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Name : Hoang Thanh Truc ID : 20915380 MKT1MDP Fundamentals of Marketing Individual Assignment 1.Table of content _ Introduction …………………………………………1 _ Macro-environment………………………………1,2 _ Segmentation variables………………………….3 _ Recommendation…………………………………3,4,5 _ Conclusion……………………………………………5 _Reference……………………………………………..5

2.Introduction The 2020 economic recession unexpectedly hit the hospitality industry as a whole. However, the motel industry has suffered downturn in recent time before 2020 as people consider them as not modern. The purpose of the report is to research the motel industry and identify some recommendations to bring these motel industry thrive again. This report is for people who want to have more information about motel industry recently and for marketers in motel industry. Some information are going to be discussed in the report including macro-environment and segmentation analysis of the motel industry. The information of the report has been gathered by doing a lot of research and from many articles on the Internet. 3. Macro-environment analysis In this section, the macroenvironment analysis of the motel industry is going to be covered. Obviously, there are many factors which directly affects the hotel industry. However, understanding the PESTEL analysis - a framework to analyse the key factors (Political, Economic, Sociological, Technological, Legal and Environmental) influencing an organisation from the outside is the best way to find out which external factors significantly impact on the motel

industry most. Firstly, the recession of the motel industry refers to the economic factors. The industry is not flexible to the soar in household discretionary income. It is undouted that people nowadays earn more money and demand more to enjoy their holidays than before. This philosophy encourages them to spend more money on luxurious vacations, high-priced accommodations and far-lung destinations instead of nights in old-fashioned motels. In last year, many guests also pay for the extra services they demand. More guests accommodate in hotels. For the households who have the below the average income, they are trying to make ends meet after the Coronavirus 19 outbreak let alone to spend money on motel nights. This can be considered as superfluous. Secondly, the next external factor curb the growth of motel industry is the political decisions. The main target of the motel and the hospitality as a whole is to foster international tourism which will host a variety of different properties. An increase in the demand of international vactions, airline and marketing promotions generally encourages the motel rooms. However, because of the COVID-19 catastrophe, the Federal Government set the rule not to travel and then, the number of hospitality bookings from foreign visitors is expected to plummet sharply in 2019-2020. The high taxation the government imposes on the motel industry will be another reason for the collapse of many motel businesses which can not balance the financial statement to pay those taxes. Thirdly, the environmental factors can pose the threat to the motel industry. Most of the environmental factors which signifincantly affect motel industry are flood, storm, heavy rains. If the motel industries do not take proper measures for such factors and take control over it on time, it will create a huge loss for the motel infrastructure. As it is mentioned, when people are not attracted by the appearance of the accomodation, they tend to not stay in it. The fourth reason causing the decrease in the demand of motel bookings is technological factors. It is true that the technology used must be beyond standards, meeting all needs of clients especially when it comes to hospitality industry. Nowadays, many hotels provide customers with smart technology which can reduce the work effort and enhance the results of the mangers compared to the traditional services of motel industry. Even guests pay more money and taxes to stay in the hotels which are embeded with up-to-date technology. They consider technology is time-saving and advanced. The last factor is the legalisation which is the bone for the growth of hospitality industry. People get attracted to leisure based hotels which are legal, avoiding driscrimination and providing them with secure services such as security magnetic gate and security guard. So it might be possible that external factors may cause a negative impact on motel industry.

4. Segmentation variables The following section is focusing on the segments ( and segmenting variables) in the motel industry, and products offered to each segment. They are four types of segmentation in the marketplace which are demographic, geographic, psychographics and behavioral considerations. Managers in today's market place are continually looking for new ways to attract and serve their clients. Marketing segmentation in hospitality industry is the process of allocating the customers into categories. It focuses on product, pricing and distribution. Marketers can be more effective in terms of time, money, and other resources by segmenting their data. Market segmentation enables businesses to gain a better understanding of their consumers. They gain a greater understanding of their customers' needs and desires, allowing them to tailor promotions and campaigns to the consumer groups that are most likely to purchase products. . Each market segment has a distinct booking pattern. It's important to be able to segment the company so that marketers will know who books when, what kind of rates customers book, and how they book. There are some main segmentation variables of the motel industry. First of all, domestic visitors are one of the most important sources of industry revenue. This is called geographic segmentation. A soar in the rate of domestic tourist visitor booking nights tends to encourage demand for accommodation, providing motels with a golden chance to expand operations. However, the proportion of bookings is expected be go down in 2019-2020 because of the government travel restrictions relating to COVID-19 outbreak. The second segmentation in the motel industry is the business tourist visitors ( demographic segmentation ). Business travelers are a significant source of income for the industry. As the number of business tourist nights grows, so does the market for the industry's services. The amount of money spent on corporate travel is influenced by company trust and profitability. Due to the global COVID-19 outbreak during 2019 and 2020, the number of business tourist nights is projected to decrease significantly. International travellers is geographic segmentation for the motel industry, however, the rate of international visitor bookings is supposed to decline due to the travel restriction of the authority. Another segmentation is the visitors coming to motel industry because they are inspired by the films they watch. They are selected to the group of psychographic segmentation. 5. Recommendation Keeping the motel industry alive means that motel makerters should firstly target their goal in the demographic segmentation. Demographic

segmentation looks at indentifiable non-character traits such as age, gender,ethnicity,income,level of education, religion. For example, demographic segmentation might target potential clients based on their age, so the motel marketing budget is not wasted directing message at people who are not likely in those ages. The next segmention which should be focused on is the geographic segmentation. By comparison, geographic segmentation is often one of the easiest to identify, grouping customers with regards to their physical location. This can be defined in any number of ways : country, region, city and postal code. It is possible to group customers within a set radius of a certain location. In this case, the motel industry markerters can easily market of live events looking to reach local audiences. Being aware of the customers’s location allows for all sorts of considerations when advertising to consumers. In the COVID-19 outbreak time, marketers should focus on local from the same country as opposed to international visitors. Focusing on the local market may mean highlighting facilities like your rooms and it could also involve promoting one of your motel rooms as a temporary office, which can be ideal for those working remotely. Another segmentation is behavioral segmentation which is possibly the most useful of all for the digital age. The segmentation group clients with regards to their spending habits, purchasing habits, browsing habits, interactions, loyalty and previous ratings. The motel marketers should go live with a great website. The website is the company's most critical distribution channel and the foundation of every successful online marketing campaign. No matter which hotel marketing tactic has directed a potential customer to the motel business website, this is the place where visitors can learn more about the motel business and determine whether or not to book a motel. The online distribution channel such as Facebook or Instagram is where motel marketers can generate direct online sales, so booking engine for self-service reservations is important. A mobilefriendly website is now a requirement, as more internet users rely solely on their smartphones and tablets. In my opinion, when it comes to the service industry, the most important segmentation in the motel marketing is psychographic segmentation. Psychcographic segmentation is focused on the customer’s personalities and interests. It defines the customer by their personality traits, hobbies, life goals , values, beliefs and lifestyles. The motel industry should market their business based on what people need and attract. For example, marketers who aware that some people going to motels because they want to discover the motels like the film they watch will come up with many initiatives to show their motel business up on the TV shows. Moreover, marketers can do a lot of research to find out which style the clients like most when they come to motels. In this case, marketers can narrow the marketing

group, targeting in the potential customers. For instance, by aware that people who come to Cao Bang, Viet Nam would love the natural environment, many motels in Cao Bang try their best to advertise their services as natural as possible to attract those tourists. Focusing on the promotions and combo is the great idea to increase the motel booking nights. 6. Conclusion In conclusion, to maximise bookings and revenue of the motel industry, marketers should have more information about the PESTEL, segmentation and the latest marketing trends in the hospitality industry. 7. Reference : Segmentation strategies for hospitality managers : target marketing for competitive advantage Segmentation Strategies for Hospitality Managers Target Marketing for Competitive Advantage Critical External Factors behind Hotels' Investments in Innovation and Technology in Emerging Urban Destinations...