Premier Inn plans a family-room offer near an airport used by TUI holiday customers. The hotel manager has identified families with early flights as a possi...
Question 1 Report
Premier Inn plans a family-room offer near an airport used by TUI holiday customers. The hotel manager has identified families with early flights as a possible target market. The proposed product includes a room for four people, a breakfast bag collected at 04:30 and a shuttle-booking service. The manager must decide whether the price should be lower than nearby hotels or whether the extra services justify a higher price. During a trial weekend, 36 family rooms were sold at £118 each. The manager also wants to know which promotion options, such as airport posters, travel-agent emails and search-engine adverts, are likely to reach the target market. The following decision must not reduce the hotel’s service quality.
(a) State two features of the proposed Premier Inn family-room product. [2]
(b) Define the term target market. [3]
(c) State four reasons why an airport poster may not reach every potential Premier Inn customer. [4]
(d) Calculate the room revenue earned from the 36 rooms sold during the trial weekend. Show your working. [5]
(e) Define each of the following: market research, competitor, promotional mix, distribution channel, product differentiation and customer service. [6]
Answer Details
(a) Features include a room for four people, a breakfast bag collected at 04:30 and a shuttle-booking service. Any two gain credit. [2]
(b) A target market is the particular group of customers a business chooses to focus its marketing on because those customers have similar needs or characteristics. [3]
(c) An airport poster may not reach every potential customer because some families do not visit the airport before booking, and the poster is visible only in one location. Travellers may not notice it, online bookers may never see it, and its limited space restricts the detail provided. It may also reach non-family travellers or use a language overseas visitors do not understand. Any four gain credit. [4]
(d) \[36\times\pounds118=\pounds4248\] The trial-weekend room revenue is £4,248. [5]
(e)
- Market research: gathering information about customers or markets. [1]
- Competitor: another business offering similar products or services. [1]
- Promotional mix: the combination of promotion methods used by a business. [1]
- Distribution channel: the route through which a product or service reaches a customer. [1]
- Product differentiation: making an offer distinct from competing offers. [1]
- Customer service: help and support provided before, during or after purchase. [1]
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