Thesis

Professional Bachelor's programme
EUROPEAN BUSINESS STUDIES
Marketing Strategy for Radisson Hotels Latvia

in New Inbound Tourist Segments
Author Student
Elena Kim
Scientific Supervisor Associate Professor

Dr.oec.,, Vice-Rector
for Science
Valters Kaze
Programme Director Inese Kukle
Riga 2023
Table of Contents
1 Introduction..............................................................................................................................5
2 Theoretical Part: Literature review.......................................................................................10
2.1 Overview of the tourism industry.............................................................................................10

2.1.1 Tourism classification............................................................................................................................10
2.1.2 Overview of the current situation: global tendencies........................................................................10
2.1.3 Tourism in Latvia.................................................................................................................................14
2.2 Factors influencing and forming the demand for inbound tourists.......................................18
2.2.1 SPELIT Analysis....................................................................................................................................18
3 Hospitality and Tourism Marketing and Strategies...................................................................23

3.1 Hospitality Marketing................................................................................................................................23
3.2 Service Marketing.....................................................................................................................................24
3.3 Destination Marketing...............................................................................................................................25
3.4 Digital Marketing......................................................................................................................................25
3 Practical Part: Detailed research analysis............................................................................26
3.1 Research methodology and design............................................................................................26

3.1.1 Type of research.....................................................................................................................................26
3.1.2 Study approach.......................................................................................................................................26
3.1.3 Level of researcher interference.............................................................................................................26
3.1.4 Research Setting.....................................................................................................................................26
3.1.5 Unit of Analysis......................................................................................................................................26
3.1.6. Research process description (time horizon).........................................................................................26
3.1.7 Methods of data analysis (interview, survey).........................................................................................26
3.2 Interpretation of the results:.....................................................................................................26

3.2.1 Outcomes of the face-to-face interview.................................................................................................26
3.2.2 Quantitative online survey outcomes.....................................................................................................39
10 Conclusions..........................................................................................................................53
11 Recommendations................................................................................................................54
12 Bibliography.........................................................................................................................55
13 Appendices............................................................................................................................58
Appendix 1 Variables for Porter 5 Forces analysis.......................................................................58
Appendix 2 12 domains of Motival project for values and behaviors..........................................59
2
3
Table of Figures
Figure 1 Direct contribution of tourism to selected OECD countries, pre-COVID and 2020...11
Figure 2 European countries with largest decline in number of flights,....................................12
Figure 3 Air bookings for all outbound travel from Russia, January to May 2022 (index)*.....12
Figure 4 Air bookings for Russian outbound travel to European destinations,..........................13
Figure 5 European flights, January - May 2022 (% change vs. 2019).......................................14
Figure 6 Number of visitors and nights spent in hotels and other accommodation
establishments by country of residence from 2018 to 2023 (first 2 months).............................17
Figure 7 Marketing Mix for Radisson Riga Hotel Cluster.........................................................28
Figure 8 Comparison of Reference (Latvia) and Target (Riga) Groups....................................34
Figure 9 Host-Visitor Values Match model...............................................................................35
Table 1 Visitors in all accommodation types in Latvia from 2019-2021,
Table 2 International arrivals and nights spent in accommodation types
Table 3 Latvia’s top source markets from 2017 to 2021,
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Abbreviation
GVA
GDP
UNWTO - The World Tourism Organization
GPR
5
1 Introduction
Background
Radisson Hotel Group is an international hospitality company, which owns a diverse range of
hotel brands, including Radisson, Radisson Collection, Radisson Blu, Park Inn by Radisson,
Radisson Red, Radisson Individuals, Park Plaza, Country Inn & Suites by Radisson, and
prizeotel (Radisson Hotels, 2023). Although all brands have built a common equity at the
global level by being present in more than 95 countries, there are clear distinctions in each of
the entities. Hotels are maintained to cater a specific market segment based on the
demographic, psychographic and behavioral differences, which are noticeable in
accommodation standards and options, available amenities, and the level of provided service.
The Radisson Hotel Group has an extensive ownership structure, meaning that many hotels are
franchised or managed following respective agreements. Radisson Hotel brands (Radisson Blu,
Radisson and Park Inn by Radisson) in Latvia are owned by 2 entities with different owners,
which can be considered as direct competitors. The research for this study is executed for 5
hotels (Park Inns by RadissonValdemara and Barona, Radisson Old Town, Radisson Blu
Daugava and Radisson Blu Ridzene), which are maintained by a private owner, further referred
as Radisson Riga Hotel Cluster.
Tourism is an important sector in Latvia, contributing significantly to the country's economic
growth and serving as a source of export revenue. The industry's expansion positively impacts
fields like food service, transportation, healthcare, leisure, and commerce (Mironova, 2018).
According to OECD Tourism Statistics in 2016, tourism directly contributed 4.5% of Latvia’s
GVA, 1.3 million euros in tourism exports in 2018, and provided 77 100 jobs, accounting for
8.5% of total employment in tourism and related industries (OECD Tourism Trends and
Policies, 2020).
Introduction to the research problem
Hospitality and Tourism sector in Latvia had been increasing every year. The total number of
visitors to Latvia in hotels and other accommodation establishment increased from 1.65
million in 2012 to a peak of 2.85 million in 2019. This increase was disrupted by the
consequences of COVID-19, when number dropped drastically in 2020 and 2021 by
approximately 393,000 (13.7%) in 2020, and by 28,000 (5.7%) in 2021 compared to previous
years (Central Statistical Bureau of Latvia, 2022).
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Historically, the Russian-Latvian economic relationship contributes dramatically to the tourism
industry. Although, followed by COVID-19, there was a slight improvement in non-residents
arrivals, the Russia-Ukraine war has been influencing inbound tourism negatively and
obstructing the recovery. Thus, it is essential to ensure that hotel properties are prepared not
only to face the lack of travellers from Russia, but also concerns of potential customers
worldwide, given that Latvia is not geographically in a favourable position. Apart from the
doubts about safety and security of the location, there are consequences of economic
downturn, influencing on the decision-making process of inbound tourists. There is a need to
evaluate the situation and develop current marketing strategies for hotel properties in response
to the current changes.
Research problem
Thus, the research problem for Radisson Hotels Latvia, specifically, Radisson Riga Cluster
can be described as follows: in the context of Baltic crisis (impact of the pandemic,
geopolitical tension and economic doubter) what is the marketing strategy for Radisson Riga
Hotel Cluster in attracting and capitalizing the potential of inbound tourists from alternative
source markets?
The research aim is to analyze current situation in the industry and determine factors
influencing the decision-making process of inbound tourists in order to develop a feasible and
effective marketing strategy for Radisson Riga Hotel Cluster.
Objectives and tasks
To execute this thesis the following objectives and tasks are set:
 Based on the literature review to describe functioning mechanism of tourism market.
 To provide current situation overview in tourism industry, focusing on Latvia and using
recent data.
 To conduct an external analysis, determining factors affecting the inflows of inbound
tourists, using SPELIT framework for Latvia market.
 To identify concepts and tools, which are used for marketing strategies in the industry
for attracting inbound tourists.
 To conduct an internal and external analyses on the environment for Radisson Hotel
Riga Cluster, competitors, and current and potential segments groups, using Porter 5
Forces and Marketing Mix frameworks.
 To perform qualitative and quantitative research using interview and survey for
management and customers of Radisson Riga Hotel Cluster.
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 To define marketing directions for attracting non-residents from untapped markets,
using TOWS analysis.
 To propose the marketing strategy for Radisson Riga Hotel Cluster by validating
hypothetical courses of action with industry experts.
 To provide conclusions and recommendations for the entity.
Research object and subject
The research object of this study is Radisson Riga Cluster, precisely, 5 hotels operating under
different brands. The research subject is the marketing strategy that aims to attract inbound
tourists from new markets, while addressing the Baltic crisis.
Research Questions:
 To what extent Baltic crisis (impact of the pandemic, geopolitical tension, and
economic doubter) affects the decision-making process of inbound tourists?
 What are the current marketing practices are used by Radisson Hotel Cluster,
particularly, to mitigate the effects of external influence?
 What is a feasible and effective marketing strategy for Radisson Riga Hotel Cluster?
Theoretical Model:
The relationships between the independent variables and dependent variables are visually
represented as follows:
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The theoretical model demonstrates how the marketing strategy for attracting inbound tourists
from new source markets depends on factors affecting inbound tourists decision-making
process and the demand. The Baltic crisis (the impact of Covid-19, geopolitical tension and
economic doubter) force hotel properties overview the existing external and internal situations.
Thus, the marketing strategies and practices influence the inbound tourist inflows, particularly
for Radisson Riga Cluster’s customers.
Research Methodology and design:
To address this study questions, a multi-method research design is used, employing both
exploratory and descriptive research objectives. The type of investigation is correlational,
focusing on dependent and independent variables, such as Baltic crisis, marketing strategies,
factors affecting the decision-making process.
Data collection methods: the research on secondary and primary data is conducted to retrieve
necessary insights. The literature review involves analysis of relevant existing studies,
databases, statistics on the company and industry. The primary data is gathered using interview
and survey with management and customers of Radisson Riga Cluster.
The unit of analysis for the study is the individual customers and hotel management.
Time horizon: The research uses a cross-sectional design, when data collected one time at a
certain point to capture the current state of affairs at Radisson Riga Hotel Cluster.
Study setting: the study is undertaken at various Radisson hotel brands in natural
environment, focusing on the participants’ perceptions.
The structure of the thesis consists of six main sections. The Introduction provides the
background and purpose of the study, including research problem, questions, objectives and
tasks. It also covers the methodology and limitations. The Theoretical part is the second step,
which combine a detailed literature review on tendencies and concerns of hospitality and
tourism industry, the impact of Baltic crisis, a variety of relevant marketing strategies and
tools, factors affecting the demand and decision-making process. This section also involves
analysis on external environment of tourism industry in Latvia using SPELIT framework.
The in-depth description of Methodology and Research Design, the interpretation of collected
data are presented in the Practical Part with the purpose to address the research questions for
further validation of marketing strategy. Methodology and Research Design sub-section
outlines the scope of work which include research statement, design, and data collection
methods. This section also involves the business outlook of Radisson Riga Hotel Cluster, its
current situation and relevant operations; Porter’s 5 Forces, Marketing Mix are applied to
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explore Radisson Riga Hotel Cluster’s environment. TOWS analysis assists in overviewing the
marketing strategy. Finally, the results of the quantitative and qualitative data are presented
and interpreted to identify potential strategies for the Radisson Riga Hotel Cluster.
The next section – “Hypothesis validation”- is developed to describe and validate marketing
strategies with industry experts. The purpose of this part is to provide a final proposal on how
Radisson Riga Hotel Cluster can reach new source markets, considering external influence.
The last parts are the Conclusions, which outlines the summary of key findings, followed the
Recommendations – where the implementation plan is provided, defining the resources and
timeline for Radisson Riga Hotel Cluster.
Research Limitations
- The research is limited to the inbound international tourism and particularly, Radisson
brands operating in Latvia under franchise.
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2 Theoretical Part: Literature review
2.1 Overview of the tourism industry
Visitors traveling to a destination outside their usual environment for less than a year, for any
purpose except employment refers to Tourism (Glossary of tourism terms, 2008), and the
industry is a significant contributor to generating income, improving employment rate, and
supporting local communities, which lead to economic prosperity. Prior to the Baltic crisis,
tourism directly accounted for 6.9% of employment and produced 20.5% of service-related
exports on average across OECD countries (OECD, 2022), however, starting from the
consequences of COVID-19, tourism continues to suffer to a great extent, not only in primary
tourism businesses like hotels, attractions, and transportation, but also in a wide array of
facilities and services within the economy that are not primarily focused on tourism. As such,
tourism is an extensive sector that is influenced by, and has an impact on, other factors and
economic sectors that must remain competitive.
2.1.1 Tourism classification
Travel is an activity in which individuals move between various geographic locations for any
purpose or duration. According to Eurostat Glossary, it can be classified into three types:
domestic, inbound, and outbound tourism, which can further be grouped into national, internal,
and international tourism. Domestic travel involves residents traveling within their own
country, inbound travel refers to non-residents visiting a country, and outbound travel is when
residents travel outside their country. (Eurostat, 2011). To address the research questions, it is
necessary to focus on international (includes inbound and outbound tourism, where residents
travel outside their country and non-residents travel within it for tourism activities (IRTS,
2008, p. 2.40 (c)) and inbound (defined as activities, consumption, and expenditure of non-
resident visitors within the economy of reference) tourism (UNWTO, 2008, p. 2.39). For an
effective inbound tourism or export strategy, it is essential to evaluate and address 1) the
overall aspects, which form the appeal of a destination 2) sectors directly related to the offer
(e.g., accommodation, attractions) 3) sectors that are not the primary reason for visits but bring
additional value added (e.g., agriculture, maintenance, furniture) 4) and functions that support
industry operators and businesses in becoming more competitive (e.g., innovation, quality,
marketing) (ITC-UNWTO, 2017).
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2.1.2 Overview of the current situation: global tendencies
The pandemic caused numerous negative consequences for hospitality and tourism sector,
influencing its respective industries globally and locally. In countries like Latvia, which is
heavily reliant on expenditures from export travel, the economy has suffered a significant
blow. Despite efforts to recover from the post-COVID effects through investment policies and
marketing strategies, the industry has faced another setback caused by the geopolitical tensions
stemming from the Russia-Ukraine war started in February 2022. Such conflicts have profound
influence on the tourism industry, economic growth, and the decision-making process of
inbound tourists.
Tourism GDP (direct) pre-COVID-19 Tourism GDP (direct) in 2020 Pre-COVID average 2020 average
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12
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Figure 1 Direct contribution of tourism to selected OECD countries, pre-COVID and 2020
Figure 1 shows that, pre-pandemic average direct contribution of tourism to GDP was 4.4%,
however, in 2020 the percentage dropped to 2.8%. This decline caused negative economic
repercussions globally, especially in countries where tourism constitutes a significant portion
of the local economy. Apart from the restrictions implemented around the globe, tourists were
cautious about own and family members health condition, thus decreasing the number of
travels. After the release of border measurements, people have faced concerns about safety and
security when travelling, especially to destinations, where Russian-Ukraine geopolitical
tensions has a direct impact. UNWTO has highlighted that the Russian offensive has impacted
the decision-making process of travellers due to lower confidence, especially in risk averse
countries. The conflict has disrupted Russian-Ukrainian outbound travel, which accounts for
about 3% of global spending on international tourism (UNWTO, 2022).
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Figure 2 European countries with largest decline in number of flights,
24 Feb - 11 May 2022 (% change vs. 2019)
Figure 3 shows that the locations that have been most affected thus far (excluding Ukraine)
consist of the Republic of Moldova, experiencing a 69% decrease in flights since February
24th (compared to levels in 2019), Slovenia with a 42% drop, Latvia at a 38% reduction as per
data obtained from Eurocontrol.
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Figure 3 Air bookings for all outbound travel from Russia, January to May 2022 (index)*
Figure 3 demonstrates a substantial decline in air bookings for all outbound travel from Russia.
The major trends are between two periods: from the week of February 20th to 27th (with an
80% decrease compared to the previous week) and from the week of February 27th to March
6th (with a 267% decrease). The difference in the decrease between these two periods is 187%,
coinciding with the start of the Russia-Ukraine war, which means that the war had a significant
impact on outbound travel from Russia. It is also seen, that after in mid-March the number of
air bookings for Russia started to stabilize. reaching normal level (as on Jan 2 - 100), and even
increasing in the following time period. This data does not represent the extent to which
European destinations were affected, as the quick stabilization in bookings may be due to
flights to locations outside of the European Union.
Figure 4 Air bookings for Russian outbound travel to European destinations,

January to May 2022 (index)
To have a full perspective, Figure 4 demonstrates a substantial decline in air bookings for all
outbound travel from Russia, exactly to European destinations. Considering the change (%
from previous week) for the same two periods, from the week of February 20th to 27th and
from the week of February 27th to March 6th, it is seen a drastic change of -90% and -570%
respectively. The difference in the decrease between these two periods is -480%, which is
almost 2,5 times bigger than to change for all outbound travel from Russia (-187%). Thus, it
can be concluded that the flights to European destinations suffered a significant portion. Based
on L axis (Air bookings), the number tried to stabilize, however did not improved significantly
and for a long period above normal level (on Jan 2 - 100).
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Figure 5 European flights, January - May 2022 (% change vs. 2019)
Figure 5 illustrates that the invasion had minimal impact on European flights, as there has been
a steady increase in numbers after February 24th. The gradual lifting of travel restrictions has
played a role in normalizing travel. Nevertheless, the ongoing conflict remains a significant
obstacle to the full recovery of the industry.
Following this data, it is impossible to determine the reasons for travelling. Thus, there is a
question arising to what extend and how Russia - Ukraine war influenced on the tourism
industry for OECD counties and, particularly in Latvia.
2.1.3 Tourism in Latvia
Tourism serves as a critical contributor to economic growth, especially in developing nations.
It brings foreign wealth through various channels, such as drawing foreign investments,
generating foreign currency, raising tax revenues, and providing employment opportunities
(Ashish Gupta, 2023). Tourism in Latvia contributed 4.8% to the GDP in 2019, but the
pandemic caused a 73% decrease in total tourism expenditure in 2020. (Central Statistical
Bureau of Latvia, 2022). The tourism industry in Latvia experienced a significant shift in
visitor behaviour and accommodation choices from 2019 to 2021. The Ministry of Economics
is responsible for developing and implementing national tourism policy in Latvia, working
closely with regional and local authorities, trade bodies, and other ministries. In 2021, the total
budget for tourism marketing was EUR 2.7 million, with state funding of roughly EUR
700,000 and funding of EUR 2.0 million from the European Regional Development Fund,
which supports tourism entrepreneurs in various marketing activities.
Table 1 Visitors in all accommodation types in Latvia from 2019-2021,

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(Central Statistical Bureau of Latvia, 2022)
Accommodation Type 2019 2020 2021
Total 2 853 333 1 462 965 1 306 588
Hotels and similar

2 393 364 1 113 142 970 240
establishments
Guesthouses and other short-stay
350 370 266 560 249 591
In accommodation 2019,
the Camping grounds, recreational
109 599 83 263 86 757
vehicle parks and trailer parks
industry recorded a total of 2,853,333 visitors. A significant majority of these visitors

(83.87%) chose to stay at hotels and similar establishments. This preference for hotels
indicates the dominance of accommodation options. However, the COVID-19 pandemic in
2020 led to a drastic change in visitor numbers and accommodation preferences. The total
number of visitors went to 1,462,965, - a decrease of 48.76% compared to the previous year.
Hotels and similar establishments experienced a reduction in visitors to 1,113,142, accounting
for 76.07% of the total visitors. This decline was observed across all accommodation types,
including guesthouses, short-stay accommodations, camping grounds, and RV parks. The
downward trend continued into 2021, with the total number of visitors further decreasing to
1,306,588 (10.69%). The number of visitors choosing to stay at hotels and similar
establishments dropped to 970,240, representing 74.26% of the total visitors. Interestingly,
camping grounds and RV parks saw a slight increase in visitors, suggesting a shift in visitor
preferences towards outdoor and socially distanced accommodations. Over the three-year
period from 2019 to 2021, the total number of visitors decreased by 54.20%, which is
attributed to the external factors - COVID-19 pandemic.
Table 2 International arrivals and nights spent in accommodation types
with top source markets in Latvia from 2017 to 2021
(OECD, Latvia: Domestic, inbound and outbound tourism, 2022)
Inbound tourism 2017 2018 2019 2020 2021
Total international arrivals 7 726 7 775 8 342 3 204 1 937
Overnight visitors (tourists) 1 949 1 946 1 935 636 478
Same-day visitors (excursionists) 5 776 5 829 6 408 2 568 1 459
Hotels and similar establishments 3 125 3 049 3 549 757 390
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Other collective establishments 276 395 320 424 596
Private accommodation 5 464 4 419 4 397 1 691 1 861
This table investigates the inbound tourism trends in Latvia from 2017 to 2021 by analysing
data on international arrivals, overnight visitors, same-day visitors, top inbound markets, and
nights spent in various accommodations. A visitor can be categorized as a tourist (or overnight
visitor) if their trip includes at least one overnight stay. If the trip does not involve an overnight
stay, the visitor is classified as a same-day visitor (or excursionist) (International
Recommendations for Tourism Statistics, 2008). From 2017 to 2019, Latvia experienced a
steady increase in total international arrivals, peaking at 8,342 in 2019. However, the onset of
the COVID-19 pandemic in 2020 led to a significant decrease in international arrivals, with
numbers dropping to 3,204, a decrease of 61.58% compared to 2019. This downward trend
continued into 2021, with international arrivals further decreasing to 1,937. Regarding
overnight visitors to Latvia, there was a considerable decrease of 67.1% (from 1,935 to 636)
and an additional 24.8%. The number of same-day visitors followed a similar pattern, with
growth from 2017 to 2019, followed by a decline of 59.9% (from 6,408 to 2,568). Hotels and
similar establishments were the most affected (decrease in visitors from 3,549 in 2019 to 757
in 2020 (78.68%.)), while other collective establishments and nights spent in private
accommodations experienced a slight increase in 2021, indicating a shift in visitor preferences
due to the pandemic.
In summary, the period from 2017 to 2021 saw a significant shift in inbound tourism trends in
Latvia, influenced by the global COVID-19 pandemic. The total number of international
arrivals, overnight visitors, and same-day visitors saw a substantial decrease. Accommodation
choices also reflected this trend, with a significant decrease in visitors choosing hotels and
similar establishments.
Due to Latvia's location, political and economic relationships, and cultural background, there
are top source markets that generate the majority of the country's tourism revenue. The decline
in tourist arrivals from top source markets is a major concern for the industry, government, and
stakeholders.
Table 3 Latvia’s top source markets from 2017 to 2021,
(OECD, Latvia: Domestic, inbound and outbound tourism, 2022)
Inbound tourism 2017 2018 2019 2020 2021
Top markets
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Russia 243 244 298 85 76
Lithuania 300 275 309 205 66
Germany 255 260 245 44 48
Estonia 192 176 210 90 45
Finland 102 81 83 36 18
It is seen that the main markets for Latvia's tourism are Russia, Lithuania, Germany, Estonia,
and Finland. The most significant decreases were observed in the number of visitors from
Lithuania, Estonia and Russia. Due to historical economic and political relationship, Russia
has been one of the largest source market, however, the number of visitors declined sharply to
85 (-71.48%) and 76 (-74.50%) thousand in 2020 and 2021 respectively, compared to 2019
(298 thousand) when Russia was ranked as the second major market after Lithuania. This trend
is accounted to the COVID-19 pandemic and the resulting travel restrictions.
Figure 6 Number of visitors and nights spent in hotels and other accommodation
establishments by country of residence from 2018 to 2023 (first 2 months)
(Created by the author based on the statistics provided by stat.gov.lv)
Figure 6 shows that, during the pandemic, Latvia experienced a significant drop in the number
of visitors to hotels and other accommodation establishments, from 2,853,333 in 2019 to
1,452,965 in 2020, representing a decrease of 49.09%. However, as restrictions began to ease
across Europe, the tourism industry started to recover. By 2023, the number of visitors further
increased to 2,172,069, representing a substantial increase of 66.25% compared to 2021.
While the majority of Latvia's source markets stabilized to pre-pandemic numbers, the inflow
from the Russian Federation did not follow the same trend. In fact, starting from 2020 (ranked
3rd), it never reached the top position (ranked 1st in 2018 and 2019). In 2022, only 38,085
visitors arrived, significantly smaller compared to other countries and years before the
pandemic and war. The latest data available for January and February 2023 shows that the
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situation did not improve (ranked 14th), which can be attributed to the geopolitical tensions
affecting the region. The data suggests that such tensions have a significant impact on Latvia's
inbound tourism, particularly as Russia was one of its main source markets.
In conclusion, the COVID-19 pandemic has greatly impacted the tourism industry in Latvia,
with significant declines in international arrivals, overnight visitors, and same-day visitors.
Visitor behavior and preferences have also changed, leading to a re-evaluation of
accommodation options. While overall tourism numbers are increasing due to the release of
COVID-19 restrictions, the number of tourists from Russia continues to drop due to
geopolitical tensions. Further research is necessary to fully understand the long-term
implications of these changes and to develop a growth strategy for new source markets.
2.2 Factors influencing and forming the demand for inbound tourists
The marketing microenvironment of an enterprise encompasses both internal and close
external factors. Internal factors, also known as controllable marketing variables, represent the
elements of the marketing mix that the enterprise can influence and control (Kotler, 2008). On
the other hand, close external factors, which include suppliers, intermediaries, customers,
competition, and the public, can be influenced, but not directly controlled by a tourism
enterprise. The PEST framework falls short, and a more encompassing method is needed,
which considers various factors including social, cultural, economic, and political aspects
(Meler, 1999), (Morrison, 2002). A destination's primary offerings, such as its environmental
values, landscapes, climate, and cultural heritage, are the key motivators for travel rather than
the services offered. Components of the macro environment, including a destination's physical
aspects, accessibility, and cultural features, are essential for tourism enterprises. SPELIT is a
method to analyse market based on six environments: Social, Political, Economic, Legal,
Intercultural, and Technological. Driving forces are the key factors that influence each
environment or root causes of the issues that an organization needs to address; can be itemized
for each SPELIT topic, have both positive and negative effects, and be further organised into
strengths and weaknesses or threats and opportunities (Schmieder-Ramirez & Leo A Mallette,
2006).
2.2.1 SPELIT Analysis
Components Driving forces
1. Influence of social media on travel choices 2.
Growing trend of sustainable and responsible tourism 3.
Social Changing demographics and lifestyle trends
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1. Political stability of a destination 2. Government
Political policies on tourism 3. Visa regulations 4. International
relations 5. Travel advisories and warnings
1. Global and local economic conditions 2. Exchange
rates 3. Personal financial situation of tourists 4. Pricing
Economic strategies of tourism businesses 5. Economic impact of
tourism on local communities
1. Immigration laws and regulations 2. Health and safety
Legal regulations 3. Laws protecting tourists' rights 4.
Environmental laws and regulations 5. Laws related to
cultural heritage preservation
1. Cultural attractions of a destination 2. Cultural
Intercultural sensitivity and understanding 3. Language barriers 4.
Cultural exchange opportunities 5. Local customs and
traditions
1. Online booking platforms and review sites 2. Virtual
and augmented reality technologies 3. Mobile
Technical technology and apps for travel 4. Technological
advancements in transportation 5. Use of AI and data
analytics in personalized travel recommendations
2.2.1.1 Social factors

Driving forces in the social environment include relationships between individuals or groups,
societal norms, and values.
Influence of social media on travel choices: social media plays a significant role in shaping
travel choices of individuals. Social media influences travel choices by providing a platform
for sharing travel experiences, reviews, and recommendations. It also enables potential
travelers to access visual content like photographs and videos of a destination, thereby
influencing their decision-making process. Moreover, travel agencies and tour operators are
increasingly using social media for promotional activities, highlighting the attractive tourist
spots in Latvia. The ability to share these unique experiences on social media platforms also
contributes to the sense of social status and recognition.
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Growing trend of sustainable and responsible tourism: Sustainable and responsible tourism is
a growing global trend, and Latvia is no exception. The country is rich in natural resources and
promotes eco-tourism, aiming to minimize the impact of tourism on the environment.
Additionally, Latvia has been taking steps towards sustainable tourism by investing in
infrastructure that has minimal impact on the environment. The country's tourism policy also
focuses on the development of sustainable tourism.
Changing demographics and lifestyle trends: The Latvian tourism industry has a diverse range
of market segments, each with distinct values and preferences. The largest market segments are
those of Happiness in Possession Families and Free Thinkers, which represent 16% each of the
population and prefer family-friendly, safe, and affordable tourism offerings. Demanders
(19%) and Stable (15%) prefer high-quality service, cultural experiences, and secure travel.
Adventure Seekers (12%) and Organic (8%) value unique experiences and environmental
responsibility. Dreamers (9%) value unique experiences and social recognition. Finally,
Rational Realists (3%) prefer organized and secure travel experiences (Magnetic Latvia, 2018).
By developing targeted strategies for each group, the industry can increase tourist satisfaction,
attract a wider range of tourists, and promote sustainable growth. Changing demographics and
lifestyle trends significantly impact the tourism industry. The increasing number of millennials
who prefer experiential travel over traditional tourist activities is a key trend. Millennials tend
to prefer immersive experiences, local cuisine, and sustainable tourism, all of which are
offered by Latvia.
2.2.1.2 Political factors
Driving forces in the political environment often involve power dynamics, policy changes,
political stability.
Political stability of a destination: Political stability is a key driving force in the tourism
industry. Tourists are more likely to visit countries that are politically stable and safe and are
likely to avoid destinations associated with political instability, conflict, and violence (Hall,
2002). Even though Latvia, being a member of the European Union and NATO, is considered
a politically stable destination, which can attract more tourists, tourists still may consider it
unsafe to choose it as a travel destination. Geopolitical conflicts, including wars, acts of
terrorism, and political and ethnic tensions, can create an unstable social and economic
environment that negatively impacts tourism demand (Caldara D, 2018). Balli et al. (2019)
found that rising geopolitical risk (GPR) in a region could lead to reduced tourism demand,
demonstrating that political risk substantially influences international tourism demand in
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emerging economies (Haddad C, 2015). Furthermore, Kozak (2007) posits that travelers’ risk
perceptions may cause them to alter their travel plans, and Slevitch and Sharma (2008) claim
that tourists are often willing to pay more for safety and security. Additionally, Ivanov et al.
(2017) and Lanouar and Goaied (Lanouar C., 2019) analyzed the impact of political violence
or instability on the tourism industries of Ukraine and Tunisia, respectively. Both studies
discovered a negative correlation between political instability and tourism growth, suggesting
that such instability could undermine tourism revenues and decrease tourist arrivals in a
country. On the other hand, the impact of GPR on tourism demand in emerging countries
might not always have long-lasting effects (Balli, Gazi Salah Uddin, & Jawad Shahzad, 2019).
Events such as the 2016 coup attempt in Turkey and the 2014 military intervention in Thailand
led to short-term increases in domestic political risk. However, tourism demand was expected
to normalize following these temporary fluctuations.
To summarize, geopolitical tensions and conflicts can significantly influence tourist arrivals
and the overall tourism industry. The magnitude of these effects may vary depending on the
conflict's nature, the region involved, and the instability's duration. Policymakers and tourism
stakeholders should consider these factors when devising strategies to promote tourism and
minimize the repercussions of geopolitical risks on this essential economic sector.
Government policies on tourism: Policies related to infrastructure development, environmental
regulations, promotion and marketing of tourism, and investment incentives for tourism
businesses (Elliot, 1997).
Visa regulations: Simplified visa procedures or visa-free travel arrangements can increase
inbound tourism (Neumayer, 2006). As a member of the Schengen Area, Latvia allows visa-
free travel for citizens of many countries, which can boost its international tourist arrivals.
International relations: Good international relations can promote tourism by facilitating
bilateral and multilateral agreements related to travel, tourism, and transportation (Hall, 1994).
Latvia, through its membership in international organizations like the EU and NATO,
maintains good international relations with many countries.
Travel advisories and warnings: Travel advisories issued by governments can significantly
impact the flow of tourists to a destination. Negative advisories due to factors like political
instability, crime, health risks, or natural disasters can discourage tourists from visiting those
places (Jonas, Mansfeld, Paz, & Potasman, 2011).
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2.2.1.3 Economic factors
The economic environment, including the state of the global economy, exchange rates, and the
economic status of potential tourists, can greatly influence travel decisions. During economic
downturns, tourists may choose to travel domestically or to more affordable destinations. With
the impact of Russian-Ukraine war, the inflation, economic situation have influenced the
frequency of travelling.
Personal financial situation of tourists: International tourists spent 239.7m EUR in Latvia,
while the number of domestic overnight trips taken by Latvians decreased in recent years, as
did the spending on these trips.
2.2.1.4 Legal factors
Laws and regulations can also impact tourism. For example, changes in immigration laws or
health and safety regulations (especially relevant during the COVID-19 pandemic) can affect a
tourist's decision to visit a particular country. At hotel properties, the alignment with GDPR
(General Data Protection Regulation) has had a significant impact on how businesses handle
personal data and create its strategies and communication with the public.
2.2.1.5 Intercultural factors
Driving forces in the intercultural environment can include cultural norms, diversity, and
societal attitudes towards different cultures. For instance, the increasing emphasis on diversity
and inclusion in the workplace is a driving force that has led to changes in hiring practices.
Maslow's hierarchy of needs is a psychological theory outlining a five-tier model of human
motivation. Maslow posited that individuals must first address lower-level deficit needs before
progressing to higher-level growth needs (Maslow, 1943).
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Figure 7 Maslow's pyramid of a hierarchy of needs
The five-stage model consists of deficiency needs (D-needs) and growth needs (B-needs)
(Maslow, 1954). As a deficit need is satisfied, individuals focus on meeting their next set of
needs. Conversely, growth needs, such as self-actualization and personal growth, may intensify
once they have been engaged. In summary, Maslow's theory highlights a hierarchy of needs,
with lower-level needs taking precedence over higher-level needs. Maslow's self-actualization
concept is difficult to empirically test, and his theory is seen as speculative. Motivation is now
considered a pluralistic behavior, with needs operating on multiple levels simultaneously.
However, the satisfaction of a need is not an all-or-none phenomenon, meaning that a need
doesn't have to be 100% fulfilled before moving to the next (Maslow, 1987). Thus, it can be
considered, that while the occurred geopolitical tension have a significant impact on the
decision-making process of tourists from source markets, especially those who are not direct
neighbors and European union member, the safety and security need can be compensated using
strategies designed to attract visitors, compensating the lack of travelers from Russia and
mitigating the consequences of pandemic.
Additionally, understanding the cultural dimensions of these source markets can help the
Latvian tourism industry tailor its offerings to meet the unique needs and preferences of
tourists from each group. By considering cultural aspects in tourists' decision-making
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processes, tourism operators can design more satisfying experiences and attract a diverse range
of visitors. Hofstede's cultural dimensions include Power Distance, Individualism vs.
Collectivism, Masculinity vs. Femininity, Uncertainty Avoidance, Long-term Orientation, and
Indulgence vs. Restraint. Analyzing source markets using these dimensions can provide
insights into tourists' decision-making and preferences. For example, tourists from Lithuania,
Estonia, and Latvia may prefer organized travel experiences, while those from Germany,
Finland, and Sweden may seek unique, authentic experiences. The United Kingdom, Poland,
and Ukraine may value tradition, status, and security in their travel decisions. Tourists from the
United States and Russia may seek excitement, luxury, and status (Hofstede’s Cultural
Dimensions Theory ).
2.2.1.6 Technical factors
Technology plays a crucial role in the tourism industry. The rise of online booking platforms
and review sites has made it easier for tourists to plan and book their trips. Additionally,
advancements in virtual and augmented reality technologies are creating new ways for tourists
to experience destinations.
In conclusion, the external environment for the tourism industry is very volatile and
unpredictable. There are driving forces that can have both positive and negative effects on
tourists' decision-making processes. Understanding these forces can help stakeholders in the
tourism industry better cater to the needs and preferences of tourists.
3 Hospitality and Tourism Marketing and Strategies
3.1 Hospitality Marketing
Nykiel (2005) highlights that the definitions of the hospitality and tourism (H&T) industry are
often influenced by the unique perspectives of individuals working in different sectors within
the industry. For instance, a hotel operator might view the industry as accommodations with
food and beverages, while a food and beverage operator could focus on the dining experience
with an emphasis on menu offerings and food service. Similarly, a travel agency manager
might prioritize providing travel-related services for business and leisure, while a theme park
executive may consider hospitality as delivering unique entertainment and educational
experiences.
To reconcile these varying viewpoints, Nykiel (2005) proposes a broader perspective called
"hospitality," which encompasses travel, accommodations, food service, clubs, gaming,
attractions, entertainment, and recreation. This inclusive approach acknowledges the
interconnected nature of the H&T industry.
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Kandampully (2015) emphasizes that hospitality organizations operate within a network of
service organizations, which are interrelated and interdependent. This network includes tour
operators, travel agents, tourism organizations, travel and transport operators, leisure and
recreation venues, restaurants, bars, clubs, cafes, and various types of accommodations, such
as hotels, resorts, motels, camping grounds, bed & breakfast establishments, and hostels.
Meanwhile, Butler and Jones (Butler, 2001)view tourism as an overarching term that covers all
aspects of people being away from their homes, while hospitality specifically deals with
providing accommodations and meals for tourists. They acknowledge one caveat to their
definitions: the hospitality industry serves not only tourists but also local residents. They
define tourism as the flow of visitors traveling from one country to another for more than 24
hours but less than one year.
In summary, the H&T industry comprises various interconnected and interdependent sectors,
each with its unique viewpoint. A holistic understanding of the industry requires recognizing
the contributions of each sector while acknowledging the broader scope of "hospitality" as an
umbrella term that encompasses travel, accommodations, food service, clubs, gaming,
attractions, entertainment, and recreation.
The hospitality and tourism industry encompasses a wide range of organizations, which can be
grouped into categories such as travel and transport, accommodations, food and beverages,
entertainment and recreation, tourism offices or destination management organizations, and
nongovernmental tourism organizations. These diverse entities cater to various traveler needs
and preferences, reflecting the complexity of the industry (Okumus, 2010).
3.2 Service Marketing
The significance of services in the global economy has grown considerably, with firms
pursuing competitive advantages through service offerings even in highly competitive
environments. Service marketing emerged as a distinct subfield of marketing in the late 1970s
and has gained importance in the context of service-dominant logic (Okumus, 2010).To better
understand the evolution of service marketing, a comprehensive analysis of service literature is
necessary for academics and practitioners.
Service marketing's intangible nature makes developing a desirable image crucial for success,
as demonstrated by TV news programs that regularly update their offerings to maintain viewer
interest, thus proving that there is the relationships between service image, individual image,
and purchase behavior (Onkvisit).
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The hospitality industry faces unique challenges due to the special characteristics of services
marketing, as described by Bowie and Buttle (Bowie, 2004). These characteristics include:
- Intangibility: Services cannot be seen, touched, or tasted before purchase, making it harder to
assess their quality.
- Perishability: Services cannot be stored for future use, so unsold services result in lost
revenue.
- Inseparability: Services are produced and consumed simultaneously, making it difficult to
separate service delivery from customer experience.
- Variability: The quality of services may vary depending on the provider and the time they are
offered.
To overcome these challenges, the hospitality industry must prioritize exceptional customer
service (Kotler, 2007).
3.3 Destination Marketing
Destination marketing aims to promote specific locations as attractive for leisure or business
visits. The hospitality industry is vital in this context, providing services and products for
visitors. Destination marketing organizations (DMOs) handle destination promotion and
coordinate stakeholder efforts. Success in destination marketing requires understanding target
markets and their preferences. Destination branding differentiates a location from competitors
by establishing a unique identity. Technological advancements, like social media and mobile
apps, have gained importance in destination marketing for delivering targeted and personalized
messages (Bowie, 2004). Success hinges on meeting both internal and external stakeholders'
expectations. Six generic strategies contribute to successful place marketing, including
attracting visitors, retaining and expanding businesses, promoting small business growth,
expanding exports and investments, and altering the resident population mix. Emphasizing
emotional appeal in place marketing is vital for communicating effectively with potential
residents, businesses, and investors (Baker, 2008)
3.4 Digital Marketing
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3 Practical Part: Detailed research analysis
3.1 Research methodology and design
3.1.1 Type of research
3.1.2 Study approach
3.1.3 Level of researcher interference
3.1.4 Research Setting
3.1.5 Unit of Analysis
3.1.6. Research process description (time horizon)
3.1.7 Methods of data analysis (interview, survey)
3.2 Interpretation of the results:
Face-to-face interview was conducted with the purpose to have insights for Research question
1 “To what extent Baltic crisis (impact of the pandemic, geopolitical tension, and economic
doubter) affects the decision-making process of inbound tourists?” and Research question 2
“What are the current marketing practices are used by Radisson Hotel Cluster, particularly, to
mitigate the effects of external influence?”. Additionally, the objective was to gain
information, which can assist in analyzing external and internal environments of the entity.
The author interviewed the head of marketing of Radisson Hotel Riga Cluster (further referred
as respondent A), who supervises all marketing operations amid 5 hotels and can provide the
necessary insights, including analysis of current situation and marketing operations of the
entity. The interviewee is also a marketing expert, who worked X years in the field, out of
which 1 year is at Radisson Hotel Riga Cluster.
3.2.1 Outcomes of the face-to-face interview
The interview was divided into 7 parts, which are used for business outlook, internal and
external analyses for Radisson Riga Hotel Cluster: Group Segmentation and Consumer
Analysis, Current and Potential Market Segments for Radisson, Marketing Mix, Porter's 5
Forces Analysis, Marketing Strategies Amid Geopolitical Tension, Economic Doubt, and
COVID-19, Destination, Digital, Hospitality, and Service Marketing, Conclusion. The
questionnaire was sent in advance; thus, the interview is semi-structured, with additional
questions which arose along the discussion. The meeting was executed in the library of
Radisson Blu Ridzene and lasted for 1 hour and 15 minutes. The discussion was recorded
using Voice Memos app installed in the mobile phone with the permission of the interviewee.
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The interpreted data assisted in understanding marketing practices, groups segmentation and
the influence of Baltic crisis on Radisson Riga Hotel Cluster.
Group Segmentation and Consumer Analysis Part consisted of 9 questions, which assisted
in understanding of how Radisson Riga Hotel Cluster segment their market and what factors
influencing the decision-making process, including the influence of the Baltic crisis. The
author identified main key takeaways and drew conclusions.
1. Could you describe the main customer segments that Radisson Hotel Riga Cluster serves?
2. What factors do you consider when segmenting your market (e.g., demographics,
psychographics, and behavioral characteristics)?
It is essential to determine which customers to serve by dividing the market into segments and
select which segments to target; afterwards a strong value proposition is to develop benefits to
satisfy customer needs, which gives an advantage in its target markets by differentiating and
positioning brand in the marketplace (Philip Kotler, 2022). Thus, a business is able to develop
right strategies and elevate its product to meet or exceed the expectations of targeted groups.
Following the interpreted answers from the interview, it can be concluded that Radisson Hotel
Cluster primarily segments its customers into two categories: Business to Business (B2B) and
Business to Customer (B2C). The B2B segment includes clients who use the hotel's meeting
and event premises, with or without staying, crew members, and general business clients. The
B2C segment includes leisure travellers and individual travellers who come without a group.
Demographics, such as age and income, are significant factors in their segmentation strategy.
That can be explained by the fact that Radisson has a specific position in the industry,
particularly in Latvia (see Porter 5 forces analysis), that differentiate properties from
competitors by reaching out well-established targeting audiences (see Marketing Mix,
Product).
The Motival project quantifies personal values by using visual images that are uploaded by
respondents. The algorithm groups similar values together and attributes a common name. This
approach is effective in measuring personal values and can be used to promote behaviour
based on those values. It combines 64 values and has been successfully applied in various
commercial projects since 2002. The Social Values model was used to analyze values in
service industries in Latvia (Data Serviss, 2010; Kaže, 2010 a,b). The methodology involved
direct interviews with respondents and an adapted SVI approach extended from Allen's method
(2000), (2001). Values were categorized into 8 domains based on their similarity, and each
domain is given a descriptive name based on the dominant values within it to facilitate easier
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reference: Rationalist, Traditionalist, Peaceful, Domestic, Profound, Self-centered, Ambitious,
and Maximalist. (Valters Kaže). As of 2019, the number of domains has been extended to 12
(Motival) (see appendix 2 for a detailed description of each domain).
Figure 8 Comparison of Reference (Latvia) and Target (Riga) Groups
Figure 1 shows the overall values of Latvian people, which form their lifestyles, attitudes and
consequently decision-making process. It is seen that there is a small difference in values
between Reference group (Latvia (6 regions): Riga, Pieriga, Kurzeme, Latgale, Vidzeme,
Zemgale), which consist of 5237 and Target group (Riga) with 2415 participants. It is seen that
people in the country of focus are more (13,6%) domestic (caring for family, health, and
safety, and acting in an established and familiar manner), (13,2%) caring (treating others
equally, protecting nature, belonging to a group, being humble, kind, responsive, and
maintaining good relationships.), (11,5%) peaceful (being honest, helping others, preserving
culture, and promoting world peace and harmony), (10,4%) tolerant (promotes tolerance,
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kindness, spirituality, reliability, sensitivity, harmony with nature and justice). On the other
hand, it can be concluded that Latvian are less (5,1%) experimental (constantly acquiring new
knowledge and skills, trying out new things, and being the master of one's own destiny),
(5,7%) maximalist (achieving one's goals in life, making the best of skills and opportunities,
and enjoying life to the fullest) and (5,7%) Inquisitive (traits such as seeking to understand the
world, creating something new and innovative, and being true to oneself, and persisting in the
face of difficulties).
According to the Host-Visitor Values Match model, promoting destination attributes that align
with the values of target markets can increase competitiveness. To create a value-based
proposition in tourism, it is needed to 1) analyse the core values of the host culture for
positioning, 2) develop and position the country or its regions based on natural core values,
and 3) analyse potential consumer markets to identify the best targets (Valters Kaže).
Figure 9 Host-Visitor Values Match model

Thus, the author draw conclusion, that new source markets can be determined based on the
values, behaviours, which impact the decision-making process of potential inbound tourists.
Based on the answers provided to 3 questions:
3. What methods do you use to understand the needs and wants of your customer?
4. Why does the customer buy from Radisson Hotel Riga Cluster?
5. Why doesn’t the customer buy from Radisson Hotel Riga Cluster?
The author was able to highlight the influence of brand equity not only on the competitive
advantages, but also on the decision-making process of the customers. According to
interviewee: “We operate under a well-known brand, and that brand fulfils their needs; as a
hotel, don't do anything extra on our own. We operate according to the brand's guidelines."
That also has an important role when developing marketing strategies and allocating budget as
one of the main goals is to maintain and nurture the current position of the entity. “They
choose us because of our brand and our excellent locations. When people book with us, they
know what they're getting, which gives a sense of trust. This is one of the primary reasons why
hotels sign contracts with well-known brands; it helps sell their services” – Respondent A.
6. What are the potential opportunities and challenges associated with these segments?
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The hotel has been operating in a challenging environment due to economic issues across
Europe. A lack of clear positioning for tourists is another challenge. However, the hotel has
little control over this issue. The lack of clear positioning might be one reason why Latvia is
lagging a bit in recovering from COVID-19 compared to Lithuania. Apart from this, it was
identified according to Respondent A that “the main issue - there's no clear image of what
Latvia is about. When people think of Latvia, they think of our green environment, our forests,
our rivers, but that's not what Riga, where our hotels are located, is about. There's not much
to do in Riga for an extended period. We haven't developed interesting places for tourists to
visit.”
7. How have consumer expectations and behaviors changed, and how has this influenced
marketing strategies?
The recent challenges like COVID-19, geopolitical tension, and economic downturn have not
significantly changed the segments themselves, but the proportions of the segments have
shifted. “For example, we no longer have as many leisure clients coming in groups from the
USA or Japan as we did in 2019.” While health and safety are still important, the
unpredictability in bookings is more challenging. Both B2B and B2C segments now make
bookings with very short notice. The trend of last-minute bookings can be attributed to
changes in the way people work and travel. This is true for both B2B and B2C segments. “At
the beginning of each month, we're unsure if we'll meet our budget plans or not. It's only when
we're in the thick of the month that we start to see how it might end. For example, corporate
clients now book meeting rooms with only a two-day notice, something unheard of before
COVID.” The hotel has had to adapt to the unpredictability of last-minute bookings. This
includes being prepared for a sudden influx of guests and ensuring they have enough supplies
to cater to them.
8. What factors influencing the decision-making process of inbound tourists?
9. Do you think that these factors alter due to Baltic crisis?
Factors such as what visitors can do in the location, the availability and diversity of cultural
activities, the distance from the visitor's home country, and the brand and location of the hotel
significantly influence customer decisions. For some price-sensitive customers, “even a
difference of 20 or 30 euros can be a deciding factor. For others, the quality of the breakfast
might be a determinant. We can attract them once but converting them into loyal clients can be
a challenge. “Another factor was highlighted by Respondent A “A major factor is what the
visitors can do here. Depending on their profile – they'll look for different activities. The
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availability and diversity of cultural activities also influence their decision to stay for a
weekend or longer. If it's a leisure trip, they usually have a program and come for specific
reasons. These factors have remained consistent even after the Baltic crisis.”
In conclusion, the Baltic crisis has affected the decision-making process of inbound tourists to
some extent, primarily in the form of shifting proportions within customer segments and
changes in the behaviour, which result in unpredictability in bookings. This trend is attributed
more to people feeling more spontaneous after a period of strict COVID guidelines rather than
concerns about travel availability or health document requirements. It is important to adjust to
changes, launching an online booking system for last-minute reservations, and focusing on the
brand and location of the hotel to attract customers.
Current and Potential Market Segments for Radisson
1. Can you describe the primary source markets that Radisson Hotels targets in Latvia?
A significant part of the hotel's customer base is local, with clients from Latvia, Lithuania, and
Estonia. Other significant markets include Sweden, Germany, and Norway.
2. How has the customer segmentation changed over the past few years, particularly in light
of recent events such as COVID-19 and geopolitical tensions?
There has been a shift in the market, with the Russian market being largely replaced by Spain.
This shift has been able to fulfil the income perspective to some extent. The economic
downturn and rising inflation over the past 20 years have not significantly influenced how
people choose hotels. Hotel prices have not risen significantly with inflation, however the
expenses for outside activities and economic stability of a tourists has an impact of the
decision-making process.
3. What are your strategies for maintaining or growing these segments?
The group uses certain tools to work on the corporate segment, which can benefit every single
hotel if used cleverly. The focus is more on B2C as they tend to spend more.
4. Are there new market segments that Radisson Hotel Latvia is considering targeting as a
response to recent changes in the market? Are there any new market segments that
Radisson Hotels is considering for future expansion?
The projection from the group is that the leisure segment will decrease, while the business
segment will remain steady. Business clients will come more like private clients, but their
purpose will still be business, not leisure.
In conclusion, the Baltic crisis has led to changes in the decision-making process of inbound
tourists, primarily in the form of increased spontaneity and last-minute bookings. The current
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marketing practices used by Radisson Hotel Cluster to mitigate the effects of external influence
include adjusting to these changes, launching an online booking system for last-minute
reservations, and focusing on the brand and location of the hotel to attract customers. They
also align their strategies with the guidelines received from the group and focus more on the
B2C segment.
Marketing Strategies Amid Geopolitical Tension, Economic Doubt, and COVID-19:
1. Could you describe the strategies, practices and tools that Radisson Hotel Riga Cluster
is implementing to attract inbound tourists? What are you marketing objectives?
The main goal of the hotel is to have more direct clients, those who come through their brand
website. The hotel aims to increase traffic to their webpage. However, this isn't a cluster
strategy; it's a brand strategy, and the hotel is part of it.
2. Could you discuss the specific strategies that Radisson Hotel Latvia is implementing to
mitigate the impact of geopolitical tensions, economic uncertainty, and COVID-19 on
your business? What are some of the key initiatives that Radisson Hotels has
undertaken to mitigate the impact of these factors?
The hotel's sales team should be more proactive to speed up recovery. This involves generating
future leads and working more effectively with the commercial segment. The group already
has a lot of tools that were not used during Covid, and these need to be utilized again.
3. How are you communicating these strategies to your customers to reassure them and
maintain their trust?
4. Did you use any innovative or unique approaches that that Radisson Hotel Riga
Cluster has taken in response to these challenges?
“No, it is more about group initiatives, like making mobile applications work faster or
developing other tools. Everything is coming from the group. We do not have the resources,
human or financial, to create those things or some tools. We don't replace or react in any
special way.” “We're not doing anything specific. We want to ensure our customers that
everything is okay despite the geopolitical tension.”
5. What are the main means of promotion for Radisson Hotel Riga Cluster?
If so, we are just reminding customers about our products, about all those unique selling points
that we have, property by property. And yes, we're framing them within the brand. If we are
just boosting the brand, it will never be about the destination. We do not have enough
resources to promote the destination because we can promote Riga in the name of, I don't
know, Redis and Blue Reeds or in the name of Daugova. The scope will be very small. We can
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only boost our properties and then we can see the connection. But when people start to think
about the city and then start to look for a place to stay, it's too late for our properties to speak
about promoting the destination and invest money in that. If we are doing some promotions,
say, in the airport, it's paid by our group, not by us. We do not have so much money to do that.
I believe that due to climate changes, with hotter and hotter summers, we may see more
tourists from Spain or Portugal, as they are not visiting us very often. This will change in the
upcoming five years, and these markets will have a bigger share in our main markets. But it
will not impact the summer season as it will be too hot for them to stay here, and they will look
for alternative destinations.
reservations, and focusing on the brand and location of the hotel to attract customers. They
also align their strategies with the guidelines received from the group and focus more on the
B2C segment. The hotel's sales team should be more proactive to speed up recovery, and the
group's tools need to be utilized again. Destination marketing, digital marketing, and email
marketing are primarily the group's responsibility. Regular communication via email is not
seen as a significant influence on a customer's decision to visit a country or choose a hotel.
Destination, Digital, Hospitality, and Service Marketing
1. Can you share some insights on how Radisson Hotels employs destination marketing in
its strategy?
2. What role does digital marketing play in your overall marketing approach?
3. How does Radisson Hotels leverage hospitality and service marketing techniques to
attract and retain customers?
Destination marketing is the group's responsibility. The hotel aims to achieve higher reviews in
terms of service marketing, as they are very important for B2C consumers. Email marketing is
part of the group's strategy, promoting upcoming promotions, membership benefits, and so on.
However, regular communication via email is not seen as a significant influence on a
customer's decision to visit a country or choose a hotel. Digital marketing is the main strategy,
which includes social media and paid social media. Other digital tools are used by the group.
Only a small group of very conservative customers would want to stay at the same hotel every
time. More than 20% of clients like to change and have new experiences. This applies to
35
business clients as well. They sometimes make safe choices, like a hotel where they know
there will be a table for their computer, social spaces, a quiet environment, or excellent
breakfast.
reservations, however, it is not proactive, focusing on the advantages of the brand and location
of the hotel to attract customers. They also align their strategies with the guidelines received
from the group and focus more on the B2C segment. The hotel's sales team should be more
proactive to speed up recovery, and the group's tools need to be utilized again. Destination
marketing, digital marketing, and email marketing are primarily not active. Regular
communication via email is not seen as a significant influence on a customer's decision to visit
a country or choose a hotel.
Conclusion
1. Are there any other aspects of Radisson Hotels' marketing strategies that you think
would be valuable to share?
2. What do you believe should be adjusted in marketing strategies for future and in
regard to current Baltic crisis?
The hotel does not consider exploring new markets alone due to limited resources. The focus is
on promoting to their closest markets, the ones that already understand and know them.
However, due to climate changes, they expect to see more tourists from Spain or Portugal in
the upcoming five years.
3.2.2 Business outlook of Radisson Riga Hotel Cluster
3.2.2.1 External Environment: Porter 5 Forces
1. Could you speak to the level of competitive rivalry within the hotel industry in Latvia?
2. What are the barriers to entry for new competitors in this market?
3. How would you describe the power of suppliers and buyers in this industry?
4. Are there any substitute products that pose a threat to Radisson Hotels in Latvia?
5. In light of recent events (geopolitical tension, economic uncertainty, COVID-19), how
have the dynamics of Porter's 5 Forces (bargaining power of suppliers, customers)
changed for Radisson Hotel Latvia? Do you feel a pressure from suppliers?
Competitors?
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The external environment of Radisson Hotels in Latvia is shaped by various factors. The
country's political stability, economic growth, and tourism trends significantly influence the
hotel's operations. Latvia, being a member of the European Union, also provides a favorable
business environment with its standardized regulations and policies. However, the hotel
industry is highly competitive, with Radisson Hotels facing competition from both
international and local hotel chains. The COVID-19 pandemic has also posted significant
challenges, affecting global travel and tourism.
Figure 10 Radar graph for Porter 5 Forces analysis

Analysis of Porter’s Forces showed the attractiveness of the tourism industry in Latvia and the
impact of external factors on the stability of Radisson Riga Hotel Cluster. The results
identified strong sides of the entity as well as weak aspects to be considered as they threaten
the competitiveness in the market. Following the ranking of external factors (see appendix 1)
for of Radisson Riga Hotel Cluster , the average score for “Entry Barriers” and “Bargaining
Power of Suppliers'' forces are 3,4 (Medium +) and 3,1 (Medium -) respectively, which are
considered to be positive and relatively acceptable for the entity as 1) there are no threats of
new comers (competitors) to take over in the industry; and 2) while suppliers play an important
role in maintaining the quality (food, amenities), they are quite easy to switch and find
alternatives.
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Radisson is an established international hotel brand with high brand equity, giving it a
significant advantage over new entrants who would require heavy investments in branding and
marketing. The hotel industry in Latvia is subject to moderate to high government regulations,
which could pose a barrier to entry for smaller operators. While online booking platforms have
made it easier for new entrants to reach customers, established brands like Radisson still have
an advantage due to their relationships with travel agents and corporate clients. Customer
loyalty is moderate, with factors such as price, location, and amenities being prioritized.
Radisson's reputation for quality service and comfortable accommodations can foster customer
loyalty. Switching costs are generally low, but loyalty programs can create some degree of
switching cost as customers may be reluctant to lose accumulated points or status. According
to Respondent A, In Latvia, the hotel industry is highly competitive due to an oversupply of
rooms for the number of customers; existing properties are more likely to sign agreements with
big chains and change their names.
Suppliers have moderate bargaining power due to the diversity and availability of suppliers,
high availability of substitutes for goods and services, and low uniqueness of supplier's
products. However, one important aspect noted in the interview is the fluctuating price of food
due to unstable economic situation. The cost of food is a major influence on the hotel's
operations, similar to heat and power costs, making Suppliers’ management as the second
important issue in the strategic and marketing planning, with the need to monitor the impact of
external factors and adapt quickly.
As for “Bargaining power of buyers”, “Threats of Substitute Products” and “Rivalry among
existing competitors”, the scores are 3,6 (High --), 3,7 (High --) and 4,1 (High --), which is
disadvantageous for Radisson Riga Hotel Cluster. Many substitutes are available, with high
buyer propensity to choose them based on factors like price, location, and quality. The relative
price performance of substitutes is moderate, and customers perceive moderate differentiation
between options. Switching costs are low, and technology has made it easier for customers to
find and choose substitutes. The hotel industry in Latvia has many competitors with a high
level of diversity in terms of size, scope, target market, and strategy. Thus, product
differentiation and brand identity/loyalty are significant factors in the industry, and particularly
for Radisson Riga Hotel Cluster. “Platforms like Airbnb are not viewed as significant
competitors, especially for business clients. Safety issues are a concern with such platforms” –
Respondent A.
38
3.2.2.2 Marketing Mix
1. Can you discuss the key elements of your current marketing mix 4ps or 7ps (Product,
Price, Place, Promotion, People, Process, Physical evidence) and how they have been
adapted in response to recent challenges?
2. How does Radisson Hotel Latvia differentiate its product and service offerings from
competitors, especially during these challenging times?
Variables Analysis
Product The product is the hotel services provided by
the Radisson Hotel Cluster. This includes
accommodation, dining, and other amenities.
The product is largely determined by the
brand; however they excel at providing high-
quality service regardless of the brand.
Place The place is the physical location of the
hotels in the Radisson Hotel Cluster. The
location is fixed and is a significant factor in
attracting customers.
Price The pricing strategy of the hotel is
influenced by market conditions and
competition. The hotel keeps an eye on the
market and adjusts its prices accordingly.
The hotel occasionally adjusts its pricing
strategy to understand the price sensitivity of
different properties within the cluster.
“We've noticed that when we adjust our
pricing strategy, we can attract a different
clientele. But these aren't our typical hotel
clients. They only come when we offer a
lower price” (Respondent A).
Promotion Promotion is not a significant focus for the
hotel. Customers choose the hotel based on
the product, place, and expected service. The
hotel has not actively adapted its promotion
39
to emphasize safety during the Covid times,
and they've never had to address the war
situation in their promotional materials.
People The people are the hotel staff who provide
high-quality service to the customers.
Process The process involves the methods and
procedures used to deliver the hotel services.
The hotel aims to provide quick and efficient
service to meet customer needs.
Physical evidence The physical evidence includes the physical
features of the hotel, such as the facilities
and amenities. While not all of the hotels in
the cluster are the newest, they have certain
features that make them stand out.
Figure 11 Marketing Mix for Radisson Riga Hotel Cluster
Figure 7 provides the marketing mix for the Radisson Riga Hotel Cluster in Latvia based on
the information provided in the interview and the insights from the internship period. It's
important to note that the marketing mix may vary between different hotels in the cluster and
may change over time in response to market conditions and customer preferences (described in
detail in practical part).
40
3.2.2 Quantitative online survey outcomes
The gathered data on Radisson Riga Hotel Cluster (5 properties) presents a comprehensive picture of
Radisson's operation and performance as well as the influence of Baltic crisis on the decision-making
process of its customers.
Demographics
The collected data represents the age distribution of a sample of 48 individuals. The largest age group is
35-44 (AO03), comprising 16 individuals or 33.33% of the total sample. This is followed by the age
groups 45-54 (AO04) and 55-64 (AO05), both representing 12 individuals or 25.00% of the total each.
The group aged 65 and above (AO06) comprises 4 individuals, accounting for 8.33% of the sample.
The age group 18-24 (AO01) includes 3 individuals, making up 6.25% of the total. Lastly, the smallest
age group in the sample is 25-34 (AO02), with only 1 individual, or 2.08% of the total population.
41
The collected data shows a breakdown of gender within a sample of 48 individuals. The majority of the
sample is male, with 37 individuals representing 77.08% of the total. Females account for 11
individuals, or 22.92% of the total. There were no instances where the gender was not answered or not
displayed,
The data set outlines the nationality or country of residence of a sample of 48 individuals. The most
represented nationality is Estonian (AO56), with 11 individuals accounting for 22.92% of the total. This
is followed by Latvia (AO94) with 8 individuals or 16.67% of the sample, and Lithuania (AO100) with
6 individuals, representing 12.50% of the total. Finland (AO60) accounts for 4 individuals or 8.33% of
the sample. Italy (AO84) and Poland (AO140) both represent 3 individuals each, accounting for 6.25%
each. Germany (AO65) and Sweden (AO169) each represent 2 individuals, or 4.17% each of the total.
The remaining countries - Belgium (AO17), Czechia (AO45), India (AO78), Netherlands (AO123),
42
Norway (AO130), Romania (AO143), Switzerland (AO170), Ukraine (AO184), and the United States
of America (AO187) - each account for 1 individual, or 2.08% each of the total sample.
The data collected from multiple responses on Radisson hotels in Riga, where the respondents have
stayed, indicates that Radisson Blu Daugava (SQ005) was the most frequently visited, with 37
individuals stating they had stayed there. The next most popular was Radisson Blu Ridzene (SQ004),
with 17 individuals having stayed there. Radisson Old Town Riga (SQ003) was visited by 7
individuals. Park Inn Valdemara (SQ002) was chosen by 6 respondents, and finally, Park Inn Barona
(SQ001) was visited by 3 individuals. Since this was a multiple choice question, a respondent could
select more than one hotel, so the total count of stays is greater than the number of individuals in the
sample.
The data reflects the respondents' membership status in the Radisson Rewards program from a sample
of 48 individuals. The majority, with 39 individuals or 81.25% of the total, confirmed they are
members of the Radisson Rewards program. A smaller portion, 6 individuals or 12.50% of the total,
indicated they are not members. There were also 3 individuals, accounting for 6.25% of the sample,
who were unaware of the Radisson Rewards program.
43
When considering their accommodation options during travels, the data indicates that 27.08% of
respondents always choose Radisson hotels as their primary choice. Additionally, 43.75% mentioned
that they often select Radisson when it's available and suits their travel needs. 22.92% of respondents
stated that they sometimes stay at Radisson hotels when their prices are more competitive. A small
percentage of 4.17% reported rarely choosing Radisson and usually selecting other brands instead. Only
2.08% of respondents have never chosen Radisson for their accommodation in the past.
The data shows that out of the respondents, 2.08% indicated that they do not travel abroad and include
a hotel stay in their trips. 16.67% reported taking 1-3 trips per year with hotel stays, while 18.75% took
44
4-6 trips per year. 14.58% of respondents took 7-9 trips per year, while the majority, comprising
43.75%, reported taking 10 or more trips per year with hotel stays. A small percentage, 4.17%,
mentioned that the frequency varies significantly from year to year.
The data reveals that 12.50% of respondents stay in hotels for 1-7 nights per year. Another 12.50%
reported staying for 8-14 nights per year, which is equivalent to about 1-2 weeks. 29.17% of
respondents indicated staying for 15-30 nights per year, approximately 2 weeks to 1 month. 37.50%
mentioned staying for 31-60 nights per year, about 1-2 months. A small percentage of respondents,
2.08% each, reported staying for 61-90 nights (2-3 months), 91-120 nights (3-4 months), and 121-180
nights (4-6 months) per year. Finally, 2.08% of respondents mentioned that their hotel stays vary
greatly from year to year, without a typical pattern.
According to the data, 22.92% of respondents stated that the primary purpose of their most recent stay
at a Radisson Hotel in Riga was for leisure. The majority, comprising 54.17%, reported that their stay
was for business purposes. 12.50% of respondents mentioned that their stay served both leisure and
business purposes. Additionally, 10.42% of respondents indicated an "Other" purpose for their most
recent stay, which could vary and was not specified in the options provided.
45
The data shows that during their most recent stay at a Radisson Hotel, 37.50% of respondents traveled
alone. 8.33% mentioned traveling with friends, while 33.33% stated they traveled with family.
Additionally, 20.83% of respondents reported traveling with colleagues during their most recent stay.
Among the given options, the factors that most influenced respondents' decision to visit Latvia and stay
at a Radisson property are as follows: 5 respondents were influenced by recommendations from friends
or family, 4 respondents considered positive online reviews of Radisson in Latvia, 14 respondents were
attracted by the price or package deals, 13 respondents were influenced by their familiarity with the
Radisson brand, and 32 respondents were primarily influenced by the location of the Radisson property
in Latvia. Additionally, 7 respondents mentioned that the availability of desired amenities at Radisson
played a role in their decision, 12 respondents stated that their visit was for business or event purposes,
and 1 respondent indicated an "Other" factor influencing their decision, specifying a contract with their
46
company. Notably, there were no respondents who mentioned being influenced by marketing or
advertising by Radisson or Latvia tourism.
The data provided represents the ratings given by respondents for various factors influencing their
decision to visit Latvia and stay at a Radisson property. The factors include the availability and
diversity of tourist attractions, climate and weather conditions of the destination, cultural aspects such
as local traditions and cuisine, perceived safety and security, overall cost of the trip, presence of
business opportunities or work-related reasons, and availability and convenience of transportation
options.
In general, the ratings for each factor varied across a range of values. For the availability and diversity
of tourist attractions, the ratings were distributed relatively evenly among the different options, with no
dominant rating. Similarly, for climate and weather conditions, the ratings were spread across different
values, with a slight increase in the number of respondents giving higher ratings.
When it comes to cultural aspects, the majority of respondents gave higher ratings, indicating that local
traditions, historical sites, and local cuisine were important factors influencing their decision. Perceived
safety and security received higher ratings as well, suggesting that respondents generally felt safe in the
destination.
The overall cost of the trip received a mix of ratings, indicating varying levels of satisfaction with the
affordability of accommodations, meals, and attractions. The presence of business opportunities or
work-related reasons received moderate to high ratings, suggesting that some respondents considered
Latvia as a viable destination for such purposes.
47
Lastly, the availability and convenience of transportation options, including flights, public
transportation, and car rentals, received higher ratings, indicating that respondents found these aspects
to be favorable and convenient for their travel.
It's important to note that the provided description is based on the given ratings and their respective
counts, without interpreting the data or making any assumptions beyond the information provided.
Considering the current context of COVID-19, to what extent likely would you agree to the
following statements:
The data provided reflects the respondents' attitudes and perspectives regarding various statements
related to COVID-19 and its impact on their travel decisions.
In terms of the importance of safety and security when choosing a hotel, the majority of respondents
agreed or totally agreed with this statement. 32 respondents agreed or totally agreed, while only 6
respondents disagreed or totally disagreed.
Regarding the impact of COVID-19 on a destination's health infrastructure, the responses were more
varied. While a significant number of respondents agreed or totally agreed with this statement (20
respondents), there were also a considerable number who neither agreed nor disagreed (16
respondents).
When it comes to being willing to pay a higher price for accommodation that ensures enhanced
COVID-19 safety measures, the responses were again mixed. The highest number of respondents fell
into the category of neither agreeing nor disagreeing (18 respondents), followed by those who agreed or
totally agreed (11 respondents).
48
In terms of recent international travel, the responses indicated a similar pattern. A significant number of
respondents neither agreed nor disagreed (17 respondents), while a considerable number agreed or
totally agreed that they have been traveling internationally less due to concerns about COVID-19 (14
respondents).
Overall, the data suggests that safety and security are important factors for most respondents when
choosing a hotel, and the impact of COVID-19 on health infrastructure and travel decisions is a
consideration for a significant portion of respondents. The willingness to pay a higher price for
enhanced safety measures and the actual decrease in recent international travel due to COVID-19
varied more among respondents, with a notable number being uncertain or neutral in their responses.
Considering the current geopolitical situation, to what extent likely would you agree to the
The data provided reflects the respondents' attitudes and perspectives regarding the current geopolitical
situation and its impact on their travel decisions related to Latvia.
When considering the impact of the Russia-Ukraine conflict on their decision to travel to Latvia due to
concerns about safety, the majority of respondents either disagreed or totally disagreed with this
statement. Only a small number of respondents agreed or totally agreed that the conflict significantly
affected their decision.
Regarding changes in travel routes due to the Russia-Ukraine conflict affecting travel convenience, the
responses were more evenly spread. While the majority of respondents disagreed or totally disagreed,
there were still a notable number who agreed or totally agreed with this statement.
49
In terms of the perception of it becoming harder to get to Latvia due to the Russia-Ukraine conflict, the
responses were more mixed. A significant number of respondents neither agreed nor disagreed,
suggesting a level of uncertainty or neutrality. However, there were still respondents who agreed or
totally agreed with the statement, albeit in smaller numbers.
When it comes to the intention to visit Latvia in the near future again, the overwhelming majority of
respondents expressed a high level of agreement. The largest number of respondents totally agreed,
followed by those who agreed. No respondents disagreed or totally disagreed with this statement.
Overall, the data suggests that while the Russia-Ukraine conflict does not appear to have had a
significant impact on the respondents' decision to travel to Latvia due to safety concerns, there is some
acknowledgement of potential changes in travel routes and perceived challenges in reaching Latvia.
Nevertheless, the majority of respondents expressed a strong intention to visit Latvia again in the near
future, indicating a positive outlook despite the current geopolitical situation.
Considering the current economic situation, to what extent likely would you agree to the
The data provided reflects the respondents' attitudes and perspectives regarding the current economic
situation and its impact on their travel preferences.
Regarding the impact of the respondents' economic situation on their frequency of travel, the majority
either disagreed or strongly disagreed that their economic situation (disposable income) has become
50
worse over the last few years, influencing their frequency of travel. However, there were still
respondents who agreed or strongly agreed with this statement, albeit in smaller numbers.
When considering economic development, such as inflation and foreign exchange rates, and its
influence on seeking budget or discounted travel options, the responses were more evenly spread.
While the majority of respondents neither agreed nor disagreed, there were still significant numbers
who agreed or strongly agreed with this statement.
In terms of the respondents' anticipation of traveling internationally more often within the next few
years, the responses varied. A considerable number of respondents neither agreed nor disagreed,
suggesting a level of uncertainty or neutrality. However, there were still respondents who agreed or
strongly agreed with this statement, indicating a positive outlook for future international travel.
Regarding the perception of Latvia as an affordable travel destination, the overwhelming majority of
respondents agreed or strongly agreed with this statement. Only a small number disagreed or strongly
disagreed, suggesting that the majority find Latvia to be an affordable destination.
Overall, the data suggests that while some respondents may have experienced a worsening economic
situation, it does not appear to have had a significant impact on their frequency of travel. There is also a
recognition of economic factors influencing the search for budget travel options. Additionally, there is a
positive outlook for future international travel, and Latvia is generally perceived as an affordable
destination by the respondents.
The data reveals that when searching for hotels, the majority of respondents preferred using booking
platforms, such as Booking.com and Expedia, as well as the hotel's official website. These sources were
selected by 37 and 30 respondents, respectively. Google search was also mentioned by 14 respondents
as a source for hotel searches. Social media platforms, travel agents, and review websites like
51
TripAdvisor were used by only a small number of respondents. Additionally, two respondents
mentioned using other sources, with one using the RadissonHotels App and another referring to the
parent company of Radisson, Booking Holdings. Overall, the data highlights the significance of online
platforms and the hotel's official website as primary sources when searching for hotels.
Ranking / Please choose one to five of the most important factors for you when making a
choice of a hotel and rank them!
The data collected from our research reveals that 42 out of the total respondents consider 'Price' as the
most significant factor when choosing a hotel. 'Location' was ranked second most important by 41
respondents. The 'Quality of Service' was highlighted by 38 respondents, positioning it as the third most
critical factor. The fourth most valued factor was 'Reviews and Recommendations', mentioned by 23
respondents. 'Amenities and Facilities' and 'Flexibility in Booking Policies' each were selected by 22
respondents. 'Accommodation Types', such as suites, standard rooms, and villas, drew the interest of 19
respondents. Interestingly, 'Safety and Security' and 'Brand Reputation' were lower on the list, cited by
only 10 and 13 respondents, respectively. There were 10 respondents whose preferences were not
displayed or fell outside the specified categories.
Do you feel that Radisson Hotels in Latvia have booking policies that are flexible enough to
accommodate changes or cancellations due to external factors?
Ranking / Which aspects (one to five from the list) of your stay at the Radisson Hotel(s) did
you appreciate the most and rank them by importance?
52
The data from our research on factors appreciated during a stay at the Radisson Hotel(s) indicate that
'Location' was the most appreciated factor, with 26 respondents ranking it first, 8 ranking it second, and
fewer in subsequent rankings. 'Quality of Service' was the second most appreciated aspect, particularly
highlighted in the second-ranking position by 14 respondents. 'Price' was distributed fairly evenly
across the first to fifth rankings but was most frequently placed in the first and third positions, each by
8 respondents. 'Accommodation Types' was noticeably appreciated more in the fourth and fifth
positions, each by 7 respondents. 'Brand Reputation' and 'Amenities and Facilities' received modest
recognition across all ranks. 'Safety and Security', 'Reviews and Recommendations', and 'Flexibility in
Booking Policies' were less frequently appreciated, mainly falling in the third to fifth positions. A
portion of responses, particularly in the fourth and fifth ranks, were not displayed or were outside the
specified categories.
53
According to the collected data, areas where respondents believe Radisson Hotels could improve
include 'Price', with 24 respondents citing this as an area for potential enhancement. The 'Quality of
Service' was mentioned by 14 respondents, while 'Amenities and Facilities' was referenced by 13
respondents. Both 'Accommodation Types' and 'Flexibility in Booking Policies' were seen as areas for
improvement by 10 respondents each. Fewer respondents thought 'Location' (9 responses), 'Reviews
and Recommendations' (7 responses), 'Brand Reputation' (4 responses), and 'Safety and Security' (2
responses) could be improved. There were 6 respondents who suggested other areas of improvement,
including the need to re-open and redecorate the bar and older rooms, adjust the hot water temperature,
maintain ventilation, improve parking, remember benefits for PLATINUM/VIP members, and provide
more information about available facilities.
54
10 Conclusions
1. New source markets can be identified by analyzing the values and behaviors of people
similar to Latvians, using insights from Hofstede or the Motival project. These values
and behaviors impact the decision-making process of potential inbound tourists.
2. The tourism industry has suffered greatly due to the Baltic crisis, which includes the
pandemic, geopolitical tensions, and economic downturn. Latvia, in particular, has
experienced a setback in tourism recovery because it is a less popular travel location
and tourists are afraid for their safety and security.
3. Brand equity of Radisson Riga Hotel Cluster influences not only competitive
advantages but also the decision-making process of customers.
4. Latvia as a travel destination has a lack of clear positioning for tourists and low
attractiveness in terms of activities to do.
5. A considerable number of respondents anticipate traveling internationally more often
within the next few years.
6. While the majority of respondents expressed a strong intention to visit Latvia again in
the near future, inflation and foreign exchange rates have influenced some respondents
to seek budget or discounted travel options.
7. The availability and convenience of transportation options, including flights, public
transportation, and car rentals are essential for tourists in decision-making process.
8. The importance of safety and security when choosing a hotel is a key factor for the
majority of respondents. (although majority stated that Russian Ukraine war influenced
the decision making process)
9. The respondents' attitudes and perspectives regarding various statements related to
COVID-19 have impacted their travel decisions.
55
11 Recommendations
1. Develop marketing strategies that align with source markets with similar social trends,
demographic and behavioural shifts in the tourism industry.
2. In order to attract more customers, stakeholders in the industry are suggested to
develop a clear and compelling positioning strategy, increase and promote the range of
activities and attractions available to tourists in order to make Latvia a more appealing
travel destination.
3. Radisson Riga Hotel Cluster is suggested to continue maintain brand guidelines, in
building strong brand equity, however, align with digital marketing trends and social
media content development.
4. Radisson Riga Hotel Cluster is recommended to prioritize safety and security in all
aspects of the tourism industry and promote the travel destination for new source
markets to eliminate the fear of potential inbound tourists.
5. Ensure the availability and convenience of transportation options, as it is a key factor
influencing the decision-making process of tourists.
6. Leverage the positive outlook for future international travel to Latvia by investing in
marketing and promotional activities to attract more tourists, replacing reactive
marketing to proactive one.
7. Radisson Riga Hotel Cluster is encouraged to address issues and potential objections of
tourists in social media networks, promote safety of a travel destination, and build
consistent email marketing for brand awareness.
56
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13 Appendices
Appendix 1 Variables for Porter 5 Forces analysis
60
Appendix 2 12 domains of Motival project for values and behaviors
61

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Professional Bachelor's programme

EUROPEAN BUSINESS STUDIES

Marketing Strategy for Radisson Hotels Latvia

Scientific Supervisor Associate Professor

2 Theoretical Part: Literature review.......................................................................................10

2.1 Overview of the tourism industry.............................................................................................10

3 Hospitality and Tourism Marketing and Strategies...................................................................23

3 Practical Part: Detailed research analysis............................................................................26

3.1 Research methodology and design............................................................................................26

3.2 Interpretation of the results:.....................................................................................................26

Appendix 1 Variables for Porter 5 Forces analysis.......................................................................58

Appendix 2 12 domains of Motival project for values and behaviors..........................................59

Figure 4 Air bookings for Russian outbound travel to European destinations,

Table 1 Visitors in all accommodation types in Latvia from 2019-2021,

Accommodation Type 2019 2020 2021

Total 2 853 333 1 462 965 1 306 588

Hotels and similar

industry recorded a total of 2,853,333 visitors. A significant majority of these visitors

2.2.1.1 Social factors

Figure 8 Comparison of Reference (Latvia) and Target (Riga) Groups

Figure 9 Host-Visitor Values Match model

Figure 10 Radar graph for Porter 5 Forces analysis

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