Hospitality Marketing: Strategic Issues

Chapter Objectives

After working through this chapter, you should be able to:

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  Define key marketing terms and understand the ‘marketing concept’.

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  Describe major environmental influences which impact on hospitality customers and organizations.

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  Explain the special characteristics of service businesses to which marketers need to respond.

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  Identify the eight elements of the hospitality marketing mix and life cycle.

Case Study: Travel Inn- An Integrated Approach To Marketing

In the 1980s, market demand for better quality low-cost accommodation in the UK grew significantly and Travelodge (the original developer of the concept) expanded rapidly. In1987, Whitbread developed a competitor concept, called Travel Inn, which imitated the market leader in most aspects. Whitbread franchised the new brand to five of their company owned restaurant/pub chains, such as Beefeater. Despite intense competition from Days Inn, Express by Holiday Inn, and Accor, Travel Inn overtook Travelodge after ten years. With a marketing objective ‘to be the customer’s first choice’ in the budget market, the Travel Inn brand team – who had complete control of all elements of the marketing mix focused on setting and maintaining consistent brand standards. Properties that failed the brand standard’s inspections were de-branded. The marketing mix comprised:

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  Product: Low-cost, mid-market accommodation standards, with factory built standardized bedrooms, which are easy to install on site. Each room is refurbished on a regular cycle depending upon occupancy rates the objective is that old rooms look as good as new rooms, and the product offer is consistent throughout the chain.

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  Location: There are three types of location. The core product units, called Travel Inns, are located on major roads and motorways; then there are units located in provincial cities and towns called Travel Inn Metro, and finally units located in London called Travel Inn Capital. All units are located adjacent to Whitbread-owned restaurants and inns.

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  Price: Each brand has one single price structure, and there are no discounts.

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  Distribution: Travel Inn operates a computerized reservation system, with links from its website and a telesales call center. Although intermediaries like travel agents can book rooms, they do not receive any commission.

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  Marketing Communication: A major investment in branding, with standardized material, a new logo, and a £20 million television and radio advertising campaign over four years, promoted the key message ‘a good night’s sleep’.

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  Physical Evidence: The external signage was changed to incorporate the new logo, and the internal maintenance program is designed to keep product standards consistent.

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  Process: Travel Inn is a simple product, with minimum service levels (only reception and housekeeping); customers who want to eat visit the Whitbread restaurant or pub next door. The focus is on easy-to-use operating systems.

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  People: The manager of the Whitbread unit next door aims to recruit local, friendly staff who know the area, rather than ‘professional hotel staff’ for the Travel Inn. The company has an ‘Investors in People’ UK government training award. Investment in the Travel Inn brand has been rewarded by continued growth. The aim is to double the number of properties every five years. The introduction of a 100 percent satisfaction guarantee for comfortable surroundings, quality rooms and friendly staff was a first in the UK market. Travel Inn’s integration of all the elements of the marketing mix provides a consistent marketing offer, which is customer focused and financially successful (Sources: Travel Inn presentation to the HMA, travelinn.co.uk website, and Middleton and Clarke, 2000).