By offering cash bonuses, prizes, and free vacations to travelers, Holiday Inn, Ramada Inn, and Hilton tried to increase sales in their present markets. Which of the following strategic alternatives did the hotel chains use?

Question

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Market penetration strategy involves efforts to increase sales of existing products or services in current markets through tactics such as advertising, price reductions, or increased distribution. The actions of Holiday Inn, Ramada Inn, and Hilton—offering cash bonuses, prizes, and free vacations—are aimed at boosting sales in their existing markets without introducing new products or entering new markets, which aligns with the definition of market penetration.

By Offering Cash Bonuses, Prizes, and Free Vacations to Travelers