Principles of Marketing Research 3

Management – Marketing - Tourism

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MARKETING MIX ELEMENTS IN HOTEL INDUSTRY. LOOKING FOR UNIQUE HOTELS

Lect. Erika Kulcsár Ph. D University of Babeş Bolyai Faculty of Economics and Business Administration Cluj Napoca, Romania Ec. Zsuzsa Majos

Abstract: Tourism is a specific marketing area. The tourism sector can identify two main categories of the marketing mix. The first category includes classic marketing mix elements and the second category totals the extended marketing mix elements. In this paper those aspects that define the content of the marketing mix components in the hotel industry are presented. The paper also identifies the element of the marketing mix through which hotel services providers can differentiate from the competition.

JEL classification: L83, M31

Key words: touristic marketing, hotel, classic elements of the marketing mix,

extended elements of the marketing mix, consumer behaviour

1. INTRODUCTION

Tourism marketing is a distinct "branch" of services marketing. Due to the

specific features of tourism services, special attention should be given to those elements

that allow differentiation of entities operating in the tourist market from competition. Tourism market offers many tourist accommodation structures which functions as

tourist accommodation. But which is the component of tourist accommodation

structures that enable competitive differentiation in a more stressed manner? In our opinion, the hotel is the structure of tourists' reception with functions of tourist

accommodation that offers this advantage.

According to Cristina Cristureanu "As a term, the hotel has a generic sense throughout the world, applying to a wide variety of property types. Each country has its

own set of rules, depending on the comfort, size, equipment, variety and services

quality. "

According to the specialized literature in technical and administrative terms the following types of hotels can be identified: airport hotels, congress hotels, business

hotels, apartments hotels (or suites), highway hotels, resort hotels complex, casino

hotels, cultural heritage hotels. 1

1 Cristurescu, C. – Strategies and Transactions in International Tourism (Strategii şi

tranzacţii în turismul internaţional), C. H. Beck Publishing House, Bucharest, 2006, p. 314-315

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2. OBJECTIVES

The objectives of this paper are: 1. To identify the content marketing mix elements that make up the hotel

industry, and

2. To determine that element of the marketing mix that with hotel industry,

offers added value.

3. METHODOLOGY

In this paper, both the classic marketing mix elements and expanded marketing

mix elements are analyzed in terms of hotels, as tourist accommodation structures with

functions of tourist accommodation. Also, several hotels that are unique in terms of features / aspects that define both the external environment and the internal

environment shall be presented.

4. ANALYSIS OF MARKETING MIX ELEMENTS WITHIN HOTEL INDUSTRY

Among the classic marketing mix elements in the hotel industry, there are the product (hotel service), price (rate), distribution and promotion. According to

Middleton from tourist services provider’s perspective, the tourism product consists of

several elements. In his view, these elements are nothing but levels of tourism product among which he identifies the following: (1) the core of the product, which is the basic

service that in the hotel industry is the possibility to stay in a quiet and somewhat

protected place (2 ) the specific product refers to that services package that the tourism

services consumer expects. For hotels they are: the number of beds in the booked room, comfort, related hotel services (3) expanded product consists of the "extra" services

that enable differentiation from the competition. In the hotel industry it is supported by

the location of the hotel, a unique image, a special gastronomic offer and customized services.

2

Due to the specific characteristics that determine hotel services, the rates used

by these tourist accommodation structures are in fact an important clue on the level of

hotel services in the hotel unit. According to research conducted in 2012, between May and July, among the most expensive hotels are: La Dune, Forte Village Resort

(Sardinia), Royal Mansour (Marrakech), Hotel Patrizzia (Sardinia and Paro), Hotel

Cala di Volpe (Sardinia), Hotel Ramazzino (Sardinia), Maia Luxury Resort and Spa (Anse Louis), Southern Ocean Lodge (Kangaroo Isle), şi Lizard Island (Great Barrier

Reef.) 3 The research included only hotels that had at least 20 rooms.

The elements of the distribution system in the hotel industry include: hotel services provider, intermediaries and hotel services consumers. Certainly changes in the

technological environment have also shaped the distribution policies formulated by

2 Kovács, P. - Tourism Marketing. Theory and Practice. (Marketing turistic. Teorie şi

practică), Kodolányi János Colledge Publishing House, Székesvehérvár, 2004, p. 55-56 3 http://www.turizmusonline.hu/aktualis/cikk/a_vilag_legdragabb_szallodai

Management – Marketing - Tourism

81

hotel entities. It should also be noted that the consortium and franchise enjoy a high

popularity in the distribution of hotel services. 4

For hotel industry, in the structure of marketing communication activities, "placement" of hotels in various movies plays a very important responsibility. Hidden

advertising is also welcomed for hotels. We talk about hidden advertising when

inauguration of a hotel appears as news on TV. For services, and by default, for services provided by various hotels, physical evidence (servicescape) and human

resource are very important communication channels. 5

The elements of the extended marketing mix, in the hotel industry include: human resource, consumer, physical evidence (servicescape), ancillary processes and

services. Human resource for hotels is analyzed through the following aspects: number

of employees, qualification of employees, communication ability, leadership ability,

employees training on specific issues, knowledge of different languages, physical appearance, clothing and metacommunication.

6

Hotel services are provided in a particular environment. Environment, in case

of hotels, can be classified into three categories (1) the elements of external environment, (2) elements of the internal environment and (3) other tangible elements.

7

It can be noted that lately the number of those hotels that have an interesting ,

unique, unusual environment is increasing. This aspect can be explained by the fact that

behaviour of hotel services consumer is changing. Continuous analysis of consumer behaviour for hotel services is extremely important. As Törőcsik Mary also states, the

person who is attentive to each pulse of the living environment will find new and latest

trends. 8 It is also known the fact that the concept of fashion is present in the touristic

sector, implicitly in the hotel industry, but its life is greater than the physical products.

Tourists love to experience situations, moments during their leisure they avoid

in everyday life. This explains the success of Het Arresthius hotel in the Netherlands. The hotel offers a unique experiment to those staying there because the hotel functioned

as prison during the period 1863-2007. Both the external and internal environment has

preserved those aspects that defined that prison. In the hotel guests can stay in

apartment suites of which four are truly unique including: Manager’s apartment, Guardian’s apartment, Lawyer’s apartment and Judge’s apartments. It should also be

noted that the hotel kept also the prison atmosphere through other tangible items such

as the bathrobe, for example. The external environment, i.e. the interior design, of Magic Mountain Hotel in Chile looks just like a waterfall. V8 Hotel is a four star hotel

near Stuttgart. The segment of tourists targeted by this hotel are those who feel a special

attraction to luxury cars. Each room has a special atmosphere. Room furniture is

designed from different parts of the luxury cars. Palacio de Sal Hotel is located near the town of Uyuni (Bolivia) and is made of salt. The interior design and the golf course is

4 Kovács, P. - Quoted work, p. 98

5 Veres, Z. - Services Marketing (Marketingul serviciilor), KJK-KERSZÖV Publishing

House, Budapest, 2005, p. 54-55 6 Kovács, P. - Quoted work, p.162-164

7 Vorzsák, Á, Szegő, J., Juhász, M.A.- Services Marketing (Marketingul serviciilor),

Alma Mater Publishing House, Cluj-Napoca, 2005, p. 124 8 Töröcsik M. - Consumer Behabious – trends (Comportamentul consumatorului –

trenduri), Akadémia Publishing House, Budapest, 2006, p. 11

Revista Tinerilor Economişti (The Young Economists Journal)

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designed of salt. The hotel is constantly changing, as after a heavy rain there are parts

of the hotel that require "touch-ups". Ceasers Palace Hotel in Las Vegas is also a unique hotel both in external and internal image. The goal is to take the hotel guests in the

world full of mystery that characterized ancient Rome. Because the hotel is in Las

Vegas particular attention is given to the possibility to party, to entertainment.

Usually hotel service beneficiaries perceive the services provision system as an essential component of services. Consequently, the process is a variable that exerts a

remarkable influence on the level of tourist satisfaction. 9 The arguments that support

the approach of auxiliary services as separate element of the extended marketing mix 10

, with hotel industry, are (1) increased demands of hotel services consumer, (2) increased

elasticity of basic service demand based on the number and type of ancillary services,

(3) increased competition, (4) by means of ancillary services, hotel services providers can gain a competitive advantage that can sustain a winning position.

5. CONCLUSIONS

Due to the specific characteristics that define the tourism sector, hotels should

pay attention to identifying new trends in the behaviour of hotel services consumer that broadly define the hotel servicescape.

This element of the extended marketing mix enables hotel services providers to

ease the penetration process on tourism market, obtaining substantial competitive advantages and the possibility of competitive differentiation.

REFERENCES 1. Cristureanu, C. Strategies and Transactions in International Tourism (Strategii şi

tranzacţii în turismul internaţional), C. H. Beck Publishing House,

Bucharest, 2006

2. Kovács, P. Tourism Marketing. Theory and Practice. (Marketing turistic. Teorie şi practică), Kodolányi János Colledge Publishing House,

Székesvehérvár, 2004

3. Töröcsik, M.

Consumer Behabious – trends (Comportamentul consumatorului –

trenduri), Akadémia Publishing House, Budapest, 2006

4. Veres, Z. Services Marketing (Marketingul serviciilor), KJK-KERSZÖV Publishing House, Budapest, 2005

5. Vorzsák, Á., Szegő, J.,

Juhász , M.A

Services Marketing (Marketingul serviciilor), Alma Mater

Publishing House, Cluj-Napoca, 2005

6. * * * http://www.turizmusonline.hu/aktualis/cikk/a_vilag_legdragabb_szal lodai - accessed on 10.05.2014

9 Veres, Z. - Quoted work, p.60

10 Vorzsák, Á, Szegő, J., Juhász, M.A – Quoted work, p.131

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