With international and domestic hotel chains making a beeline to dot every metro and tier-II city of India, marketing strategies of hotels also need to be reoriented towards the changing market dynamics to tackle the intense competition. Hoteliers, having understood this, are focusing on retaining the customer part from finding new ones to keep the momentum going. In order to achieve this, hotels are now focused on developing innovative and competitive marketing strategies which seek new ways to acquire, retain and increase customers, thereby sustaining and developing in this competitive era. The hotel industry is now adopting new technologies such as customer relationship management tools to push their business.
Experts in the industry opine that marketing strategies are determined by various factors such as product diversity, quality, market segment, marketing channel, geographic area covered, branding etc. It also depends on the development of new products, hotel’s positioning in the market, innovation and pricing policy, relationship with customers, partners, suppliers and competitors. Apart from this, the strategies also consider the marketing complexity, stakeholders’ and customers’ expectations, and dynamic external and internal environment.
Moreover, the hospitality landscape is evolving quickly as new technology demands that hotels become more social and engaging in their marketing efforts. Hotels are witnessing a significant change in the need and expectations of the consumers due to major shifts in the services and technology landscapes. The emergence of online marketing and social media further complicated the role of marketing professionals. Social media marketing tactics are being used to create visibility, establish community and promote products and services around the world. Hotels have taken advantage of social media marketing trends in developing strategies on Twitter, Facebook, Google+ and more. Social media is also used to get feedback from customers to improve product and services. The customer feedback and opinion are considered very important and are incorporated in strategies, campaign planning and execution. Customer intelligence is even more relevant and significant in the current economic context. The bottom-line is to exceed guest expectation and ensure his loyalty and retention.
Evolving role of Marketing Directors
Almost all marketing professionals whom T3 contacted for their opinion are unanimous in that the role of Marketing Directors has evolved greatly and moved way beyond the conventional area of advertising and public relations to a much bigger canvas that includes e-commerce, strategising, image management, marketing communication, revenue generation and, of course, sales. “It is about leading the marketing priorities with strategic initiatives to increase sales and distribution in the region and also drive the outbound international sales to the Group’s network of hotels globally. One also needs to manage relationships with key stakeholders, corporate guests and hotel partners,” says Nikhil Dhodapkar, Regional Director-Sales & Marketing, Accor India, and adds that the shift from mass marketing to highly targeted customer outreach and interaction, the emergence of online aggregators and the growing importance of direct distribution channels have all upped what is demanded from Marketing Directors and their teams.
Agreeing with him is Ramesh Daryanani, Area Director – Sales & Marketing, South Asia, Marriott International. Daryanani opines that Marketing Directors form an integral part of the team for creating and overseeing the hotel’s annual business and marketing plans, as well as managing the sales team, in addition to maximising hotel revenue among all market segments. “The hospitality industry today demands on-going promotions and advertising, and the Marketing Director’s team is responsible for key decisions such as advertising placements, direct mail campaigns and other activities. In a nut shell, the Marketing Director is a key player in understanding the role that marketing and branding play for customers, while being actively involved in the process of marketing and brand development,” he said.
Lokesh Kumar, Vice President – Development & Marketing – India at Movenpick Hotels & Resorts, believes that Marketing Director plays a very important role for hotels because they understand the market. He further says that due to a better understand of market dynamics, a fair number of Marketing Directors are now moving to operation.
Rajiv Malhotra, Head of Marketing, South East Asia, Hotels.com is of a similar opinion. “Companies are becoming more social and interactive in their efforts, which make it imperative for marketing professionals to be more versatile and up-to-date. Also, it is no longer about selling a product, but selling an experience, and hence, the softer aspects become far more important. With an increasing number of consumers making decisions through peer recommendations (user reviews), marketing is much more than creativity, offers and promotions. Marketing is now integrated with the product experience more than ever,” he stated.
Siegfried Espitalier Noel, Chief Marketing Officer, Constance Hotels & Resorts, commented that the role has grown increasingly complex with the changing scenario in the industry, driven first by online players, then meta search engines or online aggregators, and finally with the growing importance of direct distribution channels. Shagun Sethi, Director of Sales & Marketing, Fairmont Jaipur, reveals that marketing professionals are constantly challenged to keep pace with evolving business trends and the aggressively expanding communications and distribution channels. Kanchan Rizvi, Director of Sales & Marketing, Radisson Blu Hotel New Delhi Paschim Vihar, feels that the role of Marketing Director has completely revolutionised. “Today, a successful Marketing Director is the one who not only understands the market scenario keeping in mind their competitors, but also has a handle on the latest trends and developments in the industry so that he / she can cash in on any change that influences the business at that very time,” Rizvi said.
Aditya Shamsher Malla, Director of Sales & Marketing, Shangri-La’s Eros, New Delhi, stated that Marketing Directors are business leaders working in close coordination with the General Managers and assisting them in fulfilling top line obligations. “Market research, trend analysis, yield management, profitability and long term strategy are an integral part of the role of a Marketing Director in today’s context,” Malla said. Shubham Chandra, Director of Sales & Marketing, Hyatt Regency Chennai, feels that marketing is about creating memorable experiences with humility and innovation so as to become the preferred destination recognised for its genuine hospitality. “Our endeavour has been to create a connection with the people and their psyche so as to be able to understand and cater to their needs better,” Chandra said.
Dhodapkar opined that with the increasing ability to analyse data to drive pricing and revenue management, the marketing function now has a much stronger impact on operational performance. Today, most hospitality companies operate under the relentless scrutiny of social media, which has enormous implications for brand management, communications and customer relations.
Shifting focus in marketing strategy
The marketing strategies of hotels are focused on tapping the potential of all those segments that can generate business for hotels. While some hotels’ thrust is on the domestic market, some see both domestic and overseas markets as equally important. Most of the chains are also tapping the growing might of the Indian outbound sector as well. Rizvi feels that demand always existed in the domestic market, however, it was never explored by the hoteliers all that much. “Today, with the increased supply and pressure on occupancy, the focus has started shifting towards the domestic market which is an ultimate source to pull revenue.” she revealed.
Malla opined that the world is focusing on India as a source market, so why should hotels not do the same? “Hotel chains around the world, to woo the highest growing disposable income, have addressed the specific demands of the Indian market. It is imperative that hotels in India recognise the potential of the Indian customers across segments,” he questioned. Hyatt Regency Chennai’s marketing strategy has always been a balance approach towards domestic and international tourism. “We have tailor made packages focusing on the multiple needs of the business and leisure travellers, ” Chandra said.
Kumar says that domestic travellers have always been higher than inbound and outbound numbers. “Domestic traffic is quite important and marketing strategies are built up to tap domestic market. One cannot deny international presence, but domestic market contributes the maximum to the occupancy of the hotels. In Bangalore, overseas markets contribute 24-25 per cent in hotel business,” he says citing the distribution statistics on GDSs.
Noel feels that hospitality brands such as Constance Hotels & Resorts, which are looking at attracting the Indian tourist to their properties overseas, need to have a very strong strategy in place. “We have been in the Indian market for about a year and have been able to get the key industry influencers talk about us. However, a direct consumer engagement is something that is on our agenda this year. There is a lot of ground work that has to be done for the brand in India and we intend to work at the grass root level and then gradually move ahead,” he says and informs that Constance Hotels will aim and strike partnerships with key travel agents, work closely with Tourism Boards from destinations which have a presence in India, and come out with joint tactical promotions to stay ahead in competition.
Accor targets customers across the spectrum depending upon the purpose of travel and accordingly cater to their specific requirements. “Having a portfolio of brands from luxury to budget allows us to tailor the right product and brand to cater to our customers, both for today and tomorrow, and ensure the right product is made available to support our partners and ensure the viability of their projects and investments,” Dhodapkar says and adds that Accor caters to both the business and leisure travellers. The percentage of demand for each of these segments depends on the location of the hotel.
Malhotra argues that hotel bookings and packages have seen some growth in the domestic market in the last few years. “However, as more and more standalone travel options such as LCCs, better busses etc. become available to consumers, we see stronger growth in standalone hotel sales. In this regard, we realised that localisation is the key to success in any market,” he states. Fairmont Jaipur’s primary focus is on promoting the property through traditional media internationally and in India. “Using other media such as the web, social, electronic media and radio, we are looking at robust activities to engage the community and welcome them to experience our services. We are also focused on building on our existing position as our strategies to focus on this niche market has been highly rewarding,” Sethi reveals.
Do multiple brands from one chain make the task challenging?
Kumar says brands that have multitude of offering is actually in an advantageous position. “Corporates have requirements in every price bracket. Having plethora of options, the contracting process for Marketing Director of that particular chain becomes simple. He can offer all his properties to one corporate and does a multi-hotel tie up in single go,” he says. Daryanani states that positioning and building a brand differentiation with the same market does most definitely have its challenges, but the mantra is to position the brand in its true identity. “All our brands have a distinct make up and identity. We ensure that all platforms of communication speak the same language. Brand differentiation is a slow and persistent process. It happens with strategic marketing support that helps create the required distinction within the consumer mind space,” he informs. Noel also believes that and marketing two properties in the same destination can at times become difficult. “However, this is overcome by identifying with our audience, both in the trade fraternity and the end consumer pool, and driving our promotional strategies in a targeted manner. The good side is we have more to offer and a greater reach,” he adds.
Sethi, however, does not see any challenge emerging out of the presence of multiple brands in the same city. “We have clear and distinct differential factors between our brands. Our customers are well tuned to what to expect from each of our brands, even if we are in the same city. Targeting the right customer for the right product, based on our positioning and pricing, has always created a distinct demarcation for us, thus also making it easier for our customers to choose the right brand and product of their choice.”
Rizvi echoes this opinion. “I don’t think positioning different brand under one chain is challenging, provided the chain has positioned its brand well. There has to be clear definition and positioning of each brand in the market. Today’s customer is well explored and seen the world and understands the difference in star category hotels with benefits attached to the same. The challenge comes when customer is not looking at the brand and is very price sensitive,” she says. According to Dhodapkar, strong distribution in India is a key to a stronger presence and a meaningful market share. “With a significant network of hotels in the country today, the sales network team is located in all key feeder markets driving business to every hotel across the country. The network is built on a strategy that gives each of the key markets its own hub that further enhances and strengthens the sales force, giving the network the muscle it requires,” Dhodapkar says, and adds that the opening of new hotels will give further ammunition to Accor’s sales team, helping them grow remarkably.
Malla further adds that different hotels of the same chain in the same city are akin to different needs of the same family being addressed from the same menu.
Challenges for marketing professionals
According to Daryanani, a marketer faces numerous challenges ranging from fast-changing consumer tastes, increased competition, customer satisfaction, promotions and offers and pricing. “These variables lead to new, complex marketing challenges that call for new thought processes and solutions. Being updated with the business environment, keeping track of the competition, understanding the trend and need of the current market, are few of the updates we need to keep in mind while drawing up a marketing plan for any of our brands,” Daryanani says.
Rajiv Malhotra stated that one of the biggest challenges faced is adopting the right marketing strategy in order to stay relevant and appealing to consumers in different markets. Another major challenge is engaging with an ever changing consumer. “With the advent of social media and smartphones, what was interesting yesterday is irrelevant today,” he adds.
Going a step further, Noel opines that the industry is currently transiting between two worlds – one that is tech savvy and the other that is yet to embrace technology completely. “It is important that we understand the differences between both and balance these worlds. We have been in the Indian market for a year now and have understood the Indian traveller’s needs and demands. We are customising our strategy to meet these needs,” he says.
Rizvi states that the marketing profession is very challenging as the pressure of producing is very high with demand not growing up to the level of supply in the market. “One needs to focus on the destination marketing of his product. We need to create a message house for our product which drives the customer to the hotel. One needs to plan the marketing calendar for the hotel focusing on the USP of the property, which can help drive in incremental revenue,” she adds. The major challenges, according to Malla, are competition and product differentiation. “Our marketing strategy focuses on customer segmentation and the brand. This helps position the hotel for long term performance,” he comments.
Then, there are challenges that emerge in the development phase that did not involve Marketing Directors in the past. “Now, with the evolving roles of marketing professionals, they are usually seen as a part of the concept team at the very onset of a project,” Noel says. Kumar further added, “Marketing professional, generally, used to join 6-8 months before the launch of the hotel. However, this is changing as hotels now understand the importance of involving marketing professionals since beginning so that promises made to owners are fulfilled.”
Dhodapkar shares this sentiment, “In Accor, the marketing team is very involved in development, right from the inception to the more important stage where the brand is introduced.”
Marriott also believes in working as a team, “The aesthetics and essence of the brand is kept in mind while planning, strategising and executing. Each brand of Marriott International has a unique set of characteristics that form the foundation for marketing that particular property. From a marketing perspective, we identify these characteristics of each brand, and adopt them in our marketing strategies,” stated Daryanani.
Malhotra, however, reveals that marketing professionals have not being involved in product development is a bit of an issue. “I have a background in Product Management which helps me understand my colleagues in product a bit better. However, the advantage I have at Hotels.com is that we share a lot of information and collaborate on several projects including product development. This ensures that all the teams are aligned to a common goal,” said Malhotra.
Sethi does not agree that marketing professionals are not involved in the product development phase. “What helps a lot is the fact that, with Fairmont, our hotels derive inspiration from the local culture and aesthetics, in terms of design, décor, and architecture. This gives us enough of a heads up when planning for the positioning and brand development exercises,” says Sethi. Rizvi, however, feels that not involving marketing professionals during product development, makes the job challenging. However, she clarified that this was the traditional approach and way of a marketing professional. “Today, a marketing professional is made well aware of the product development and its benefits before they take the product to the market,” she says. Malla shared that marketing professionals are involved with product development and feedback from the market is ploughed back to the product development team. “The Marketing Director has an influential role in analysing the trends and preferences which thereby decide the final outcome of the product,” he states.
Another challenge that Marketing Directors face today is to increase the demand throughout the year, including lean seasons. According to Dhodapkar, frequent and ill-forecasted changes are a challenge, and many a times it is not in your hands. “It is conventional planning and thinking out of the box that will keep a brand afloat during hard times. One needs to make his product more appealing. It is easier said than done, but it’s exciting if the team enjoys challenges, and that is what we strive to do – to have fun while conceptualising anything new and different. If we are able to proactively come up with an effective plan we are sure that we are well planned when the hard times hit us,” he reveals.
Daryanani states that one of the key responsibilities of the marketing team is to maximise the hotel’s revenues by developing programmes to increase occupancy and make profitable use of its accommodation, meeting and leisure facilities. “They need to be aware of the factors that influence the hotel industry in terms of competition and trends, and also gain a deep understanding of the needs and attitudes of a hotel’s customers. Keeping in mind the current demand of the business environment, the hotel marketing manager is responsible for coordinating marketing and promotional activities to meet customer needs and achieve set goals for the low seasons,” he opines.
Malhotra adds that there is always a demand for travel, and though leisure travel is seasonal, it is only a part of the overall business in India. However, occasionally, to boost demand for a given destination or to take advantage of a special offer, one might be able to negotiate with hotels. Hotels.com offers seasonal and occasion-led promotions, he revealed. Constance Hotels feels that it’s always a big responsibility, and hotels are getting to that stage in India too. “We sometimes also have to market the destination to generate interest in the travellers. Then there are times during low seasons when we come up with attractive offers that will get a consumer to plan his travel,” he says.
Rizvi believes that low season sales take the way ahead on marketing to push demand and obtain a fair share from the market. “Though I believe that the hotel industry has changed, and to be successful in the long run one needs to focus on ‘plan marketing activities for the year, one need to be visible in the market through various marketing tools, and, more than that, be on his toes meeting customer one to one to understand their ever changing needs and requirements,” she suggests. Malla thinks that every strategy is complemented with a tactical plan which addresses short and medium term shifts in demand, including political and economic instability. “Tactical plans are well defined and are rolled out in accordance with the market condition,” she opines.
Online visibility and social media
Marriot’s focus has always been on maximising its online visibility through natural search which drives a sizable number of visitors to its hotel websites along with supporting banner campaigns. “We approach the social media piece as an engagement platform as opposed to a marketing tool. Our hotels are extremely active on TripAdvisor which allows us to make our social media activities scalable. Our hotels subscribe to social media listening platforms, thus helping us with online reputation management, guest satisfaction levels and improving our social media presence,” says Daryanani.
Dhodapkar opined that the hospitality landscape is evolving quickly as new technology demands that hotels become more social and engaging in their marketing efforts. “Travellers are looking for the best value propositions, and consumer demand is pushing for hotels to make concerted efforts on property upgrades and improvements,” he says and informs that half of the travel industry will be using social media as a way of generating revenue and bookings. “Currently most of the companies use social media as a revenue generating tool and we would definitely see more users over the next five years. Facebook’s posts are already integrated into Bing search and Google+ emerged with native integration into Google search. Hotels can no longer afford to linger over adding social media to their marketing mix and it’s now a necessary element of traffic-driving success,” he adds.
Malhotra states that one of the main goals of the social media strategy of Hotels.com is engaging with customers. “Through social media, communication with them on a one-on-one level, which is difficult do in other mediums, becomes easier. Connecting with our consumers in this way creates a bond which is much stronger than traditional media. Our strategy as of now is to listen to our consumers and design incentives for them for sharing their views and suggestions with us. Of course we also try making our social media communication as relevant and interesting as possible for our consumers,” he says.
Noel believes that a social media strategy is of utmost importance for all the players right now. “Our approach to social media is aligned with our overall vision of providing authentic hospitality to our guests in all we do, and we do this through engaging posts and competitions on our social media channels. We seek guest feedback and share offers and promotions regularly so that our guests know what we are offering. Also, we heavily engage in SEO and online marketing campaigns to ensure our positioning on the online platform is also as desired and easy for our guests to locate,” Chandra adds.
“Over a period of time, we are looking at establishing ourselves on several other platforms that are currently in their infancy stages, but have the potential to grow more within the Indian markets. In addition to posting online videos of our upcoming developments and current activities, we aim to broaden our reach over the coming months to a much larger audience with specific interests,” Sethi said.
According to Rizvi, the latest trend in marketing is all about digital space whether it is OTA, brand website or social media. “Going with the trend, our focus has also changed and we ensure that we maintain our picture gallery on our website, and that content is of good quality and always updated with latest happening in the hotel. We have associated with Revinate, which is platform to have all social networking under one umbrella, which updates us with customer feedback on daily basis,” she reveals.
Malla feels that the single most important goal of a social media campaign is engagement. “Engaging with different segments of customers across the globe through social media helps in product differentiation, communication and positioning. What works is engagement driven at different levels through different tools but dovetailing into the overall marketing strategy of the hotel,” he says.
Talking about the impact of customer intelligence on things like strategy and planning, campaign execution, customer experience and cross-channel effectiveness, Chandra stated that customer intelligence is crucial for any planning because it helps one plan better when aware of the expectations and needs of the target audience.
Dhodapkar believes that customer intelligence does offset the plan. However, the key is to adapt quickly and effectively. “Accor has efficiently been able to adapt to the needs of its guests and yet keep its strategy and brand standards,” he said.
Daryanani believes that consumers are perpetually connected and this has changed their requirements. “There has been a significant change in the need and expectations of the consumers due to major shifts in the services and technology landscapes. Hence, the customer feedback and opinion are considered very important and are incorporated in strategies, campaign planning and execution,” he shares.
Noel says that analysing customer behaviour and experience is of utmost importance, and that is one thing the Group bases most of their strategies on. “When a guest is leaving, we always ask for their feedback. We take our comments on social networking sites and hotel reviewing sites very seriously and are quick to respond too. There is no room for guess work anymore,” he opines.
According to Rizvi, increasing competition and supply has put tremendous pressure on hotels to implement any strategy and execution of the same. “Today’s customer is updated with all the offerings in the market and chooses the best available at the lowest price. Our whole strategy and planning towards any program and campaign is based on customer feedback with a focus to produce and sell what the customer wants to buy,” she adds.
Hence, to be successful, the marketing strategies need to choose the right segments, develop differential products, devise alternative distribution channels, and use innovative processes that produce high quality products at lower prices. Thus, a better marketing strategy helps hotels reach its objectives.
