The Impact Of Marketing In The Hospitality Industry (A Study Of Osborn La-Palm Royal Resort Abakaliki)

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The Impact Of Marketing In The Hospitality Industry (A Study Of Osborn La-Palm Royal Resort Abakaliki)


Abstract


The need to have standard hotels in Abakaliki Urban cannot be over-emphasized. This is because of the part they play in the socio-economic growth of the town. They assist travelers coming into the city in the provision of comfort and other facilities to residents of the city. In order to lend support to the business of these hotels and the entire economy of the city, these hotels need to apply marketing advertising in the running of their business in order to create awareness to their present and potential customers.

What this study aims to achieve is to examine the promotional problems experienced in hospitality industry (A case study of Osborn la-palm royal resort Abakaliki). A sample size of 480 respondents were randomly selected and was used for the study.

Based on the data collected and analysed, the following were found. The study found that Osborn la-palm royal resort Abakaliki is a welcome development because of the socio-economic role played by the hotel to the public. The study concluded that a lot still stand to be achieved from hospitality industry if and only when aggressive advertising is embarked upon and the proprietors of hospitality industry and professionals are given support and encouragement.


Table Of Contents


Preliminary Page(s)

  • Title page
  • Certification page
  • Dedication
  • Acknowledgement
  • Abstract
  • Table of content

Chapter One:

Introduction

  • 1.1 Background of the Study
  • 1.2 Statement of Problem
  • 1.3 Purpose/Objective of the Study
  • 1.4 Research Questions
  • 1.5 Significance of the Study
  • 1.6 Scope of the Study
  • 1.7 Definition of Terms
  • 1.8 Limitation of the Study

Chapter Two:

Literature Review

  • 2.1 Hospitality industry
  • 2.2 Types of tourist hospitality
  • 2.3 The hotel industry
  • 2.4 Origin of hotel industry in brief
  • 2.5 Types of hotel
  • 2.5.1 Residential hotel
  • 2.5.2 Transit hotels
  • 2.5.3 Resort hotels
  • 2.5.4 Heritage hotels
  • 2.5.5 Commercial hotels
  • 2.6 Classification of hotels
  • 2.6.1 Diamond rating system
  • 2.6.2 Star rating system
  • 2.7 Concept of Marketing
  • 2.8 Marketing in hotel industry

Chapter Three:

Research Design And Methodology

  • 3.0 Introduction
  • 3.1 The Research Design
  • 3.2 Sources of Data
  • 3.2.1 Sources of Primary Data
  • 3.2.2 Sources of Secondary Data
  • 3.3 Instruments for Data Collection
  • 3.3.1 Research Questionnaire
  • 3.3.2 Personal Interviews
  • 3.4 Research Population and Sample Used
  • 3.4.1 Research Population
  • 3.4.2 Determination of Sample Size
  • 3.5 Method of Data Analysis
  • 3.5.1 Analysis of Questionnaire
  • 3.6 Method of Investigations
  • 3.7 Validity of Data

Chapter Four:

Data Presentation, Analysis And Interpretation

  • 4.0 Introduction
  • 4.1 Analysis and Interpretation of Questionnaire
  • 4.2 Test of Hypothesis

Chapter Five:

Summary Of Findings, Recommendations And Conclusions

  • 5.1 Summary of Findings
  • 5.2 Recommendations
  • 5.3 Conclusions
  • Bibliography
  • Questionnaires

Chapter One


Introduction

1.1 Background Of The Study

In hospitality industries marketing is a key ingredients in marketing campaign. Marketing has contributed a lot to boost a better image of both major and minor hotels in every part of the world. It does communicate to its publics; the type of services it renders, and also believes in fair deals and considers the interest of its customers and various publics. Hospitality industries services, pricing, as well as promotional policies and strategies constitute elements of its marketing – mix.

Hotels provide meals, drinks, attractions, hospitality etc., to the general public or persons in transit especially people traveling to places where they have neither their own homes nor any relation to cater for their needs. Such persons will like to know few things about the hotels in their transitory area. In other words, they may like to know about available hotels, the categories of such hotels, the room and suit fares, and the type of food served, the necessary comfort customers are accorded – with, the game that is both indoor and outdoor games available and perhaps and other special feature that make such hotels appealing to the sojourners in transit.

These characteristics of hotels are boosted by marketing of various types in so many countries of the world. In Nigeria, major hotels live like Sheraton, Eko Hotels, Federal Palace Hotels, NICON NUGA, to mention just a few of them, have made impressionable image both nationally and internationally and the praises go to marketing that have heralded their various characteristics, class placement status to the public generally. Without marketing, the image of their hotels and their excellent services would not be so diffused to the public.

For instance recently in Abakaliki, some hotels have come up with incentive – type marketing to attract new terriers, to reward loyal customers and to increase the patronage rates of occasional users. One of such hotels is Home Pride Guest House situated at number 16 Chime Avenue, New Haven in Abakaliki, promoted its hotel as (10%) Ten percent discount awaits customers that patronizes its hotel superbly built, and lavishly furnished with ultra-modern guest houses, with about sixteen (16) air conditioned rooms each with its exclusive toilets, cold/hot shower, stand-by water storage tanks to ensure uninterrupted water supply; a lounge with well stocked bar and assorted types of edibles including Chinese foods available; a well cemented car park adorned with beautiful flowers, and powerful stand-by generators to ensure uninterrupted power supply.


1.2 Statement Of Problem

The study is aimed at finding the impact of marketing in the hospitality industry. This is an organization that the principal objective is to make profit. To realize this objective, the business concern must be prepared to uphold the marketing concept of the supremacy of the consumer. Marketing contributes a great deal in upholding the supremacy of the customers which involves identification and satisfaction of specified needs. Hospitality industry like hotel-ling is a competitive business and must endeavour to identify and satisfy customers’ needs to be able to stay in business.

There are some promotional problems in hospitality industry business in Ebonyi state. The problems are the factors that hinder marketing of hotel services.

One of such factor is income. The income level of both customers and proprietors will hinder the work of marketing on hotels. Low income earners, for example may find it difficult to cope with high prices of hotel services which happened as a result of marketing carried out which invariably attracted high prices on them.

There are also several classes of people in society. We have high class individual and low class people as well. Those in the high classes are usually enlightened while those in the lower class are mainly illiterates.

For instance, some advertising messages are produced by professional for high class people while non-professional produced the type we call below the line advertising for low class people. Culture consider some advertisement as taboo, while some people in a special class, like corporation may find it not necessary advertising their hotel, hence it is only for members.


1.3 Purpose / Objectives Of The Study

The study is aimed at critical analysis of the impact of marketing in the hospitality industry.
With the above problem statements, the main purpose or objectives of this research work will be as follows:-

  1. Finding out to what extent the Osborn la-palm royal resort hotel state have gone in the application of advertising as one of the tools for marketing on hospitality industry.
  2. Finding out what benefit have accrued to those hotels that applied advertisement in their business.
  3. Knowing what the customers have gained from hotel services because of the use of promotional element like advertising by the hotels in Ebonyi state.
  4. Understanding the mode of advertising mostly used by hotels in Abakaliki
    State.
  5. Finding out the problems facing hotels in promoting their businesses in
    Ebonyi state.
  6. Determining the effects of those problems on the hotel proprietors, the customers and the entire hotel business.
  7. Finding out how to reduce or eradicate totally the problems militating against hotel marketing in Ebonyi state. As we have already noted that a marketing element like advertising is important in hotel business, we should also note that hotel marketing have so many problems associated with it.

For instance, it costs a lot of money to undertake advertising of goods and services. It is one thing to carry out advertisement by hotel proprietors and it is another thing for the proprietor to give the customers services that will eventually ensure customer satisfaction in accordance with what have been promoted and advertised.

The research therefore will endeavour to find out if the customers are actually satisfied according to the advertisement made, and if not, the researcher will try to proffer solutions as to how to eliminate the problems noticed in hotel marketing.


1.4 Research Questions

In pursuance of the above objectives, questions of this nature will be asked by the researcher.

  1. How have these hotel marketing created awareness to present and potential customers to the hotels?.
  2. If any awareness has been created through advertising, how have the profit margin reflected this awareness?
  3. Are the hotels actually providing the services that they advertise/promote? If yes, does the patronage measures or reflects the marketing/advertising input?
  4. What are the problems noticed in hotel marketing?
  5. What recommendations can be put in place for improved hotel marketing?
Research Hypothesis

In order to carry out effective research work, the following hypothesis will be tested as stated below: –

  1. Hi: Hotels in Ebonyi state promote and advertise their business adequately. Ho: Hotels in Ebonyi state do not advertise their business adequately.
  2. Ho: Customers awareness and patronage of hotels business do not increase with hotel marketing/advertising.
    Hi: Customers awareness and patronage of hotels business increase with marketing by hotels.
  3. Ho: Hotels in Ebonyi state do not offer all the services they promote/advertise.

1.5 Significance Of The Study

The findings of this study is expected to provide useful information on ways to reach potential customers, travelers, institutions or corporate customers through planned marketing.

The significance of this study, therefore, lies on its contribution to the upgrading of hospitality industry image in general. To create awareness for the public to patronize this industry as providers of services essential to human life.

Finally, in the field of academics, the study will stimulate further research into marketing of hotel, catering services and hospitality industry as a whole and delivering of quality and competitive services.


1.6 Scope Of The Study

The study will cover just Osborn la-palm royal resort hotelin Abakaliki Urban. The researcher meant those businesses which on provision of a fee, lodging facilities and decent food and drinks are accorded the customer, whether open to the public or restricted to members of particular organization.

In many occasions, the researcher was denied audience by the very people whom he had hoped would supply him information. The questionnaire which was distributed was either returned unanswered or half answered.

The researcher spent much time and money repeating visits to those he distributed questionnaire to. Many even thought that the interview being sought for was for taxpurpose and therefore bluntly refused to grant the researcher any opportunity for interview.


1.7 Definition Of Terms

  • Urban – A large city, especially the developed town.
  • Proprietor – An owner, especially of a shop, hotel, business etc.
  • Problems – Limits or restrictions from professing.

This study will be extended to cover the promotional problems experienced in hospitality industry (A study of few Osborn la-palm royal resort hotel state).


Chapter Five


Summary Of Findings, Recommendations And Conclusions

The analysis of various data collected revealed a number of thought provoking findings, which not only ensured the basic research question raised in chapter one of this research work but also created opportunity for further research in related topics. Based on this findings, some useful recommendations were mode and conclusion draw on the topic.


5.1 Summary Of Findings

The following are the summary of findings after an extensive study of the subject matter. The establishment of good standard hotels in Abakaliki Urban is a very welcome development because:

  1. They have actually played in a major role in the hospitality industry.
  2. They have provided very essential facilities to many people especially in the area of business.
  3. Travelers from one part of Nigeria to Abakaliki Urban have always found comfort in these hotels.
  4. People who reside in Abakaliki urban have also found these hotels of immense value.
Assistance To Economic Growth
  1. These hotels equally employed many categories of workers and through this means, have helped to fight the problems of unemployment.
  2. These hotels and their staff have also paid taxes to the government thereby helping in the growth of the economy.
Use Of Advertising/Marketing In Creating Awareness
  1. From this research, we are able to discover that these hotels made use of advertising in the running of their business.
  2. The made use of all the modes of advertising
    • Sales marketing
    • Radio
    • Television
    • Personal contact
    • Hand bills

With the above advertising/promotional strategy, the following were achieved:

  1. Creation of awareness to potential customers.
  2. Increase in the sales of their goods and services.
  3. Generation of employment to people.
  4. Increase patronage from the public
  5. Additional or increase in their profit
  6. Patronage by the selected hotel to the media house.
  7. Improvement in the hotel industry due to competition among themselves.
Problems

However, the following problems were notice in hotel marketing/advertising.

Finance:

Although advertising/marketing is of immense value in hotels business, the researcher through the responses received from respondents, found out that advertising involves much finance and that not all the hotels have the finance for advertising and this is a very serious hindrance. Advertising for special people: in many case, certain advertisement from the way they are framed, look very expensive for special and wealth people in the society.


5.2 Recommendations

Based on the above findings, the following recommendations are made:

  1. Establishment of decent hotels by the government and licensed individuals should be encouraged.
  2. Government should bring out a guide for the establishment of standard hotels.
  3. The Board of hospitality industry under which hotels fall, should be empowered to discipline the proprietors of any hotel that performs below acceptable standard.
  4. Government should assist hotels by carrying out marketing/advertising of their services for them at a special rate which should be lower than the rate which the media houses charges.
  5. The Board of hospitality industry/Government should help hotels fight the problems they are facing by:
    • Monitoring or censoring the type of advertising as well as marketing these hotels place to make sure it makes the desired meaning or impact to the society.
    • The masses need to be educated adequately in order to promote and patronize these hotels.
    • All negative ideas about hotel marketing and advertising should be discarded.
    • Professionals in the hotel and hospitality industry should be encouraged by government with the setting up of colleges and institutions to train professionals who will manage these hotels for the betterment of all.

5.3 Conclusions

From the result of the study, the researcher concluded that there are a lot of potentials in the hotels business. It was obvious from the study too, that a lot more could be achieved from hotel industry if and when proper advertisement is carried out for the purpose of making people aware of Osborn la-palm royal resort hotel. As people are aware of the hotel, they are expected to what benefits they can derive from the hotel.

Mainly, the proprietors of these hotels were not taught the new style of advertising, sales marketing, use of television, use of radio, personal contact, use of hand bill, in fact, the managers of these hotels failed to use/apply aggressive advertising/marketing. When aggressive advertising come into place, all those problems that militate against hotel business will be a thing of the past and much will be achieved from hotel business; then and only then, that advertising will yield its desired dividend to both the owners and the users.


The Impact Of Marketing In The Hospitality Industry (A Study Of Osborn La-Palm Royal Resort Abakaliki)


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