Hospitality Industry Assignment help

Service Pricing Parameter Analysis

In Hospitality Industry, Price is always not the decisive reason for customers to make their choice. They play definitely an important part which is taken in consideration by customers before taking any final decision. For hotels, pricing strategy is very complicated issue in itself and needs lots of deliberations before being finalized (Chain 2010, pp.8-51). This is because, it is difficult to take in consideration all the input received by customers in terms of feedback for all the diversified services Rockhampton Plaza Hotel offers. Also, since, most of the customers Rockhampton Plaza Hotel gets are either from touring agencies or booking websites, Rockhampton Plaza Hotel doesn’t has the necessary bargaining power with its customer base which are essentially very big in size. We always need categorization for pricing strategies in service industry (Consuegra, Molina&Esteban 2007). When we take this analysis in consideration, Rockhampton Plaza Hotel needs categorization of their pricing strategies. In terms of prices they should categories them for individual customers as well as for booking agents / Websites as well as group travellers.

1) For individual customers, the standard room costs individual 350 AUD per day and reservation 20 days ahead would mean 10% discount on this price. Also, the standard room will be priced for 100 AUD for six hours in day when it isoffered to those who need forrelaxation. Other detailed prices for service are-

2) Entertainment services – Services rate for Rockhampton Plaza Hotel is on higher side when compared with other peers by approximate 10-20%. When we take swimming pool and gym services for example.Usually the average price for 1 hour swimming pool charges is 100 AUD in this hotel and gym is of 50 AUD.

3) Food services – Food Prices are same with those of restaurants which are self-operated in this hotel. However, if we use the room service, then extra charges will be applicable as per the timing of the call.

For travel agents, Hotels give discounts to them which is dependent on the volume of customers in the long term contract or for one off destination. Normally, In Queensland, for a travel group which is lower than 15 people a 15% rebate is offered by hotel. If it is more than 15, then 25% discount is offered along with other bouquet of free services. Some hotels offer entertainment rebates, some do not (Deng and Dart, 2009, pp.725-42).

Analysis of Promotion Parameter

Promotional strategy for service industry is focused on achievement of two objectives- to get new customer to visit and use services, and to retain customers which are old by giving them loyalty programs. In terms of hospitality industry, they use a mix of promotional strategies which include advertising, word of mouth, referral programs as well as loyalty programs for their present customers. There are also discounts for referrals as well as special offers on off seasons where occupancy rate is very low (Booms &Bitner 1981). When we see above activities and attach them with Rockhampton Plaza Hotel workings, the promotional activities can be classified in following way-

1) Advertising- Rockhampton Plaza Hotel uses different mediums for advertising, namely, printed advertisements in newspapers, magazines as well as in travelling journals along with circulating catalogues at leading travel agents offices.

2) Word of Mouth Strategy – Rockhampton Plaza Hotel focuses more on word of mouth strategy for acquiring customers which is thetraditional practice in hospitality industry. You can find pamphlets and slogans everywhere in the hotel, enticing customers to tell to their peers, friends and relatives about Rockhampton Plaza Hotel and share them the experiences they had.  They have a two pronged strategy for referrals. First they give coupons to people while checking out which can be used by anyone except those who have been given those coupons. These coupons can range from discount to free services. When these coupons are being used, then the referrer gets same coupon credited in his account which can be used by him in his next visit to the hotel. Hence, referrals can be useful to them also as well as their friends.

3) Sales Promotions – Sales promotion of Rockhampton Plaza Hotel can be seen as offering discounts for early bookings as well as for large travel agents/ online booking websites depending on the volume of customers. Also, discounts are offered to senior citizens who are more than 60 years of age in order to fulfill corporate social responsibility.

4) Customer Loyalty programs- The customer loyalty program run by Rockhampton Plaza Hotel is the major means to attract and retain loyal customer. His is achieved by multiple ways like 1) making class of customers depending on the amount spend by them in Rockhampton Plaza Hotel and giving special benefits to those classes in form of discounts or complementary services. 2) Giving referral bonus to them as well as those which are being referred so as to retain old customers and attract new ones (Rockhampton Plaza Hotel 2012).

Service Place Parameter Analysis

Place Parameter of Rockhampton Plaza Hotel can be described as the place where hotels are placed, this is an important parameter but a static one as the decision is taken at the inception of hotel which can’t be changed (Booms &Bitner 1981). As we talk about Rockhampton Plaza Hotel which is located near Central Park in Queensland which is a prominent location. The most important commercial as well as tourist attractions are near way. Queensland attracts huge number of tourists visiting which also results in high occupancy ratings.Order Now

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