Holiday inn – using marketing to improve the competitiveness of an organisation

This is an analysis report on the hotel industry Holiday Inn. The following topics which will be discussed in this report will be based on the industries demographics, psychographic, Geographic’s and its behavioural variables. Also included will be information on potentially factors which may have an impact to this hotel industry, and its opportunities via its development. There will be recommendations with the examinations of the segment markets needs and wants which refer to the marketing mix. How Holiday Inn Became Prominent. Holiday Inn has become a worldwide known ‘ brand’.

This hotel goes back to 1952 in Memphis, Tennesse in the US where the very first Holiday Inn hotel was built. With holding 1, 243 hotels, and its ‘ little brother’ version named ‘ Holiday Inn Express’ holding 2, 171 and 3586 villas & 8 resorts, all throughout 5 continents, this brand has been the most recognised hotel brand, according to the InterContinental Hotel Group. Holiday Inn is a franchise of IHG along with other popular brand names and other international hotel groups they own. Holiday Inn’s big opportunity was being taken over by IHG.

The IHG had launched a brand family; the Express by Holiday Inn, HI Garden Courts, HI Sunspree Resorts, HI Select and HI resorts. All hotels have been specifically tailored based on its positioning and its chosen segment market it aims to in its destination. From the hotels ranges, they are used for sunny beach holidays, deluxe relaxation’s, business purposes, and its normal everyday leisure purposes. This prominent hotel chain has gained the chance to not only fulfil the needs of their main target audience, but to reach its heights on developing its brand name within the hotel industry.

This has been achieved by creating more personalised types of hotels which results in having multi segment markets. What Makes holiday Inn stand out? Speaking on the basic Holiday Inn hotels, they contain the aspects of what a normal high street, or inner city hotel should contain, if not the same then much better. High street hotels are there to cater for travellers who wish to have a warm and welcomed feeling along with a peaceful night rest, no matter what purpose of travel it may be, this is their aim for their consumers.

Here is a quote taken from the actual Holiday Inn website, ‘ Wake up Recharged, Get Refreshed, stays Connected, Rejuvenate’. This quote is giving guest a promising message, which in other words can be interpreted as, e. g. ‘ If you stop at our hotel, you will wake up feeling recharged’, and ‘ Come here to get refreshed after a long day’. Every guest will relate to this sort of message that HI have proposed, as it is in a consumer’s sense that if they purchase a hotel room depending on costs, they are expected to feel ‘ refreshed’ after a good rest.

Holiday Inn’s creative ways on getting their customers From looking at the basic HI hotels, from summing up all their amenities they offer, they are targeting to the main target markets which are business guest. Business guest hold a great impact within the hotel industry. With the regards of HI too, these are the guest who will book to stay more frequently, and who will make more use of all facilities and products offered, e. g. bedroom suites, conference rooms, conference facilities, leisure facilities and restaurant & bar food.

HI have managed to tailor their products to their customers which are more likely to stay with them more regularly, which in some cases these potential customer will become loyal to the hotel. Holiday Inn has managed to retain these popular customers by giving them something back as a return, which are the reward schemes, along with cheaper rates and discounts, although reward schemes is the most popular way as it gives customers the chance to make the most out of their stay. This is seen as a customer focus which is being used by HI’s competitors.

Although their target focus is on business guest, HI are still able to attract other segment markets with their facilities and products they have. This is based on their concepts which are production, sales and marketing. Looking at the production concepts, they have taken into account the segmentation market as a whole, which has leaded them to keeping costs at a reasonable price just so it’s affordable for their segment market. With the prices being reasonable but not cheap, HI is able to use products which can offer better quality and performances.

This has given the hotel brand the advantage to not be classified as a low budget hotel such as other high street hotels; Travel Lodge and Premier Inn, whereas these hotels will not use quality as an essential. Observing and measuring the segment markets From looking at the behaviour variables for this hotel industry, in a consumer’s aspect, it holds a concentration on the middle market, although there are different ranges of HI’s who tailor to the segment markets that can afford the price of luxury and high priced rooms.

Based on the consumer’s lifestyle and their spending pattern, these consumers tend to have a reasonable disposable income, although they are sticking to a budget. This has been summed up based on HI’s other competitors they have who retain the same segment markets. Instead of booking with HI, the customer may book with Hyatt, Hilton, Marriott or the Novotel, as they may offer the same service for the same price or the same service for a much decent price, or a much better service for a much decent price.

With the hotels usually being located near each other in big cities, this can become a major threat, as the competition can be intense. The infrastructure of HI will give consumers easy access with the transport links provided in their regions, e. g. railways, airports and motorways. From looking at Google maps, the majority of HI and HI expresses are located on motorway junctions, airports, train stations, and near business purpose venues. The HI and HI express have a great intake on domestic tourism.