The Marketing Of Hotel Service In Warri Metropolis (A Case Study Of Royal Ark Hotel Limited)

Project and Seminar Material for Marketing

The Marketing Of Hotel Service In Warri Metropolis (A Case Study Of Royal Ark Hotel Limited)


Abstract


The primary aim of this project work fitted “ Marketing of Hotel services in Warri Metropolis which Royal Ark Hotel Limited was used as a case study was to determine the causes of low patronage by customers and equally to suggest possible solutions to the problem.

Relevant work relating to this project was reviewed in order to get more information on work to be carried out. Both primary and secondary data was collected in order to get the relevant information on the project work. on the course of he analysis many findings were made which was attributed to be the cause of low customers patronage in the hotel. Among the findings were:

  1. The service process of the organization is too long.
  2. There is no clear organizational chart.
  3. There is no clear organizational chart
  4. Staff are not properly motivated in terms of salary.
  5. Their promotional tools were not effective
  6. Staff are not properly trained
  7. There is no laid down rules for employment

In order to over come the problems listed above the following recommendation were made:

  1. That the management of the organization should establish a pure marketing department and employ qualified marketing personnel in the department.
  2. That the management should make their service process to be short by way of standardization and documentation of service process incentive given to customers are adequate.
  3. They should ensure that the promotional incentive given to customers are adequate
  4. Clear organizational chart should be made so that it will not create confusion on whom to report to.
  5. The management should motivate their staff by way of training and paying good salary
  6. The organization should make sure that more graduates with reasonable experience are employed into the organization.

In conclusion, it was expected that this project would contribute to more practice of marketing concept in a hotel industry if it is implemented.


Chapter One


Introduction

1.1 Background of the Study

The subject matter of this research work s the “ marketing of hotel service in Warri metropolis” address the topic it is of importance to know what is meant by marketing service and hotel.

According to Kotler (1991 P.10), Marketing is defined as a social and managerial process by which individuals and groups obtained what they need and want through creating, offering and exchanging products of value with others. According to William J. Stabtib (1981 P3) Marketing is a transaction an exchange intended to satisfy human needs or wants.

The British institute of marketing (1989 P1), marketing could also be viewed as the management process responsible for identifying, anticipating and satisfying customer requirement profitably.

According to William J. Stanton (1981 P.441) , services are those separately identifiable, essentially intangible activities that provide want satisfaction, and that are not necessary tied to the sale of product or another services.

The Oxford Advanced Learners Dictionary of Current revised by Honby. Hotel is “a building where meals and rooms are provided for travelers”,

Classification of hotels: Motorist hotel with rooms and cabins, a parking area. However some of he important service offered by hotel are Accommodation facilities including

  • Presidential suite
  • Executive chalets
  • Business suite
  • Studio rooms
  • Billard rooms
  • Luxury doubles
  • Restaurant, banqueting hall, bar, conference facilities etc
  • Recreation facilities
  • Personnel

The increase changes in the marketing place have made it necessary for hotel to become more market oriented in offering of their services. They aim at satisfying their customers needs as well as fulfilling their own organization goals.

An Arewa hotels in house magazine (1991P30) define Hotel marketing as the application of marketing concept in the hotel industry so as to achieve a more effective rendering of services to the customer”. They have been many developments and changes in the hotel reflect trends in the economic, political and business environment with other being a consequence of technology ad social changes.

It was recently that hotels became more concern with marketing of services. Expansion as well as competition among hotel organization or operators has occurred with rapid increase in recent years.

Today, there are so many hotels with the result that there is competition among them to win patronage of “customers” who want their service.

Any organization wishing to survive in this present day competition and indeed in any depressed economy should have always their service/ products, packaging and the images of their organization to help the promotional activities of the company to succeed in satisfying their customers and these could only be achieved by those hotels that are prompt, efficient and effective. These hotels hve to restructure their principle and practices to adopt to changes that are talking place n the industry.

From a close observation of hotels in Warri one would realize that a lot has to be done in order to improve the efficient, effective of hotels operations.

It is the aim of this research work to explore all the available avenues for the improvement of the effectiveness of hotels operations in Warri because when compared with other states or cities, their operations are still poor and inadequate.

Marketing concept is expressed in a focus on growth which there is continuing planned effort to enlarge of market.

However, the concept means that a business aim towards satisfying its customer. While making a profit, the concept call for hotel management and employees to plan marketing strategies towards achieving customer satisfaction and organization goals. In scheduling hotel activities whether for long range planning done at top management level or operational duties done at the employee level the two goals of guest satisfaction and profit should be kept in mind at all times.

All company activities research, production, finance and sales are devoted to finding out what customers wand and then creating the product and services to satisfying these wants. The theory holds that hotel activities are co- ordinate to meet the needs and wants of customers, profit will result. The philosophy of marketing concept means that marketing should begin and end with customers.


1.2 Statement of Problem

The research will take cognizance of the following issues

  1. Lack of adequate trained and skillful person at supervisory level to organize and undertake effective on the job training for the operative at the basic technical level
  2. Lack of awareness of the needs and objectives of hotel customer/guest.
  3. The problem of high rate of labour turnover in hotel industry
  4. Delay in providing rooms, bars and restaurants services.
  5. Lack of adequate knowledge of hotel finance
  6. Non application of marketing concept by some hotel industries
  7. Failure to appreciate that “customers” want satisfaction is the economic and social justification of company’s existence.

1.3 Need for the Study

This study is to portray the rich potentials that exist in hotel services process. It is the desire of the researcher that scholars on this topic would see further needs to use the information, data provided to enrich their works.

Also to find solution to these problems highlighted earlier and to re- state the importance of consumers satisfaction when applying marketing concept.


1.4 Objective or Purpose of the Study

The objective of this research study is specifically to find solutions that when applied to the statement of problem of hotel services in Warri metropolis of Delta State.

Training of hotel personnel to acquire skilled manpower for achieving higher standard of services

Hotel should attach priority to the recruitment of hotel school graduates to enhance professionalism and facilitate the access of the graduates to responsible posts.

The hotel should establish closer relations with hotel schools to facilitate interaction and improve the quality of their product/ services.

Application of marketing concept will help to improve the poor quality and inadequacy of services rendered by identifying that customers want satisfaction is the economic and social justification of their hotel existence.

Improvement of their marketing effort and addition of new service or to be service oriented on the exist ones.

Providing computerized check in and offering express checkouts facilities to ease delayed.


1.5 Statement of Hypothesis

The hypothesis to be tested in this course of study are as follows.

  1. Ho None application of marketing concept is not the cause of customers dissatisfaction in hotels.
    Hi None application of marketing concept is the cause of customers dissatisfaction in hotels.
  2. Ho Dissatisfaction of customers does not result from insufficient and poor quality personnel/staff of hotels.
    Hi Dissatisfaction of customers result from insufficient and poor quality personnel/staff of hotels
  3. Ho Insufficient recreational and entertainment facilities does not resulted to customers dissatisfaction in hotels.
    Hi Insufficient recreational and entertainment facilities resulted to customers dissatisfaction in hotels.

1.6 Definition of Terms

The following terms in this study should be taken to be the following:

Marketing

Marketing is a human activity directed at satisfying needs and wants through exchange process.

Hotel

The Oxford Advanced Learners Dictionary of current English Revised by Horuby) Hotel is a building where meals and rooms are provided for travellers.

Marketing Concept

The marketing concept holds that the key to achieve organizational goals consist in determining the needs and wants of target market and delivering the desired satisfaction more effectively and efficiently than competitors.

Product

A product is something that is viewed as being capable of satisfying needs or wants.

Services

Services is any act or performance offered by an individual or groups of an individual to another which is especially intangible and does not result in ownership of anything earn and creates satisfaction, for the mutual benefit of the service provider and service consumers


Chapter Five


Summary of Findings, Conclusion and Recommendation

5.1 Summary of Findings

This study assessing the practice of marketing concept in a hotel industry with a case study, of Royal Ark Hotel Limited in Warri metropolis was conducted in order to arrive at the following findings.

  1. Customers choose the hotel because of high quality service, peoples recommendations, nearness, politeness of staff and security of the hotel .
  2. The hotel provides/ renders many services like accommodations, food and drinks, relaxation, Banqueting and entertainment.
  3. Majority of the customers who are now patronizing the hotel changed to the hotel because their former hotel was not performing as expected.
  4. The hotel has adequate facilities that made it five star hotels. These facilities are good parking, space, sitting arrangement, delicious meal, playing ground and other minor facilities .
  5. The time spent in buying a service is too long which the customers complained of this was attributed to lack f trained staff and long service process.
  6. The price charge for service rendered was agreed to be justifiable by majority of the customers while other customer did not accept one justifiability .
  7. Customer and staff relationship are effective through oral communication, telephone and questionnaire.
  8. The promotional tools used by this hotel are advertisement, public relation and through friends
  9. Majorities of the customers are not satisfied with the quality of services rendered by the hotel
  10. Customers were not given enough promotional incentives. Among those who agreed that they received only discounts.
  11. The hotel social responsibility is that of employment opportunity. The hotel has a marketing department which does not know the marketing functions.
  12. The hotel has many categories of customers which includes, Businessmen, companies executives and civil servants.
  13. The staff of the hotel are not satisfied because they are poorly paid not motivated and inadequately not promoted.
    However, staff of the hotel were not properly trained and this causes low service quality. There is no clear organizational chart. Majority of the staff are GCE/WAEC holder while few are graduates.

5.2 Conclusion

Without understanding the importance of marketing concept in hotel industry, customers may not know the need of hotel and organization, such will be doomed if not in the short or long run. Therefore with a proper step for the management of Royal Ark Hotel Limited to enhance marketing as the key for any organizational success, the more the hotel will ever witness high profitability growth and continuos survival in this dynamic marketing environment.


5.3 Recommendations

From the research work, I recommend as follows.

  1. The management of Royal Ark Hotel Limited in Warri Metropolis, should understand the importance of marketing in every organization and not only establish a marketing department but also employ qualified and experience marketing personnel in the organization. The management should equally make them to be autonomous so that they can achieve a desirable objective for the organization.
  2. The management through the help of marketing department should reduce the long service process through the standardization and documentation of service process. This will help a long way in seeing that customers are attendee to at a short time thereby increasingly service quality of the hotel.
  3. The sales promotional incentives given to customers are not efficient to compare to charge in the hotel. The management should adopt a sales promotional incentive that is adequate. The use of calendars, caries Discount and take a way.
  4. Management of the hotel should understand that the success and failure of organization lies on the staff of the hotel.
  5. The management should care for their staff and equally very sensitive by way of proper motivation.
  6. Staff should be trained to be more efficient. The training will expose them to modern trends in the hotel sector.
  7. Clear organizational chart should be made so that staff will not be confused on whom to report directly to.
  8. Moreover, the management should understand the need of employing more graduates in their organization. It can help the undergraduates ones by given them the study leave with/without payment.

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