Marketing in Tourism: Understanding the Principles and Unique Characteristics, Slides of Hospitality and Tourism

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C H A P T E R 1 - T O U R I S M M A R K E T I N G

TOURISM AND HOSPITALITY

MARKETING

TOURISM

Tourism is one of the world’s leading industries. It is not a single product; it is a combination of products and services that result in a holistic experience for a traveler

TOURISM MARKETING

“Marketing within tourism becomes the application of marketing process to the specific characteristics which apply to the tourism industry and its products.” ( Gilbert) “Marketing in tourism is to be understood as a systematic and co-ordinated execution of business policy by tourist undertakings whether private or state owned at the local, regional, national or international level to achieve optimal satisfaction of the needs of identifiable consumer groups, and in doing so to achieve an appropriate return” (Krippendorf)

TOURISM MARKETING

An analysis of the above definitions of marketing makes it clear that tourism marketing is not a separate discipline , but it adopts the basic principles of marketing which have been developed and practiced in relation to the marketing of other consumer products and services.

UNIQUE CHARACTERISTICS OF TOURISM

INDUSTRY

• (^) Perishable - Products become perishable when it can no longer be consumed today even when no one consumed it the day before.
• (^) Seasonal - Seasonality does not only refer to seasons of the year or the weather conditions. It also refers to behavioral patterns of the travel market.
• (^) Substitutable - With new destinations emerging and competing in the global marketplace, one destination can easily be substituted for another destination.

TOURISM AS A HIGH INVOLVEMENT

PRODUCT

Decision making in the purchase of tourism products is considered to be of high involvement. Tourism products of high involvement mean that there is a greater degree of thought or study involved prior to the purchase. Characteristics of a high-involvement product:

• (^) Expensive
• (^) Complex
• (^) Unrepeatable

INTEGRATED MARKETING

COMMUNICATIONS APPROACH

Factors that Contributed to the Growth of IMC:

• (^) Growth of Technology
• (^) Incentive-based compensation
• (^) Consolidation of the Retail Industry
• (^) Database Marketing

INTEGRATED MARKETING

COMMUNICATIONS APPROACH

Due to the advent of technological advancements, the IMC approach has become a popular option in maximizing resources and optimizing results.

TOURISM MARKETING

“It’s better to see

something once than to

hear about it a thousand

times.”

C H A P T E R 2 – M A R K E T I N G H O S P I T A L I T Y A N D T R A V E L S E R V I C E S

TOURISM AND HOSPITALITY

MARKETING

SERVICES MARKETING

The Hospitality and Travel Industry – a group of interrelated organizations providing personal services to customers who are away from home. It is just one part of The Service Industries – organizations primarily involved in the provision of personal services.

SERVICES MARKETING

Other Service Industries include:

• (^) Banking, Legal, Accounting, and Management Consulting Services;
• (^) Insurance;
• (^) Health Care;
• (^) Laundry and Dry Cleaning;
• (^) Education; and
• (^) Entertainment National, Provincial, and Local Government Agencies are also major providers of services.

WHY IS SERVICES MARKETING

DIFFERENT?

Generic Differences Contextual Differences Hospitality and Travel Differences

• Intangibility
• Production Methods
• Perishability
• Distribution Channels
• Cost Determination
• Relationships of services to providers - Narrow definition of marketing - Lack of appreciation of marketing skills - Different organizational structures - Lack of data on competitive performance - Impact of government regulation and deregulation - Constraints and opportunities for nonprofit marketers - Shorter exposure to services - More emotional buying appeals - Greater importance on managing experience clues - Greater emphasis on stature and imagery - More variety and types of distribution channels - More dependence on complementary organizations - Easier copying of services - More emphasis on off- peak promotions

DIFFERENT MARKETING APPROACHES

NEEDED FOR HOSPITALITY AND TRAVEL

1. Use of more than 4 Ps a. People b. Packaging and Programming c. Partnership
2. Greater significance of word-of-mouth information
3. More use of emotional appeals in promotions
4. Greater difficulties with new-concept testing