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Abstract Summary (About 10 lines) This research indicated that the majority of small independent hotels do not apply a specific marketing strategy. The most important barriers that prevent them to establish their marketing strategies are lacking of high financial resources and lacking of marketing experiences. Also, it was found that there is a significant relationship between the application of marketing strategy and the achieved occupancy rate. This means that when hotels apply marketing strategy they achieve higher average of occupancy rate than hotels do not apply. This research proposed a cost-effective marketing strategy to enable small independent hotels to compete in today’s highly competitive marketplace. This strategy is based on a combination of different integrated marketing activities which are: careful selection of market segments and concentrate on the high potential market segments and concentrate on the high potential market segments for them, establishing their brands through applying consortium and building customer relationship. i Summary (About 200 words) This study searches about the main barriers which hinder small independent hotels to develop their specific marketing strategy and to develop a cost-effective marketing strategy for small hotels to compete in today’s highly competitive market place. The study shows that the majority of small hotels do not apply a specific marketing strategy and this affects on their occupancy rate and their market share. Also, the study clears that limited resources of small and the lack of experiences in them are the most important barriers that hinder small independent hotels to develop specific marketing strategy. The sample is determined by forty-three hotels from the three hotels at Cairo and Alexandria. This study is divided to five chapters. Chapter one gives an introduction to the study, explains the research problem, hypotheses and states the overall aim and specific objectives of the research. Chapter Two shows the theoretical and library research on the basic concepts regarding marketing and marketing strategies, small independent hotels and the proposed marketing strategy for small independent hotels. Chapter three indicates the applied field study. Chapter four demonstrates the results of the applied study and the discussion of the hypotheses, which results that the four hypotheses are right. Chapter five presents the conclusions and recommendations of the study that present a cost-effective marketing strategy which is appropriate for the limited resource of small independent hotels and enable them to enhance their performance and to compete in today’s highly competitive market place. ii Summary (About 1500 words) The hospitality industry operates in a highly competitive environment. Each year the process of successfully marketing hospitality operations becomes more difficult as new types of lodging businesses come into the market place. Therefore, the level of competition of today’ market place, many hotels, regardless their location, size, grade, or the services they offer, need to rethink their existing marketing strategies and to develop specifically tailored marketing strategies to enable them to compete. Small hotels are facing sharp competition from larger hotel companies that already have formed successful marketing position and developed strong brands. Although, many small hotels have already started to recognize the importance of the marketing role, they perceived their need to develop specific marketing strategies to support their businesses. It is useful for small independent hotels to form their specific marketing strategy based on a combination of different integrated marketing activities, which are: -Careful selection of market segments and concentrates on the high potential market segments for them; -Establishing their brands; -Building customer relationship. Research Problem Small independent hotels represent a major segment of a larger industry, hospitality service industry which contributes as an integral component of the tourism industry to the economies of many countries including Egypt. As large hotels rapidly expand, hundreds of small independent hotels are forced to appraise the competitive environment and develop strategies to allow them to counteract this new competition successfully. These small independent hotels are unsuccessful in these efforts, their failure is possibly due to many reasons including: poor financial planning; poor overall operational management and control; inconsistent quality of the product\ service mix; and poor marketing planning and execution. Small independent hotels face particular problems in developing their marketing strategy. Its scope for expansion is limited because it can marshal only limited investment capital. Its resources allow business promotion only on a limited scale. Despite of all these reasons, a few number of small independent hotels attempt to try to increase their market share and attract different market segments through applying some of the complex organizational management. Small independent hotels also fail to achieve the same results from these marketing theories as the large hotels and therefore facing of the sharp competition in today’s market place that represents a dilemma for many small independent hotels. It is important to introduce a cost-effective marketing strategy for small independent hotels to allow them to compete in today’s highly competitive market place. Objectives of the study This research has mainly aimed to develop a cost-effective marketing strategy to enable small independent hotels to compete in today’s highly competitive market place. This objective can be achieved by studying the following secondary objectives: 1- To study the characteristics of small independent hotels. 2- To explore the main barriers, which hider small independent hotels from applying their specific marketing strategy. iii 3- To increase small independent hotels’ occupancy rate through developing a costeffective marketing strategy. 4- To design a cost-effective marketing strategy suitable for small independent hotels based on the field study and the view of literature. This strategy aims to enable small independent to compete in today’s highly competitive market place. Hypotheses of the study 1-There is a relationship between establishing marketing strategy in small independent hotels and their occupancy rate. 2-There is a relationship between the type of the marketing strategy applied in small independent hotels and their occupancy rate. 3-There is a relationship between the high costs associated with developing marketing strategies against limited resources of small independent hotels and their failure to establish their specific marketing strategy. 4-There is a relationship between the lack of experiences in small independent hotels and their failure to establish their specific marketing strategy. Population and sample The population includes all the study area which is represented by the three star hotels in Cairo and Alexandria. A sample of 43 hotels is chosen from the three star hotels in Alexandria and Cairo. Data Collection Technique The data has been collected through questionnaire. The questionnaire was addressed to the hotels’ executives who undertake the responsibility of marketing activities. This questionnaire is divided ito six sections Section one gathered information about the average of the occupancy rate of the hotel and who is responsible about the marketing activities in the hotel. Section two gathered information about the hotel’s attributes (the number of rooms and the services offered in the hotel) Section three examined the hotel executives’ concept about the marketing strategy, the extent of its application in their hotels and the barriers of its application. In addition, this section examined the benefits achieved for the hotels from applying a marketing strategy and some marketing strategies applied in these hotels. Section four examined the concept of market segmentation if it is applied or not in the hotel, the bases of application, the benefits achieved for the hotels from applying this concept and at the end the barriers, which restrain its application. Section five investigated the concept of branding in the surveyed hotels, its application, the form of application, the benefits achieved for the hotels from applying this concept and at the end the hotel executives’ opinions about the application of one form of branding in the future. Section six examined the concept of customer relationship marketing, the extent of its application, the strategies followed to retain the guests, the benefits achieved for the hotels from applying this concept and the barriers which hinder its application. iv Data Analysis Technique In accordance with the research hypotheses and the procedure of measuring the research variables, the researcher has adopted a number of the quantitative and descriptive statistical techniques to achieve the research objectives as following: 1- The researcher has calculated the necessary percentages and formed the required repetitive tables to satisfy one of the most important descriptive statistical techniques. 2- T.test has been used to determine the significance of the differences between the responsible of marketing activity in the hotels and its effects on the occupancy rate. 3- Analysis of variance has been used. 4-Chi-square has been used to test the hypotheses. Research Outline This research is divided into five chapters Chapter one gives an introduction to the study, set the stage for what will be followed, explained the research problem, hypotheses, and stated the overall aim and specific objectives of the research. Chapter two reviews the literature on the basic concepts regarding marketing and marketing strategies, and their importance for the hospitality industry particularly in case of small independent hotels. Then, the chapter demonstrates the steps for developing a marketing strategy and the most important strategies applied in hotel sector. It also explains the characteristics of small independent hotels and their importance in the hotel sector. Finally, this chapter describes the proposed marketing strategy for small independent hotels. Chapter three describes the main component of the field study, the selection of the sample and the instruments of the applied study. Chapter four demonstrates the results of the applied study and the discussion of the hypotheses which resulted that the first hypothesis is right that means there is a significant relationship between establishing marketing strategy in small independent hotels and their occupancy rate. The second hypothesis is right that means there is a significant relationship between the type of the marketing strategy applied in small independent hotels and their occupancy rate. The third hypothesis is right that means there is a significant relationship between the high costs associated with developing marketing strategies against limited resources of small independent hotels and their failure to establish their specific marketing strategy. The fourth hypothesis is right that means there is a significant relationship between the lack of experiences in small independent hotels and their failure to establish their specific marketing strategy. Chapter five presents the conclusion and recommendations of the research that represent a cost-effective marketing strategy for small independent hotels. Results of the study Through the discussion and analysis of the questionnaire responses, it could conclude the following: 1-The majority of small independent hotels do not have separate marketing and sales department but their general managers or their owners are the responsible of marketing activity. 2-The occupancy rate is affected by the responsible of marketing activity in the hotel. The highest average of the occupancy rate is achieved when there is separate sales and marketing department responsible of marketing activity in hotels. |