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 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 , 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, , 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 certain standards and sets of services, regardless of country location.7

5 Arbuzova I., Industria gostepriimstva, Moskva, Alfa-M, 2006, p. 24 6 Papirjan G.,Management gostinechnoj industrii, Moskva : INFRA-M, 2007, p.57 7 Loyko O., Turism i gostinechnoje hozjastvo, Tomsk : TPU, 2005, p. 101 9

Hotels - members of a chain, pay contributions to uniform fund which is spent for joint advertizing and marketing activity, product advance. Thus they completely remained their financial and economic administrative independence. Possibly a combination of the second model with the third. Example - hotel chain of “Accor”. It is the largest hotel chain in Europe, it offers hotels of various classes and acts in the market under graceful brands. The brands “Pullman”, “Sofitel”, “Novotel” are hotels of the highest class. The “Altea”, “Mercury” brands of middle class.8

At the introduction in a chain the hotel does not necessarily have to be a property. In this case, according to the contract included by large hotel chains (the franchiser) and independent hotels entering a chain, the right to use for commercial purposes a chain logo, technical and commercial information, information booking systems, technical assistance and right for personnel training, etc. is provided to the last. The franchise enterprise pays for it compensation caused in the contract. 9

1.1 Key features of the hotel chain

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.

The main features of the hotel chain are:10

1. Formal elements to ensure recognition of the objects included in chain, as a visual unity. This is usually achieved by common logo, color scheme, decorative elements, and name. All of which is the essence of foreign brand, makes it recognizable; 2. Common structural elements that are combined as well as the same level of comfort and service prospective; 3. Unified strategy of functioning, implying standardization of basic maintenance procedures, marketing and sales, thereby achieving the same quality level of all objects chain. This and the previous signs are the inner essence of the brand

8 Loyko O., Turism i gostinechnoje hozjastvo, Tomsk, TPU, 2005, p. 102 9 Kuskov. A., Gostinechnoje delo, Moskva, Dashkov i Ko, 2009, p.248 10Lesnik A., Chernyshov A., Matsitskij. I., Organizacija I upravlenuje gostinicnym biznesom, Moskva, 2005, p.117 10

and fixed in the mind of the consumer understanding of the prestige of the brand; 4. The presence of specific structural superstructure over the base element composed of individual hotels, or management company that provides overall strategic guidance, monitors compliance with standards, etc. It is a separate legal entity associated with managed objects specifically concluded agreements.

Concept of hotel chain is the use of the brand image to promote the hotel product in the domestic and foreign markets. This involves a qualitatively new stage in the development of hotel industry, as any qualitative change based on substantial quantitative growth. When hotels have turned into a kind of assets and commercial real estate, there was a need for professional management of their associations, not just a separate means of accommodation.

Internal efficiency of the system of hotel chain is characterized by the best use of organizational resources and optimization of material, financial and information processes of individual components to achieve maximum market impact. World largest chains are joining thousands of hotels and hundreds of thousands of hotel rooms, so you can confidently talk about the effectiveness of this form of management.

1.2 Advantages and disadvantages of hotel chains

Development and widespread of international hotel chains due to disparity between the level of services provided to clients and their needs. Thus, the first international hotel chain “Hilton” owed its creation of American airline “Pan American”. Making flights to Latin America, the company found that they do not have the level of accommodations, which are used to American businessmen. There was an idea to build hotels in these countries with the same level of services of appropriate class. For example, hotel “Hilton” in Argentina should not have anything different from the hotel “Hilton” in New York. Curiously, most of the hotels “Hilton” were built on money of local entrepreneurs, and the company “Pan American” only provides management services.

There is another interesting example: Kemmons Wilson opened the first hotel “Holiday Inn” in Memphis in 1952. Staying on vacation, K. Wilson experienced poor quality service and concluded that the hotel business is the most underdeveloped service

11 sector worldwide. As a result, he decided to create a chain that would focus on family services, cleanliness, convenience and offered a range of additional services. After opening the first private hotel, chain has grown at a fast pace. Today “Holiday Inn” - one of the largest international hotel chains, one of the most popular hotel brands. It has more than 1500 hotels worldwide and is one of the most recognizable in the world.

Development of the American hotel chain “Marriott International” began in 1957, when John Marriot bought his first hotel “Twin Bridges Marriott Motor Hotel”, located in Arlington (Virginia). Today it is one of the largest multinational corporations in the world. According to the corporation itself, every fourth tourist in America stays in hotels “Marriott International”.11

What are the advantages of chains? Hotel management provides an efficient and effective operation of a large number of projects under construction by product standardization and unification of management systems. Professional activities for the promotion and sale of the product provide the chain a better occupancy rate and higher financial results.

Today, in North America, more than 70% of all hotels combined hotel chains. Entry into hotel chain gives the hotel a considerable advantages: chain wholesale purchases various consumables for all its hotels, which gives savings in costs; cost of engineering services, decorators, supervisors, advertising distributed to all hotels in the chain, gives significant benefits of reservation system. All this increases the efficiency of the hotels.12

Main advantages are:13

1. Opportunity to purchase large quantities of goods and services at wholesale prices. Because the owner of the chain operates several objects, he can make major purchases and subsequently offer to other companies- members of the chain equipment for the rooms, linen and bedding, detergents and cleaning products, sanitary and hygienic purposes at low prices. 2. Savings in staff training. As a rule, the chain performs centralized training, which greatly reduces the cost of each member of the chain separately. In addition, participation in the chain makes available to its members paid services of experts

11 Azar V., Mirovyje gostinechnyje seti 20 veka, TTGRussiaTravelTrageGazette, 2000, №12/82 12 Kuskov. A., Gostinechnoje delo, Moskva, Dashkov i Ko, 2009, p.318 13 Teng T, The Leading Hotels of the World, President & CEO, Ltd.

12

and consultants in certain areas, to pay the cost of which each hotel individually would be problematic. 3. Effective promotion of hotel services on the market. Conducting a well-organized advertising campaign always requires significant costs that are very noticeable on the budget of individual and independent hotels. Hotel chains allow their members to distribute among themselves the cost of advertising and promotion, so that everyone can enjoy the benefits of advertising campaigns, spending little money. In addition, the advertising function performs brand chain. 4. Using a centralized reservation system that enhances occupancy of all member companies network. 5. Using a centralized accounting system for a general marketing research, construction, operations with real estate. Advantages due to the fact that specialists involved in these areas can serve all the hotels belonging to the chain, which significantly reduces the costs.

Also hotel chains use quality standards, which are edicated to delivering the utmost value to its member hotels, as well as unparalleled hospitality offerings to its discerning clientele. “In our efforts to ensure our members excel and outstrip their competition, we undertook a thorough reevaluation of our standards criteria that obliges our hotels to continually deliver an even more outstanding luxury experience to their guests.”

Disadvantages: 14

1. Restricted decision making of hotel owner 2. To be a member of hotel chain can be costly to implement 3. Possibility of brand damage 4. Financial and time consuming when entering the system 5. Unified product, employee anonymity 6. Communication problems 7. Quality and operation standards control, this limits any creativity of hotel chain

1.3 Modern trends in development of international hotel chains

Modern trends in the development of hotel chains, have been developed in the last decade, should include the following:15

14 Kosmak P., Hotelove podnikani a integracni procesy, Vysoka skola hotelova v Praze 8, spol. s.r.o., 2005 15 Smirnova M., Formirovanije gostinechnoj seti: koncepcija, metody, praktika, Gostinichnoje delo, 2005 13

 Expanding the range of hotel services, the formation of a unique product with an individual approach Recently got very popular so-called “new wave” hotels, embodying in interior fashionable concept of minimalism. However, this does not mean cheapness. Prices in these hotels are quite comparable, and often exceed the price of classic Haute Couture hotels. In Austria in Blyumau was recently built hotel “Rogner Bad Blumau”, which has no single straights lines.  Integration of hotel chains Horizontal integration is intended to strengthen the position of the company through acquisitions or control of certain competitors. Justification of such integration varied: neutralize unwanted competitor, gain access to the distribution network or customer segments. Hotel industry is developing, including through the acquisition of companies involved in this field of activity, thereby increasing their profitability by controlling important for functioning hotel links. For example, hotel sells its services through wholesalers (tour operators and travel agencies) and directly to consumers.  Increase in involvement of other companies in the hospitality industry For xample, the Italian brand “Bulgari'” announced the establishment of the hotel chain “Bulgari Hotels & Resorts”, which has arisen as a result of joint work with “Marriot International”. Investments of the two companies into a new hotel chain in the next five years will be about 800 million euro. Design and equipment of hotels will be carried- “Bulgari”, management of the company –“Luxury Group”, one of the divisions –“Marriott International”. Same hotels have brands such as “Missoni”, “Versace” and “Ferragamo”.  Clear positioning of hotels French system of “Motel 6” advertises its low prices. Hotels Corporation “Hilton” - its advantageous location, hotel “Kempinski” focusing on the small size of the hotel and the surrounding customer comfort.  Hybridization of the hotel product

New concept of hotel “Holiday Inn”, which had unprecedented success and caused a surge of interest in the development of system of motels on the part of other companies, also came to this market, has found its practical application shortly before the traditional hotel companies (with high-rise hotels) began to develop and to give a low-rise hotel franchise. Hotel brand “Hilton” and “Sheraton” are examples of combinations of different

14 kinds of hybridization or hotel deals, which are based on the change (differentiation) of the base product. Hybridization of the product as the direction of the most inherent in companies that began their ascent to the hotel market as motels. After some time, these companies have built high-rise hotels under its brands – “Holiday Inn”, “Ramada”, “Marriott” etc. At the same time, “motel product” continued to appear, but as a hybrid of hotel and motel that is built high-rise and mid-rise buildings offering an expanded range of services compared with a set of traditionally provided in motels. There are some examples of hybridization in hotels chains of different star category in one building (separation of range of services (depend on star category) by floors), it all because of the recession (“InterContinental Hotel Group”, “ACCOR”)

 Use of new forms of attracting customers to the hotel Many well-known hotel chains and independent hotels offering stay for free during 1-2 days to its partners - representatives of tourist companies or journalists. This helps them to further increase sales and promotes a positive opinion about the hotel. So, Hawaiian Hotel Corporation “Hyatt” and “Hilton”, Seychelles property “Le Meridien”, Mauritius island hotels belonging to national hotel chain “New Mauritius Hotels” (NMH), the hotels included in the associations and unions “The Leading hotels of the World “, “Small Luxury Collection Sheraton”, have resorted to this method of stimulation.16

1.4 Marketing trends in hotel chains

Marketing trends can make the difference empty rooms and a solidly booked hotel, it is a heart of good marketing management today.

The American Marketing Association defines marketing as “an organisational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders.” 17

Marketing of hotels has to be innovative and the methods used should be less complicating and easily accessible. Internet is the most economical value packed, marketing tool, and the most effective tool ever devised. 18

16 Smirnova M., Formirovanije gostinechnoj seti: koncepcija, metody, praktika, Gostinichnoje delo, 2005 17 Charles R. Goeldner, J. R. Brent Ritchie, Tourism, 11th edition, p.132 18 http://www.bizymoms.com/besthotels/hotel-marketing-ideas.html 15

Extensive use of Internet reservations systems: allows hotels to conduct deep monitoring of the market situation and analyze the performance of competitors in pricing and marketing strategies. Hotels maximize results by diversifying reservation systems: Booking.com, Expedia, Ostrovok.ru, Hotels.com, HRS.com, Agoda.com, etc. Also it is possible to make reservation directly on the hotel pages.

Activating the promotion of hotel services in social media: Creating groups or promotional pages that advertise and describe all the events of the hotel city or region.

Group members receive announcements; share their impressions about events, share photos and videos; creating a tape of special offers.

Online Video Marketing: Allows telling about the hotel better, than by means of the usual text description, aims to promote the unique benefits of the hotel and online presentation of services at a huge audience.19

Online reputation (TripAdvisor, Yelp, Booking.com, Google Plus): Most hotel chains have already become parties of creation their own online reputation, which is usually formed from reviews of guests and hotel employees, information in the media, social networks, blogs and forums. Permanent presence on the network and monitor customer feedback, create a sense of caring and enhances the credibility of the hotel brand. For managing online reputation and monitoring information about the hotel, the market leaders are using Google Alerts, Technorati and Hotelia Reputation.

Mobile marketing: One of the main trends in the hospitality industry has become a mobile marketing. Particular importance is given to mobile advertising to geographic targeting. The number of mobile devices has already exceeded the number of personal computers worldwide. In this regard more and more hotel brands have mobile applications, and also actively use mobile-CRM and mobile marketing. By means of mobile applications it is possible not only to look through information, photo / video on hotel, but also make reservation, order additional services and to receive updated information on events in hotel.

The hotel's website as a communication platform with customers: Hotels allow visitors of the site download photos and videos captured during their stay at the hotel, create blogs on the site, where guests are able to share impressions about their stay. Thus

19 Dzandzugarova E., Marketing v industrii gostepriimstva, Moskva, Academia, 2010, p.224 16 hotels hold regularly actions and draws. For example, competition for the original photo or story stays at the hotel.

IHG ran ads for its hotel brands, which include Holiday Inn, Crowne Plaza, and InterContinental, across the Google Display Network, in some cases offering specials to users who had previously shown interest in one of them. This campaign yielded some pretty impressive results: Remarketing ads had a 21% higher overall click-thru-rate compared to remarketing campaigns on other ad networks. Clicks increased by 55% after IHG introduced text ads into their US campaign. IHG increased budget by 100% as a result of campaign performance.20

Remarketing: allows re-engaging users who have previously visited websites as they browse sites across the network, also benefits users, as they may see more special discounts and offers – hotel deals and offers, for example from sites they have previously shown an interest in. IHG’s experience with Remarketing is instructive. The hotel company observed a pattern among many of its sites’ visitors. IHG saw that some users would go to one of their hotel brand sites and browse, but would not book a stay.

With the hospitality industry growing and hotel chains competing with each other, more and more hotels look for ways and means to market their hotel in the best way possible to attract guests. Hospitality marketing is a great tool which directed towards the increase of hotel industry.

20 http://www.tnooz.com/article/case-study-how-display-ad-remarketing-works-in-travel/ 17

2. MARKETING ANALYSIS OF HOTEL CHAIN “HOLIDAY INN”

In my thesis I will analyze hotel “Holiday Inn Moscow Lesnaya”

Hotel chain “Holiday inn” is represented in Russian market in 5 cities: Moscow (5 hotels), Chelyabinsk (1 hotel), Samara (1 hotel), St. Petersburg (1 hotel), Krasnogorsk (1 hotel).

Moscow

Holiday Inn Moscow Suschevsky.

Hotel is situated in a 3-minute walk from the metro station “Riga”, 5 km from the Red Square and a 10-minute drive from the All-Russia Exhibition Centre “ENEA”. From hotel it is easy to reach the Concert hall of Tchaikovsky, the Bolshoi Theater and a garden “Hermitage”.

In all rooms (there are 312) there is a possibility of access to the Internet, comfortable furniture, the TV, phone with voice mail, a minibar, air conditioning, conveniences to tea/coffee preparation, safe, hygienic accessories, hair dryer, dryer for towels. There are 6 conference rooms of various capacities, equipped with the modern equipment, for holding business meetings and negotiations. Category: 4 stars.21

Holiday Inn Moscow Sokolniki

Hotel is located in green district Sokolniki, in several minutes from park and the exhibition center, across the road from metro station “Sokolniki”. To any of the Moscow international airports – about an hour by public transport. Stations Yaroslavl, Kazan and Leningrad are in distance of 2 stops of the subway from hotel.

There are 523 rooms of various categories; inhabited floors - from the 4th on the 23rd. In all rooms is qualitative, convenient furniture, a workplace, free Wi-Fi and modem connection to the Internet, is available phone with two lines, the TV with the international and paid channels, air conditioning, safe, minibar, tea and coffee set. The bathroom is equipped with a shower, a bathroom, the dryer for towels and the hair dryer. Separate rooms for smokers and non-smoking guests. All rooms are served round the clock. Hotel has 2 floors of increased comfort, rooms for disabled people, free

21 http://www.ihg.com/holidayinn/hotels/us/en/moscow/mowss/hoteldetail 18

Wi-Fi, fitness club with the pool and a sauna, 16 conference rooms, a paid secured parking. Category: 4 stars.22

Holiday Inn Vinogradovo

Hotel was opened in 1998, since then it attracts a large number of foreign tourists among whom there are a lot of businessmen. Guests of hotel appreciate the democratic prices which are combining with high quality of service. It is the nearest hotel Holliday Inn Moscow to the Sheremetyevo airport. It is located in one of the nicest places of Moscow, near the hotel you can find an old 19th century manor house, ponds and woods.

There are 154 rooms (including 47 non-smoking rooms) of different types: standard, luxury and apartments. All rooms are comfortably furnished and well equipped technically. When making the interior decoration of the rooms were used brown, orange or turquoise palette. Category: 4 stars.23

Holiday Inn Moscow Simonovsky

Modern hotel that meets all European standards, will allow guests to enjoy the atmosphere of coziness, comfort and relax. The hotel offers excellent service and comfortable rooms equipped with everything needed for an unforgettable stay, opened in 2009.

Located in the business and historical center of Moscow, a 10-minute walk from the metro “Proletarskaya”, as well as in close proximity to the city's main attractions. Sheremetyevo International Airport can be reached in 50 minutes by car to Kazan, Yaroslavl and Leningrad / Railway station - 10 minutes away.

There are 217 rooms of different types: Standart, Superior and Deluxe. All rooms are equipped with individually controlled air conditioning, safe, free internet access, telephone, satellite TV, hairdryer, iron and ironing board. Most rooms offer beautiful views of the Novospassky Monastery or Metochion. The hotel has non-smoking rooms and rooms for people with disabilities. Category: 4 stars.24

22 http://www.ihg.com/holidayinn/hotels/us/en/moscow/mowss/hoteldetail 23 http://www.ihg.com/holidayinn/hotels/us/en/moscow/mowvg/hoteldetail 24 http://www.ihg.com/holidayinn/hotels/us/en/moscow/mowsm/hoteldetail 19

St. Petersburg

Holiday Inn Moscovkye Vorota

Hotel located in the convenient and prestigious area in the central part of the city on Moskovsky Avenue crossing Tashkentskaya Street, an entrance to hotel – from the green square. Metro station “Moscow vorota” is across the road from hotel, to the downtown - Nevsky Avenue, the museum the Hermitage and other sights - only 10 minutes walk. To the Moscow railway station – 5 km, to the Pulkovo airport – 10 km. The hotel is adjoined by a supermarket. Opened in 2009.

There are 57 rooms of "Standard", "Superior", "Junior" and "Luxe". All rooms have internet access - wired and Wi-Fi (fee), LCD TV, telephone, air conditioning, electronic safe, mini-bar, electric kettle, tea and coffee set, bottled water on arrival day, pillow menu, selection of adapters. The bathroom - shower with massage function, hygienic supplies. The rooms have iron and ironing board available on request. Category: 4 stars.25

Samara

Holiday Inn Samara

Hotel situated in several minutes of walking from river Volga, in the center of Samara, opened in 2007 and received a gold medal in the category “Public Interior” at the IX International Festival of Architecture and Design.

There are 177 rooms of various categories are arranged from the second to the eighth floor of the hotel. Rooms are equipped with the air conditioning, the individual safe, the refrigerator, an ironing table and the iron, phone, satellite television, the high-speed free Internet of Wi-Fi. In bathrooms there are necessary cosmetic accessories. The round- the-clock service in numbers is offered to guests. The underground secured parking is calculated on 50 automobile places. Category: 4 stars.26

25 http://www.ihg.com/holidayinn/hotels/us/en/st-petersburg/ledmp/hoteldetail 26 http://www.ihg.com/holidayinn/hotels/us/en/hd/russia/samara-hotels 20

Chelyabinsk

Holiday Inn Chelyabinsk-Riverside

Hotel located in 10 minutes walk from the business center of Chelyabinsk, near major shopping malls. Shops, movie theaters, opera and ballet, the museum, offices of banks – within walking distance. The road to the airport will occupy about half an hour, it is possible to reach the railway station without effort by bus in 10 - 15 minutes.

There are 54 rooms offered for guests of the hotel Holiday Inn Chelyabinsk - Riverside, 44 are classified as “Standard”, 6 – “Superior” , 3 – “Luxe” and 1 is designed for people with disabilities. Each room has a TV, air conditioning, international telephone services, wireless Internet access, ironing facilities, tea and coffee. Category: 4 stars.27

Krasnogorsk

Holiday Inn Crocus City

The hotel will be open in the territory of the exhibition center “Crocus City” and becomes the largest hotel of a brand of Holiday Inn in Europe. Start is supposed in 2014. There will be 1025 rooms. The infrastructure of hotel will be directly connected with holding exhibitions, concerts and other actions in the exhibition center. Category: 4 stars.28

2.1 The organizational structure of the hotel “Holiday Inn Moscow Lesnaya ’’

Holiday Inn Moscow Lesnaya

Hotel opened in 2005 and at once won popularity, both at Russian, and at foreign tourists. The foreign guests who have arrived to the Russian capital on negotiations or with the purpose to visit exhibitions or conferences often stay at this hotel.

It is located on Lesnaya Street, near the metro station “Belarus”. Being in the center of Moscow, a few steps from Tverskaya Street, the hotel gives its guests the opportunity to easily get anywhere in the city, walk to cafes, restaurants, business centers, shops, museums and art galleries of the capital.

There are 301 rooms, including single and double standard and superior. Executive rooms are located on a separate floor with its own service desk. All rooms are furnished with comfortable and elegant furnishings, modern appliances. The room rate includes a

27 http://www.ihg.com/holidayinn/hotels/us/en/hd/russia/chelyabinsk-hotels 28 http://content.oktogo.ru/Холидей_Инн_Крокус_Сити_h421601.aspx 21 gym. In a standard single or double room Holiday Inn Lesnaya offers 1 King Size bed or 2 single beds, air conditioning, work desk with lamp, Internet access, satellite TV, telephone with voice mail, safe, hair dryer, mini bar, coffee maker, kettle, crockery.

Executive rooms located on the VIP- floor are among other bath accessories, the latest press , scales , and iron with ironing board. Category: 4 stars.29

Hotel “Holiday Inn Moscow Lesnaya” was opened under an international agreement of commercial concession company “Mospromstroy Hotel Management”, one of the largest companies in Moscow.

Management of the hotels “Holiday Inn Moscow Lesnaya” is carried out according to the international standards of a hotel chain “Holiday Inn”, the world famous brand combining high level of service with reasonable prices that provides an optimum ratio of the price and quality. “Holiday Inn Moscow Lesnaya” is established partnership with supplies. There are a lot of hotels in Moscow that means high competition and limited market share.

Accommodation

With rooms designed in a bright, fresh and modern style. Holiday Inn Moscow Lesnaya grants comfortably welcoming lodgings. Free high-speed internet access is provided in soundproof, air conditioned rooms equipped with climate control while mini-bar and coffee maker allow for handy refreshments.

Hotel Facilities

The Red & White Restaurant in the Holiday Inn Moscow Lesnaya serves a variety of existing international cuisine for breakfast, lunch and dinner. Patrons can also relish refreshing beverages in the welcoming Lobby bar. For corporate travelers, the stylish on-site business centre is fully equipped while state-of-the-art fitness facilities deliver a convenient place for exercise.

Facilities:

- Restaurant - Dry cleaning/laundry service - Room service (24 hours)

29 http://www.ihg.com/holidayinn/hotels/us/en/moscow/mowlu/hoteldetail 22

- Safe-deposit box at front desk - Smoke-free property - Fitness facilities - Bar/lounge - Area shuttle (surcharge) - Business center - Porter/bellhop - 24-hour front desk - Multiple small meeting rooms - Luggage storage - Multiple large conference rooms - Accessible parking - Laundry facilities - Gift shops or newsstand

Transportation

Parking is available for cars in the “Holiday Inn Moscow Lesnaya” via a covered garage area, and there is a regular shuttle bus covering the region. The nearby underground railway system is reliable and efficient while many of the chief landmarks are found just steps away from this magnificent property.30

Object of activities are:

- Providing a complex of hotel services in accordance with the standards of “Holiday Inn” hotel - Food service - Providing facilities for conferences, meetings, presentations and other cultural - recreational activities

30 http://holiday-inn-moscowlesnaya.h-rez.com/index.htm 23

Table 1 – Swot analysis

Strengths - location - free internet connection - well-known brand, part of a chain - reward clubs - wide range of services - established partnerships with suppliers Weaknesses - high competition means limited market share - shortage of skilled managers Opportunities - specific seasonal offers - untapped market of Russia gives practically anything unlimited opportunities for growth - qualification growth of all employees Threats - Unfavorable economic situation in the country - Economic/Political changes Resource: Own research, 2014

2.2 MARKETING ACTIVITIES OF CHOSEN HOTEL

It mainly emphasized on the variables under the control of the firm that the marketing manager manipulates in order to achieve tactical marketing objective. It is the offer by the organization to the customer. The word mix acts as a pun in the sense that we can explore and illustrate the methods that make up organization strategy and marketing tactics.

Mission:

Do the right thing: always do what believe is right and have the courage and conviction to put it into practice, even when it might be easier not to. Honest and straightforward.

24

- Keep the promises and don’t let people down. - Seek out the facts and trust judgment. - Take decisions even when they are difficult.

Show we care: want to be the company that understands people’s needs better than anyone else in hotel industry. This means being sensitive to others, noticing the things that matter and taking responsibility for getting things right.

- Treat people as individuals. - Look and listen for the little things that make a difference. - Use experience to find new ways to deliver great service.

Aim higher: aim to be acknowledged leaders in hotel industry, so have to built a team of talented people who have a strong will to achieve. Strive for success and value individuals who are always looking for a better way to do things.

- Put hearts into learning new things. - Challenge those around us. - Always look for ways to improve.

Celebrate difference: believe that it’s the knowledge that really brings brands to life. While other companies may want to impose a rigid, uniform view of the world, they do not. Global strength comes from celebrating local differences whilst understanding that some things should be kept the same.

- Welcome different perspectives and listen to everyone’s ideas. - Respectful of all cultures and look to learn from others. - Play an active role in the communities in which operating.

Work better together: work together is stronger; collaborate to form a powerful, winning team. Listen to each other and combine expertise to create a strong, focused and trusted group of people.

- Work hard to develop excellent working relationships. - Think about what to do and how it might affect others. - Trust and support each other.

25

Vision

To be the primary source of hospitality in the communities hotels serve by providing customers the best possible experience.31

Holiday Inn hotel starts the multi-million-dollar Marketing Campaign that asks guests to “Look Again” at the brand. Through an independent research conducted by a strategic brand consultancy Landis Global Market Research, Holiday Inn found that the four features that are of most significance to business travelers are:

- Providing free high-speed internet access - Comfortable in-room work spaces - Full-service, meeting facilities - Loyalty program

Holiday Inn offers each extensive research revealed that most business travelers tend to more closely associate Holiday Inn with its heritage as a family leisure hotel and facilities like the hotel pool. The “Look Again” campaign aims to round-out perception of the consumer regarding the brand so they view it as a first option for business travel and also, leisure. The campaign reinforces the strengths of the present day Holiday Inn and prompts to guest to “Look Again” to see the way in which the iconic brand they think they know has continued to evolve to meet their requirement. The emphasis laid on elements like free high-speed internet access or comfortable, modern in-room workspaces, for instance, may seem to be fundamental on the surface, but for a brand with a legacy and character like that of Holiday Inn, they are indeed more meaningful. Holiday Inn has a history of leading the industry in terms of innovation, and wants to make sure that this opportunity is taken, to shout it from the rooftops something which has been uncharacteristic of them so far.

The primary goal of the campaign is what the brand prominently defines as the “Modern Everyday Hero”, a blended attitudinal segment that spans generation X and body Boomers. With an existence of 100 percent brand awareness, virtually everyone in the target segment has stayed at a Holiday Inn, but still the research revealed that these consumers may perceive or categorize Holiday inn exclusively as a family leisure hotel and holiday Inn’s full-service business amenities may not be top of mind. The “Look

31 http://www.kuwait-hi.com/mision.html 26

Again” campaign includes traditional print as well as Broadcast Advertisements. The comprehensive campaign is also inclusive of interactive online and Engagement Marketing elements, which have indeed proved to be successful in reaching the highly coveted Gen-x market.32

Broadcast Advertising

In its first sustaining broadcast advertising campaign since 2002 (till today’s time), Holiday Inn takes a humorous look at life on the road for today's business travelers. The commercials from Fallon Minneapolis highlight the brand's key business travel amenities and services, like free high-speed Internet access and Priority Club Rewards, through the eyes of three typical American coworkers at varying levels of experience: Ted, Marcus and Zack, collectively referred to as “The Business Guys”.

Interactive Marketing

To keep guests engaged, the site will continue to evolve and provide more interactive experiences for visitors on subsequent visits. For example, playing off the broadcast commercial, the site will include an interactive "Hot Tub Etiquette" game where visitors maneuver the characters to ensure they maintain appropriate distances from each other.

Engagement Marketing

The recently announced NASCAR Busch Series and Major League Baseball sponsorships take the “Look Again” campaign directly into the lives of consumers. These partnerships are examples of Holiday Inn's engagement marketing strategy designed to build consumer advocates and ensure the legacy brand remains relevant to future generations of guests. The sponsorship will be brought to life through a robust activation using interactive elements like the Priority Club Rewards online auction. The auction offers visitors the chance to bid on unique memorabilia. Auction items range from MLB Authentic Collection jerseys to tickets to post-season games.33

32 http://www.ukessays.com/essays/marketing/marketing-strategies-of-holiday-inn-hotel-marketing-essay.php 33 http://www.hotelnewsresource.com/article22597.html

27

2.3 Target Market

Business tourism is less extent to seasonal fluctuations of demand, characteristic for ordinary tourist travel. No wonder that the people having a business purpose of visit became a target audience of a hotel product of “Holiday Inn Moscow Lesnaya”. Fine location is additional argument in favor of the hotel.

The main clients are foreign businessmen and tourists (individuals and group tours), as well as business people coming to Moscow from the Russian regions. Delegations of participants of various public events held in Moscow, creative collectives from foreign countries also stay at hotel.

Corporate clients of “Holiday Inn Moscow Lesnaya” are the numerous Russian and foreign companies, foreign representative offices in Moscow, business associations and foundations, etc.

According to the sales department of the hotel, 70 - 80 % of visitors are businessmen from foreign countries, including corporate clients, 20 - 30 % - foreign tourists.

On weekdays - Monday through Thursday - loading of hotel comes nearer to 100 %. Average annual loading capacity in 2013 was 78, 96 %, thus Christmas, New Year's and May holidays are considered as the periods of low loading. Even in summer months when there is a business recession, the hotel is loaded almost completely. Such situation is a merit of marketing and sales department: on the one hand, in 2013 the record number of travel agencies which provided continuous filling of hotel in summer months was attracted, on the other hand “Holiday Inn Moscow Lesnaya” entered on the market with another new offers both for corporate clients, and for private visitors.34

Hotel offers:

Dinner, Bed and Breakfast Offers:35

No matter what the occasion, which combined dinner, bed and breakfast deal offers great value and a choice of perfect locations to enjoy a leisure break.

Bring the family: spend quality time with family with a short break away, enticing package of dinner, bed and breakfast includes:

34 Own reseach 35 http://www.ihg.com/holidayinn/hotels/gb/en/global/offers/dinner-bed-breakfast?cm_sp=OSMEU-HI-GLOBAL- EN-OFF-AIX-MHR-dinnerbb_wim22 28

1. An overnight stay 2. A 3-course evening meal on the day of arrival 3. Breakfast the following morning 4. Kids stay and eat free

Eat, drink and relax: full-service restaurants offer an excellent reputation for delicious food.

1. All dishes are prepared on site 2. Only the freshest, quality ingredients 3. Choose from a range of breakfast favorites including scrambled eggs, sausages, baked beans, warm pastries, cereal and fresh fruit 4. Plenty of tea and coffee and a variety of juices

Best Flexible Rate36

Celebrate the Freedom of Flexible Booking: plan a trip around the schedule with 100 % flexible bookings. It is possible to stay for as many nights as you want, on any date you please, with the best flexible rate available.

There's no need to shop around, compare or compromise. Just book your stay with the best flexible rate available. And if it needed to change or cancel the booking, don't worry. Best Flexible Rate gives the flexibility you need if your travel plans suddenly change.

Advance Purchase37

Save between 10 % and 30 %: booking the trip earlier means you'll get exceptional service and the most comfortable stay, plus savings between 10% and 30% off.

2.4 Loyalty Program

“Holiday Inn Moscow Lesnaya” is member of InterContinental Hotel Group (IHG).

IHG Rewards Club, the world's first hotel loyalty program, offers members the ability to earn points at more than 4,600 InterContinental Hotels Group hotels worldwide. The card is free and can be joined online at webpage of InterContinental Hotel Group.

36 http://www.ihg.com/holidayinn/hotels/gb/en/global/offers/bestflex 37 http://www.ihg.com/holidayinn/hotels/us/en/global/offers/save 29

There are three levels of membership: Club, Gold Elite and Platinum Elite. IHG® Rewards Club is leading the industry in providing benefits to their members, including free internet worldwide.

Member Benefits:

Club (stay up to 14 nights in a calendar year)38

- Your points never expire and are simple to use - No blackout dates for Reward Nights - Free Internet worldwide for all members - Redeem for flights on over 400 airlines - Use points to stay virtually anywhere – even at our competitors' hotels

Gold Elite (earn by staying at least 15 Elite Qualifying Nights, earning 20,000 Elite Qualifying Points, or Fast Track to Gold Elite by staying 10 Elite Qualifying Nights at 3 IHG Brands in a calendar year).

- Receive all Club benefits, plus: - Priority Check-in on guaranteed reservations - 10% bonus on base points - Exclusive Gold Customer Service Phone Number

Platinum Elite (Earn by staying at least 50 Elite Qualifying Nights, earning 60,000 Elite Qualifying Points, or Fast Track to Platinum Elite by staying 40 Elite Qualifying Nights at 4* IHG Brands in a calendar year. (*In the Americas and Europe; 40 Elite Qualifying Nights at 3 IHG® Brands in Africa, the Middle East, Asia, and Oceania.))

Receive all Club benefits plus: 39

- Rollover extra nights towards next year's qualification - Priority Check-in on guaranteed reservations - Complimentary room upgrades (Subject to availability) - Guaranteed room availability (72 hours in advance) - 50% bonus on base points - Access to exclusive Platinum Elite Phone Number

38 http://www.ihgplc.com/index.asp?pageid=413 39 http://www.ihgplc.com/index.asp?pageid=413

30

The number of IHG Rewards Club points required are classified per category. The points required vary by hotel. You can find the points required for Reward Night accommodation at the hotel by checking the availability on desired date.

Table 2 - Points for loyalty program

Point categories Points for a Reward Night 1st category 10000 2nd category 15000 3rd category 20000 4th category 25000 5th category 30000 6th category 35000 7th category 40000 8th category 45000 9th category 50000 Resource: www.finland.holidayinn.com, 2014

Any Hotel, Anywhere Card:

InterContinental Hotels Group (IHG) launched the unique Any Hotel, Anywhere Card at the beginning of September 2007. Now, the first in the hotel industry, Members of the IHG Rewards Club can freely select the hotel of their choice from among more than 500,000 hotels – even from among competitor hotels.

Any Hotel, Anywhere Card can be redeemed with IHG Rewards Club points, and it can be used to pay for nights all over the world in hotels that accept the American Express credit card as payment. The Any Hotel, Anywhere Card isn’t a credit card, it’s a prepaid stored value card pre-loaded with the sum, in euro, that corresponds to the bonus points. The cards can be used for payment at hotels that accept the American Express credit card as payment.

31

Table 3 - Card values

100 USD 35000 125 USD 44000 150 USD 52000 200 USD 70000 250 USD 85000 Resource: www.finland.holidayinn.com, 2014

IHG Rewards Club Online

Through personal Online Account it easily to manage travel-related affairs. Aside from contact details, it is possible to add information to profile that speeds up and facilitates making reservations via the IHG website:

- preferred room type - most common room rate, including the company’s own global corporate rate - preferred destination cities - preferred hotels

Through profile page possible to see point situation, browse special offers, order Rewards, make reservations.40

Pillow menu: Holiday Inn offering the guests a Pillow Menu to choose from various types of bedding to enhance their sleep. These pillows came from top tier manufacturers, giving guests the option of what type of pillows they would like was an instant sensation.41

2.5 Promotion of hotel Holiday Inn Lesnaya

Hotel chain “Holiday Inn Moscow Lesnaya” uses two channels of PR: main and additional, to cover all possible groups of potential consumers.

Main channel - “business” press

Promotion goes through daily “business” newspapers and analytical business magazines with attraction of qualitative political weeklies.

40 http://www.finland.holidayinn.com/edut_ja_kortit/en_GB/ihg-rewards-eng/ 41 http://www.hotelpillow.com/holidayinn1.html 32

Tasks for PR campaign in the press:

- stimulation of all hotel services sales via the main tool stimulation advertising campaign as a whole - Acquaintance of the main part of target market with features and competitive advantages of services in “Holiday Inn Moscow Lesnaya”

Business newspapers:

“Kommersant” - a national daily business newspaper, 24 pages of high-quality and timely information about the world and Russian business, financial and business news, politics and changes in the government, the main events in the society, culture and sports. Accurate forecasts and in-depth analysis. One of the most authoritative and influential publications in Russia. Hotel is regularly giving advertisement in this newspaper, usually it is an article about some hotel news/event or interview with hotel manager about hotel special offers and services.42

“Vedomosti” - daily business newspaper, unique project for which realization, first time in history, united the two host forces of the business newspaper of the world – “Financial Times” and “The Wall Street Journal”. Newspaper informs the reader of the most important economic, financial, corporate and political events, analyzing and forecasting developments. The same advertisement as in previous newspaper.

Thematic Magazines:

“Voyage and Otdych” is the most known and popular Russian magazine about tourism. Main topics: hotels, tours, resorts infrastructure and everything that can be associated with tourism. Main objective of the magazine - the formation of Russian tourists to the direction of fashion trend, actively collaborates with television and radio channels. According to the world famous company “TNS Gallup Media” magazine enters in the twenty most popular magazines in Moscow. “Voyage and Otdych” is about tourists and for tourists. Hotel “Holiday Inn Moscow Lesnaya” has regularly paid advertorials always with pictures, advertisement about special prices in fitness area or restaurant. Hotel “Holiday Inn Moscow Lesnaya” has regularly paid advertorials always with pictures, advertisement about special prices in fitness area or restaurant.43

42 http://www.kommersant.ru/daily 43 http://www.voyagemagazine.ru/

33

Hotel “Holiday Inn Moscow Lesnaya” uses in advertisement campaign only printed media. Television campaign has the maximum coverage of all Russian audience, but it is too expensive. Radio campaign is not use because radio audience is insignificant; in any case it less than audience of the print media.

Additional channel - Outdoor advertising

Used to excite the interest of the target market and for convenience at the entrance to the hotel.

Tasks for promotion campaign in the outdoor advertising:

- stimulation of sales services of the hotel - support for the advertising campaign being waged through other channels - direction simplifying to the hotel

Promotion concept

As the main part of target market - visitors, billboards use in advertizing, directly near the airports. For road convenience direction, city indexes with the internal illumination specifying a route is used.

Direct mail in the nearest offices

Not far from the hotel “Holiday Inn Moscow Lesnaya” are situated several major business centers which are being direct mailed for the week lunch offers. This type of promotion provides fillability of restaurant for business lunches, and also gives the chance to use the hotel conference areas in addition.

Event marketing

Every modern man falls avalanche of advertising messages. In these conditions is more difficult to capture consumer attention, one of the tools, urged to solve this problem, became event marketing. It is a way of promotion, which is aimed at building and strengthening the brand image by organizing special events, forms personal attitude to the brand. For example wedding preparation with assistance in every step for unforgettable ceremony or group events encompass all sorts of get - together, from

34 sports teams to family reunions, perhaps it's a 50th birthday party. “Holiday Inn Moscow Lesnaya” can organize every event on top level.44

Business Partners

“Holiday Inn Moscow Lesnaya” has long partnership with well-known companies in the market. Hotel guests are entitled to special rates, offers and also discounted service system.

“Beauty Trend”

Unique combination of cosmetology center, aesthetic medicine, laser and plastic surgery, as well as SPA salon. For those, who appreciate the time and understands that the attractive appearance, along with intelligence and education - a great help on the path to success. 45

“SunCity”

Solarium club and beauty salon, there you can receive a magnificent bronze tan, lose weight, rejuvenate! Team of the best professionals: cosmetologists, massage therapists, stylists, masters of manicure and pedicure.46

“PepsiCo”

The second largest producer of food and beverages with annual sales of over 65 billion dollars. The company produces a wide range of products, including 22 brands, annual retail sales each of which exceed a billion dollars. Key areas of the company - Frito-Lay (snacks), Quaker (grains and cereals), Pepsi-Cola (beverages), Tropicana (juices) and Gatorade (sports drinks) - represented in 200 countries. The company produces a variety of healthy foods and beverages, highly valued among consumers worldwide.47

“BMA Estate”

Company specializes on sale of elite real estate abroad, the basis of the creating a company idea is professional approach and quality customer service.48

44http://www.ihg.com/holidayinn/hotels/us/en/global/support/groups_meetings/group_events#scmisc=nav_grou p_events_hi 45 http://beauty-trend.ru/ 46 http://www.sunicity.ru/o-kompanii 47 http://pepsico.ru/company/ 48 http://www.bmaestate.ru/about.html 35

“Kudo Wear”

Outfitting center, main advantage of store is that you can buy in one place a complete set of kudoist from kimono to tracksuit with symbols of kudo or even fashion accessories.49

“Aeroexpress”

Dynamic Russian company providing intermodal and local rail transport services in compliance with the license of the Ministry of Transport of the Russian Federation. Aeroexpress provides rail services between the capital and all of the major Moscow airports (Vnukovo, Domodedovo and Sheremetyevo), as well as the town of Lobnya.50

Charity

Hotel “Holiday Inn Moscow Lesnaya” participates in international program “Big Brothers Big Sisters of Russia” - one of the most effective volunteer programs of individual mentoring for children in a difficult life situation. In Russia are registered as interregional public organization promoting the program of educating the younger generation.

Mission:

To help children around the world reach their potential through professionally supported one-to-one mentoring relationships with measurable impact.

Vision:

Children around the world realize their potential, creating a better future for themselves, their countries, and the global community.51

Web-page

Today, the first place guests go to collect data about hotel is hotel website. They want to discover important information like property photos, deals and promotions, local points of interest and more.

“Holiday Inn Moscow Lesnaya” has well design attractive and highly functional web- page where you can learn more about:

49 http://www.kudowear.ru/about/ 50 http://www.aeroexpress.ru/en/about.html 51 http://nastavniki.org/ru-mentoring-program/ 36

- Hotel details (acceptance of credit cards, parking, nearby attractions and languages) - Hotel packages and special offers - Virtual tour (video and photo of hotel guest rooms, restaurant, meeting facilities and features) - Guests review (overall experience of hotel stay) - Local guide (informational tips) - Online booking

Hotel web-page is effective tool of marketing, which creates important impression of potential hotel guests and clients.

37

3. SUGGESTIONS OF ADDITION MARKETING TOOLS IN HOTEL “HOLIDAY INN MOSCOW LESNAYA”

We will consider PR of one of Holiday Inn hotels in Moscow – “Holiday Inn Moscow Lesnaya”. This hotel functions 9 years since March 2005 and constantly improves quality of provided services. But, nevertheless, it is possible to bring a number of adjustments in its marketing activities which would promote improvement of work of the enterprise. I received the bases for such reasoning proceeding from the externship passed in this hotel and experience at this enterprise.

Onboard Advertising

“Logbooks” are effective modern media carriers. Logbooks are allocated with high level of printing execution, positive information and stylish design

Advantages of advertizing in onboard magazines:

- high-income audience, a major consumer of goods and services, focused on reputation and quality - increased return on advertising due to the effect of the so-called “compulsory reading” - exposure information by reading papers on a plane is approximately two times higher than any other illustrated magazine - free distribution, allowing each passenger to take a copy of the magazine

“Aeroflot” - in addition to free distribution Aeroflot Air Company (in each seat pocket), the magazine delivered free of charge in 2000 addresses: offices of foreign companies in Moscow, hotels, banks, advertising agencies, travel agencies.

“Siberia “- free applies to all flights of the airline “Siberia” (domestic and international). “Siberia” is the second Russian Air Company after the “Aeroflot”.

Social networks

Another good promotion of hotel “Holiday Inn Moscow Lesnaya” is creating a group or page in social networks, such as:

“VKontakte” (generally users from Russia, Ukraine), “Odnoklassniki”, “Facebook” (Russian and foreign users). It is necessary to watch constantly the group/page on a social network to make it as much as possible interesting / visited for users. For this

38 purpose it is necessary to enter news information, for example about an upcoming event, a photo reports on the held events, draws among participants of group, etc.

39

CONCLUSION Having considered the concept of the international hotel chains, it is possible to draw a conclusion that the largest hotel chains unite thousands hotels and one hundred thousands rooms that allows to speak with confidence about efficiency and expediency of use of such system. What are the advantages of hotel chain association? Management provides an efficient and qualitative operation of a large number of projects under construction by product standardization and unification of management systems. Professional promotion and sale activities provide better occupancy and better financial performance.

For hotel important that each provided service met expectations of the client whom the hotel hopes to attract. Hotel clients estimate the services offered to them, that's why marketing makes each employee in company to think about the customer and do everything possible to create and maintain client representation that he is the highest value in the hospitality and tourism business.

If marketing activities is carried out professionally, hotel image and position in relation to competitors become so obvious, and the specificity of services - so recognizable that the customer perceives a logo or brand as a guarantee of a certain level of quality.

The aim of the thesis was to analyze marketing activities of hotel chain “Holiday Inn” and its development in Moscow and, suggestions for additional distribution channels.

Hypothesis H1 in which “I assume that “Holiday Inn Moscow Lesnaya” do not use advertisement in magazines as a marketing tool” did not confirmed after done analysis, because hotel used several advertisements campaigns in business press/newspapers and thematic magazines.

40

LIST OF REFERENCES www.aeroexpress.ru

Arbuzova I., Industria gostepriimstva, Moskva, Alfa-M, 2006

Azar V., Mirovyje gostinechnyje seti 20 veka, TTGRussiaTravelTrageGazette, 2000, №12/82 www.baliedutours.com www.beauty-trend.ru Bowie D., Buttle.F.,Hospitality marketing, second edition www.bizymoms.com www.bmaestate.ru Charles R. Goeldner, J. R. Brent Ritchie, Tourism, 11th edition Chudnovskij A., Gostinechnyj I turisticheskij biznes, Moskva, Eksmos, 2000, www.city-of-hotels.com content.oktogo.ru/ Dzandzugarova E., Marketing v industrii gostepriimstva, Moskva, Academia, 2010 www.finland.holidayinn.com www.holiday-inn-moscowlesnaya.h-rez.com www.hotelnewsresource.com www.hotelpillow.com www.ihg.com www.ihgplc.com www.kommersant.ru Kosmak P., Hotelove podnikani a integracni procesy, Vysoka skola hotelova v Praze 8, spol. s.r.o., 2005 Kuskov. A., Gostinechnoje delo, Moskva, Dashkov i Ko, 2009 www.kuwait-hi.com Lesnik A., Chernyshov A., Matsitskij. I., Organizacija I upravlenuje gostinicnym biznesom, Moskva, 2005 Loyko O., Turism i gostinechnoje hozjastvo, Tomsk, TPU, 2005 Papirjan G.,Management gostinechnoj industrii, Moskva : INFRA-M http://pepsico.ru/company 41

Smirnova M., Formirovanije gostinechnoj seti: koncepcija, metody, praktika, Gostinichnoje delo www.sunicity.ru Teng T, The Leading Hotels of the World, President & CEO, Ltd www.tnooz.com www.ukessays.com www.voyagemagazine.ru

42