19 Business services and loyalty programmes offered by major hotel groups
The major hotel groups have a large part of their revenue originating from business clients. The hotel industry is consolidating and there have been a number of recent major takeovers. This has meant that these large hotel groups that have to compete very aggressively for business. This case study looks at the type of marketing activities that the large hotel companies have undertaken to try to gain loyal business customers in the highly competitive market.
The importance of business service for major hotel groups Business travel originating from individuals and conference- and incentive-related business contributes a major source of the revenue for large hotel chains. Conference and incentive travel forms a major part of this business and it is very important for the large hotel groups to continue to develop the market. This means that the hotel groups have to offer the right facilities and work with the right intermediaries to develop this business.
Conference and incentive business The main industrial sectors that hold conference and incentive travel events are pharmaceuticals, banking, insurance, telecommunications, information technology and the automotive industry. The conference and incentive business is generally buoyant, although certain important sources of business such as the insurance and information technology sectors have shown a recent decline in sales. The division of conference and incentive travel varies according to the hotel group, and Internet booking has become an important part of the business. A large part of the conference and incentive business is booked via an agency. A recent survey of the major hotel groups revealed information about the conference and incentive travel business of the major hotel groups. The results of this survey are shown in Table 19.1.