The Impact Of Public Relations On The Marketing Of Hospitality Industry (Case Study Of Selected Hotels In Enugu)
The hotel business is arguably the most lucrative business within the hospitality industry. This is proven by the astronomical growth rate of the industry. However, in the recent years, the industry has witnessed a high level of competitions which makes hotel owners and managers search for new ways of ensuring success in their business voyages by applying different strategies to yield high occupancy rate of their hotel rooms and concomitantly provides them with good returns on their investment. The purpose of this research work was to analyze the impact of public relations on the marketing of hospitality industry (Case study of selected hotels in enugu). The objective of this report was to highlight the importance of public relations in marketing for the hospitality industry. The study was carried out in the hospitality industry using selected hotels in in Enugu state. These included Golden Royale Hotel, Hotel Sunshine Enugu, and Olive Gate Hotel, all in Enugu. Considering the aim of this research and the degree of validity and reliability, great effort was made to ensure the objectivity of the report and conclusion. The result of this report shows that marketing is the life blood on which the success of any hotel outlet depends on. From the findings, there is a high level of awareness of the role good public relations in effective marketing and performance of a hospitality industry. Building a strong relationship with customer will increase repeat business and the mode of service delivery has either a positive or a negative effect on the organization performance and profitability. Management of hotels should ensure that the current level of awareness of the role public relationship play in the performance of the service business among the staff does not fall. Rather they should create more awareness by ensuring that specific structures that will support CRM practice are created
Table of Content
- Title Page
- Table of Content
- 1.1 Background to the Study
- 1.2 Statement of the Problem
- 1.3 Research Objectives
- 1.4 Research Questions
- 1.5 Hypotheses
- 1.6 Significance of the Study
- 1.7 Definition of Terms
- 1.8 Organization of Study
2.0 Literature Review
- 2.1 Conceptual Review
- 2.2 The Position of Public Relations In Organizations
- 2.3 Marketing of Hotel Services
- 2.4 Marketing Orientations
- 2.5 Segmentation of the Hotel Market
- 2.6 Market Positioning of Hotel Services
- 2.7 Hotel Marketing Mix
- 2.8 Market Strategy in Hotel Industry
3.0 Research Methodology
- 3.1 Research Design
- 3.2 Area of the Study
- 3.3 Sources of Data
- 3.4 Data Collection Instruments
- 3.5 Data Analysis
4.0 Results and Discussion
- 4.1 Results
- 4.2 Discussion
5.0 Conclusion and Recommendation
- 5.1 Conclusion
- 5.2 Recommendation
1.1 Background to the Study
The hospitality industry is one of the largest and fastest growing industries around the world. The industry comprises of various sub-sectors which include the hotel sector, restaurant and resort. The tourism and hospitality industry is a sector that most countries around the world try to develop. The industry has been one of the major employers throughout the world. The hotel industry being a vital part of the wider hospitality industry occupies an important place in the economy of most countries, the industry has been forecasted to generate 555 billion U.S dollars in revenue in 2016.
The hotel industry, being the most visible sector within the hospitality industry, is experi- encing a major setback that threatens the attractiveness of the sector to prospective investors. Even though various statistics shows that the industry has been growing at an astronomical rate, taking a closer look at these statistics, one will discover that the major growth in the industry can only be seen in the chain operated hotels and industry cooperate segments. Furthermore, the level of competitions within the hotel industry has increased so much in the recent decades, to the point that it poses a threat not only to new entrants into the industry but also to those companies that have been in the business for many years. It is no longer a secret that many hotels are struggling to keep up with the level of competitions both within and outside the industry. Only a few hotels are able to sustain the pressure and make a profit in the long run. This has raised a fundamental question such as what does the future hold for small and medium scale hotels? How can they make a sustainable profit in the industry?
The term “Public Relations “was used for the first time in the United States and the United States Post Office Railway Union and in the first decade of the twentieth century, this country was created the office of public relations at the institute. In 1906, the first private company which the public services offered to its customers was created. In 1987 Association of Public Relations (IPR) provides a definition of public relations, which is still used. In this definition, PR is planned and continuous efforts to establish and maintain goodwill and understanding between an organization and its target audience (Skandari, 2004). Words “planning” and “continuous” show that goodwill and understanding itself does not obtained easily and in fact, must “create” and “maintain” and also determined that public relations activities are planned and the purpose of public relations is to create goodwill and understanding. In last definition of the IPR, PR is consider method that the organization use to maintain the credibility, products, services or staff with the aim of obtaining recognition and support. For public relations are also used other words and expressions: Public relations is vital artery and permanent and brain and engine of organization. Public relations are the art and social science of that link intra-and extra organization together. Public relations draw purpose, and how programs. Public relations are a trusted advisor of manager and all personnel; so it is essential that managers and employees can have cent per cent trust him. Public relations must see everything and everything also show beautiful. The present century are called the conquest of space, nuclear, computer, laser and … but as interpretations index has been named the communications era that would be like a global village (Armour, 2006). Public relations can be bridge linking between people and organizations.
1.2 Statement of the Problem
Focus and attention to customer service is not a new concept. It is certainly a business dynamic that has been recognized for a long time by more people than the management gurus such as Peter Drucker. Service is like any other tangible product but to make matter worse, the product (service) is measured as the product is being delivered. Thus, achieving the full potential of each customer relationship should be the major goal of every business (boxwell, 2000).
To survive in the global markets, focusing on the customer is becoming a key factor for service industry. It is known that it takes up to five times money to acquire a new customer than to get an existing customer to make a new purchase. Hence customer retention is important in-service industry for increase profitability. Moreover, a dissatisfied customer causes market damage because they are likely to persuade others to defect. It is therefore no surprise that customer relationship management is an important topic of conversation in business world.
Tourism and Hospitality is all about public relations and public relations is one of the primary functions of tourism agencies’ personnel (Bhatia, 2006). Yet there is no significant and remarkable effort to apply public relations strategies in the promotion, management and administration of tourism by relevant tourism agencies in Nigeria. This has constituted a major setback or gap that Nigeria previously known for renowned major tourism sites ranch resort and other popular sites have depleted in value. Dilapidated social infrastructure like airports and airlines, road networks among others have affected movement of tourists while reputable traditional institutions have lost value. The problem of preservation and maintenance is fundamental because notable destinations known for their peculiar characteristics and beauty like National Art Theater in Lagos and other popular historical heritage sites have been reduced to nothing while the extinction of Nigerian peculiar wildlife is vanishing rapidly. Despite the impressive impact of world tourism, the paucity of reliable data and information available on tourism assets remain a standard setback that is undoing the development of tourism in the country. Thus, the under-performance of Nigerian hospitalityindustry cannot be unconnected with overdue negligence and particularly the inapplicability of public relations strategies to communicate intelligently to the target market on the rich tourism potentials that abound in Nigeria (Ogunnubi, 2017). It is these identified gaps that have motivated the researcher’s interest in this study.
1.3 Research Objectives
The main aim of this study was to assess the impact of public relations on the marketing of hospitality industry using a case study of selected hotels in Enugu state.
The specific objectives are as follows;
- To determine the role of public relations in marketing of the hospitality industry.
- To find out the relationship between the public relations and the performance of the hospitality industry.
- To determine how marketing affects the business performance in the hospitality industry
1.4 Research Questions
- What is the role of public relations in marketing of the hospitality industry?
- What is the relationship between the public relations and the performance of the hospitality industry?
- How does marketing affect the business performance in the hospitality industry?
- H0: Public relations does not play a role in the marketing performance of the hospitality industry.
- H1: Public relations plays a role in the marketing performance of the hospitality industry.
1.6 Significance of the Study
This researcher will benefit from the study because it will give him a broader knowledge of the role a good public relation can play in the success of every business. The study is also useful to the hospitality industry as a means of identifying and criticizing effectively the knowledge and experience gained in the implementation and application of public relations management as a newly developed management technique aimed at achieving profitability. It is also useful to managers in other service industries and to students who want to conduct research that is associated to public relation and marketing management.
1.7 Definition Of Terms
Is the practice of deliberately managing the release and spread of information between an individual or an organization and the public in order to affect the public perception.
The action or business of promoting and selling products or services, including market research and advertising.
Is a broad category of fields within the service industry that includes lodging, food and drink service, event planning, theme parks, travel and tourism. It includes hotels, tourism agencies, restaurants and bars. This study focuses on hotels in Enugu state
1.8 Organization of Study
The study comprises of 5 chapters. In chapter one, the concepts are introduced and the problem of the study is established with the research objectives and questions. Chapter two presents the literature review while chapter three presents the research methodology. The fourth chapter presents the results and discussion, and the last chapter presents the conclusion and recommendation.
5.0 Conclusion and Recommendation
This study was carried out on the impact of public relations on the marketing of hospitality industry (Case study of selected hotels in enugu). From the findings, there is a high level of awareness of the role good public relations in effective marketing and performance of a hospitality industry. Building a strong relationship with customer will increase repeat business and the mode of service delivery has either a positive or a negative effect on the organization performance and profitability. Finally, a good knowledge of public relations and customer relationship management is a must for every hospitality and service industry.
This research has shown that marketing plays a significant role in the hotel industry. Based on the research findings,
it is concluded that marketing plays a crucial part in any hotel outlet and in the hotel industry as a whole. As a result of that, hotel owners and managers who want to be successful in the hotel industry should pay great attention to marketing. Furthermore, the investments in marketing by hotel management should be well coordinated in such a way that other aspects of the hotel business are also put into consideration when marketing decisions are being taken. In other words, marketing should be integrated with Research and Development, Finance, and Production to mention but a few.
Since marketing creates a platform of bridging the gap between a hotel and its customers, it is important that a hotel as a company ensures that the right messages are passed across to the customers with its marketing campaign. Furthermore, the ultimate goal of marketing should be the facilitation of a win-win situation between the hotel and the customers. The hotel management should adopt the most effective and efficient marketing strategies that serve the interest of the company without jeopardizing the interest of the customers.
The following recommendations were made based on the findings of the study;
- Management of hotels should ensure that the current level of awareness of the role public relationship play in the performance of the service business among the staff does not fall. Rather they should create more awareness by ensuring that specific structures that will support CRM practice are created.
- There should be constant training and education of the workforce in public relations practices. This will ensure changes in employees’ beliefs, behavior and attitude to quality.
- There should be constant evaluation of CRM practices so as to ensure constant improvement in quality.
- Employee input to quality should be encouraged so as to evoke the total commitment of employees in the operational end of total service delivery.
- Employees should be rewarded and recognized for their quality improvement efforts.
- The service charge should be moderate so as to retain the existing customers and attracts new ones.
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