Marketing Strategies in Tourism Or Hospitality Business: Ithra, Saudi Arabia Case Study

Introduction: Segmentation and Promotion in Tourism Or Hospitality Business: Ithra's Success Story

Marketing in tourism and hospitality industry refer to creating awareness among people regarding tourist locations. This helps in attracting more customers, building effective relationship, enhancing brand image and profitability of hospitality organization. This report is based on segmentation of Ithra in Saudi Arabia and involves various benefits of using this segment for promotion and targeting.

Description of Destination

Tourism industry in Saudi Arabia has been shown an annual growth of 11% as compared to previous year. Art and recreational sector has been selected among various sectors of tourism and hospitality. These sectors provide services that assist in fulfilling cultural, leisure, entertainment and recreational interest of the individual. Amusement parks, casinos, fitness centers, theaters, museums and services related to sports come under this sector. Recreational and art sector has shown a drastic growth as preferences of individual are changing toward this sector (Alqahtany and Aravindakshan, 2022). Earlier, consumer has more focused towards saving their income for future uncertainty and less interested in spending on leisure activities. It has been identified that entertainment market of Saudi Arabia has been grown by 15% in last year. This indicates changing consumer behavior or preference towards their saving and expenditure pattern. These sectors contribute effectively in improving overall position of the country. Some of the benefits of art and recreational sector for country are as follows:

• Development of job opportunity: Enhancing in art and recreations sector of Saudi Arabia has result in increase in number of job opportunity in country. It has been identified that 450 thousand job opportunities has been created in the country by this sector (Job opportunity in entertainment sector of Saudi Arabia, 2022). It assists in reducing unemployment rate and help in improving standard of living.
• Economic development: Entertainment sectors in Saudi Arabia is contributing 3% of total GDP and $23 billion has been raised in the year of 2023 by this sector.
• Growth of different sectors: This sector helps in attracting more people towards particular country and assists in the development of other sectors in this particular industry.

There are various types of issues which are prevailing in the art and recreational sector of Saudi Arabia. Some of the issues are as follows:

• Infrastructure facility is not effective in Saudi Arabia which creates issue for the growth of this sector. Country needs to incur huge amount on transportation, public services and housing for adequate working of this sectors.
• Sector is facing issue in balancing the economic growth with sustainable development. It has been identifid that there is lack of use of renewable resources in the country which create issue of sustainability.
• Political instability and terrorism are prevailing in the country which results in creating obstacles in development of entertainment sectors. Country is having high rate of terrorism which restrict tourist to visit county and results in reduction in growth rate of tourism sector.

Centre for World culture (Ithra):

Under art and recreational sector, Ithra museum has been selected from Saudi Arabia. This centre has been constructed by Saudi Aramco at Dhahran and started on December 1, 2016 by King Salman Bin Abdulaziz. This was incorporated by king for fulfilling its company's corporate social responsibility by providing various services to citizens. Centre of World culture compromise of museum, theater, library and exhibition hall. Vision of the centre is to promote creativity and innovation within the country. Mission of the centre is linked with the overall development of human being and focus on encouraging knowledge & creativity among them and creates a brighter future. The building of Ithara had been constructed with consideration all aspects of the human and environment. Floors in buildings have been connected with the past and future.

Museum and historical things has been kept on ground level where as teaching room is been constructed on top with believe of better future. Building has been covered the areas of 80000 square meter and focus on implementing sustainable activities within its working (Centre of world culture (Ithra), 2020). Plants which are growing on the side of the building are grown by desert species which reduce need to water and help in sustainable growth. For reducing negative impact on the renewable source of energy has been used in centre and aim at sustainable development. It has been identified that development of Ithra has result in increasing number of tourist in Saudi Arabia results in the development of tourism sector of country. It has been identified that in 2020 more than 1 million people has visited Ithra. Centre is working successful and has high opportunities in coming future (Alyousef et al, 2022). Museum has been constructed in Ithra to create awarness among upcoming generation regarding past and culture of Saudi Arabia. Company is having 1.3 million social media follower and more than 39 million social media engagement which indicates its future growth opportunity.

Segmentation of Ithra

Ithra is focusing on providing services that will help in creating awareness regarding cultural and ethic of Saudi Arabia. Centre of world culture has been targeting children and youth of the country. This segment has been targeted as museum and teaching room has been formed with view of enhancing knowledge of children and youths of country. Importance of this segment is that they are more concern toward spending on leisure rather than saving money. This will help in attracting most of population and help in improving revenue of the centre. Youth and children are more concentrated towards exploring new and innovative places and have curiosity towards identify various entertainment sectors (Awais et al, 2023). Growth potential for company increases by targeting this segment as people are attracted towards visiting places which has received positive review.

Country is having high economic growth potential because for inauguration of such centre in Saudi Arabia. There are various issues which can arise in long term growth of the country. These issues are related to ineffective management and care of building. Management team of Ithara should focus on investing on the maintenance of building which helps in maintaining the beauty of this place. Ineffective maintenance will result into losing tourist visit and eventually hamper the growth of the place. For maintaining the number of visitors, company should focus on bringing new and innovating things in the building that will help in attracting more and more individual. If no changes will be brought in their operation than consumer will not visit for more than1 time which will impact on overall profitability of cultural centre.

Segmentation of the Ithra:

From the segmentation of Ithra it has been identified that world culture is focused towards attracting people between the age group of 5 to 60 years. Museum in world culture centre has been specially incorporated for enhancing awareness of children towards the cultural and history of the place (Nasser Alsager, Afzal and Abdulaziz Aldawood, 2020). This made it necessary to target children and teens of the country. All type of family whether coupled; children and singles have been targeted as the centre provides entertainment facility for all individual in the family. This helps in engaging all members at a time and provides no scope of boredom for any member. It eventually results in attracting more visitors towards the centre and assists in improving overall position of the centre. People are targeted who interested in learning something new and innovative. Children will get to learn about the history and past of the country easily by using various entertainment sources. Fitness centres are also located in the Ithra which helps in attracting people who become more conscious regarding their health. Under geographical segment, world culture centre is targeting people all over the world which will help in enhancing its growth opportunity and eventually result in improving profitability (Omar, 2022). This will benefit tourism & hospitality sector of country and result into enhancing other sector of the country.

It has been identified that Ithra is targeting to people who are interested in knowing history and spending toward leisure & adventure activities. Under Psychographic segmentation, Ithra is targeting people who are following creative, socialize and conservative lifestyle. These have been targeted as Ithra focuses on creating awareness regarding the country's ethics and adopting sustainable measures which are preferred by conservative people. Facilities in centre for world culture can be used by people belonging to any social class as there are various price ranges which include premium to general. Tickets for children below age of 12 are free for museum which helps in attracting more people. It has been identified that Ithra segmentation is effective as total number of people visiting the place has been increased to 3.5 million visitors in the previous year (Number of visitor in Ithra, 2023). Among all, 91000 people visited for the museum of cultural centre which indicates people's interest towards the past and their preference towards teaching & enhancing knowledge of their children

Description Of Marketing Activities

Marketing strategies helps in creating awareness regarding the product or destination to potential customer and focuses toward attracting them. This strategy enables in improving profitability and ensures long term stability of the firm. Almaghlouth (2022) described that Ithra has undertaken various marketing and promotional strategy which results into increase in the number of visitors and profitability of centre. Various events and partnership has been done by the company which helps in attracting and creating awareness regarding the centre. SAUDIA and centre of world culture has carried out a partnership which includes promoting Ithra culture and facilities through aviation industry (Pestana and Alissa, 2021). SAUDIA is leading aviation company in Saudi Arabia which will be helpful in creating awareness regarding Ithra. The partnership includes creating recognition regarding Ithra activities of culture by providing all information in the in-flight entertainment program.

This also aims at providing detail information regarding holiday packages which are available and demonstrates the benefit of culture tourism. Ithra's Head of public affair believes that utilizing this marketing strategy which helps in broadening and improving the high quality program of the firm. According to Cubelic (2019) Ithra focuses on celebrating each festival and conducting various events which assist in attracting more visitors. Centre has been focused towards celebrating Eid-Al Adha by commencing various musical and cultural events. Musical performance was organized in the centre in which popular Kuwaiti singer had performed. Circus, exhibition regarding Eid, conducted library events and establish market were the key attractions for visitors. It has been identified that over 64916 visitors has come to became part of these events. In 2022, for promoting culture of the country Ithra has conducted summer youth program which aims at broadening the knowledge of children aged 13-18 regarding the culture profession. Maspul (2022) described that Ithra is indulging toward various welfare program which results into creating positive image in world. Ithra has conducted the events which aim at improving the knowledge of visitor by commencing an exchange program.

This event includes providing opportunity to exchange their book with other readers at no cost and aiming at enhancing understanding of other. This event also aims at creating awareness regarding the recycling and demonstrate Company's motive towards sustainable development. Company has also focused toward initiating Reading marathon which aims at planting 1 tree on the reading of 100 pages. This results in planting 2000 trees during the marathon and assist in creating positive image of the Centre. This strategy has been used by company to promote their mission and helps in attracting more visitors toward Ithra. Center for world culture has focus on attracting children of different ages to the destination (Shesha and Yusuf, 2021). For attracting children museum authority has provided the exemption for children's ticket who under the age of 12. This includes conducting summer camp for the children between the ages of four to twelve that aims at developing artistic skills of children. This also includes conducting various shows and theater program for both children and adult that assists in attracting more visitors and it has been identified that 10000 visitor has attended this shows.

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As Ithra is targeting people all over the world, centre of world culture has focused towards creating an effective social media presence. Social media marketing is the most efficient and effective method of attracting visitor to the destination. It has been identified that Ithra is having 1300000 followers on social media platform and aim at attracting more visitors through its content. Ithra has promoted the content creating within the centre by proving various opportunities for visitors. Centre has focused on creating awareness by allowing visitors to demonstrate their experience from visit and motivate them to share it on social media platforms. For attracting youth all over the world company is focusing more on providing sponsorship and conducting various sports events within the centre (Sultana, 2023). On 1 Nov 2022, Company has initiated its own world-cup campaign with the view of creating grasp regarding Ithra's brand. An event d football has been launched on 12 November which includes personal session in which footballers share their experience with visitors and deliver their success story. By doing assessment, it has found that 526 visitors have attended the events and it was also telecast on social media platform as to cover large area. It has been identified that it was a successful event as more than 12 million views has been recorded on social media platform across world.

(Source: Statista, 2022)

Ithra has focused towards promoting innovation and creativity in the country by providing various opportunities for youngster to enhance their existing skills. It has been identified that company has initiated annual Alsharqiya which aims at providing support for bringing innovation in the country. Under this campaign, creative program were held within 10 cities of the kingdom which assist in spreading awareness among various people of country. Total 300 entities have been participated in the campaign form cultural, entrepreneurial and creative sectors. All this activities has helped in attracting various people across world and results in enhancing number of visitor of the centre (Trevathan, 2020). In 2022, it has been determined that 2 million visitors have reached Ithra which has been increased by 1.5 million in 2023. This indicates that conducting various events and program has created positive impact on attracting more visitors. These activities play an important role in improving the image of the company and motivate people to visit the destination. Social media marketing is the vital activity which company has undertaken as it support in spreading company's information in most cost effective measures.

Recommendations and Current trends

It has been identified from the above information that company is effectively carrying out its marketing and promotional activities which assist in attracting visitors. Company is working most effective in carrying out its operation that attracts people according to the segmentation. Some of the recommendations are as follows;

• For attracting each segment, company is carrying out events and programs that are formed according to needs and preferences of particular segment. This indicates that company is successfully attracting individuals as sports and entertainment events are launched for adults and youngster. Various creative and innovative sessions are initiated for children according to their age.
• Museum authority needs to make more focus on creating effective social media presences which attracts people all over the world.
• As company is focused towards targeting conservative people, it has taken various steps for the welfare of society by concentrating towards sustainable development. It has taken step for enhancing knowledge of visitors and focuses on spreading awareness regarding sustainability.

This indicates that company's strategies are efficient enough in attracting visitors. However company should take care of various activities which they can use in enhancing number of visitors (Edigbue et al, 2022). It has been identified that company should focus on using various advertisements by which awareness can be created and helps in covering large area of country. Centre of world culture has not investing sufficient towards creating global presence of the company and result in slow growth rate of centre. Ithra is not focused towards providing and uploading regular posts on social media platforms which unable visitors to connect to organization. Company should focus on conducting various activities through online mode that results in gaining new visitors.

Current Trend

Various current trends in the marketing of hospitality and tourim sector in Saudi Arabia are as follows:

• Marketing in tourism industry has shifted it's focused towards using digital platform to promote particular destination (Taheri, Hosany and Altinay, 2019). It has been identified that 70% of the visitor are influenced by information provided on social media platform.
• Preference of individual has been changed to historical and cultural tourim in the country. It has been identified that 80% of individual above the age of 15 year has changes their choice towards visiting cultural sites of country.
• Current trend is related to implementing sustainability in the marketing strategies of the company. It also includes focuses on adopting strategies which help in reducing the impact of tourism on the environment and social aspect of country.

Conclusion

It has been concluded form the report that art and recreational sectors play a crucial role in the development of economy. Infrastructure and political instability in Saudi Arabia is creating issue in effective working of the sector. It has been identified that construction of Ithra helped in increasing tourism in country. Organization is targeting individual of age 5 to 60 and focuses on attracting people interested in leisure and knowing history. Various marketing strategies involve partnership with aviations industry, cultural and sports events, sponsorship and sustainable activities that assist in attracting more visitors.

References

Books and Journals

• Almaghlouth, S., 2022. Environmental sustainability in the online media discourses of Saudi Arabia: A corpus-based study of keyness, intertextuality, and interdiscursivity. Plos one, 17(11), p.e0277253.
• Alqahtany, A. and Aravindakshan, S., 2022. Urbanization in Saudi Arabia and sustainability challenges of cities and heritage sites: Heuristical insights. Journal of Cultural Heritage Management and Sustainable Development, 12(4), pp.408-425.
• Alyousef, T., Alshihri, F., Abdellatif, M., Alrawaf, T. and Abdellatif, R., 2022. Integrated Recreation Cities and Sustainable Development in Saudi Arabia: Contributions, Constraints, and Policies. Sustainability, 14(10), p.6182.
• Awais, M., Hanafy, S.M., Shafiq, S., Al‐Shuhail, A. and Waheed, U.B., 2023. First Break Traveltime Picking Using Unsupervised Machine Learning and Super‐Virtual Refraction Interferometry. Earth and Space Science, 10(12), p.e2023EA003014.
• Cubelic, D., 2019. The Creative Kingdom: Economic reform and art as a new space of Islamic critique in Saudi Arabia. Zeitschrift für Religionswissenschaft, 27(1), pp.27-47.
• Edigbue, P., Demirci, I., Akca, I., Hamdan, H., Kirmizakis, P., Soupios, P., Tranos, M., Abu-Mahfouz, I.S., Candansayar, E., Hanafy, S. and Al-Shuhail, A., 2022. Application of Combined Local and Global Optimization Algorithms in Joint Interpretation of Direct Current Resistivity and Seismic Refraction Data: A Case Study of Dammam Dome, Eastern Saudi Arabia. Sensors, 22(23), p.9337.
• Maspul, K.A., 2022. Improving the Creative Process Strategy of the Specialty Coffee in Eastern Province Saudi Arabia in Strengthening Sustainability in the Coffee Value Chain. EKOMA: Jurnal Ekonomi, Manajemen, Akuntansi, 2(1), pp.244-254.
• Mirgani, S., 2019. Introduction: Art and cultural production in the GCC. In Art and Cultural Production in the Gulf Cooperation Council (pp. 1-11). Routledge.
• Nasser Alsager, H., Afzal, N. and Abdulaziz Aldawood, A., 2020. Discourse markers in Arabic and English newspaper articles: The case of the Arabic lakin and its English equivalent but. Arab World English Journal (AWEJ) Volume, 11.
• Omar, H.A., 2022. Pink Marketing and Its impact on Customer Delight An Exploratory Study of the Opinions of a Sample of Women Using the French L'Oreal Product. NTU journal for Administrative and Human Sciences (JAHS), 2(1), pp.39-58.
• Pestana, C. and Alissa, L., 2021. Unity in a Time of Uncertainty: Ithra's Approach During the Pandemic in Saudi Arabia. Museum International, 73(3-4), pp.120-131.
• Shesha, L.S. and Yusuf, N., 2021. The socio-economic potential of the emerging film industry in Saudi Arabia. European Journal of Sustainable Development, 10(1), pp.239-239.
• Sultana, R., 2023. An Insight Of Emergent Contemporary English Fiction In Saudi Arabia. Journal of Namibian Studies: History Politics Culture, 38, pp.169-181.
• Taheri, B., Hosany, S. and Altinay, L., 2019. Consumer engagement in the tourism industry: new trends and implications for research. The Service Industries Journal, 39(7-8), pp.463-468.
• Trevathan, I., 2020. Islamic Art and Saudi Arabia: Reconnecting Communities with Collections. Curating Islamic Art Worldwide: From Malacca to Manchester, pp.119-133.

Online

• Centre of world culture (Ithra). 2022. Online available through :< https://www.ithra.com/en/visit-ithra/attractions/museum>
• Job opportunity in entertainment sector of Saudi Arabia. 2022. Online Available through :< https://www.mordorintelligence.com/industry-reports/saudi-arabia-entertainment-and-amusement-market/market-size
• Number of visitor in Ithra. 2023. Online available through :< https://english.aawsat.com/culture/4443801-saudi-arabias-ithra-center-attracts-over-3-million-visitors-date>
• Structure of Ithra. 2024. Online Available through:< https://www.google.com/url?sa=i&url=https%3A%2F%2Fwww.visitsaudi.com%2Fen%2Fsee%2Fhighlights%2FKing-Abdulaziz-Center-for-World-Culture&psig=AOvVaw0HKueS4GFbf3jLIUY7bxaO&ust=1705664122856000&source=images&cd=vfe&opi=89978449&ved=0CBMQjhxqFwoTCPi22K_s5oMDFQAAAAAdAAAAABAD>
• Increase in number of visitor of Ithra. 2022. Online Available through :< https://www.google.com/url?sa=i&url=https%3A%2F%2Fwww.statista.com%2Fstatistics%2F1320646%2Fsaudi-arabia-inbound-tourist-expenditure%2F&psig=AOvVaw155ow-xoZ7JBzuzPaGewkp&ust=1705664426865000&source=images&cd=vfe&opi=89978449&ved=2ahUKEwiso7aj7eaDAxVYqmMGHTmXCdgQr4kDegQIARA2>