Marketing Mix of Shangri-la Hotels and Resorts and 7Ps (Updated 2024)

The Marketing mix of Shangri-la Hotels and Resorts analyses the 7Ps of Shangri-la Hotels and Resorts, including the Product, Price, Place, Promotion, People, Physical Evidence, and Process of Shangri-la Hotels and Resorts. Shangri-La Hotels and Resorts, renowned for its business strategies, craft an exquisite marketing mix that epitomizes luxurious hotels. Shangri-la Hotels and Resorts is a public company based in Hong Kong. It is associated with the Tourism and hospitality industry as it deals in hotels and resorts. The multinational company is a subsidiary of its parent company, The Kuok Group of Companies. It was founded in 1971 by its Malaysian founder, Robert Kuok. It faces competition from the following rival brands.

• ITC Group
• Wyndham Worldwide
• Hilton
• Marriott International
• Santa Monica Hotel
• Four Seasons

About Shangri-la Hotels and Resorts

• Type: The luxury hotel chain
• Industry: Hospitality
• Founded: 1971
• Founder: Robert Kuok
• Headquarters: Kerry Centre, Quarry Bay, Hong Kong
• Area served: Worldwide
• Key people: Kuok Hui-Kwong (Chairman), Dennis Ho (CEO)
• Number of employees: 40,000

Shangri-la Hotels and Resorts Product Strategy

Shangri-la Hotels and Resorts serves different segments of business travelers via different brands, including Hotel Jen, Kerry Hotels, Traders Hotels, Shangri-la Resorts, and Shangri-la Hotels. The company has positioned itself as a brand that offers Asian standards of services and hospitality to its guests.

The product mix of Shangri-La Hotels and Resorts is diverse and tailored to cater to the upper echelons of society, emphasizing luxury and premium experiences.

The new Product Mix of Shangri-la Hotels and Resorts in 2024 is as follows (Source).

1. Variety of Hotel and Resort Brands: Shangri-La encompasses several brands, including Shangri-La Hotels, Shangri-La Resorts, Traders Hotels, Kerry Hotels, and Hotel Jen. This range allows them to cater to different segments within the luxury market.
2. Exclusive Clubs: The group also operates exclusive clubs like the Aberdeen Marina Club and the Xili Golf and Country Club, providing high-end recreational and leisure facilities.
3. Luxury Accommodations: Their properties are known for luxurious accommodations, offering various room types to suit different needs. These include Superior, Deluxe, Premier, and Horizon Club Rooms with additional privileges.
4. Themed and Family Suites: They offer unique themed and family suites, such as the Castle, Ice House, Safari, Space, Tree Top, and Winter Wonderland-themed family suites, catering to guests looking for a distinctive stay experience.
5. Diverse Dining Options: Shangri-La properties typically house multiple dining venues, including restaurants like the Coffee Garden and Shang Palace, as well as bars and lounges, providing various culinary experiences.
6. Meetings, Events, and Wedding Services: They offer comprehensive services for meetings, events, and weddings, including diverse event spaces and tailored packages.
7. Augmented Services: Additional services include beauty salons, clinics, shoe-shine facilities, valet laundry service, facilities for physically challenged guests, babysitting, gift shops, foreign exchange counters, and more, ensuring a complete luxury experience for guests.
8. Health and Leisure Facilities: Their hotels often include extensive health and leisure facilities, enhancing the overall guest experience.

Shangri-La’s product mix is designed to offer an abundant and comprehensive experience, combining luxurious accommodations, exclusive leisure facilities, diverse dining options, and augmented services, all tailored to meet the high expectations of how resorts serve their upscale clientele.

Shangri-la Hotels and Resorts Pricing Strategy

Shangri-La Hotels and Resorts’ pricing strategy is an intricate component of its business and overall marketing strategies, reflecting its status in the luxury hotel sector. Here’s an analysis:

1. Premium Pricing Strategy: Shangri-La predominantly adopts a premium pricing strategy, in line with its positioning as a luxury hotel chain. This approach is consistent with the high-quality services and exclusive experiences it offers to its upscale clientele.
2. Variable Pricing for Different Accommodations: Shangri-La employs variable pricing for rooms and services within its premium framework. This flexibility allows the brand to cater to varying levels of luxury preferences and needs among its guests.
3. Seasonal and Off-Peak Discounts: To optimize occupancy and attract a broader range of guests, Shangri-La offers discounts and special rates during off-peak seasons. This strategy helps in maintaining a steady flow of guests throughout the year.
4. Competitive Pricing in Certain Markets: Shangri-La adjusts its pricing to remain competitive while upholding its luxury brand image in highly competitive regions. This approach ensures market relevance and appeal in different global locations.
5. Value-Added Services: Beyond room rates, Shangri-La emphasizes value-added services, such as exclusive dining experiences, spa services, and unique local excursions. These services are often priced separately, adding to the overall premium experience.

In essence, Shangri-La’s pricing strategy is not just about setting high price points; it’s about creating a perception that the hotel offers unparalleled luxury and exclusivity, justified by exceptional service quality, unique experiences, and strategic seasonal pricing adjustments. This strategy enables Shangri-La to maintain its prestigious market position while appealing to a diverse range of luxury travelers.

Shangri-la Hotels and Resorts Place Strategy

Shangri-la Hotels and Resorts is a world-recognized hotel chain that serves Hong Kong. It has spread its presence to ninety-five resorts and hotels, including more than thirty-eight thousand rooms in Asia, Australia, North America, The Middle East, and Europe. The chain boasts luxurious five-star lodgings in Europe, Oceania, Canada, The Middle East, and Asia. Shangri-La offers a range of non-smoking rooms, from deluxe rooms to executive suites, providing an unparalleled beauty salon experience. Including amenities like foreign exchange counters aligns seamlessly with Shangri-La’s commitment to providing a comprehensive and upscale hospitality experience.

Shangri-La Hotels and Resorts’ place strategy involves a mix of global reach and localized experiences, reflecting their position as a world-renowned luxury hospitality brand. Here are the key points:

1. Global Footprint: Shangri-La boasts a significant global presence with properties spread across continents, including Asia, Europe, Africa, America, and Australia, catering to a diverse international clientele.
2. Urban and Exotic Locations: The hotels and resorts are strategically located in major urban centers and exotic destinations, offering guests a choice between city sophistication and serene escapism.
3. Luxury in Prime Locations: Shangri-La properties are typically prime locations within their respective cities or regions, ensuring easy access to key attractions and business districts.
4. Integrated Online and Offline Booking Systems: Shangri-La offers a seamless booking experience through its efficient online platforms and traditional reservation systems, catering to tech-savvy travelers and those who prefer conventional booking methods.
5. Focus on Local Experiences: Despite its global presence, Shangri-La places a strong emphasis on offering localized experiences, ensuring that each property reflects the unique culture and heritage of its location.

This strategic placement of Shangri-La Hotels and Resorts allows the brand to offer its signature blend of luxury, comfort, and cultural immersion to a wide range of guests worldwide.

Shangri-la Hotels and Resorts Promotion Strategy

Shangri-la Hotels and Resorts has adopted several key marketing strategies to increase its brand visibility. It has launched a new campaign, In Our Nature, emphasizing the essence of its brand, which is that hospitality is from the heart. As it is associated with the hospitality sector, its ad campaign has to earn kudos and accolades from the advertising world, hospitality sector, and consumer market. The ad was launched in several mediums, such as in-flight, television, newspapers, magazines, billboards, and hoardings.

Shangri-la Hotels and Resorts have realized their responsibility towards nature and offered luxurious settings without compromising natural resources. The brand ensures its employees respect local traditions, conserve biodiversity, restore natural habitats, and manage energy, water, and waste. It works towards eco-friendly activities. Most of the parking facilities at its hotels are certified under ISO 14001 Environmental Management Systems.

Shangri-la Hotels and Resorts started a care-for-people project, Embrace, in 2009. This is a commitment from each of the hotels and resorts attached to this luxurious hotel chain to enter into a partnership with a beneficiary and work towards the education and health of children.

Shangri-la Hotels and Resorts have received several awards and recognition, including Best Hotel Chain in the Asia Pacific, Best Business Hotel Chain in China, One of the World’s Best Hotel Groups, Best Luxury Hotel Brand, and Best Business Hotel Brand in Asia-Pacific. Shangri-la Hotel, Beijing, has received the Best Hotel in Beijing Award. Shangri-la Hotel Toronto received five diamond ratings from AAA for its spacious rooms and impeccable services.

Some Recent Video ads and Print ads for Shangri-la Hotels and Resorts are:

Shangri-la Hotels and Resorts People Strategy

Shangri-La Hotels and Resorts, a leading name in the hospitality industry, emphasizes excellence in service, luxury, and guest satisfaction. Its service marketing mix’s ‘People’ element is crucial in maintaining its prestigious reputation. Here are several critical points about the ‘People’ aspect of Shangri-La Hotels and Resorts:

1. Staff Training and Development: Shangri-La invests heavily in the training and development of its staff to ensure they provide impeccable service and possess a deep understanding of the brand’s culture and values. This includes extensive hospitality training programs, leadership development initiatives, and continuous learning opportunities to enhance their skills and career growth.
2. Customer Service Excellence: The brand is renowned for its exceptional customer service, with staff members demonstrating warmth, attentiveness, and personalized guest care. Employees are empowered to go above and beyond to meet guests’ needs, ensuring a memorable stay.
3. Diverse and Multicultural Team: Shangri-La’s workforce is multicultural, reflecting the global nature of its operations. This diversity enriches the guest experience by bringing in varied cultural perspectives and languages, which is particularly beneficial in catering to international guests.
4. Employee Satisfaction and Welfare: Recognizing the direct link between employee satisfaction and customer satisfaction, Shangri-La strongly emphasizes the welfare and well-being of its employees. This includes competitive compensation, benefits, work-life balance initiatives, and a respectful work environment.
5. Service Culture and Values: The brand’s philosophy, “Shangri-La Hospitality from a caring family,” underpins its service culture. Employees are considered part of a large family where mutual respect, care, and support are foundational values. This culture is evident in the way staff interact with guests and each other.
6. Role of Frontline Employees: Frontline staff such as concierges, receptionists, and service personnel play a pivotal role in shaping guest experiences. Their professionalism, knowledge, and efficiency in service delivery are critical in upholding the brand’s reputation.
7. Recruitment Strategy: Shangri-La’s recruitment strategy focuses on hiring individuals with the necessary skills and experience that fit the company’s culture and service ethos. Personality, attitude, and connecting with guests are highly valued traits.
8. Internal Communication: Effective internal communication mechanisms are in place to ensure that staff at all levels are well-informed about the hotel’s policies, guest feedback, and operational updates. This facilitates a cohesive working environment and enables staff to respond swiftly to guests’ needs.
9. Empowerment and Accountability: Employees are empowered to make decisions that enhance guest satisfaction, fostering a sense of accountability and ownership over their roles. This empowerment encourages innovation and proactive problem-solving among staff.
10. Community Engagement and Social Responsibility: Shangri-La’s employees are encouraged to engage in community service and sustainability initiatives, reflecting the brand’s commitment to social responsibility. This benefits their communities and instills a sense of purpose and pride among employees.

Shangri-la Hotels and Resorts Process Strategy

The “Process” element of the service marketing mix for Shangri-La Hotels and Resorts encompasses the operational procedures and mechanisms through which services are delivered to guests. This aspect is critical in ensuring efficiency, quality, and guest satisfaction. Here are vital points detailing the “Process” at Shangri-La Hotels and Resorts:

1. Reservation and Booking Process: Shangri-La offers a seamless and user-friendly booking process through various channels, including its website, mobile app, and third-party platforms. This process is designed to be efficient, providing guests with detailed information on room availability, rates, and special offers.
2. Check-In and Check-Out Procedures: The hotel ensures a smooth and swift check-in and check-out experience for guests. This includes the option for online check-in, express check-out services, and personalized attention from the staff to handle any requests or concerns.
3. Quality Management Systems: Shangri-La employs comprehensive quality management systems to maintain high service and guest satisfaction standards. This includes regular audits, guest feedback mechanisms, and performance benchmarks to improve service delivery continuously.
4. Guest Service Delivery: The hotel has standardized procedures for all aspects of guest service, from room cleaning and maintenance to dining and concierge services. These procedures ensure consistent and high-quality experiences for all guests.
5. Customized Guest Experiences: Recognizing the diversity of its clientele, Shangri-La has processes in place to tailor services and experiences to meet individual guest preferences. This includes personalized greetings, custom room arrangements, and bespoke dining options.
6. Employee Training and Development: Integral to Shangri-La’s process is its staff’s ongoing training and development. This ensures that employees are well-versed in the hotel’s operational procedures and service standards and equipped to deliver exceptional service.
7. Health and Safety Protocols: In response to global health concerns, Shangri-La has implemented rigorous health and safety protocols across its properties. These processes are designed to protect guests and staff while maintaining the quality of the guest experience.
8. Feedback and Continuous Improvement: Shangri-La strongly emphasizes guest feedback to refine and improve its processes. Guest reviews, surveys, and direct feedback are systematically analyzed to identify areas for enhancement.
9. Technology Integration: The hotel leverages technology to streamline operations and enhance guest experiences. This includes using digital platforms for service requests, in-room technology for guest convenience, and data analytics to optimize operational efficiency.
10. Sustainability Practices: Shangri-La’s processes also reflect its commitment to sustainability. This includes waste reduction, energy conservation, and sustainable sourcing practices integrated into daily operations to minimize environmental impact.
11. Crisis Management and Contingency Planning: The deluxe hotel has established crisis management and contingency planning processes to ensure guest safety and business continuity in the face of unforeseen events.

Shangri-la Hotels and Resorts Physical Evidence Strategy

The “Physical Evidence” component of the service marketing mix for Shangri-La Hotels and Resorts encompasses the tangible and intangible elements that help to shape and reinforce the brand’s image, supporting the overall guest experience. Here are vital points detailing the “Physical Evidence” at Shangri-La Hotels and Resorts:

1. Luxurious and Culturally Inspired Design: Shangri-La properties are known for their luxurious design, often incorporating local cultural elements. Each hotel’s architecture and interior design blend modern luxury with traditional aesthetics, creating a unique and inviting atmosphere.
2. High-Quality Guest Rooms and Amenities: The rooms and suites at Shangri-La Hotels are designed to offer supreme comfort and luxury. High-quality bedding, state-of-the-art technology, elegant furnishings, and premium amenities are standard, ensuring guests a memorable and comfortable stay.
3. Well-Maintained Facilities: Shangri-La places a strong emphasis on the maintenance of its facilities, including lush gardens, swimming pools, fitness centers, and spas. These well-kept, state-of-the-art facilities contribute to the overall perception of quality and luxury.
4. Branding Elements: The brand’s logo, color scheme, and other visual elements are consistently displayed across various touchpoints, including staff uniforms, signage, stationery, and digital platforms. These elements reinforce brand identity and contribute to a cohesive guest experience.
5. Signature Scent and Music: Many Shangri-La properties utilize a signature scent and background music to create a welcoming and serene atmosphere. These sensory elements are carefully chosen to reflect the brand’s identity and enhance the guest’s emotional connection with the space.
6. Exceptional Dining Experiences: The presentation of food and beverage outlets, including restaurants, bars, and lounges, plays a significant role in the physical evidence. The design, ambiance, menu design, table settings, and quality of service all contribute to the overall dining experience, reflecting the hotel’s commitment to excellence.
7. Website and Online Presence: Shangri-La’s website and digital platforms serve as virtual physical evidence. These platforms’ design, functionality, and content reflect the brand’s luxury positioning and are crucial in providing information and facilitating bookings.
8. Marketing Collaterals: High-quality brochures, advertisements, and promotional materials that showcase the hotel’s facilities, services, and unique selling propositions serve as tangible evidence of the brand’s luxury and service standards.
9. Guest Reviews and Testimonials: Positive reviews and testimonials from past guests serve as intangible physical evidence, reinforcing the brand’s reputation for excellence in hospitality. These are often highlighted on the hotel’s website and marketing materials.
10. Environmental Sustainability Initiatives: Physical evidence of Shangri-La’s commitment to sustainability can be seen in eco-friendly practices and materials used throughout the hotel, such as energy-efficient lighting, water conservation systems, and sustainable sourcing policies.
11. Health and Safety Measures: Visible health and safety measures, especially in response to recent global health concerns, reassure guests of their well-being. This includes sanitization stations, social distancing markers, and clear communication of health protocols.

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