Hospitality Industry Essay

Components of marketing mix of hospitality industry and other industry are same but the blending process is different as services are perishable in nature. Product, price and promotion may remain as same another physical product but the place is the service provider itself as service cannot be separated from its provider and service is produced and consumed simultaneously. Hospitality companies have to create unique value proposition and market offering (product) set an affordable and competitive charge in return (price) and let people aware about their market offering (promotion). As technologies advances many hotel and restaurant have online service like advance booking, information about service, history and legacy about the hotel make available

One is value based pricing and the other is value based pricing. Some other factors also influence pricing for example competitor’s price, demand, peak season and off season. Suppliers are also important factor in pricing. If supplier charge high cost then hotels have charge higher to reach mark up. So negotiation with supplier is very important. Cost based pricing is setting up price based on cost. At first determine the cost and add value and charge higher than the cost to make profit. Competitors always suppress profit in this industry. They always cut their price to gain more customers. When pricing try to consider the competitors price and always try to set lower price than competitors price of same service. In hotels and restaurant they offer lower price package after business hour to sell the product which might rotten otherwise. In off season hotels charge lower price than their list price and also offer package, discount, coupon etc. In the peak season when consumer demand increase hotels charge higher price for their

It is a blend of promotional tools to communicate with target customer and build customer relationship. There are some components of promotional mix which help to accelerate the sell and expand growth of a company. The components of promotion mix are:

• Advertising – nonperson presentation of ideas of goods and services through a paid media.

• Sales promotion – short term incentives to the customer so that they motivated to purchase. Sales promotion is done by the hotel in the off season.

• Personal selling – direct sells by the company’s sales force to the customers to make sales and build customer relationship. Scope of personal selling in hospitality industry especially in hotels and restaurant is huge.

• Public relations – creating good relationship with publics by building favorable public image and handling off unwanted events. A positive review about a restaurant in famous magazine may create favorable public image.

• Direct selling – carefully target individual customers to get on the spot response and build long lasting customer relationship (Crotts and Wolfe,