Mastering the 4 P's of Hotel Marketing: Product, Pricing, Place, and Promotion
- Gavin Hughes
- May 25
- 5 min read
Updated: Oct 9
Would you like to develop a powerful and effective marketing strategy for your hotel, similar to those adopted by large hotel chains? Marketing is the art of selling and promoting your hotel rooms, and there is a great deal you can do to make it successful.
Using the 4 P's of the hotel marketing mix:
Product
Pricing
Place
Promotion
can be a good way to structure the approach. It is not as complicated as it looks!
Your hotel marketing mix is one of the most essential steps of your business plan.
Here, we will examine a few clear and concrete examples that will help you ask pertinent questions and develop a professional yet effective hotel marketing strategy for your establishment.
Product - make your hotel experience a memorable one!
Before proceeding, please ensure that you comply 100% with the basic expectations of any traveller. This includes a comfortable sleep, access to good food and dietary requirements, free WIFI, and exemplary staff. Do you already possess these qualities? Well done! Let's proceed to step 2.
You can now ask yourself, what makes your hotel stand out from the rest? Which stories do guests usually share with their friends and families - the usual, everyday, average experiences? Of course not!
Choose a unique personality for your hotel, one that you can develop through a panel of small details. If you succeed, guests will feel gratified to take many pictures, share them on social media, and write a positive review on TripAdvisor. This will be your first and best marketing tool!
Pricing - have a clear, dynamic understanding of your market
Do you offer the same rates year-round, with no differentiation between high and low seasons in your basic scheme? If so, it may be time to reconsider your pricing strategy and transition from a reactive to a proactive approach.
In today's competitive environment, it is nearly impossible to publish a rate and wait for your hotel rooms to fill up.
Proactivity is key, and this includes watching and listening intently to your market and adapting your room rates accordingly by implementing a dynamic pricing strategy.
Are you familiar with the term Revenue Management? Revenue management, or "yielding", is the art of amending your room rates on a daily or weekly basis (as done by all airlines). All major hotel chains are currently applying these principles. Although it is not entirely necessary to amend room rates daily, using the simplest techniques can considerably increase your income.
Two simple Revenue Management principles to bear in mind:
A room that is not sold tonight represents a lost income that cannot be recovered, as this room cannot be sold tomorrow. Hence, it would be ideal to sell the room at a lower rate than not selling it at all.
Your room inventory is limited. Once you have reached maximum capacity, there is not much left to do. It would be more practical to fill up your rooms at slightly higher rates slowly, and/or by applying length-of-stay restrictions, i.e., by accepting only those reservations with a minimum 2-night stay during the busier periods.
Places - set up a smart e-distribution strategy
Where are you currently advertising your rooms? A landline is no longer enough in a world where technology has taken the upper hand.
The internet is the main tool used by travellers today to search for rooms, compare offers and finalise the booking.
Having your own webpage makes it easy for travellers to book directly via your website, which benefits you greatly as you do not have to pay commission to intermediaries (middlemen).
How appealing and user-friendly is your website, however? Is it easily accessible and visible on Google? Consider the keywords travellers use when searching for hotels within your destination. Does your establishment appear on the first page of search results? How easy is it for travellers to navigate and book a room once they have accessed your site? Do you offer a Booking Engine that allows travellers to check rates and availability swiftly?
Another way many travellers choose to book is indirectly, through OTAs (Online Travel Agencies) or intermediaries such as Booking.com or Expedia.com, which are currently the two most popular choices.
Are your rooms available via these OTAs? Of course, you are obliged to pay these intermediaries a commission for their service; however, these companies offer incredibly powerful marketing tools and persuasive ways to entice customers and create customer loyalty. The fact is, you are losing customers by not being listed with these OTAs.
Are you familiar with the term Billboard Effect? A simple explanation would be that the stronger your online presence, the easier it will be for travellers to find you and eventually book directly via your website.
Have you ever heard of a Channel Manager? This is a super tool that allows you to centralise and automate rates and room availability updates on both your website (through a Website Booking Engine) and that of your OTA websites.
These two initial sales channels—online individual direct and indirect bookings—are currently the primary sources of business for the majority of hotels. However, depending on your core business, this could also include tour operators, corporate contracts, group requests, and events, among others.
Promotion - make some noise!
Last, but not least: Promotion, or communication. Once you have a prodigious Hotel Website, make some noise in order to gain visibility.
The more positive reviews you receive from other websites, the more effective your "e-reputation" (the reputation of your hotel's presence online) becomes.
Additionally, the more visible your name becomes to travellers, and the more frequently they come across your name, the greater the interest in your establishment will be.
The primary focus of Promotion is utilising social media platforms to easily create a buzz and initiate and engage in conversation with those interested in your establishment. Promotion can also be done via bloggers and specialised press. Inviting journalists and bloggers on a field visit to your establishment for a meal, a complimentary night's stay, or to explore and discover your concept is an excellent way to gain free (and hopefully positive) publicity.
The stronger your hotel's personality, the more word-of-mouth you will receive, making your establishment a familiar name that more and more people are willing to talk about.
With this, we complete the marketing mix circle. The 4 P's of your hotel marketing mix are now ready to operate their magic!
Putting It All Together: Your Comprehensive Hotel Marketing Mix
What can I do to adapt my hotel offer through all four P's of the marketing mix: product, pricing, place, and promotion?
Your property doesn't have just one unique "hotel marketing mix", but rather as many different "marketing mix" options as you have different market segments to target.
It is important to follow these four strategic steps for each of your different market segments (corporate, tourism, individuals, groups, etc.). Also, try to predict your guests' behaviour and expectations when booking a hotel room.
Once you have defined your Marketing Mix and identified the target guests, it's time to examine your competition and establish your hotel's competitive set.
Comments