Proceedings of Business and Economic Studies, 2022, Volume 5, Issue 5

http://ojs.bbwpublisher.com/index.php/PBES
ISSN Online: 2209-265X
ISSN Print: 2209-2641

Marketing Analytics Case Study: Hotel Catalonia

Barcelona Plaza
Lan Shen*
International Business Economics, University of Nottingham, Ningbo 315000, Zhejiang Province, China

*Corresponding author: Lan Shen, [email protected]

Copyright: © 2022 Author(s). This is an open-access article distributed under the terms of the Creative Commons Attribution License (CC
BY 4.0), permitting distribution and reproduction in any medium, provided the original work is cited.

Abstract: Imagine a scenario where Hotel Catalonia Barcelona Plaza approached a consulting company, seeking to
understand its customers and improve its performance. The hotel provided its room booking records from 2015 to 2017 to the
consulting company, while the consulting company collected tweets about the hotel, its customer reviews from Booking.com,
and the reviews of other hotels in Barcelona. With all the data collected, the consulting company conducted an analysis to
help the client hotel understand its customers and performance, and subsequently provided corresponding recommendations
based on the findings.
Keywords: Marketing analytics; Luxury marketing; Tourism marketing
Online publication: October 21, 2022

1. Executive summary
1.1. Company background information
Hotel Catalonia Barcelona Plaza is ideally located in Plaza España. The hotel provides optimum comfort
to its customers with newly renovated magnificent rooms and stunning views. In order to meet the various
demands of its customers, it has complete facilities for fitting, business, and leisure purposes. Notably, it
has an outdoor swimming pool on its terrace and gymnasium for those who wish to stay in shape.
Additionally, the hotel has 11 meeting rooms for business meetings and corporate events on its premise. In
terms of food and feast, customers are able to enjoy the impeccable food and services offered by its two
restaurants: a café and a gardened marquee for parties and celebrations.

1.2. Assumptions and tasks

This report is based on the hotel’s data from 2015 to 2017, aiming to explore its business potential and
improvements without the influence of the COVID-19 pandemic. In order to achieve this, a comprehensive
analysis is conducted to understand the consumers of this hotel and investigate the profiles of existing target
audience (TA). Thereafter, the performance of the hotel is evaluated from different aspects, including
strategic positioning compared with main competitors. A review analysis utilizing sentiment data and topic
modelling is also discussed in this report. Finally, feasible recommendations are proposed from both,
strategic and tactical levels to help Catalonia Barcelona Plaza bolster its established status and develop into
new markets.

1.3. Insights
The consumer segments that the client hotel served in the past three years consist of business people,

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couples, and getaway families, amongst which business people and couples have made the largest
contributions. Taking into account of the communication messages delivered specifically to business people
on the official website, the target consumers of the client hotel can be defined as follows: corporate road
warriors as the core audience, family getaway-oriented travelers as halo audience 1, and romantic trip-
oriented couples as halo audience 2.
The client hotel and its main rivals each have their own niche in the hotel industry, thus creating a
delicate equilibrium. However, in order to increase its market share, the client hotel may target a profitable
and prospective market segment, namely solo tourists, without significantly disrupting the equilibrium.
Reviews have revealed a slight rise in customer dissatisfaction with the client hotel over the past three
years. The customers are mainly dissatisfied with the facilities and environment in the rooms, bathrooms,
bar, breakfast, and staff services; however, many are pleased with the client hotel’s location and view.

1.4. Recommendations
(1) Develop varying strategies for four different consumer segments.
(2) Improve the quality of offerings and provide personalized services.

2. Consumer understanding

Figure 1 shows that the client hotel often receives reservations from 2 adults, followed by 1 adult, and 3–
4 adults or above. In terms of nationality, tourists from France, Germany, and Britain account for the top
three reservations out of all nations (Figure 2).

Figure 1. Proportion of reservations by the number of adults

Figure 2. Number of reservations by country of origin

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 By classifying the guests by the number of adults who made reservations and checked in, there are
three categories as shown in Figure 3: category one (1 adult); category two (2 adults), and category three
(2–4+ adults). These three categories can be further subdivided based on the number of children and babies
each booking relates to. For instance, category one (1 adult) can be divided into “1 adult with 0 children or
babies” or “1 adult with 1–2 children.” To be precise, they are two groups: “business people” and “one
parent with children or babies.” In terms of their contributions to the client hotel, the aforementioned
“business people” contributed 15.4% of the total reservations from 2015 to 2017, whereas the reservations
made by “one parent with children or babies above” were 0.5% of the total.

Figure 3. Customer segmentation

Insights
Therefore, the consumer segments that the client hotel have served in the past three years mainly consist
of business people, couples, and getaway families, amongst which business people and couples have made
the largest contributions. Taking into account of the communication messages seen on the official website
of the hotel, their focus is on business aspects to attract business people, as shown in Figure 4. Hence, the
existing target audiences of the client hotel can be defined as follows: corporate road warriors or business
people as the core audience, followed by family getaway-oriented travelers and romantic trip-oriented
couples as the two types of halo audiences (Figure 5).

Figure 4. Communication messages on the official website that focus on attracting business people

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 Figure 5. Existing target audiences of the client hotel

Accordingly, the representative of each target audience can be defined (Figure 6). Kévin, from France,
represents corporate road warriors, the Schmidt family from Germany represents family getaway-oriented
travelers, and Lily and Jack, from Britain, represent romantic trip-oriented couples.

Geographic French
characteristics
Psychographic • Personality: positive, proactive, adaptive and willing to
characteristics embrace challenges
• Lifestyle and value: dress well and keen on fashion;
quality-concerned, less price-sensitive; prefer to “chill”
after working hours; focus on self-improvement
Demographic • Age: 30 years old
characteristics • Occupation: international trade
• Income: generally well-paid
• Education: MBA
• Family and household: single

Geographic German
characteristics
Psychographic • Personality: family and children come first
characteristics • Lifestyle and value: keen on comfortable experience and
of parents value family togetherness
Demographic • Age: 35 years old
characteristics • Occupation: white collar
of parents • Income: generally well-paid
• Family and household: 2 children
(10 months and 3 years old)

Geographic British
characteristics
Psychographic • Personality: caring and sweet to each other
characteristics • Lifestyle and value: dress well and keen on fashion; not
keen on travelling but rather spending time together in the
hotel; expecting to celebrate their one-year anniversary
Demographic • Age: 25 years old
characteristics • Occupation: 3-year working experience
• Income: not well-off but spend generously on this
romantic trip
• Education: bachelors
• Family and household: a year into this romantic
relationship

Figure 6. Profiles of representative target audiences

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3. Performance evaluation
In this section, the performance of the client hotel is evaluated, focusing on two key factors: strategic
positioning assisted by competitive profile matrix, and its customer reviews investigated by sentiment
analysis and topic modelling.

Insights
(1) The client hotel and its primary competitors each have their own niche position in the hotel industry,
thus creating a delicate equilibrium. However, in order to grow its market share, the client hotel may
develop a profitable and promising market segment, namely solo travelers, without disturbing the
equilibrium to a large extent.
(2) There has been a slight increase in customer dissatisfaction with the client hotel, as reflected in reviews
over the past three years. The customers are dissatisfied with the facilities and environment in the rooms,
bathrooms, and bar, staff services, as well as the breakfast provided; however, many are pleased with the
staff, location, and view of the client hotel.

As a renowned destination for visitors with leisure purposes and the world’s top city for workcations
[1]
, Barcelona is packed with hotels, in which fierce competitions exist between them. As shown in Figure
7 [2], among all the cities around the globe, Barcelona ranks 13th in the ranking of “Cities with the Most
Hotels.” Consequently, in order to distinguish themselves from these hotels, a solid positioning strategy
would be crucial to delivering precise messages to the right consumer segments and ultimately providing a
return on investment [3].

Figure 7. Ranking of cities with the most hotels

Having gathered information from the client hotel’s official website, a complete picture of its
positioning is illustrated in Figure 8. It claims to be an ideal accommodation for business trips and short
breaks, and it emphasizes a high price-facility ratio to target primarily corporate road warriors.

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 Figure 8. Details of the client hotel (offerings, TA, communication highlights)

Based on the location of the client hotel on Google Maps, the hotel cluster surrounding Catalonia
Square, which is the heart and center of Barcelona, could be identified. Eight hotels in this cluster are
marked by blue locators in Figure 9.

Figure 9. Hotel cluster around Catalonia Square on Google Maps

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 In order to determine the client hotel’s main competitors, the competitive profile matrix is employed.
This matrix, as shown in Figure 10, is used to further determine the main competitors of the client hotel,
thus narrowing down the company’s main rivals and comparing them based on the industry’s key
competitive criteria [4]. This may help the client hotel better understand its external environment and its
competitors [5]. The intuition of this matrix is to first define the possible criteria, and then assign each
dimension a weighting and rate the hotels according to their actual competitiveness. By filtering and
gathering average review ratings and the total number of received reviews from the given data (Figure 11),
the 8 hotels can be compared to the client hotel in the matrix. Taking Ayre Hotel Gran Via as an example,
the hotel may receive 1 in the first dimension (“star rating compared with us”) since it has the same star
rating as the client hotel. In terms of review rating, it is comparable to the client hotel; hence, it is given 1
as well in the dimension “review rating compared with us.” Likewise, the dimensions of “proximity to us”
and “popularity compared with us” can be scored. From the results, it is clear that Ayre Hotel Gran Via,
Pestana Arena Barcelona, and Ofelias Hotel 4⋆ Sup are the top three key competitors, as indicated by red
stars in Figure 9.

Figure 10. Competitive profile matrix

Figure 11. Average review rating and total number of reviews received

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 Similarly, the profiles of the aforementioned main competitors are analyzed below.
(1) Pestana Arena Barcelona: a boutique hotel in the center of Barcelona that caters to travelers who are
concern about the price-value ratio.

(2) Ofelias Hotel: a hotel that provides a harmonious stay in an environment dominated by beauty and
sensuality, serving solo travelers who expect to enjoy individual hours.

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(3) Ayre Hotel Gran Via Barcelona: the ideal accommodation for business people, families, and young
couples.

A perceptual map based on the positioning strategy of these hotels is depicted, where the four hotels
occupy varied places among their competitors. A perceptual map is a diagram used to map out how
consumers perceive brands or items; it helps businesses stay in a greater ecosystem by understanding the
relative positioning of different competitors [6]. For the client hotel, it is situated in the blue area, delivering
messages of high price-value ratio to customers, ranging from business people to families and couples.
Hence, it can be said that its performance on strategic positioning is evident and distinct in this competitive
hotel industry. However, there is still considerable potential for the client hotel to build a new market
segment – solo travelers – as represented by the blue dashed section in Figure 12.

Figure 12. Perceptual map of the client hotel and its three main competitors

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 The second part of performance evaluation employs sentiment analysis and topic modelling. Based on
the given sentiment data of the client hotel, the yearly aggregate strength of reviews can be calculated by
summing up the aggregate strength of positive and negative reviews per year (Figure 13).

Figure 13. Sentiment strength analysis

The client hotel’s performance can be evaluated by the changes in average sentiment strength over the
past three years. Figure 14 shows a decline in the hotel’s average sentiment strength from 2015 to 2017,
indicating that the customers’ affection for the client hotel as reflected in reviews is waning.

Figure 14. Average sentiment strength from 2015 to 2017

In this case, the client hotel should be more cautious about their offerings and deal with the
dissatisfaction of customers as indicated in their reviews. By visualizing both, positive and negative reviews
from topic modelling, word clouds are generated to show the prominent topics among customers. In terms
of negative reviews, the most discussed topics among customers are room, bathroom, bar, breakfast, staff,
reception, etc., whereas in terms of positive reviews, guests tend to praise the staff, location, and view of
the client hotel (Figure 15 and Figure 16).

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 Figure 15. Visualization of positive reviews on the client hotel via topic modelling

Figure 16. Visualization of negative reviews on the client hotel via topic modelling

4. Recommendations
4.1. Develop varying strategies for different segments
Firstly, based on customer understanding, it is clear that the target audiences of the client hotel are mainly
business people, followed by couples and families. According to strategic positioning analysis, there are
blue oceans for the client hotel to explore, namely solo travelers. This market segment is anticipated to have
significant business prospects. According to a survey by Klook in 2019 [7], 76% of the 21,000 people polled
globally disclosed that they have traveled alone or are contemplating it. Furthermore, the data obtained
from Google Trends have revealed that the number of people traveling alone has grown by 761.15% and
many people are continuously seeking for solo travel opportunities. Therefore, the client hotel can consider
developing this promising market for business expansion. Accordingly, different strategies for different
target audiences are formulated.
On the tactical level, the client hotel can launch an integrated marketing campaign. This is a form of
communication strategy that combines multiple channels to assure the consistency of messages delivered
to the target audiences [8]. For instance, the message that the client hotel can impart is as follows: “We are

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a hotel that welcomes all groups of people, and anyone may make themselves at home here, regardless of
who they are.” This message can possibly resonate with potential consumers from the four expected target
audiences, thus making them feel welcomed. Moreover, as shown in the visualization of positive reviews,
the hotel’s location and view are among the most highly discussed topics. More specifically, they are the
competitive advantages that should be emphasized in communications. This integrated marketing
communications (IMC) campaign can highlight that fact that the hotel is a center-located hotel with
spectacular views that is ideal for business trips, romantic dates, family holidays, or personal getaways.
After deciding on the planned message, it is necessary to DO and CONFIRM, as asserted by Cai and
Hobson [9] in their integrated branding approach. This is a strategy that companies can employ to stand out
in competition and develop long-term sustainable competitiveness (Figure 17).

Figure 17. Concept of brand message integrity

Sequentially, in the DO and CONFIRM stages, the client hotel should follow the practical steps in
Figure 18. Companies are expected to fulfill the promises in their planned message during the DO stage.
In the CONFIRM stage, they should be able to manage the unplanned messages, including the word-of-
mouth of guests and the reports about the hotel by the media, in order to enhance the planned brand image
and ensure message integrity.
Notably, solo travelers are the segment that receives a generally higher level of education, with more
than 80% of them having a university education or above (Figure 19). They have high regard for self-
improvement and their interests in addition to meeting like-minded individuals (Figure 20). Therefore, to
attract these group of people, special offerings related to self-development and quality social activities
might be effective.
Although the aforementioned strategic positioning refreshment and tactical practices may help the
client hotel expand into new markets and enlarge its market share, there are potential challenges to
contemplate on. For example, if the positioning refreshment exercise is poorly executed, it might result in
confusing positioning, and there would be a jumble of conflicting messages and perceptions in the target
markets [10]. On the flip side, good practice may yield substantial returns and largely leverage company
capabilities. Pink Lemonade, for example, has transitioned from a creative agency to an IMC service
provider, which turns out to be a huge success in scaling up, given the growing number of client brands and
advertising awards [11].

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Figure 18. Strategic direction and practical steps to follow

Figure 19. Education background of solo travelers

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 Figure 20. Reasons why travelers choose to travel alone

4.2. Improve the quality of offerings and provide personalized services

As can be seen in the word cloud for negative reviews, issues pertaining to rooms, bathrooms, breakfast,
bar, staff, and reception are often raised by customers. Having delved into these, the causes of such negative
reviews have been found to be associated with tangible offerings (physical environment) and intangible
offerings (staff services) (Figure 21).
Hence, the client hotel should address the two issues accordingly. For tangible offerings, many
reviewers have reported that the environment in the rooms and bathrooms is unpleasant due to the lack of
housekeeping. Besides that, the facilities provided are not satisfactory; for example, some mirrors in the
bathrooms are broken, and there are instances where taps are missing. Moreover, limited options, “uncozy”
environment, and average food quality are all perceived as unfavorable aspects of breakfast. A considerable
number of guests have also complained that the bar’s menu is overpriced. In a nutshell, the client hotel must
improve its environment and refurbish its facilities as a whole as well as make minor modifications to its
breakfast and bar offerings.
In terms of intangible services, the quality of the staff requires further improvement. Based on the
dimensions for evaluating service quality (Figure 22) by Parasuraman et al. [12], the services provide by the
client hotel’s staff lack responsiveness, empathy, reliability, and assurance.

Figure 21. Causes of customer dissatisfaction with the client hotel

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 Figure 22. Five dimensions to evaluate service quality

Although this is true, there are different opinions, especially in relation to the “services” provided by
the staff. As seen in the positive reviews, many reviewers do appreciate the “services” provided by the
hotel’s staff (Figure 23).

Figure 23. Another visualization of positive reviews on the client hotel via topic modelling

This inconsistency is probably due to a disparity in service quality across the staff, and thus the client
hotel should consider providing standardized training to every staff in order to enhance its overall
performance. Last but not least, different consumers hold varying standards towards hotels, Thus implying
that in order to mitigate negative reviews effectively, the client hotel should design personalized offerings.
In practice, by engaging with the customers before their check-in to gauge their expectations during their
stay would benefit in meeting customer touchpoints and reducing unnecessary disappointments like the one
shown in Figure 24.

Figure 24. A quote from the negative reviews on the client hotel

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 If the client hotel had known the customer’s expectation in advance, this review could have been
avoided. Figure 25 depicts a service blueprint that the hotel can refer to for improvement. It is a useful tool
for businesses to coordinate complex services by bridging the gap between different employees and
identifying potential problems along the process [13]. In short, the client hotel must not only improve the
overall quality of its offerings, but also design personalized services in order to win its guests’ devotion.

Figure 25. Service blueprint

5. Conclusion
Firstly, the client hotel mainly caters to business people, followed by couples and getaway families. Another
niche market – solo travelers – can be further developed by the client hotel to expand its market share.
Secondly, the client hotel has encountered a slight rise in customer dissatisfaction. Given the analysis of
consumer understanding and performance evaluation, the recommendations of developing varying
strategies towards different segments and offering improvements in directions of greater quality and
personalization should be taken into consideration but conditional on the budget constraints so as to ensure
future success.

Disclosure statement
The author declares no conflict of interest.

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