J.V. Korokoshko, T.V. Rosseeva

Mordovia State University, Russia

The peculiarities of Marketing-mix development

in the hotel business

Today the market of hotel services is one of the most dynamic market areas in Russia. The development of marketing in the hotel business is determined as a priority of companies’ business. A rapid improvement of the competition in the hotel sector of economy requires the development of marketing activity in the area of hospitality. The hotel business has its own peculiarities and methods of the development of marketing activity. The marketing term HoReCa connected with the hotel business has been used by Russian businessmen involved into the hotel business quite recently. The abbreviation HoReCa, the first letters of the English words Hotel-Restaurant-Café, is usually used for restaurant-hotel businesses. HoReCa is a specific services market and its marketing-mix has specific features.

First of all, the specific nature of the hotel marketing is caused by the hotel product specificity. The hotel marketing product is a complex of services and accommodation, hotel service and food are staple products.

Marketing-mix in the hotel business is the complex of instruments which help a market entity (a hotel) has effect on the target market. The most important instrument is hotel product - a service with the following peculiarities: the simultaneousness of production and consumption; the production is not for future use, its storage is impossible; quality volatility; seasonability; interdependency of hotel service and traveling aims.

The specific features of the main hotel product – a hotel room – are its time and space fixity. Hotel services are considered the specific hotel product being bought by exchanged deals that means not possession but only a possibility of use at definite time and place. For hotel services it is very important to be quick in solving of problems. Nowadays the clients need prompt and quality services.

The scheme of promotion in hotel business is the way of the customer to the product but not the product to the customer, because the product is rooms, restaurants and other services. The channels of distributing in the hotel business can be divided into direct and indirect ones. The direct channels are mail, e-mail, telephone and fax. The indirect channels are resellers, tourist agents, operators and independent hotel agents.

Communication is one of the most important elements of marketing-mix in the modern hotel business. The communication in the hotel business is a process of informational exchange between clients and a hotel. The means of communication make interconnection with clients and form the hotel image. Advertising, sale promotion, public relation, personal sale are the most cardinal means of communication. The advertisements in mass media and in the Internet are widely used in the hotel business. The advertisement informs people about hotels and their services. Promotional activity is marketing practice of hotel businesses which motivate clients and resellers by discounts, special actions, different shows and demonstrations. Personal salesmanship in the hotel business is sharing the most important information with one or several clients to motivate customers to buy hotel services. The public relations of a restaurant-hotel complex are aimed at the development of bilateral connections with general public and the formation of a positive attitude to its activity.

The pricing policy in the hotel business depends on representatives of several market segments. In some cases a client can refuse a hotel service because of its price. The hotel business is often a seasonal business and its pricing policy is under the influence of the number of clients in different seasons: 1) the prices rise when hotel services demand grows (summer time, holidays and important events); 2) the prices drop when the demand is the lowest; 3) shoulder season is characterized by an average demand and variation of prices.

Nowadays the development of the hotel business resulted in three additional marketing-mix components forming the standard of hotel services: 1) Staff as main source of the hotel services development; 2) selling and servicing processes. 3) Creating the environment favorable for attracting clients.

The elements of marketing-mix have to interact constantly to make marketing arrangements more effective. A complex method gives the possibility to make marketing performance correctly. The hotel «Island Vista****» can be an example of a close cooperation of all marketing-mix elements. The «Island Vista» is situated on the Atlantic Ocean side in Myrtle Beach, South Carolina, the USA. The hotel «Island Vista» is a member of the Chamber of Commerce of the Myrtle Beach area. The Chamber has a marketing department which works with an external marketing group. It has marketing research and observes the situation at the market of the hotel business and its development. The present situation is discussed by the leaders and hotel marketers who solve the market problems.

The hotel «Island Vista» has a high standard of servicing, a great number of services and comfortable rooms. The hotel is getting more and more popular among businessmen and families coming from neighboring states and countries. The hotel is only 4 years old but it is one of the best hotels of the resort. At the same time it is require more effective marketing policy to make it a five-star hotel.

There are more then a thousand hotels in Myrtle Beach so to be more competitive at the hotel services market this hotel needs more effective instruments of communication and the advertisement is the most important one. The client of the hotel «Island Vista» arrives from different states and countries, and advertises is put up on TV, in newspaper and in travel agencies. There are special booklets and brochures which describe the hotel services. The closeness to the ocean, nice views from the hotels windows and a great number of additional services are the most advertised things.

While researching, this hotel’s marketers got to know preferences and tastes of clients. The target segment is families with kids (48%), so the hotel has many special programmes for kids: Lo ho, Reagee Night, Daytime games, art class, Parents night out, swimming lessons, pizza night. This is also one of the most important areas of summer time marketing.

There is special information about each client at the hotel data base. For example if a person comes to play golf he will get a letter about the beginning of a golf season. If the client came last May he can get an invitation to come to the hotel in April next year and also get the information about discounts and actions. A client can book a room in the hotel through travel agencies, on the phone and in the Internet. The hotel has a web site giving all necessary information.

There are booklets with schedule of all entertainments which take place at the hotel. Before leaving clients fill in the form and answer questions how the enjoyed the holiday at the hotel and if they would like to come back again.

Advertising is put up in magazines, catalogs and inside the hotel. Sometimes advertising of the restaurant and bar at the hotel area is put up in magazines. It attracts the visitors of other hotels and local people.

The pricing policy depends on a season. The demand of hotel services grows from the end of March till the middle of October. The highest point of demand is July and August, also New Year and Christmas. During this period prices grow in 2-2,5 times. Prices depend on the room. There are ten luxury rooms in the hotel. Regular customer get 10-15% discount all year round. Everyone who comes with kids is given service packets with discount on different service. Clients can chose the service by themselves. If a client arrives at the hotel for the first time he is given a special bonus maps. He can use this card to pay at the hotel’s restaurant.

The quality of visitor’s service is under the control constantly at the hotel «Island Vista». Strong and weak points of the staff are also revealed. The activity of the staff is constantly analyzed. There is all necessary condition for the best service of the client.

Finally, marketing in hotel business has own specific peculiarities which are marked by special feature of hotel product. Specific peculiarities of marketing-mix are pointed out in following elements: hotel service, pricing, promotion and communication between the hotel and the client. There are also special elements of hotel business: staff, surrounding and process of service. These instruments gives the possibility to put into practice marketing activity of enterprises in hotel sphere successful and form positive image of the hotel. That is why a hotel becomes competitive.