strategic hospitality marketing group assignment
TRANSCRIPT
Faculty : Dr. Thomas Marshall
April 2013
Strategic Hospitality Marketing
Group Assignment:
Kimpton Istanbul Marketing Proposal
M Carolina Granda 219357
Jeanine Pacon 219252
Jorge Varela 304632
Martin Yamusah 305136
Rao Khalil 303651
Statement of authorship
We certify that this assignment is our own work and contains no material, which has been
accepted for the award of any degree or diploma in any institute, college or university.
Moreover, to the best of my knowledge and belief, it contains no material previously
published or written by another person, except where due reference is made in the text of
the assignment.
Signed ________________________
Signed ________________________
Signed ________________________
Signed ________________________
Signed ________________________
Date _____________________________________________
Table of Contents
1. Executive Summary ....................................................................................................... 1
2. Corporate Strategy and Critical Success Factors ........................................................... 2
2.1. Corporate Strategy.................................................................................................. 2
2.2. Critical Success Factors.......................................................................................... 5
3. External and Internal Analysis ........................................................................................ 6
3.1. Overview of the market ........................................................................................... 6
3.2. Competitor Analysis ................................................................................................ 8
3.3. Future trends ........................................................................................................ 10
3.4. PEST Analysis ...................................................................................................... 12
3.5. SWOT Analysis ..................................................................................................... 14
4. Marketing Objectives .................................................................................................... 15
5. Marketing Strategy ....................................................................................................... 18
5.1. Segmentation ........................................................................................................ 18
5.2. Targeting .............................................................................................................. 21
5.3. Positioning ............................................................................................................ 22
5.4. Competitive advantage ......................................................................................... 23
6. The Hotel: Implementation of the 4P’s .......................................................................... 23
6.1. Place..................................................................................................................... 23
6.2. Product ................................................................................................................. 25
6.3. Price ..................................................................................................................... 29
6.4. Promotion ............................................................................................................. 30
7. References ................................................................................................................... 33
8. Appendix ...................................................................................................................... 35
8.1. Appendix 1: CSF Details ....................................................................................... 35
8.2. Appendix 2: Competitor analysis ........................................................................... 40
8.3. Appendix 3: The wine hour ................................................................................... 47
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1. Executive Summary
Istanbul present great opportunities for a further Kimpton property to be opened, for which an
investment in the same is certainly more than worth it. Turkey has become one of the most
significant countries in the world for international tourism. It has furthermore led to be one of the
fastest growing economies in the world. Additionally, the country’s tourism sector has greatly
helped by reducing unemployment, raising the national GDP and improving the country’s balance of
payments.
An analysis of our main competitors show that they all have similar services and packages which are
given to the customer. Therefore, Kimpton should stand out by providing its trademark unique
personalised services and promotions.
Moreover, opening a Kimpton in Istanbul is an excellent opportunity to expand our target market
and reach American consumers as well. Although it is still mainly the European market which travels
to Turkey, the data gathered shows that in terms of countries from the American continent, the
United States still complies the highest amount of travellers arriving in Turkey of them all.
Lastly, it is to be noted that it is predicted that by the year of 2041, Turkey’s number of annual
tourist arrivals will be even greater than the UK and will almost meet Italy’s figures. In summary,
Kimpton Hotels and Restaurants should invest in Istanbul as its very unique style and marketing
strategy provide a great baseline in order to stand out from its competition. This would ensure its
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success in this new destination in Turkey, attracting both leisure and business guests, as well as
domestic and international tourists whilst retaining Kimpton’s core values.
2. Corporate Strategy and Critical Success Factors
2.1. Corporate Strategy
Kimpton Hotels and Restaurants was founded by the American Bill Kimpton, an investment
banker and hospitality industry pioneer, in San Francisco in the year of 1981 with the
“Clarion Bedford Hotel”; which would be the very first Kimpton boutique hotel of many.
At present, Kimpton’s goal is to operate exclusively boutique hotels. The main focus of each
of these hotels is on care, comfort, style, flavour, and fun while reflecting the energy,
personality, and pulse of its own location, history and architectural style. Moreover, each
hotel also aims to provide personalised guest services, comforting in-room amenities,
specialty rooms and suites, and a range of high level cuisine through chef-driven
restaurants.
Kimpton currently owns 12 hotels and manages 44 more around the world. Most of the
Kimpton properties are marketed under their own independent names as boutique hotels.
Every Kimpton hotel also has a unique design with the aim of each hotel to be a reflection of
its location. The original idea was to break the cookie-cutter mould most hotel chains have
and provide hospitality with personality. Therefore, it is not unusual for Kimpton properties
to originally have been rather old buildings with historical significance, which have then
been converted into hotels. Based on this idea, Kimpton Hotels and Restaurants consider
themselves as risk-takers when it comes to the renovation of these properties.
Moreover, the current CEO Michael Depatie has stated that the company has raised US$246
million with the goal of acquiring more than US$800 million worth of hotels over the next
three years. Hence, their main aim at present is the expansion of the company with the
money raised from a large variety of investors. Moreover, Kimpton Hotels and Restaurants
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bases its culture on individualism, in which both guests and employees are not only treated
as people, but as unique individuals. This can also be traced back to their marketing
strategy.
Being a relatively new brand, Kimpton seeks to not only expand their market base, but also
to retain their existing customers. In order to do so, they spend a small amount of funds on
advertising, but attract the media’s attention with interesting and innovative new programs
instead. Therefore, the media advertises for them at basically no costs. An example for
these programs is the “Guppy Love Program”. Kimpton Hotels and Restaurants are of pet
friendly nature. In order to support this idea and add a fun extension to the same, the chain
offers guests the opportunity of adopting a temporary travel companion; which in this case
is a goldfish; in order to give them company throughout their stay. While the idea was firstly
introduced at the Hotel Monacos in 2001, Guppy Love has now become a signature element
which has provided the chain with national and international attention. In addition to the
media’s interest, these programs also engender brand loyalty. The company’s loyalty
program is called “Kimpton InTouch”, and provides members with privileges such as
complimentary room nights and invitations to parties and dinners at selected cities.
Focusing more on the concept of pet friendliness within the Kimpton hotels, it is to be
mentioned that every hotel caters to customers with pets by offering them their own
packages and having a Director of Pet Relations at every hotel and. This is an addition to the
previously mentioned creation of innovative programs such as “Guppy Love” or the Paw-
Paparazzi Pet Contest, in order to support this idea. This last one allows pet owners to enter
fun photos of their pets onto the Kimpton website. These are then rated by other viewers
and a winner is chosen.
Furthermore, each of the Kimpton hotels has its own restaurant or bar which is marketed as
trendy or upscale, and is hence a cornerstone of the Kimpton brand. In addition to the
same, another key factor in Kimpton’s gastronomy is the wine. Most hotels host a wine hour
every night, during which the guests have the opportunity to sample complimentary wine.
This additional and unique touch is highly welcomed at the end of a busy day.
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Also wellness is very important for Kimpton. In addition to providing gym facilities, full spa
services and in-room spa services in every hotel, guests may also opt for complimentary
gear in order to perform on-demand yoga classes, meditation or yoga practices in their
room. Moreover, the Kimpton spas use paraben-free products on their guests and are
thereby the only hotels worldwide in doing so.
Another essential aspect of Kimpton’s corporate strategy is the focus on women and LGBT
communities. An example for this is the Annual Red Ribbon Campaign. Showing high
interest in the battle against HIV throughout the last 20 years, Kimpton Hotels and
Restaurants has managed to gather large amounts of money for the cause through
employee volunteerism, as well as by raising funds through special events and corporate
donations. Only in the year 2012, Kimpton achieved a total of $150,000 for local HIV
charities. A second example which is more women-based is the “Women InTouch” program,
through which the company sponsors Dress for Sucess Worldwide. This one is an
international non-profit organization which provides employment retention programs, as
well as professional clothing for women in need.
Last but not least, it is to be mentioned that Kimpton gives high importance to the qualities
of service, eco-friendliness and employee welfare within the company. This can be traced
back to the high amount of major awards achieved in these areas throughout the years;
such as the award for sustainable eco-friendly practices to the Hotel Monaco Portland for
introducing two electric car charging stations within the property.
All the previous mentioned aspects of Kimpton Hotels and Restaurants’ corporate strategy
will now be implemented within its new location in Istanbul, Turkey; and furthermore
combined with this new destination’s culture.
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2.2. Critical Success Factors
Looking at the corporate goals of Kimpton, it is possible to therefore extrapolate a series of
CSFs that any new Kimpton property would have to fulfil:
In order to provide a clearer inside into the same, the below table has been created.
Additionally, Appendix 1 provides more detailed information in regards to the same.
CSF MEASUREMENT SYSTEM TARGET
Occupancy Rate Number of guests staying 82% occupancy rate
Market Positioning Ranking amongst local hotels Amongst the top 3 within
local 4star hotels
Cost Control Audits of staffing
Constant supplier negotiation
Budget plans for each department within the hotel
Training plans for employees (e.g. up selling to control ADR)
Regular reviews of legal agreements such as service contracts, bank charges and insurance policies
Profit margin of 30%
Return on Investment Yearly profit margin
Yearly budgeting forecasts
Return on investment of 10%
Location Benchmarking
Analysis of industry reports
Easy access to transportation
methods (metro, taxi, bus)
Product Differentiation Analysis of competition POD; POP (points of
differences, points of parity)
Media Attention Number of features in media outlets At least 5-8 per year (within
the first 3 years)
Infrastructure Quality Benchmarking
Mystery shoppers
85% Mystery shopper
satisfaction
Guest Retention Number of return guests
Number of guests signing up for loyalty programs
20% return guests in the first
year, rising up to 40% within
the 3 consecutive years
Service Quality Guest satisfaction surveys
Mystery shoppers
Comment cards
Management observation
Employee appraisals and awards
SOP’s, performance targets, Checklists
90% satisfied
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Employee Satisfaction Yearly employee turnover rating
Employee feedback
30% employee turnover
Food Quality Number of complaints
Number of returned meals
5% returned meals
Wellness Quality Guest feedback on spa
Usage of gym percentage
30% of guest gym use
3. External and Internal Analysis
3.1. Overview of the market
According to Egresi, Bayram, Kara and Kesik, one of the most significant countries in the world for
international tourism, is Turkey. Also, this historically rich nation, has reported a growth rate of 8.8%
for the second semester of 2011. Therefore, it has lead to be one of the fastest growing economies
in the world (Egresi, Bayram, Kara, & Kesik, 2012). Additionally, it has helped by reducing
unemployment, raising national GDP and improving the country’s balance of payments. Moreover,
education is very important in the country and this leads to have qualified and competitive labour
force; however, there is still a lack of English language proficiency.
There are some opportunities that should be taken into consideration, for example, promotional
sales activities within the EU, which market the Turkish tourism industry. In addition, there is
unutilized tourism potential in golf, yatch and winter.
According to the Republic of Turkey Ministry of Culture and Tourism (MoCT), the number of
international arrivals in the country for the month of December 2012 has increased by 12.43% in
comparison of the same month of the previous year. It shows that in this month, Istanbul has the
highest percentage of international arrivals of 48.64%. Moreover, statistics show that there was an
increase of 1.04% from the year 2011 to 2012 as illustrated in Figure1
Figure 1.
DISTRIBUTION OF FOREIGNERS ARRIVING IN TURKEY BY YEARS AND MONTHS
YEARS RATE OF CHANGE (%)
MONTHS 2010 2011 2012* 2011/2010 2012/2011
JANUARY 809 974 975 723 981 611 20.46 0.60
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FEBRUARY 953 848 1 079 505 997 571 13.17 -7.59
MARCH 1 414 616 1 617 782 1 460 563 14.36 -9.72
APRIL 1 744 628 2 290 722 2 168 715 31.30 -5.33
MAY 3 148 337 3 283 125 3 232 926 4.28 -1.53
JUNE 3 500 024 3 780 637 3 882 592 8.02 2.70
JULY 4 358 275 4 597 475 4 571 389 5.49 -0.57
AUGUST 3 719 180 4 076 783 4 470 202 9.62 9.65
SEPTEMBER 3 486 319 3 923 546 3 991 415 12.54 1.73
OCTOBER 2 840 095 3 039 754 3 050 981 7.03 0.37
NOVEMBER 1 491 005 1 596 295 1 631 647 7.06 2.21
DECEMBER 1 165 903 1 194 729 1 343 220 2.47 12.43
TOTAL 28 632 204 31 456 076 31 782 832 9.86 1.04
Source: Republic of Turkey Ministry of Culture and Tourism
In addition to the previous figure, the number of international arrivals is distributed by
nationalities from 2010 until 2012 (refer to figure 2). The top three foreign visitors in
January-December 2012 are: Germany takes the first place by its share of 15.82%; Russian
Federation occupies the second with 11.33% of share and lastly, the United Kingdom by its
share of 7.73%. It is also important to take into consideration that the country with the
highest number of visitors to Turkey from the Americas’ is the United States of America with
771,837 travellers.
Figure 2
DISTRIBUTION OF FOREIGNERS ARRIVING IN TURKEY BY NATIONALITIES IN
2010-2012(*) JANUARY- DECEMBER (TOP TEN)
Countries 2012* SHARE % 2011
SHARE
% 2010 SHARE %
Germany 5 028 745 15.82 4 826 315 15.34 4 385 263 15.32
Russian Fed. 3 599 925 11.33 3 468 214 11.03 3 107 043 10.85
U.Kingdom 2 456 519 7.73 2 582 054 8.21 2 673 605 9.34
Bulgaria 1 492 073 4.69 1 491 561 4.74 1 433 970 5.01
Georgia 1 404 882 4.42 1 152 661 3.66 1 112 193 3.88
Netherlands 1 273 593 4.01 1 222 823 3.89 1 073 064 3.75
Iran 1 186 343 3.73 1 879 304 5.97 1 885 097 6.58
France 1 032 565 3.25 1 140 459 3.63 928 376 3.24
U.S.A 771 837 2.43 757 143 2.41 642 768 2.24
Syria 730 039 2.30 974 054 3.10 899 494 3.14
Others 12 806 311 40.29 11 961 488 38.03 10 491 331 36.64
Total 31 782 832 100.00 31 456 076 100.00 28 632 204 100.00
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Source: Republic of Turkey Ministry of Culture and Tourism
While Ankara is Turkey’s political capital, in regards of the population, Istanbul is the biggest
city and is considered to be the intersection point in the country (Republic of Turkey Prime
Ministry , 2010).
Additionally, according to some studies, the city remains to be the focal point for
international developers to enter the Turkish hotel market. It has experienced solid
increases in visitation and overnight numbers. Based on the chart below (chart 1), it is
shown a steadily increasing pattern from 2005 until 2009; this means that the level of hotel
performances in 2010 has been improving noticeably from previous years. Even though
rooms’ occupancy rate has also increased with 13.1% and for the year of 2011, decreased
1.7%. However, this decrease was compensated by a strong growth of 22% on Annual
Average Room Rate, consequently, RevPAR did a significant increase as well of 20.1% in
terms of Euro from 132.00 euros to 158.57 euros.
3.2. Competitor Analysis
According to statistical data provided by the tourism board, a very high amount of travellers
prefer to stay in 4 star hotels. The competitor’s analysis is therefore a crucial aspect within
our marketing plan, as it will allow us to determine what other hotels in the area are
offering and how we can distinguish ourselves in order to be successful. Based on the
information gathered, we came across 8 hotels in specific that we thought would be
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potential competitors considering our company’s profile. This decision was based on their
size and amount of rooms, hotel category, their location, services and promotions, as well as
other unique features such as the level of pet friendliness provided.
We have come to find out that only 2 of these competitors are pet-friendly. Kimpton,
however, is very engaged in this matter and has implemented a series of practices within all
of its hotel in order to support the travel with beloved pets and, hence, make it easier for
our guests to do so.
Moreover, we have informed ourselves about current packages they are working with, and
come to the conclusion that, in comparison, Kimpton proves more uniqueness and
innovation in this matter. Below is a list of our main competitors. However, in order to
provide a more detailed description of our competitive analysis, the table in Appendix 2 has
been developed.
Les Ottoman Hotel**** o 4star Hotel o Boutique Hotel o Rooms: 20 rooms o Price: 220 USD
Bosphorus Palace Hotel**** o 4star Hotel o Boutique Hotel o Rooms: 14 rooms o Price: 140 USD
Hotel Ramada Istanbul Asia**** o 4star Hotel o Rooms: 70 rooms o Price: 125USD
Blue Marine Hotel**** o 4star Hotel o Rooms: N/A o Price: 90USD
Hotel Villa Viens**** o 4star Hotel o Boutique Hotel o Rooms: N/A o Price: 180USD
The Bostanci Hotel**** o 4star Hotel o Rooms: 80 rooms o Price: 93USD
Hotel Suadiye Istanbul**** o 4star Hotel o Rooms: 156 rooms o Price: 108USD
Dila Hotel**** o 4star Hotel o Rooms: 80 rooms o Price: 70USD
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3.3. Future trends
It is predicted that the labour market in Turkey will keep improving within the next few
years and by 2040 this growth will lead to an improvement in the country’s economy. Their
countries population is forecasted to continue expanding and reach 90 million by 2040,
which is roughly a fifth of its current population. These figures can be compared to those
expected from China, where studies reveal that their population will grow by only 1%.
Furthermore, the majority of Turkey’s population will be young and in possession of a good
educational background. To justify this young population, it is estimated that by the year
2040 more than half of the country’s population will fit under the age category of 40 years.
Seeing that Turkey’s labour market is projected to develop even more in the future, this
creates an opportunity for the country to attract industries of higher value to start their
business in Turkey. Having said this, the government plays a critical role in providing the
necessary assistance to attract these companies. Examples of certain interventions that
would be helpful include an R&D incentive program, which proposes more appealing levels
of tax breaks, loans and grants for the companies that are of greater importance in terms of
value. In the future, and with the objective of rising production and efficiency levels, Turkey
could consider privatizing its energy, utility and infrastructure sectors.
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As illustrated in the above chart, it is projected that by the year 2040, Turkey’s existing level
of GDP per capita will have increased to over US$ 35,000. Furthermore, within the next 30
years, the gap between income levels in Turkey and other countries such as the USA will be
lower. Having said this, people will have more disposable incomes in Turkey, which could
lead to an increase in domestic travelling.
Currently, large sums of Turkey’s tourists are coming from countries such as Great Britain,
Germany and Russia. Moreover, it is predicted that in the future Turkey would like to attract
the growing Hungarian middle class market. From the chart below, it is predicted that by
the year of 2041, Turkey’s number of annual tourist arrivals will be greater than the UK and
will almost meet Italy’s figures.
Turkey in the future looks at focusing more on attracting the cultural and historical tourists
as a way of increasing its revenues.
Furthermore, for Turkey’s growth rate to reach levels of 5-6% per year in the future, the
issue of sustainability should be incorporated within their strategy. Being in the
Mediterranean, there is the possibility of Turkey becoming totally polluted within a time
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frame of 100 years. Having said this, it is important for Turkey to consider promoting the
development of sustainable practices in all sectors, identify other sources of energy and
reduce the greenhouse gases.
3.4. PEST Analysis
Political:
The Turkish government has policies on liberalization.
Supports liberal trade and investment policies allowing open trade within the EU
countries.
Political challenges facing Turkey are the extremist Muslims’ violent terrorists attacks
The intentions of the Union Agreement in 1996 have lead Turkish entities to get
bigger and more successful in the global economy.
Economical:
In Turkey the investment coming from overseas has a high flow, meaning that the
country’s economic growth is rising rapidly.
Istanbul preserves its position of being one of the most vital commercial centres in
the country.
In regards to exportation and importation, 36% and 40% passes through Istanbul
respectively.
The city accounts for 45% of national production and relatively the same percentage
of jobs.
Social:
Around the 1990s, Istanbul’s population grew approximately 3.8% on a yearly basis,
with the newcomers travelling into the city from the country sides.
99% of the population in Istanbul are Islam followers; 2/3 are Sunni and the rest are
Alevi (similar to Shiism Sect).
14.3% of the country’s population resides in Istanbul’s metropolitan area.
Crime remains lower than in other cities with comparable sizes.
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Over the past 3 years, from 2010 workers were allowed to gather to watch national
or international celebrations. However, it is not recommended for tourists to
participate in these celebrations, as incidents may happen.
There is an increasing proportion of young population. Beyond half of the population
in the city is below 30 years old.
Technological:
Turkey has the Supreme Council for Science and Technology (SCST), which is the
highest ranking policy-making body in Turkey.
In Turkey, the ICT sector is rapidly expanding by double-digits showing its success.
Istanbul has become the most powerful centre of the region with respect to
technology and innovation.
4 technological advancements for the tourism industry:
Mobile technology: applications, GPS connectivity, online mapping
facility.
Social networks: travel social networks (e.g. Joobili)
Search engines: hotels are using SEO (Search Engine Optimization) to
be more competitive within the online travel market.
Distribution channels: the introduction of specialized web based
software provides the industry with broader distribution channels for
business and travel operators.
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3.5. SWOT Analysis
Strengths:
Business friendly (there are no
constraints for foreigners to purchase
real state; average of 6 days to open a
new business).
Qualified and competitive labour force.
Low taxes and entrepreneurial incentives
Centrally located in the heart of Europe
(the only city which is simultaneously
located in 2 continents – Europe and
Asia).
More than 70% of the world’s energy
resources are located in Turkey and so
Established as a world-renowned tourist
destination.
Crime rate in Turkey is relatively low in
comparison to other countries of similar
size in the surrounding areas.
High reputation in terms of customer
satisfaction and service.
Good employee retention within most
industries
Prime location close to local transport
and tourist attractions.
Pet friendly hotels.
Eco-friendly hotels.
Unique innovative programs attract
social media low advertising
Weaknesses:
Although educated and affluent, there is
still a lack of an English proficient labour
force.
Relatively complicated tax system (tax
offices require the companies for an
excessive number of documents that will
be delivered together with the tax
statements on a monthly, quarterly and
also yearly basis).
Istanbul has a problem with traffic
congestion; transportation within the
city is primarily buses, taxis and private
automobiles.
Competition from long established hotel
chains.
Going abroad may lead to brand dilution
in USA
Cultural differences.
Unfamiliarity with local employees and
customs.
Possible language barriers.
Environmentally and ecologically
sensitive higher costs.
Lack of local managerial skills.
Opportunities:
Successful economy (Turkey being a
member of the G-20, is considered to be
one of the largest economies in the
world and Istanbul is responsible for 27%
of Turkey’s GDP).
Low level of vulnerability to the
economic crisis; opportunity for the
tourism industry to grow.
Promotional sales activities within the
Threats:
Socio-political unrest in the Middle East
and North Africa has made travelling to
that region of the world unattractive to
many tourists due to safety issues.
Croatia’s tourism industry is currently on
the rise and can potentially become one
of Turkey’s major competitors as a
tourism destination
Lack of joint promotional and marketing
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EU which market the Turkish tourism
industry.
Large number of businesses,
conferences & social events in the area.
Opportunity to attract local business
to the Hotel.
Growth within Turkey’s medical tourism
industry; currently one of the leading
hospitality and tourism trends.
Unutilised tourism potential not only in
coastal tourism but also in golf, yacht,
and winter sports.
Further deregulation within the airline
sector; less government control may
result in an increase of inbound and
outbound flights.
Consumers perceive Turkey as one of the
cheapest travel destinations in the EU.
Innovation in customer services
Existing increasing trend of being eco-
friendly oriented.
Well done renovations / better and
innovative interiors.
Creates job opportunities for the local
community socially sustainable
good reputation for the hotel.
Expansion of current customer market.
campaigns with various National Tourism
Organizations.
Possibility of war if political tensions rise
in the Middle East.
Threat of natural disasters, specifically
earthquakes, which could disable the
entire tourism sector.
Currency fluctuations.
Possible backlash.
Competition on price points.
Understanding and responding to new
customer demands.
Civil unrest.
US citizens holding an ordinary or official
passport are required to have a visa to
enter Turkey. They can acquire three-
month multiple entry visas abroad or in
Turkish border gates. The cost is $20 US
dollars or 15 Euros. (Republic of Turkey
Ministery of Foreign Affairs, 2011).
4. Marketing Objectives
Strong Customer Base - Tapping potential customers & retaining existing ones via strong
customer relationships.
Attractive Packages - Create irresistible offers for guests and corporate packages for
conferences & stay, seasons special room rates, complimentary meals. Further add on
benefits included in stay packages are spa vouchers, breakfast, a champagne bottle, etc)
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Taking the Kimpton membership program to the next level - Irrespective of whether they are
first timers or repeat guests, there is always something new to offer (Eg. added benefits, club
membership). Promoting the Kimpton membership program (loyalty cards, onward bookings
with special rates etc.) assures guests’ needs are satisfied and their expectations are met.
Feedback coming from both new and returning guests is not only essential for the hotel’s
success, but also a solid way of retaining customers.
Staff Involvement – ‘When the staff is happy, the guests are happy!’ This would ensure that
the staff is enthusiastically involved in all activities leading to guest satisfaction at every
possible level. We will ensure they are trained correctly in order to exceed the guests’ needs.
Having said this, they will be given orientations on how to familiarize themselves with repeat
guests and call them by their names. By providing such personalized service to each guest, we
believe that travellers will consider out hotel as their number one choice when visiting
Istanbul.
Increase familiarity - This will ensure all existing guests are known by their names, bridging
the gap between the guests and employees; and leading Kimpton to be their first choice in
Istanbul.
Market share prediction - As a new entrant into the industry, we have a foresight of achieving
a market share of 5% within the next 3 years. This is done through a detailed competitive
analysis on what they are offering and how we can be different. On top of that, the fact that
in 1995 there were 2,006,413 tourist arrivals in Istanbul and in 2008 this value was 7,050,748
indicated that it is a growing market. This growth favors the hotel’s goals of attracting tourists
to its facilities once it is opened and reach their target of 20%. The information below
indicates the number of arrivals to Istanbul over the past years. However, due to restricted
information for the most recent years, the details in the below table have been used to
project the growth in arrivals growth as well as the placement of our hotel in the near future.
YEARS ISTANBUL SHARE IN TURKEY (%)
1995 2, 006,413 26
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2000 2, 420,541 23.21
2001 2, 517,139 21.66
2002 2, 705,848 20.41
2003 3, 148,266 22.44
2004 3, 473,185 19.83
2005 4, 849,220 22.96
2006 5, 346,681 26.98
2007 6, 453,598 27.69
2008 7, 050,748 26.77
(Gezici, F., & Kerimoglu, E, 2010)
Occupancy rate increase - Achieve a growing occupancy rate of 10% a month (until reaching
our goal of an occupancy rate of 82%) and an annual growth rate in sales of at least 10% per
year.
Reduction of costs – Keeping advertising costs low by applying Kimpton’s corporate strategy
of creating unique and innovative programs and services; as well as showing community
involvement; which will attract media attention at low or no costs involved. Moreover, we
will maximize exposure through word of mouth & existing brand image.
Build a strong brand image in Turkey and the European market – stand out from the
competition through Kimpton’s unique design, innovative promotions and excellent service
quality.
Take over the online market - Increase our online presence through all interactive social
media platforms, such as Facebook, Twitter, LinkedIn and Flicker, amongst others.
Active working with third party intermediaries – We intend to actively involve third parties in
our processes and establish a good relationship with them, so that preference is given to
our hotel and assuring that the image potential guests are given is positive. Travel agents
and event organizers play an important role when it comes to making reservations for our
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hotel seeing that they are easily contacted by customers who want to plan their next trip.
Having said this, it is important to constantly be in touch with the most important ones and
offering them a good commission rate with the hope that this will result in a larger flow of
customers.
These objectives are based on the CSFs established previously, and can therefore be feasibly
achieved by using marketing techniques.
5. Marketing Strategy
5.1. Segmentation
Over the last year, over 36 million international tourists visited Turkey. When comparing it
to the figure of 33 million and less when looking back at the year of 2010 and previous years
to the same, an increase in tourism arrivals can be notices. By analysing information about
both international and domestic tourists, profiles of tourists can be developed and thus
segmentation of the markets be established. The markets can be divided as follows:
Geographic segmentation:
When segmenting tourists arriving into Turkey by geographics, the following 3
nationalities stand out
Germany, with 5,028,745 tourist arrivals in 2012, accounting for 15.82% of total
arrivals.
The Russian Federation, with 3,599,925 tourist arrivals in 2012, accounting for
11.33% of total arrivals.
The United Kingdom, with 2,456,519 tourist arrivals in 2012, accounting for 7.73% of
total arrivals.
Although the main arrivals come from Europe, it is to be noted that out of the
countries located in the Americas, the United States of America complies the highest
19
amount of visitors to Turkey with 777,837 tourist arrivals in 2012; accounting for
2.43% of total international arrivals.
Psychographic segmentation:
People visit Istanbul for a wide range of reasons. Whilst some are more interested in the
historical sights, others aim more towards experiencing a health and wellness focused
holiday; or strive to improve their health via medical tourism. This last trend has become
very popular, especially amongst the Germany tourists.
Furthermore, Istanbul has increasingly gained popularity when it comes to partying and
having a good time; especially after becoming the 4th most acclaimed tourism destination in
the European continent. This is supported by the fact that Istanbul belongs to both the
European and the Asian continent.
Lastly, it is also to me noted that a large amount of visitors arrive in Istanbul mainly on their
business ventures.
Based on the previous, the following key potential psychographic segmentations have been
developed:
1. Activities – sightseeing, meditation, Sufism, business and partying
2. Interests – health-conscious, history
3. Opinions – friendliness, warm, multicultural environment, religious
Demographic segmentation:
Based on information gathered about the typical Istanbul tourist, the following general
profile has been created:
Age: 20-49 years old
Life Cycle Stage: Adolescence and adulthood
Gender: both male and female tourists
Income: middle to upper middle – high
Occupation: wide range of occupations
Social Class: middle to upper class
20
The below table provides a more detailed range of information regarding demographics,
and was created by the Istanbul Technical University (Ciraci & Kerimoglu, 2005).
The Istanbul Technical University (Ciraci & Kerimoglu, 2005)
21
Behavioural segmentation:
Lastly, the following behavioural patterns in terms of knowledge and attitudes towards the
services and products have been established:
User Status: confirmed arrivals, potential arrivals and regular guests
Usage Rate: average length of stay: 2-6 days
Purpose of trip: leisure, business
Benefits: relaxation and revitalization, education, interaction with the local society, partying
Transportation: public transportation (underground), taxi, ferry boat, tour bus
5.2. Targeting
Once the segmentation procedure has been completed, the following target groups have
been determined in order to be targeted via our marketing strategies:
70% Leisure guests and 30% Business guests.
Out of the 70% leisure guests, 80% will be of European background, with the main
focus being on the largest amount of visitors which are Germany (33%), Russia (33%)
and the United Kingdom (33%).
The other 20% leisure guests targeted are Americans. These will hopefully be
attracted through the Kimpton brand.
The leisure guests targeted will be mainly friends and families travelling in groups.
They will be interested in sightseeing, eco-friendliness, wellness retreats and/or
partying and having fun.
Out of the 30% business guests, 50% will come from the domestic market (arriving
from prime locations such as Ankara, the countries’ political capital) and 50% from
the European market (mainly German).
These business guests will be looking for a convenient location, close to the business
and convention centres.
22
Moreover, these business travellers will mainly belong to the X and Y generations,
aged between 20-45 years of age.
It is to be noted that the German, Russian and UK markets will be also directly
targeted with marketing and direct advertising in prime locations such as Munich,
Moscow and London.
5.3. Positioning
When looking at the competitors previously presented, we have established our positioning
in the market using the following map. Our main aim is to provide not only a high quality,
but also unique and innovative service to our guests, whilst maintaining a competitive price
and therefore placing us amongst the highest competitors within the market.
23
5.4. Competitive advantage
After examining all of our potential competitors in the market, the following image
differentiation strategies have been developed:
We are an eco-friendly, sustainable in a city which seeks to become more
sustainable.
We are a pet-friendly hotel which offers specialized pet services such as the in-house
pet spa and amenities upon request.
We are the only hotel in the area offering Paraben-free products.
We offer in-room spa treatments upon request in addition to the unique partnership
with the Çemberlitas Hamam Spa.
We run a wine hour where our guests can enjoy some of the best and most
acclaimed wines worldwide.
We provide customized tours organized by our concierge.
We offer unique service and promotions.
We have a unique hotel design.
Potential expansion of the US market through the strong brand image Kimpton
Hotels and Resorts has already established.
6. The Hotel: Implementation of the 4P’s
6.1. Place
The new Kimpton hotel will be located in the center of Kadikoy, which is known for being
the main city of the Asian side of Istanbul. Being just a few minutes away from train and
ferry boats, the access to central areas becomes easy and fast. Just across from the Hotel is
an underground station, which is currently in renovation and provides a direct connection
between the Asian and European sides of Istanbul.
24
The fact the our property is located close to business convention centers, makes it easier
and less inconvenient for business travellers staying at our hotel to access for meetings.
Whilst exploring the surroundings, we came across a historic hotel in the city with a capacity
of 60 rooms that can easily be expanded to 75 rooms. Inside the hotel, there is an extensive
space that can be used as a meeting or convention room, and a restaurant with capacity for
up to 300 people. According to the standards of Kimpon Hotels, this idea fits easily within
Kimpton hotels standards. Being an old and prominent building within the Asian side of
Istanbul makes it and ideal opportunity to open up a boutique hotel of the Kimpton Hotel
and Restaurants group in Turkey.
Apart from the features mentioned earlier on, the hotel has space for a pet-spa, which can
be renovated so that it meets the standards of the hotel group; parking facilities, a fitness
center as well as a laundry/dry cleaning service.
The hotel will be constructed within a historic property of over 200 years old. Due to its age,
certain renovations will be taking place in order to provide guests with the flavor of Kimpton
hotels. This includes, keeping American standards and preserving the historic essence of the
building. From the map below, one can better understand the location of our hotel.
25
Renovation costs
During the past 20 years the city has experienced a major change with the development of
hotels. Currently there are 4 and 5 stars hotel brands, looking to find a place to establish
their hotels to compete in the market of one of the fastest growing cities in Europe and Asia
(PKF Hotel Experts, 2010).
According to an interview with Kemal Okmus, General Manager of Entegre Project
Management and Consultancy, the price of construction per square foot for a 4 & 5-star
hotel property is around € 1,200. This indicator applies to the cities that are located in the
Asian side of Istanbul and also depends on the status that specific area or location has (PKF
Hotel Experts, 2010).
Based on these values, the property on which the Sezgi hotel will be settled is a 42,000
square foot building which results in an estimated renovation cost of 26 million euros.
6.2. Product
The hotel will have a small number of rooms and will be located in a building that, as
mentioned previously, is over 200 years old. It is assumed to be an excellent property that is
ready to be renovated, within the requirements of the Kimpton hotel group. Opening up a
hotel in a new city where cultures are mixed and clients are different is always a risk. Taking
this into consideration, in order to achieve high levels of occupancy, our hotel will have a
small number of rooms which in the future can be increased to a larger number. When
designing our final product, some of the key aspects to be considered are the following:
Hotel
Reduced number of rooms
Small lobby
Convention room
Maintain property harmony with the environment of the city
Excellent location
Technologically advanced
26
Moreover, the below is some data on the bedrooms of the property:
Rooms
60 rooms in total
o 15 single
o 40 double
o 5 theme suites
Amenities
The Kimpton group properties have always focused on customer care and pay extreme
attention to detail. According to the standards set by the group, these are some of the
amenities that guests can have:
In-Room yoga classes, pilates or meditation practice
Spa for pets
Beds for pets available under request
Fitness centres & pools
Shop Kimpton style
Wine tasting
High speed wireless
Restaurant with an author cuisine, 100% organic ingredients
o Although the space the property has could be used for more people, the
restaurant will be renovated to handle 120 customers whilst the remaining
space will be used as a meeting room.
24 hours room service
Variety of pillows
Facilities for tourist tours
Free parking
The Sezgi Hotel will establish a partnership with Çemberlitas Hamam Spa, who will be
responsible for taking care of all the issues related to the proper functioning of the hotels
spa(Çemberlitas Hamam , 2011). This Spa Company was chosen as a partner because it is
27
well recognized in Turkey for having over 400 years of experience. Some of the services that
Çemberlitas Hamam Spa will be providing to the hotel guests are the following:
Hot room
Aromatherapy oil massages
Reflexology massages
Indian head massages
Facial clay masks
In room spa services
Full service spa
Tracing its operational beginnings to the year 1580, the Hamam Spa has been highly
recognized by tourists over the years as one of the main locations not to be missed out by
any spa lover (Çemberlitas Hamam , 2011). Its main facilities include original marble pieces
from the XVI century and a recently added coffee bar on the roof, which attracts many
tourists and local people.
In the Sezgi Hotel itself there will be some themes that will be part of the suites. Some of
them are:
Arabic theme
The Arabic suite will have a more detailed design: an exotic and romantic style decorated
with various types of fabrics, colorful mosaics, furniture, chairs and carpets that resemble
the Arabic style with bold colors. These will transport our guests to an Arabic setting.
Moreover, the bed sheets of silk and satin, and decorated with traditional Arabic prints, will
ensure a comfortable and relaxing good night sleep.
Asian theme
The exotic feel of the Asian themed suite will take our guests on a journey to the east.
Traditional Asian antiques and furniture adorned with hand-painted designs with feng-shui-
like patterns, enhance this feeling with their unique style and design. Additionally, the room
walls are light colored in order to pursue the idea of an oriental surrounding. Lastly, the bed
28
sheets will be made out of silk, decorated with different colors and patterns; whilst cherry
blossom designs will add a distinctive touch to this Asian pattern.
Pop art theme
The Pop Art theme was chosen for those clients who identify themselves with the
revolutionary ideas this kind of art represents. The suite will have a mix of eccentric and
inverted colors with unique features such as rather unconventional frames (eg. the art of
Andy Warhol). The entire suite will be decorated with innovative furniture; such as a round-
edged bed that irradiates a positive energy around the room.
Palace theme
The palace-like feeling will make our guests feel like royalty. In order to achieve the same,
we will be working on every single detail of the suite: large chandeliers, robust mirrors,
heavy curtains and a royal carpet, illuminated ceilings and a range of pictures and portraits.
Adding to all this, the predominant colors of the suite will be golden and bright red tones;
whilst the small living room will also reflect the palace-sensation with its throne-like chairs
and royal looking furniture.
Aqua theme
The Aqua suite is aimed to be the most expensive suite in the Sezgi Hotel. A range of blue
tones across the room will encourage a relaxing feeling. Moreover, extra special features
such as a glass floor, a large Jacuzzi, a fish tank incorporated to the wall and a water bed to
relax and recover from an exhausting day, will make this suite a highlight within the
property.
It is to be notices that the predominant blue color was chosen due to its representation of
calm helping guests to relax and to feel safe about themselves. Moreover, it brings peace to
the mind. However, soft grey and yellow tones will also be incorporated in order not to
loose the feeling of comfortability in the room.
29
6.3. Price
(Hogg Robinson Group, 2011)
According to the above table, it can be defined that the average price per room in 4 star
hotels in the city of Istanbul is 250 U.S. dollars per night.
Prices have been defined for different room types based on the information collected on
hotel competition and growth experienced by the city of Istanbul, as well as the entire
country. According to these criteria, the below prices have been established for our new
Kimpton hotel:
Room type Price
Single US$240 – 429 Turkish lira
Double US$290 – 520 Turkish lira
Suites US$350 – 625 Turkish lira
30
6.4. Promotion
According to the information gathered, it is now possible to establish a range of promotions
which are meant to attract the proposed target market whilst achieving our objectives on
customer satisfaction.
Regular
Different websites
The hotel will be promoted on different
websites to get known and for guests to keep
in mind its location and the fact that it is
existing in Istanbul.
Advertising
Use common media to publicize the new
Kimpton group property in the city of Istanbul.
It can be done through word of mouth, local
television, newspapers, magazines etc.
Travel agencies
Maintaining a close relationship with different
travel agencies as they play a very important
role in attracting new customers; and offering
different discount packages in order to achieve
a win-win relationship.
Direct discounts Offering discounts, coupons, tickets, gift cards
etc. to attract new customers.
Sustainable
Kimpton Hotels are known for being eco-friendly, which can be used as a way to attract
new customers and retain existing ones to the company. Some of the techniques that
could be used to achieve the same are
31
Charts
Provide information to all guests to help them
learn about the way Kimpton Hotels works
sustainably, supporting the local people and
being environmentally friendly.
Education
Provide classes on sustainability, how
customers can support these activities before,
during and after their stay at Kimpton hotels.
Programs
Develop programs in which the staff of the
hotel, guests and local people get involved in
various activities that support the environment,
community, etc.
Domestic & American
These promotions will focus on the Domestic and American markets because other
promotions are applicable to different types of customers. These two markets are
important to the development of the brand in Turkey, for which promotions targeting the
same are crucial. Some of these promotions are as follows:
Promotion Domestic American
Events
Offer different types of events to
promote the hotel between the
local people and make them
recognize the hotel.
Run events at Kimpton hotels within the
United States in order to create
awareness about the new hotel in the
city of Istanbul.
Packages
Offer different packages for
locals that are attractive to
them; where potential clients
could be attracted and regular
customers retained.
Offer discount packages to American
customers who have previously stayed
in one of the Kimpton hotels. This will
promote the hotel in Istanbul and those
that are already in the USA.
32
Social Media
In modern times different tools could be used to support the promotion of the hotel.
While the Internet and the hotel's website play an essential role, social media is
something that cannot be forgotten. Below are examples of social media that can be
efficiently used:
Facebook has proved to be a benchmark as a
tool to attract new clients and receive feedback
from existing customers.
Useful in order to publicize news or current
promotions. Given that only 140 characters can
be written per message, these must be very
precise and clear to the target market.
YouTube
Having videos on YouTube to talk about the
features and facilities offered by the hotel is an
effective method to attract new customers.
Mobile app.
Nowadays, smart phone applications are
essential and an excellent tool to create
awareness in regards to our property in
Istanbul. This is based on the high usage
percentages these gadgets have successfully
achieved.
33
7. References
Balekjian, C., & Oehmichen, A. Instanbul, Turkey Market Snapshot. HVS. London: STR Global.
Bosphorus Palace Hotel. (2013). Retrieved May 26, 2013, from
http://www.bosphoruspalace.com/en/index.html
Çemberlitas Hamam . (2011). Historical Turkish Bath. Retrieved from
http://www.cemberlitashamami.com/
Ciraci, H., & Kerimoglu, E. (2005). Urban tourism: an analysis of visitors to Istanbul. 1-21.
Critical Success Factors. (2013). Retrieved April 30, 2013, from Identifying the Things That
Really Matter for Success:
http://www.mindtools.com/pages/article/newLDR_80.htmhttp://www.mindtools.co
m/pages/article/newLDR_80.htm
Dickens, M. (2012). HotStats 2012. London: Hotstats Limited.
Dila Hotel. (2013). Retrieved May 02, 2013, from http://www.dilahotel.com.tr/index.html
Egresi, I., Bayram, B., Kara, F., & Kesik, O. A. (2012, May). Unlocking the potential of
Religious Tourism in Turkey. GeoJournal of Tourism and Geosites, 9, 64-78.
EWBC - Digital Wine Communications Conference. (2013). Retrieved May 01, 2013, from
Turkish Wine 101: The 5 Grapes that Make Turkey’s Wines Fantastic!:
http://ewbc.vrazon.com/turkish-wine-101-the-5-grapes-that-make-turkeys-wines-
fantastic/
Gabriella. (2012, February 7). EWBC - Digital Wine Communications Conference. Retrieved
from http://ewbc.vrazon.com/turkish-wine-101-the-5-grapes-that-make-turkeys-
wines-fantastic/
Gezici, F., & Kerimoglu, E. (2010). Culture, tourism and regeneration process in Istanbul.
Journal of culture, tourism and hospitality research, 252-265.
Hogg Robinson Group. (2011). Hotel Survey show increasing global hotel rates. Press
Release, 13.
Istanbul's Tourism number on the rise. (2013). Retrieved April 27, 2013, from
http://english.sabah.com.tr/travel/2012/08/04/istanbuls-tourist-numbers-on-the-
rise
Kimpton Hotels and Restaurants. (2013). Retrieved May 25, 2013, from
http://www.kimptonhotels.com/services/wine-hour.aspx
34
PKF Hotel Experts. (2010). Hotel, Tourism and Leisure. Press Release, 10.
Ministry of Culture and Tourism. (2007). Tourism Strategy of Turkey -2023. Turkey: Republic
of Turkey Ministry of Culture and tourism.
Ministry of Culture and Tourism. (2007). Tourism Strategy of Turkey 2023. Republic of
Turkey Ministry of Culture and Tourism, Anakara.
Ramada Istanbul Asia. (2013). Retrieved April 26, 2013, from
http://www.ramadaistanbulasia.com/eng/index.asp
Ramada Worldwide. (2013). Retrieved April 26, 2013, from
http://www.ramada.co.uk/hotels/turkey/istanbul/ramada-istanbul-asia/hotel-
overview
Republic of Turkey Ministery of Foreign Affairs. (2011). Visa Information for Foreigners.
Retrieved april 5, 2013, from Republic of Turkey Ministery of Foreign Affairs:
http://www.mfa.gov.tr/visa-information-for-foreigners.en.mfa
Republic of Turkey Prime Ministry . (2010). Turkish Tourism Industry Report. Republic of
Turkey Prime Ministry, Investment Support and Promotion Agency of Turkey.
Deloitte.
The Bostanci Hotel. (2013, May 02). Retrieved from
http://www.thebostancihotel.com/index.asp
Travel and Tourism in Turkey. (2013). Retrieved May 2013, from http://www.euromonitor.com/travel-and-tourism-in-turkey/report
Villa Viens. (2013). Retrieved May 01, 2013, from
http://www.villaviens.com/eng/toplanti.html
World Tourism Organization UNWTO. (2013). Retrieved April 16, 2013, from
http://www2.unwto.org/en
35
8. Appendix
8.1. Appendix 1: CSF Details
Occupancy Rate:
The target of 82% occupancy rate has been determined based on information gathered
from interviews with the CEO of Kimpton Hotels, Michael Depatie, who states that 80% is
what Kimpton hotels have been running at on average and therefore what would be
expected from one of their hotels.
Hence, the target has been set slightly above 80%, which presents a challenging but at the
same time reasonable goal. The results can be measured by recording the number of guests
staying at the hotel in a specific period of time.
Market Positioning:
At an occupancy rate of 82%, and a customer satisfaction rate of 90% average, this new
Kimpton Hotel is aiming to be positioned amongst the three best hotels in the area of his
range.
The ranking can be determined via websites such as www.tripadvisor.com, magazines like
Traveller and Hotels Magazine; as well as other media presenting detailed information in
regards to the same.
Cost Control:
In any hospitality related business, cost control is a main CSF. In order to keep control over
the same, several ways of measurement can be used. These include staffing audits, as
employee salaries play a big role in terms of costs. Other ways to measure this CSF are
constant supplier negotiations in order to obtain better deals, budget plans for each
department within the hotel, training plans for employees in order to increase revenue
36
(such as upselling methods within the Front Office of Food and Beverage departments), as
well as regular reviews of different sorts of legal agreements. These may include service
contracts, bank charges or insurance policies.
In order to provide an estimate in terms of cost control, we are aiming to have a profit
margin of 30% for the hotel, which can be achieved with the help of the same
Return on Investment:
As mentioned previously, Kimpton Hotels and Restaurants work with a large amount of
investors. Hence, a high return on investment is strongly recommended. To measure this
CSF the yearly profit margins and forecasts for the following years would have to be
analysed to predict whether or not the company would make a return on its investment.
Since this hotel will be newly launched, we will only aim for a return of investment of 10% in
order to stay realistic.
Location:
When thinking about a big touristic city like Istanbul, a hotel’s location plays an important
part in its success. Therefore, it is important to find a central setting which might seem more
appealing to potential customers than the competition. In order to meet these expectations,
we have found a location which provides an easy access to the main forms of transportation
within the city; such as taxi, bus and metro services.
In order to measure how effective our location is, there are a few measures which can be
applied. One of them is benchmarking and comparing ourselves to the competition and
their locations within the city. Another measure which could help us situate ourselves in the
ranking within the competition, is to make an analysis of industry reports if these are
available.
Product Differentiation:
Kimpton’s goal has always been to provide a unique experience in terms of both design and
services provided. Therefore, the new hotel in Istanbul should aim towards these two
aspects and differentiate itself from the competition through the same.
Based on wanting to set a realistic target, we are aiming to have at least 3 key differences
which will differentiate our hotel from the competition. In order to do so, constant
37
innovation will be necessary. Moreover, the amount of POD (Points of Differences) should
be higher than the amount of POD (Points of Parity) analysed.
Media Attention:
Kimpton Hotels and Resorts has spent a rather small amount on advertising in media in the
past. Instead, it has focused on coming up with unique selling points which attract the
media attention without having to purchase it. An example for the same is the previously
explained “Guppy Love” program. By coming up with further programs like this, we are
aiming to show media presence in between 5 and 8 different media outlets for the next 3
upcoming years.
Within the next 3 years, we are hoping for at least 5 appearances in media features per
year. This amount may slightly vary, ideally in an increasing manner.
Infrastructure Quality:
Being a new property within a high range of competitors within the area, an appealing
infrastructure is key in order to provide an inviting first impression of comfort and safety. In
order to be able to analyse our position within the area, one option would be
benchmarking. Therefore, hotel visits to the competition would need to be performed in
order to observe their positive and negative aspects in terms of infrastructure. Moreover,
working with mystery shoppers is another way to find out how satisfying the hotel’s
infrastructure is to the guests.
In order to set a target in terms of quality of infrastructure, we have decided on an 85%
satisfaction rate, which is determined by the visiting mystery shoppers.
Guest Retention:
According to the Market Metrix Hospitality Index, Kimpton Hotels and Resorts already is a
leader in guest satisfaction within the United States with a customer satisfaction score of
above 93%, and an emotional customer attachment score of 89%. This supports CEO
Michael Depatie’s statement, which confirms that the retention of customers is essential for
38
Kimpton due to the fact that the company seeks to take market share from existing hotel
chains and therewith expand its own customer base.
The level of guest retention can be measured by the number of repeat guests arriving at th
hotel within a certain timeframe. Moreover, a second measure would be the number of
guests signing up for Kimpton’s loyalty program, InTouch.
The average percentage of reservations coming through to the reservations department via
the loyalty program is currently at 30%. In other words, these are all guests which are
returning to Kimpton as a hotel chain, whether the property is located in Istanbul or
somewhere else around the globe. Considering we will be a new property to our guests, we
will be aiming towards a 20% of returned guests within the first year. This number should be
rising up to 40% within the three consecutive years.
Service Quality:
Customer satisfaction is highly dependent on the quality of service provided. Moreover,
customer satisfaction is one of the main objectives Kimpton has as a hotel chain. In order to
keep the levels of customer satisfaction high, the quality of service needs to be between
excellent and outstanding. There are several measurements in order to obtain feedback on
the same. One way would be via guest satisfaction surveys and comment cards. Moreover,
the quality of service can be assessed with the help of mystery shoppers or observation of
daily operations by the managerial staff. Furthermore, this information can also be gathered
through employee appraisals, as well as by the successful usage of SOP’s and Checklists. Last
but not least, also performance targets provide an idea on whether the standards of quality
of service are being achieved.
Although the property is naturally trying to be the best within its range, it is important to
stay realistic whilst still implementing a rather challenging goal. Hence, a customer
satisfaction rate of 90% is being aimed at.
Employee Satisfaction:
Kimpton, as an organization, highly values its employees and therefore cares about their
satisfaction and welfare. In order to keep satisfaction levels under control, yearly turnover
ratings need to be traced. Furthermore, it is also important to ask for the employees’
feedback in regards to their satisfaction at the workplace.
39
As the hospitality industry accounts for a high amount of young employees and, hence,
turnover cannot be completely avoided; we are aiming at a maximum of 30% employee
turnover per year. When analysing this figure and comparing it within the hospitality
industry, this amount is rather low.
Food Quality:
The quality of the food provided in Kimpton properties is one of their main assets; and each
one of these properties offers at least one dining facility in which guests can enjoy the same.
Considering the fact that the gastronomy side of Kimpton is one key aspect when it comes
to representing the brand, we are aiming towards a low amount of guest complaints and
percentage of returned dishes.
Wellness Quality:
Kimpton has a large focus on its wellness product and services. One of the reasons is its care
for women and their preferences. Hence, such as in all Kimpton properties, an appealing
delivery of spa and fitness services is highly aimed at for this new Kimpton property.
Furthermore, a large amount of tourists visit Turkey partly due to its fame for relaxing and
calm-delivering massages.
As it will be explained in more detail further on, the Sezgi hotel will be supported by
Çemberlitas Hamam Spa as partner in charge of everything related to the Spa within the
hotel property. Hence, it is important to record any guest feedback provided about the
same in order to take action if required so.
Due to the fact that many guests prefer the outdoors in order to pursue their fitness goals
whilst travelling, nearly only one quarter of hotel guests tend to make use of the in house
gyms provided. As we believe in our high quality gym facilities, we are therefore aiming
towards a 30% guest use for the gym, which is slightly above average.
40
8.2. Appendix 2: Competitor analysis
Hotels Location Facilities Services
ADR /
Total #
Rooms
Distribution
Channel Promotions
Pet
Policy
Bosphorus
Palace
Hotel****
(Boutique
Hotel)
Uskudar area, nearby
many tourist attractions
15 min from Kadikoy
Centre
In-Room Large beds, (single bed)
feather pillows, minibar,
safe box, LCD TV, AC, Bath
& shower, hair dryer,
bathrobe and slippers.
Outlets The Boathouse
(Kayikhane Restaurant)&
room service
Meeting area 2 meeting rooms with
different sizes up to
approximately 50 people.
Arranged with the latest
technology and
They facilitate the
transportation to the
hotel by boats. This
gives an easy access to
the European side of
Instanbul
24 hours service at the
front desk
Breakfast included
140 USD /
14 rooms
Own Website
Online travel
agencies
Booking
Websites
For weddings,
room is for free
Special cocktail
and dinner.
Pets are
accepted
but
there
are no
facilities
41
equipment.
Hotel
Ramada
Istanbul
Asia****
Recently opened in 2011
Uskudar area, nearby
Bo Bosphorus Pala Palace
Hotel
In-room Comfortable beds, TV
satellite, high-speed
internet access, Ipod /
Iphone station, safe box,
original paintings of
famous Turkish artists,
fire alarm, AC, hair dryer,
shower & bathtub,
Bathrobe, etc.
Outlets Buffet/ A la carte
restaurant, café bar.
Spa & Wellness Club and
Fitness Center
Meeting 4 flexible meeting spaces,
individuality controlled
AC, high quality of
equipment, from 12
people or less till 150
people
Provides 24hours
service in the front desk
and room service.
Movie rental
125 USD /
80 rooms
Own website
Ramada Chain
Website
Booking
Websites
By making
reservations
with a company
name, you will
get bonus points
per month as a
reward. (there
are corporate
promotions and
regular
promotions
Special price for
IATA members
Wyndham
Rewards= bonus
points or airline
tickets
N/A
42
Blue
Marine
Hotel****
Close to the Bosphorus
bridge, approximately 12
minutes to Kadikoy center
In-room Remote lighting drapery
and curtain, safety box,
Shower only, bathrobe,
free WiFi, AC,& climate
control, Minibar, LCD
Satellite TV.
Outlets Beachfront Restaurant,
pool side bar Swim-up
bar, picnic area
Meeting IT helpdesk and Business
center and Banqueting
facilities
Complimentary
breakfast
24 hours Floor butler/
Front desk/ Room
service
Business, Secretarial,
Translation,
Medical assistance
Self/valet parking
90 USD /
N/A
Booking
websites
N/A N/A
Hotel Villa
Viens****
(Boutique
Hotel)
Close to the Faith Sultan
Mehmet bridge in the Asian
Relatively low season
during January until May
High Season from May until
November and mid
In-room All of them are suites,
top line mattresses and
pillows, kitchen,
refrigerator, sofa and
chair, WiFi, AC, hairdryer,
terrace
Outlets
Bar opens 24 hours
Concierge
Airport transfers
Custom tours
180 USD /
N/A
Own website
Booking
websites
N/A N/A
43
December until 1st January Restaurant and bar
Swimming pool
Lounge
Meeting Multi-functional
reception hall
Catering in the pool area
Organize guests’
forthcoming itinerary
In the lounge area,
several table games are
provided
For events: Offer tea &
coffee and appetizers
throughout the day with
no extra charge
The
Bostanci
Hotel****
Located in Kadikoy
In-room City & Sea view, LCD &
Satellite TV, wired &
wireless internet,
minibar, generator, AC,
Safe box; bathroom with
Jacuzzi, hairdryer.
1 disabled room
Outlets 1 Restaurant
Meeting 2 meeting rooms:
capacity from 8 pax until
24 hours of rooms
service, bar and
restaurant
Free parking
93 USD/
80 rooms
Own website
(only in
Turkish)
Booking
websites
N/A N/A
44
150 pax.
Hotel
Suadiye
Istanbul****
Located in Kadikoy, very
closed to Sezgi Hotel
In-room Satellite TV, central AC,
free WiFi connection,
power generator,
Minibar, safe box,
shower, hairdryer
Outlets 1 Restaurant, 1 lobby bar
Spa, chargeable sauna
and gym
Meeting Meeting Hall up-to
110 pax. 4 meeting
rooms from 12 to 35
pax
24 hours room service
in spa: different
massages for different
needs, from relaxation
to sports massages
Free parking
108 USD /
156 rooms
Own Website
Booking
Websites
Travel
Agencies
N/A N/A
Dila
Hotel****
It is located in the city
center of Kadikoy.
First class business and
leisure hotel
In-room TV with 45 free channels,
pay TV, minibar, safe box,
bathtube
Smoking & non-smoking
rooms
While waiting to start
check in process, they
are offered a drink in the
lobby coffee-bar
70 USD/
80 rooms
Own Website
Booking
websites
N/A N/A
45
1 disabled room
Outlets 1 buffet restaurant, 1
lobby coffee bar, 1
terrace bar
fitness center
Meeting 3 meeting rooms with
high quality equipment
Les Ottoman
Hotel****
(Boutique
Hotel)
In the European side of the
Bosphorus river, in front of
Sezgi Hotel
In room: Satellite TV, minibar, safe
box, WiFi, Pc data port,
controlled AC, hairdryer,
bathrobe,
Outlet: 2 restaurants, 1 bar,
Meeting: Business center
Foreign currency
exchange
Parking
Reception and room
service 24 hours
Breakfast included
Early check-in and late
check-out
220 USD. /
20 rooms
Own Website
Booking
website
Travel agency
‘Evolution’ (a
distribution of
top hotel
sales,
marketing
Complimentary
one way transfer
from Ataturk
Airport
Accept
pets
only in
the
guest
room
area
46
Complimentary
welcome drink
Luggage Hold
and
representatio
n companies.)
47
8.3. Appendix 3: The wine hour
Kimpton Hotels is well known for its wine hours where a selection of well known international as
well as local wines are displayed for guest to taste whilst meeting in a relaxed environment in the
hotels lobby. During these wine hours, guests are able to talk amongst themselves and share stories
and places they have visited in the city (Kimpton Hotel, 2013).
In turkey, wine has been part of their culture for a long time. Having said this, the Turks want to be
recognized within the world’s best for having good quality wines. Currently, Turkey has a wide range
of indigenous grapes of which 60 are used for the production of wines. Since the market is
expanding, this encourages producers to innovate with different mixtures are endless (Gabriella,
2012).
Some of the most famous wine countries of the world, such as Spain and Portugal, have native
grapes that make them different from other producing countries. Turkey has developed and used an
original grape from the Ankara region, known as Kalecik Karasi, which has started to produce on a
worldwide basis.
Some Turkish wines that are worth mentioning and are well known by the rest of the world
include: (Gabriella, 2012):
White and sparkling wines
Emir. Bright minerality and delicate aromas of apple and citrus. This grape also happens to be
the protagonist in Turkey’s sparkling wine production.
Narince. Citrus and white flower aromas
Red wines
Kalecik Karası. Red berry fruits and a touch herb and chocolate
Öküzgözü. Red and black fruit aromas, over an earthy black earth base
Boğazkere. Dark fruit aromas