Discuss about the Tourism Plan and Hospitality Marketing.
Four Seasons Hotels and Resorts is luxury Hotel Company and it has it headquarter in Toronto, Ontario. Four Seasons Hotel operates worldwide in more than 100 locations since the year 2007. Four Seasons Hotel in Sydney is one of the best five stars hotels in Sydney and the guests can be swept away by the beauty of the iconic Sydney Harbour Bridge and Opera House on just the doorstep. Four Seasons Hotel in Sydney provides the best facilities to the guests like family activities, couples’ experiences, meetings and events, new mode kitchen, Lounge 32 for Club Guests, Sydney Highlights, Directions and Maps, Weddings and Vivid Sydney (Fourseasons.com, 2018). In addition, Sydney is famous for the international tourists and the travellers come to watch Sydney Opera House, Sydney Harbour Bridge, The Rocks, Harbour Cruise, Darling Harbour, Queen Victoria Building and Sydney Tower Eye.
In the hospitality industry of Sydney, there are many five star hotels that offer exquisite service to the travellers. In this study, marketing plan of Four Seasons Hotel Sydney is redesigned. In the first section, mission and vision of Four Seasons hotel is described. Corporate objectives of the hotel are also described along with a marketing review. In the marketing review section, target market of the hotel, 4P’s of marketing mix and SWOT analysis is conducted. In the final section, possible strategic alternatives are given from Ansoff Matrix. In the ultimate section, chosen strategy for Four Seasons Hotel is given with justification.
Four Season Hotels believes that key success of the organisation lies in the people of the organisation. The hotel provides satisfaction in the way the people do their work. The organisation wants to get success when every decision is based o the belief and clear understanding. Finally, the hotel demonstrates the belief most meaningfully in the way the people treat each other and by example the organisation sets for one another (Fourseasons.com 2018).
Vision of Four Seasons Hotel is to create corporate objective that would guide the actions of everyone in the organisation. The goal and principle of the organisation is to foundation of work every day on behalf of the guests. Guest satisfaction is the ultimate mottos that must support with deeply instil personal service.
Existing corporate objectives of Four Seasons Hotel Sydney:
Four Seasons Hotel mainly takes differentiation strategy in order to generate the maximum revenues. In Sydney, the hospitality market is highly competitive in nature. In order to generate the food and beverage profit, Four Seasons Hotel provides different types of food and beverage to the guests. The guests can choose different types of rooms for accommodation and the rooms have different price ranges. In order to provide the highest customer service; Four Seasons Hotel provides personalised services to the travellers. In addition, training and development programmes are given to the employees so that the employees can satisfy the guests with services.
In Australia, the hospitality industry is observing construction boom. The hospitality industry in Australia reached almost $ 67 billion and it is expected to reach almost $167 billion by 2025 (Char-lee, Becken & Watt, 2017). The first nine months of 2017 saw about $1.8 billion of hotel transaction and in Sydney; the five star hotels observe high occupancy rate. Four Seasons Hotel occupies almost 5% of the market share in Sydney as this hotel has maximum corporate travellers. International travellers have been increased in Australia as almost 34.5 million international travellers visited in Australia in 2017.
The target market of Four Seasons Hotel is the corporate travellers and the business travellers. Four Seasons Hotel Sydney mainly targets the business customers who visit Sydney for business purposes. The booking of the corporate travellers mainly come from the corporate houses and this is because of a strong client base. This type of travellers does not have time for the long cruise and they don’t have the pocketbook to enjoy the finer things.
In Australia, OECD (Organisation for Economic Co-Operation and Development) projected the strong economic growth of 3% in agricultural and mining industry. In the hospitality industry, Sydney will play a significant role in attracting the large international travellers. Hospitality industry will observe the growth as maximum visits of travellers come from the international arena. Hospitality growth in Australia is predicted to almost 11.2% by the end of 2022 (Char-lee, Becken & Watt, 2017).
Product: Four Seasons Hotel Sydney provides luxurious settings and authentic hospitality designed to please its high profile and clients. The rooms are all comfortable with air-conditioned, elegant in nature. Service facilities are numerous in Sydney Four Seasons Hotel and the facilities are 24-hour fitness places, heated outdoor pool, twice-daily housekeeping, babysitting services, luxurious Australian spa, mode kitchen and bar, complimentary standard Wi-Fi. The hotel provides the facilities of undercover hotel parking, 24-hour business services, Lounge 32 and on-site concierge.
Price: Four Seasons Hotel targets mainly the corporate travellers and the rent of accommodation is very high. It operates in diversified ranges as it includes the luxury, premium and mid-scale. Therefore, Four Seasons Hotel Sydney takes the strategy of premium pricing as the corporate travellers can afford this.
Place: Four Seasons Hotel in Sydney is situated in excellent place as it is very close to the Sydney Harbour Bridge and Sydney Opera House (Fourseasons.com 2018). The guests can enjoy the view of Sydney Harbour Bridge from some of the special rooms at Four Seasons Hotel. This hotel has beautiful party space where the guests can enjoy their time. Mostly, corporate travellers and business customers are the targets of the organisation and the people can reach from Sydney airport easily to the hotel. Website of the hotel always put information with updated news.
Promotion: Four Seasons Hotel Sydney promotes the business through the social networking site and the hotel promotes through the third party accommodation booking app. Promotions of Four Seasons Hotel Sydney do not come on Television and Out-of-home mode. The hotel provides advertisement on travel magazines.
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Strengths Brand reputation of the hotel Location of the hotel Personalised and exclusive services Upcoming property development in collaboration with construction company |
Weaknesses It mainly focuses on the corporate and business travellers as the organisation is weak in the family-focused market It mainly depends on the upper or niche customers Revenue of the business |
|
Opportunities Partnership with international airways Emerging market and expansion Service diversification Market expansion through penetration |
Threats Competition in Sydney hospitality industry Similar services Target market is same as previous |
Table 1: SWOT analysis of Four Seasons Hotel in Sydney
|
Porter’s Five Forces |
Description |
Forces |
|
Competitive rivalry |
Competitive rivalry in Sydney hospitality industry is very high as there are many five stars hotel already present in the market. Business people seek the best price for the experiences. The competitors in the market are Amora Hotel, Park Hyatt, Hilton and Mariott Hotels. |
High |
|
Bargaining power of customers |
Buyers’ power in choosing the hotel is high as the customers have multiple options to choose the preferred hotel (Mistills, Buhalis & Gretzel, 2014). The customers can switch the hotel at any time. Today’s customers are technology savvy and they watch online for the best offers. They take services from the travel agent. |
High |
|
Bargaining power of suppliers |
Suppliers in the hotel industry play a significant role as the hotel needs to satisfy the customers with best food and lifestyle. The suppliers can switch the hotel and power and labour supply should be good in order to satisfy the customers. |
Medium |
|
Threat of substitutes |
Substitute in the market is high as there are many potential five star hotels in Sydney in this price range. Each of the hotels is advanced technologically and the superb strategic plan is vital. |
High |
|
The threat of new entrants |
It is not easy for the new hotel to be a competitor of the for season hotel as it falls in five-star category (Wray, 2015). Barriers to entry are target market and huge capital. Differentiation is another barrier. |
Low |
Table 2: Porter’s Five Forces of hotel industry in Sydney
Existing marketing objectives:
Marketing objectives:
Financial objectives:
Proposed marketing objectives:
Marketing objectives:
Financial objectives:
Market penetration strategy can be taken when an organisation wants growth within existing markets using existing services. Market penetration allows the firm seeking to gain growth with existing services in the current market segments and the aim of the market penetration is the market share. Market penetration strategy is risky as it leverages many of the organisation’s existing resources and capabilities (Bahadir, Bharadwaj & Srivastava, 2015). In Sydney, hospitality industry is growing rapidly and the many construction booms is observing. In growing market, Four Seasons Hotel can simply maintain the market share and it will help the firm to have rapid growth and Four Seasons Hotel can have the existing opportunities to enhance the market share.
Four Seasons Hotel can take the marketing strategy of social networking marketing. Social networking marketing will help the organisation to reach new customers in the existing market with same services and the products.
Sponsoring local football clubs can allow the hotel to improve the marketing and it will make the customers loyal. This strategy will allow the Australians to book accommodations for holiday planning.
Four Seasons Hotel can host some of the international successful programmes like Opera and Dance-Drama inside the hotels. This strategy will increase the footfall of the international travellers for the hotel.
Product development strategy develops the new products and services to its existing market segments. Product development strategy is appropriate if the firms’ strengths are related to the specific customers rather than the specific product or the service. The organisation can leverage the strengths by improving new product or service targeted to the existing customers (Huang & Sarigollu, 2014). Four Seasons Hotel Sydney can follow the service development strategy in order to increase the growth of the customers and the market share.
Four Seasons Hotel in Sydney can use helicopters for transporting special guests from airport to hotel. This hotel mainly uses the business customers and corporate travellers. When a CEO will visit the hotel; the hotel can provide a special helicopter to welcome the CEO to the hotel and it will save the time of the guests. The hotel has some special presidential suites for the special guests with all modern amenities.
Four Seasons Hotel already provides the guests with concierge services where concierges assist the guests by performing many of the tasks like making restaurant reservations, booking cars, recommending nightlife spots, arranging spa services and coordinating porter services. Four Seasons Hotel can start special butler services for the guests as it is the major selling point for the popular brand across the world. Butlers are the luxurious and dedicated staff members of the hotel whose job is to provide personal and professional services to the guests. Therefore, Four Seasons Hotel can start professional butler services and the butlers will provide services keeping the smart gadgets. The guests can contact the butlers through the technical assistance at any time. This personalised assistance will definitely allure the corporate, business and niche travellers.
Diversification strategy can only be applicable when the organisation wants growth with new services and in the new market. Diversification strategy requires both product and market development and the outside of the core competency of the organisation (Johnson, 2016). The diversification strategy must have a reasonable choice for the firm as it must not set the firm at risk.
Four Seasons Hotel Sydney can start Four Seasons Cafe chain in metropolitan cities in Australia. The strategy is establishing the new coffee shops under the name of Four Seasons in Australian cities.
Four Seasons Hotel can start the service of sea-cruise tourism to attract the new family and leisure tourists. Four Seasons Hotel Sydney mainly targets the business customers and corporate travellers. Therefore, Four Seasons Hotel Sydney can establish new Strategic Business Unit under the name of Sea-Cruise Voyages with the same standards of the services of Four Seasons Hotel. It will help the hotel to diversify the business to attract international leisure and family travellers who love to travel Arafura Sea and Tasmania Sea.
Four Seasons Hotel will take the strategy of Concentric Diversification in order to grow in the new market. Four Seasons Hotel in Sydney will take the strategy as it already has large customer base in corporate and business customers. Four Seasons Hotel in Sydney is trying to enhance the customers’ base by selecting the leisure travellers both domestic and international travellers. As stated by Bowen, Baker & Powell (2015), concentric diversification is a strategy where the company creates or acquires new services to reach more customers. Four Seasons Hotel in Sydney provides accommodation and food services to the niche customers. Concentric diversification will allow the organisation to provide Sea-cruise voyages to the leisure travellers with reasonable price. Australia is more like an island and this diversification will be feasible for the organisation to attract the international leisure travellers to accommodate in Four Seasons Hotel in Sydney and in return, the guests will have the extra benefit of having sea-voyage through luxury cruise in Tasmania Sea and Arafura Sea. There are many travellers who like to travel across the seas to new islands with serene atmosphere. Four Seasons Hotel in Sydney will arrange the special cruise travel through various parts of Tasmania and Arafura Seas.
Diversification strategy will provide growth in the market share and the target customers’ base of Four Seasons Hotel in Sydney. Diversification helps to eliminate the risk of the business as every investment in the business brings risks (Ardizzon, Cavazzini, Pavesi, 2015). Therefore, the investors’ amount in the business will be used in the Sea-Voyage cruise business. In addition, some of the investors in the business strive for the capital appreciation while some of the business organisers do the capital preservation. Diversification strategy allows Four Seasons Hotel to protect the capital that they have. Sea-Voyage Cruise business will increase the numbers of room-occupancy eventually as the footfalls of the customers will increase.
Product: Four Seasons Hotel in Sydney will provide all types of services that the five-star hotels give to the customers. Four Seasons Hotel in Sydney provides personalised services to the guests along with concierge services. Diversification of the business will allow Four Seasons Hotel to provide sea-voyage cruise. The guests from international and domestic spheres of Four Seasons Hotel in Sydney can enjoy the Cruise service and this cruise will operate twice in a week. The travellers will get free drinks and complimentary snacks during the cruise.
Price: Four Seasons Hotel in Sydney will keep premium pricing strategy as premium pricing indicates the best quality in the market. The accommodation price is high in Four Seasons Hotel and the cruise service pricing will be premium. The niche and leisure travellers can afford the price. Premium pricing means best services and Four Seasons Hotel in Sydney already has the brand awareness. Premium pricing helps the firm to raise the firm’s profit (Tomczak, Reinecke & Kuss, 2018).
Place: The hotel is situated in Sydney and the place is perfect to continue with hotel services. Sydney is famous tourist destination and the sea-voyage cruise will be famous day-by-day. Australia is surrounded by the Arafura Sea and Tasmania Sea; therefore, the cruise tourism will be across the seas.
Promotion: Four Seasons Hotel will take the promotion of sea-voyage cruise through social networking sites. Four Seasons Hotel in Sydney has its Facebook, Twitter and Instagram pages. The PR team of the hotel can start advertising about Sea-Voyage Cruise on the social networking pages with price quotes. Social media marketing helps the marketers to reach large numbers of customers across the globes with cost-effective way.
Four Seasons Hotel can start discount advertising on the total package. Accommodation, food and cruise can be provided through service-bundling strategy.
Four Seasons Hotel in Sydney can promote the cruise services through travel magazines both print and online media.
Customer characteristics: Four Seasons Hotel in Sydney first identify the customers’ characteristics as they will both target the corporate travellers and the leisure travellers. The characteristics of the corporate travellers are not the same as the leisure travellers. Corporate travellers like a lounge and corporate travellers like giant-sized rooms. On the other side, leisure travellers like small, cosy rooms with plenty of food options.
Market segments: Four Seasons Hotel in Sydney will segment the market into four market segments like behavioural, demographic, psychographic and geographic market segments.
Target market: Four Seasons Hotel in Sydney will target the desired customer segment for their accommodation service along with the Sea-voyage cruise.
Marketing strategy: In this stage, the organisation’s management finds out the marketing channels to provide the advertisement and communication. Marketing strategy can be social media, out-of-home and print media.
Positioning strategy: Positioning strategy is about placing the positioning statement as stating the customers about USP of the hotel and the newly launched cruise.
Predicted effectiveness: Therefore, Four Seasons Hotel in Sydney will distribute 2000 brochures and it will provide advertisement on the social media.
|
Key actions |
Projected dates |
|
Understand customer characteristics |
20th June, 2018 |
|
Selecting market segment |
1st July, 2018 |
|
Selecting target market |
21st July, 2018 |
|
Understanding marketing strategy |
10th August, 2018 |
|
Giving positioning strategy |
30th August, 2018 |
|
Predicted effectiveness |
20th September, 2018 |
|
Summary Statement |
|
|
Sources of Capital |
|
|
Owners’ and Other Investments |
$ 6,027,50 |
|
Bank Loans |
5,000 |
|
Other Loans |
90,00 |
|
Total Source of Funds |
$ 6,122,50 |
|
Marketing Expenses |
|
|
Buildings |
$ 90,00 |
|
Leasehold Improvements |
7,750 |
|
Social media marketing |
$36,00 |
|
Location / Admin Expenses |
$24,50 |
|
Print and out-of-home marketing expenses |
– |
|
Advertising / Promo Expenses |
$18,00 |
|
Ship and Cruise expenses |
$15,000 |
|
Total marketing Expenses |
$ 12,47,120 |
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