced in the hospitality industry, which is more than offering a good room to guests. In accordance with Collins (2023), an experience refers to the entire customer journey that encompasses pre-booking to post-stay interactions. As per Bharwani and Jauhari, (2017) experience is a holistic approach that ensures guests can create a memorable as well as positive impression that goes beyond the physical space and caters to emotional needs. A study by Seetharaman (2020) states that there has been a shift from goods and services to the industry of experience. Nowadays businesses are competing against each other to create memorable and engaging experiences for customers. Further, Imbug et al., (2018) refers, the term experience is all about designing customer experiences which create value, develop trust and loyalty and drive business success. The format of providing an experience in the hospitality industry is multifaceted and broad, however, must be maintained. It begins with pre-booking. It is followed by the arrival and check-in, accommodation, service, dining and amenities, local integration, technology implementation and ensuring engagement after stay.
Previous literary underpinnings highlighted that a well-crafted experience ensures consumers can be able to create a memorable and satisfactory stay. Having personalised recommendations which are based on their specific needs with a focus on guest well-being improves the experience for consumers (Henkens et al., 2021). Advantages for consumers also reflect on increased value perception that goes beyond certain amenities which makes them feel that they are getting more value for their money. On the contrary, if a stay fails to meet the high expectations of guests, it can lead to disappointment. Besides that, if a hotel or restaurant highly depends on technology, it might not be easy for many customers to understand and operate those. As stated by Anning-Dorson and Nyamekye, (2020) when hospitality businesses focus on experiences they can differentiate themselves from competitors. Along with that, it also impacts their revenue as guests are likely to opt for premium rooms and utilise amenities. However, brands offering superior experience can require investment in regard to staff training and technology infrastructure.
The requirement of hospitality brand Hyatt to get involved:
Hyatt is a luxury hotel chain, as a result, guests expect it to cater to their diverse needs to ensure a compelling experience. It is more than offering comfortable rooms and amenities. The competitive market of today expects such brands to create a memorable and positive experience that is crucial to attracting and retaining guests (Maylett and Wride, 2017). This is why experience is critical for Hyatt, how it can attract its target market and gain a competitive advantage in the market. The trend of shifting travellers’ expectations is critical, especially in the luxury aspect. They want the stay to offer more than just rooms and basic amenities. In other words, they expect personalised experiences that ensure individuals remain happy with their needs and create lasting memories. Across the world, the hospitality sector is extremely competitive. It is one of the key reasons why Hyatt needs to differentiate itself from its rivals offering the same kind of rooms and amenities. However, repeat customers are necessary for hospitality brands to achieve market dominance and it is achieved through positive experiences (Ong et al., 2018). Positive experiences are essential to improve customer loyalty, which directly improves repeat businesses and positive word-of-mouth recommendations. For travellers online reviews matter the most, and brand loyalty ensures such by heavily influencing travel decisions.
The well-crafted experience’s impact on Hyatt’s guests is immense. It is required for a brand like Hyatt to constantly update their operations and offerings to enhance guest satisfaction. It enables the company to feel valued. Recently, the event of Hyatt’s ‘family recipes’ at lower cost showed that it is updating itself as per the market demands and travellers being cost-sensitive. It is expected that such actions of Hyatt reflect its ability to create a sense of place, along with evolving emotional understandings and developing deeper connections with guests. Overall, the impact on experience on guests is about providing memorable journeys which is more than just offering rooms and basic amenities. By offering more than basic facilities, guests of Hyatt will develop a feeling that the stay is worth their money. Personalised services to guests’ needs are managed by the hotel which improves guest satisfaction. At the same time, enabling customers to focus on personalised and memorable experiences, can stand out from competitors.
The premium room rates vary based on the customer’s positive experiences which further encourages guests to spend extra on amenities and services provided by the hotel. The data-driven strategies, cannot be neglected for personalising experiences and further optimise offerings (Ettl et al., 2020). Hyatt’s competitive advantage depends on how well it maintains or continuously improves on the basis of guest feedback. Overall, the analysis dreams how crucial it is for Hyatt or any such hospitality brand to cater to the diverse needs of consumers and provide exceptional guest experience. The brand can exceed expectations by creating personalised journeys, which eventually can help it to develop a loyal customer base differentiate itself from the market and achieve a sustainable competitive advantage.
Critical evaluation of experiential marketing definitions and Advantages and Disadvantages to consumers and businesses:
Experiential marketing is an advanced version of marketing fundamentals that mainly focuses on creating real-world experiences and emotional connections between brands and consumers. In accordance with Smilansky (2017) experiential marketing refers to a combined approach to customers that provides interactive experiences that showcase a company’s overall values and personality along with product benefits. Chang (2020) states experiential marketing goes beyond only promoting the brand and creates a memorable and positive relationship between the brand and its customers. Such experiences can be diverse in format. For example, a brand can achieve this by conducting pop-up events product descriptions or sponsored workshops. These activities are essential for effective participation, better engagement and providing a shareable experience for guests. As stated by Batat (2019) brands that provide experiential marketing can reach better results by creating an impact. They can develop brand awareness, generate positive word-of-mouth and allow brands to collect valuable consumer information. The key difference from traditional marketing is its ability to provide an immersive experience which is critical for creating stronger connections with consumers that leads to brand loyalty and better purchase intent. In addition to that, Sung (2021) states experiential marketing is more than attracting consumers with advertising messages. It happens when consumers can have a first-hand experience of using certain products or services. Such experiences are likely to be fun, and informative and can help build a sense of community among the guests who participate together.
Experiential marketing is more than passive advertising. For consumers, it encourages them to actively participate, explore products and create memories that last. For example, a virtual reality experience for a hotel before buying which is more than traditional advertising. Besides that, it is crucial for consumers to make informed purchasing decisions. As they can directly associate with the products or services, they can assess features, benefits and suitability of their needs. As a result, they can develop better trust and confidence in their choices. They can interact with similar-minded people by participating in product demonstrations, workshops, or brand-sponsored festivals. Moreover, Le et al., (2019) describe these marketing strategies to be highly engaging and entertaining. Companies use this by conducting engaging contests, product demonstrations with twists and interactive games. Disadvantages are also there as companies have to carefully develop strategies to showcase their products in the best format. There is a major chance that consumers fail to get a well-rounded picture overlooking the drawbacks and limitations of the same. However, the majority of marketing campaigns focus on creating buzz instead of providing valuable experience. It is difficult for consumers to participate in experiential marketing events as it requires time and effort. Consumers may not be able to engage due to event locations, scheduling conflicts as well as limited capacity.
Brands benefit from experiential marketing by creating emotional connections with consumers which can go beyond product features. Guests’ positive experiences can help with product features. Positive experiences can help ensure better brand loyalty and advocacy. It directly improves sales through better word-of-mouth recommendations. It can help generate valuable customer data that can be further used to improve marketing approaches, personalise future marketing efforts and improve product development strategies. It can help generate valuable customer data that can be further used to improve marketing approaches, personalise future marketing efforts and improve product development strategies. However, these campaigns are expensive as they require creating engaging experiences, securing venues and managing logistics. Collectively, it is a huge financial resource. Moreover, the challenge remains in regards to measuring Return on Investment or ROI precisely.
The 4Es of experience marketing:
Figure 1: The 4Es of experience marketing Source: (Amoah and Marriott, 2021)
The above model is the framework that enables brands to create holistic and crucial customer experiences as it engages them at an emotional level throughout the journey with the brand. The first step, ‘engage/entertainment’ refers to the activities to increase customers’ interest. The key strategies are social media contests, virtual reality experiences or pop-up events to create curiosity and encourage participation. This is crucial for laying the foundation for grabbing consumers’ attention. The next step is ‘educate’ which requires brands to inform customers about the story, vision values and product offerings. For that companies create content like interactive tutorials, and workshops (for product demonstrations) to equip consumers with knowledge about the brand’s functionality and advantages. Having clear knowledge is critical to encourage consumers for purchasing decisions that lead to better satisfaction and loyalty. The third and the key stage of the model is ‘experience/escapist’ which is about creating memorable and engaging experiences that are more than the product itself. For that, brands develop immersive experiences. That is emotionally engaging and reflects the company’s personality. The fourth step is ‘evangelism/esthetic’ which encourages customers who are happy and satisfied with the brand to become brand advocates who spread positive word-of-mouth recommendations. The key strategies that brands perform in this stage are to conduct social media content where they will be sharing experiences, and reward programs for referrals to showcase positive brand experiences. The loyal customers of the companies can amplify the marketing efforts and attract new customers through trusted recommendations.
The advantages of this particular model in practicality are vast. As per the model, it puts the customers at the centre of marketing strategy which is mainly about creating experiences that align with their needs and interests. It ensures a better and cohesive customer journey by evaluating all their touchpoints from initial awareness to post-purchase interactions. As experiential marketing mainly focuses on the engagement and experience of consumers, it directly builds an emotional bond with customers that improves effective brand loyalty. However, tracking the stage of ‘evangelism’ is difficult. Overall, the framework acts as an effective model for brands to effectively engage with customers through creating an interactive experience journey.
Discussion on the challenges of designing and staging the environment on and off-line/before, during and after and Recommendations that the brand should add for improving brand experience:
Hyatt’s legacy is dependent on its commitment to guest experiences as it requires extreme planning and execution through all stages of the 4Es Framework. However, the analysis showed how Hyatt can face when designing and staging the overall environment online and offline, before, during, and after a guest’s stay. Hyatt’s legacy is dependent on its commitment to guest experiences as it requires extreme planning and execution through all stages of the 4Es Framework. However, the analysis showed how Hyatt can face when designing and staging the overall environment online and offline, before, during, and after a guest’s stay. As per the first stage, the hotel conglomerate faces difficulty in getting attention from prospects online. For that, it is crucial that they create engaging social media content, develop user-friendly websites and personalise online interactions. Along with that, it can also be challenging to attract customers in physical locations. Therefore, Hyatt needs to create better visually appealing displays in lobbies. It can help them by partnering with local businesses as well to get unique promotional opportunities.
For the ‘educate’ stage, the brand has to provide concise data online without providing comprehensive data. For that, it might involve offering virtual tours through AR and VR, showcasing room facilities and highlighting local attractions and experiences. However, for offline challenges, the brand needs well-trained employees to educate guests during their stay. They must be knowledgeable about the property, local areas and available services. Further, it can be managed using high-quality brochures and information guides.
Following the framework, the third stage would be mitigating the online challenges through the Hyatt experience-which can be tricky. Such critical requirements can be bridged through showcasing hotel ambience and partnerships with travel influencers who would share authentic experiences. In addition to that, the creation of exceptional yet consistent experience throughout Hyatt locations is difficult to maintain. The key to success is to maintain effective and direct quality standards, employee training and guest service protocols. The brand has to maintain consistency in the physical environment such as decor, and amenities across brands such as Hyatt Regency or Park Hyatt.
The last stage identifies that encouraging online advocacy can be problematic. To mitigate this, Hyatt can employ incentivising social media reach through contests and loyalty programs. The brand needs to acknowledge and reply to guest feedback and reviews. The offline challenges can be handled by developing word-of-mouth recommendations that exceed the guest expectations consistently. They must take actions that ensure they care for the guests by offering personalised touches and anticipating needs that encourage brand loyalty and advocacy.
For before, during and after the stay, Hyatt has to take diverse actions. The recommendations for pre-arrival are that it must focus on seamless online booking, providing personalised suggestions as per the preferences of guests and effective communication regarding arrival details for setting a positive tone. During the stay, it is crucial that the brand provides comfortable and clean rooms and overall facilities through attentive and responsible service. It may require them to address issues promptly for positive experiences. For post-stay, Hyatt hotels may need to thank the guests and address if they still have certain concerns that can reflect on the brand’s ability to go beyond a set of actions. Personalised post-stay benefits such as loyalty schemes or rewards that minimise return guests.
Section 2: Communications Plan
Objective | Solution | Pre-Consumption | During Consumption | Post-Consumption |
Increase brand awareness | Collaborate with travel influencers | Social media campaigns | Welcome packages | Request for feedback |
Enhance engagement with potential guests | Create engaging website content | Email newsletters | Virtual tours | Loyalty programs |
Improve guest experience | Personalise pre-arrival communications | Blog posts | Interactive dining experiences | Thank you emails |
Encourage repeat visits | Offer exclusive booking discounts | Targeted ads | Live events | Follow-up offers |
Table 1: Communication Plan
(Source: Bonfanti et al., 2021)
Organisations need to consider each stage of the customer journey pre during and post-consumption to develop effective communication plans for Hyatt Hotel Corporation. In the pre-consumption phase, the primary objective of the company is to increase its brand awareness and engagement by providing customised and personalised solutions to its potential consumers and guests. As argued by Bonfanti et al., (2021), the company also collaborates with travel influencers and bloggers as a strategic solution to increase its brand ability and optimise consumer engagement beyond the existing reach. The hotel is required to implement digital and comprehensive solutions to optimise the existing rich and credible by highlighting its key solutions and services to a wide audience by partnering with social media and blog inflation. Social media campaigns can also have a positive impact on unique experiences and consumer engagement for the company (González et al., 2021). However, the companies must consider or forecast possible roots and destinations to provide customised solutions. Additionally, the company is also required to develop engaging website content to enhance engagement with potential guests during the pre-consumption phase (Ismunandar et al., 2023). The hotel can also develop blog post destination guides and interactive maps which provide available information about the local area and highlight unique features of each property and destinations around different locations. The company can also capture the impact of potential guests and encourage guests to explore key features and beauty of different destinations by providing valuable and reliable content.
The company is also required to develop personalised pre-arrival communication to improve the guest experience. The company can provide personalised emails consisting of beautiful destinations and local inside and exclusive offers (Dwivedi et al., 2024). The hotel needs to provide unique services from guest booking to post experience by considering their differences and needs.
Moving to the consumption phase, the company needs to consider gust shifts towards “immersive experiences and enhance guest satisfaction”. The company can also organise virtual tours to attract guests. The virtual tools also assist guests to explore from the comfort of their home. As a result, the company can also create excitement and anticipation among different guests by providing virtual tours. Which describes attractive destinations and locations which increase their existing booking rate.
Virtual tours provide interactive dining experiences and enhance guest experience during their enjoyment throughout the period. The hotel can organise cooking classes, wine tasting or theme dinners which allow guests to participate in unique culinary experiences. As opinated by Narayan et al., (2022), the hotel can also create memorable experiences. It also helps differentiate its services from existing competitors and encourages repeated visits among guests.
Finally, in the post-consumption phase, the company focused on shifts to encourage repeat visits and collect feedback from their guests to customise and make necessary steps to enhance the guest experience (Bonfanti et al., 2023). The loyalty program can also attract guests encourage repetitive stays and enhance their existing loyalty. The hotel can also encourage guests to choose Hyatt Hotel for future travel needs by providing close benefits and rewards to their loyal consumers such as discounted rate room upgrades and complimentary services.
Additionally, the company is also required to send personalised emails and marketing content after a guest’s stay to reinforce the positive experience and encourage future booking. The company should launch marketing campaigns specifically in winter as well as other regional periods to create a positive image among guests to consider Hyatt Hotel for their travel needs.
Hyatt Hotels and Resorts SOCIAL MEDIA MARKETING PLAN 2022 | ||
Focus | Launching the Masterchef Experience at Hyatt Hotels and Resorts | |
March 2022 – May 2022 (including post-launch social media activity). | ||
Social Media
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Brand awareness and attracting potential participants:
Master Chef Experience
Customer Relationship Management: Build and manage relations with customers via social media (Different market segments may require different methods)
ROI: Measured the number of likes, followers and shares.
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Conclusion:
The report concludes that experiential marketing is what sets brands apart from their competitors. Hyatt being one of the major luxury hotel chains must delve into the emerging strategy of experiential marketing. The evaluation of the 4Es experiential marketing shows that Hyatt can ensure better repeat guests and engaging customer base across the world through taking effective steps such as personalisation of experience, providing virtual tours, and offering end-to-end facilities which may require the brand to go beyond its facilities. The analysis of the event of providing family recipes at lower cost shows that the hotel chain is focusing on experiences more, but the recommendations show that it requires more focus on building better customer service and building a digital presence. The communication plan is effective in attracting different diverse consumers by providing an attractive and unique solution based on guest insights as well as preferences. On the other hand, the detailed discussion for improvement regarding pre-, during and post-engagement of guests. Overall, this communication play assists the hotel to customise the entire business operation by sending attractive emails as well as post-engagement recognition.
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