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Hotel Chain and Its Marketing Activities the Institute of Hospitality Bachelor´s Dissertation Hotel Chain and its Marketing Activities Elena Motsenko The Institute Of Hospitality Management in Prague 8, Ltd. Department of Hospitality Major: Hospitality Management Thesis Advisor: Ing. Stanislava Belešová, PhD. Date of Submission: 12.06.2014 Date of Thesis Defense: E-mail: [email protected] Prague 2014 OATH I swear That the bachelor dissertation titled Hotel Chains and its Marketing Activities was written by me independently, and that all literature and additional material used are cited in the bibliography and that this version is exactly the same as the work submitted electronically. In accordance with §47b law no. 111/1998 coll. on higher education institutions, I agree to my dissertation being published in its complete form in the publicly accessible electronic database of the Institute of Hospitality Management in Prague. Signature ………………… Elena Motsenko In Prague on 12.06.2014 ACKNOWLEDGEMENT I express my heartfelt gratitude and deepest respect for the help in thesis preparation to my supervisor Ing. Stanislava Belešová, PhD. ABSTRACT MOTSENKO, Elena. Hotel Chain and its Marketing Activities. [Bachelor dissertation] Institute of Hospitality Management in Prague. Prague : 2014. Total number of pages: 42 Aim of my thesis is to analyze marketing activities in hotel chains. Relevance of the chosen topic due to the fact that the scope of hotel services is currently one of the most dynamic sectors of the economy, forming a significant part of income regions and individual states, and performs key functions in the development of services and other activities. Hotel chains have a great potential for the development of the Russian economy as a whole and for individual regions of the country associated with servicing a large tourist flow. Modern hotel chains offer consumers not only accommodation and food services. Such diversity is dictated by a high level of competition in the hotel industry. For the survival and success hotel chains are actively used various marketing activities, because building a balanced system is impossible without changes in the marketing function, increased financial and organizational costs for market analysis, implementation of the elements of strategic planning and management. Key Words: Hotel chains, Holiday Inn, Holiday Inn Moscow Lesnaya, Intercontinental Hotel Group, Marketing. CONTENT Introduction…………………………………………………………………………………...6 1. Marketing of hotel chain……………………………………………………………….8 1.1 Key features of the hotel chain……………………………………………………… 10 1.2 Advantages and disadvantages of hotel chains……………………………………11 1.3 Modern trends in development of international hotel chains……………………. 13 1.4 Marketing trends in hotel chains……………………………………………………..15 2. Marketing analysis of hotel “Holliday Inn”…………………………………………..18 2.1 The organizational structure of the hotel “Holliday Inn Moscow Lesnaya”….......21 2.2 Marketing activities of chosen hotel………………………………………………....24 2.3 Target market…………………………………………………………………………..28 2.4 Loyalty program………………………………………………………………………..29 2.5 Promotion of hotel “Holiday Inn Moscow Lesnaya”……………………………… 32 3. Suggestions of addition marketing tools in hotel “Holliday Inn Moscow Lesnaya”………………………………………………………………………………..38 Conclusion…………………………………………………………………………………40 List of reverences………………………………………………………………………….41 INTRODUCTION What distinguishes hotel chain from independent hotel? First of all that the hotel entering a chain shouldn't construct any marketing mechanism and test it for viability. Chain hotel becomes a small particle of the whole. In any case, the hotel belongs to a specific chain is a kind of unification of standards, which vary depending on the priorities of a particular hotel group. The main task of the hotel group is management of hotel object according to the standards accepted in this or that company. This allows fund returns invested in the creation of the hotel, as well as establish the smooth functioning of the hotel in order to obtain stable high income and further cost-effective operation. In today's hospitality industry is a tough of constantly growing competition. To be competitive in the hotel market, not only to maintain its market segment, but also to expand it, hotel managers need to be constantly searching for new forms and methods of marketing activities. The new philosophy of modern business has been especially evident in the hotels belonging to international hotel chains. In Russia, the number of hotels belonging to one or another chain is slightly. Most of the multinational companies have headquarters in the U.S. or in Europe. English company “Inter Continental Hotels Group” is presented in Moscow by hotel chain “Holiday Inn”. This is one of bright representatives of the international hotel associations in the Russian tourist market. Among others, hotel chain “Holiday Inn” constantly seeking for improvement of quality of services provided, as well as introduce new services aimed at the most complete satisfaction of its customers. 6 Object of research is hotel “Holiday Inn Moscow Lesnaya”. The aim of my thesis is analysis of marketing activities of hotel chain “Holiday Inn” and its development in Moscow, suggestions for additional distribution channels and improvement of its marketing. Partial objectives of the thesis are: - Identify modern trends in international hotel chains. - Analyze the main marketing activities. - Recommendations of improvement marketing activities on Russian market (on example of hotel “Holiday Inn Moscow Lesnaya”), based on the results of studies in the externship. Hypothesis H1: I assume that “Holiday Inn Moscow Lesnaya” does not use advertisement in magazines as a marketing tool. I received the secondary data from literature analysis, from reviewed web-pages and internal materials of chosen hotel. Primary data were gained by personal observation. The considerable part of information is received during externship passing in “Holiday Inn Moscow Lesnaya” hotel. In the paper I will use several methods of data processing – methods of analysis, synthesis, induction, deduction and abstraction. 7 1. MARKETING OF HOTEL CHAIN Economic recovery in various branches and growth of a standard of living in the developed countries led to frequent movement of business people and tourists to various regions of the world. Considerable investments were directed on updating of the hotel base, new construction, introduction of modern technologies, service forms in the hotel industry. In development of the hospitality industry hotel chains are important. They allow you to advance on the world tourist market high standards of service, as well as helping to support hospitality services for tourists. According to the World Tourism Organization, there are 16 million hotels worldwide, 20 % of them belong to hotel chains. Chain is the most effective way in managing the hotel business.1 “Chain - association of hotels (two and more), carrying out collective business and being under direct control of the management by a chain. The chain can have own buildings and the land or to rent them.”2 “The hotel chain is a group of objects of the same class, united in a single system with a shared form of governance and a number of unifying features that enhance its internal and external efficiency.”3 “Hotel chain is an enterprise that administrates, through a unique management a number of hotels located in different areas. They can be total or partial owners of the hotel and they manage their administration, marketing and promotion.”4 Opposite from the hotel chains are independent hotels. “Independent hotels are in independent possession, the order and using of the owner getting profit on such property.”5 1 http://www.city-of-hotels.com/165/hotel-chains-en.html 2 Arbuzova I., Industria gostepriimstva, Moskva, Alfa-M, 2006, p.17 3 Chudnovskij A., Gostinechnyj I turisticheskij biznes, Moskva, Eksmos, 2000, p.38 4http://www.baliedutours.com/what-is-hotel-chain/ 8 Hotel chains contribute the spread and a significant increase in the organization of production and services for tourists, creating a certain image of the hotel services, which met in another country, the tourist feels almost like home, in a familiar and comfortable environment. From the 1950-s. organizational structure of hotel management in the global hospitality industry entrenched different models for organizing the hotel business.6 The first model - a model of ”Ritz”, associated with the name of the Swiss entrepreneur Cesar Ritz. Many prestigious hotels in the world are named after him. For example, the “Ritz” in Paris. The basic rate in these hotels is done on the European tradition of elegance and gentility. The second model is associated with the name of the American entrepreneur Kemmons Wilson (hotel chain “Holliday Inn”). The model is more flexible in meeting the needs of the client in conjunction with the maintenance of sufficiently high standards of service. The main requirements in the hotel chains organized on this model, are consolidated to the following: - Unity of style (architecture, interior); - Unity of symbols and external information; - Spacious and functional hall; - Quick registration of the clients; - Rooms suitable for regular customers; - Breakfast “buffet”; - Availability of meeting rooms; - Flexible system of tariffs; - Unified management, marketing and service communication. The third model is independent hotel chains (for example “Best Western”). In this case, under a single brand combined hotel for any signs of uniform, not withstanding
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