Paper Example on Hotel Management and Marketing Strategies

Published: 2021-07-29
1241 words
5 pages
11 min to read
Middlebury College
Type of paper: 
Case study
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Concerning the bundled pricing program for the hotel's amenities, it is identified that although a hotel cannot be one hundred percent sure on the customer reaction, the primary objective would be to make sure that its effort on increasing usage, conversion and the positive brand outlook is working successfully. Pricing plays an important role and one area that I would stress on as the hotel marketing consultant is the hotel pricing strategy (East, 2016). In making sure that the hotel is successful in increasing its hotel usage amenities. Technically, I would change the existing price structure through phenomenal services and marketing development in changing time and price limits in a manner that clients best perceive value.

On the other hand, I would make sure that services offered are a representation of the characteristics of the requirement and not luxuries; this will be done through making sure that affordability is ensured. Notably, necessities tend to be inelastic in price changes while luxuries are. Since the hotel amenities are categorized as luxuries, clients, in this case, can be discouraged to use the hotel during the price increase. However, when they are made necessities, what will take place is that the clients will be demand for them even if there is an increase in price. Additionally, I would make sure that the amenities are converted to a form that is almost the same substitute through diversification and differentiation. Because the hotel is existing in a competitive market and other hotels are offering the same services, the price increase will chase other clients who are price sensitive, and they will end up moving to other competitors (Clow,2004). So to avoid such scenario, I would ensure integration of essential features that are fundamental to the competitors and the customers which competitor have not included in their services.

Finally, the last pricing strategy to be adopted is the value-based pricing strategy where the value will be embraced as the basic driver regarding setting the pricing strategy. By adopting such a strategy, the hotel will succeed in offering quality and improved customer satisfaction while having to enjoy good profit, increased competitive advantage, and increased margins.

In maintaining the pricing mechanism that will allow the hotel amenities to maintain 25% price margin, the best pricing strategy to be embraced is the value-based pricing strategy that will allow the pricing not to be based on the competitor benchmark nor the cost but the value of the customer. Notably, the service pricing would be in such a direction that customers will find the value for their money and they will be willing to pay. Quantification and calculation of prices will be done to meet the best alternative. From this point of view, it will be appropriate to increase time and price at the same time. Technically, for a professional massage, the new package would be $90 for two hours thirty minutes.

It will be more responsible for Paddler boating to offer $ 40 for two hours while the package for spa costing up to $ 120 for one hour thirty minutes with those going through the aerobic classes ending up to costing $70 for two hours. What is meant by such pricing strategy is that customers are given enough time to effectively spend their time by enjoying the best service with a better perception of having value for their money. Through different amenities in one place, the customers are likely to enjoy more satisfaction and are likely to make use of the social amenities more. Ultimately, what will happen to the amenities is that the hotel will be successful in scoring the desired expectation of 25% with the usage rates while at the same level of performance the Hotel received a great improvement in their customer service. Through the value-based pricing method, it would be of great help in coming up with target price increase that is capable of capturing the largest amount of customers that are capable of paying without having to drive them away.

Set of packages that Non-Hotel Resident are offered

The hotel would provide special promotion and selection package that is designed for extending the use of nonhotel residents to that one of hotel amenities. This would involve food and accommodation, family fun day, currency exchange, laundry services, salon, barbershop health, and fitness center and travel package for catering for couples and different individuals.Significantly, the service will consider different customers do not forget different age, social class, singles and even couples. This services will allow diversification and increases the hotels activity and occupancy during most weekends. On the other hand, the nonhotel resident will have various choices to choose from including lower prices. The lower price that will be offered for any of their services would be $ 40 for one adult, $ 30 for children and $ 100 for couples; this is just to provide assurance to clients and to prevent the perception that the client will have the place. In this case, it is important to make use of valued based pricing since by allowing unlimited usage, they would be encouraged to pay a frequent visit to the hotel and hence access would be an assurance for success in integrating locals.

The program for IMC that would be adopted for the Non-Hotel Guest Program

Proper adoption of integrated marketing communication would promote healthy balance that would promote good result to the overall goals and profitability of the business. The integrated communication mix would be more of the efforts of promotion in whatever will best work (Hinterhuber,2008). In the making of the nonhotel guest program, a different method will be incorporated; one can make use of the traditional and the new promotional approach. With the new approach involving the use of mobile phones, social media platforms such as youtube, facebook, Instagram, and Twitter, on the other hand, in marketing the nonhotel program use of radio, television and billboards and public relation activities such as price coverage, media relation, and newsletters. For better performance, the integrated communication mix would have been incorporated until the hotel receives a good profit and a competitive edge.

Concern that the management should bear in mind regarding equity of the company and the Brand image

The sustainability and proper brand outlook is a major concern, and the management should consider the two elements as a major concern when it comes to the integrating marketing communication. The hotel should work extremely hard in developing of a positive brand overlook and profitability (Palazzo et al. 2017). On the hand, developing good customer relationship is important, and managers should make sure that sustainability program that positions the brand at a higher advantage is adopted. Additionally, the management should also be concerned by sustainability programs with the main purpose of achieving a competitive edge.

The business slogan

Lastly, the best slogan of the hotel will involve Everything is good at the right time, place and time. Through the slogan, the implication is that the hotel is customer and market-oriented, with the major aim being to offer every customer the best by incorporating the brand image which is integrated into the communication plan and the quality of service offered.


Clow, K. E. (2004). Integrated advertising, promotion, and marketing communications. Pearson Education India.

East, R., Singh, J., Wright, M., & Vanhuele, M. (2016). Consumer behavior: applications in marketing. Sage.

Hinterhuber, A. (2008). Customer value-based pricing strategies: why companies resist. Journal of business strategy, 29(4), 41-50.

Palazzo, M., Foroudi, P., Siano, A., & Kitchen, P. (2017). The value and significance of corporate community relations: an Italian SME perspective. The Bottom Line, (just-accepted), 00-00.

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