MARKETING OF HOSPITALITY & TOURISM SERVICES
PRESENTED BY:
12MBA001 Abhishek Solanki
12MBA036 Vinod
12MBA041 Divya Verma
12MBA042 Shobhit Bhatnagar
12MBA043 Vaibhav Hitkari
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HOSPITALITY & TOURISM SECTOR
The Indian tourism & hospitality industry has emerged as one of the key industries driving growth of the services sector in India
Hotels contribute in the overall tourism experience through the standards of facilities & services offered by them
Travel & tourism’s contribution to capital investment is projected to grow at 6.5% per annum during 2013-2023
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HOSPITALITY MARKETING
Hospitality marketing is unique because it deals with the tangible product, like a bed in the hotel or food in the restaurant, but it also deals with the intangible aspects of the hospitality & tourism industry.
It is about the experience in a trip & social status it brings eating in a fine-dining restaurant.
Hospitality marketing is very critical in the success of any hospitality & tourism product, organization & tourist destination.
Proper marketing effort promotes a product or service that fills the needs & wants of the consumers & at the same time, bring profits to the organization or country that features it
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TEN P’s OF TRAVEL, TOURISM & HOSPITALITY MARKETING
Given By David L. Edgell (2002)
PRODUCT PACKAGING
PRICE PROGRAMMING
PLACE POSITIONING
PROMOTION PEOPLE
PARTNERSHIP PLANNING
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PRODUCT
The tourism product differs from other products due to the wide range it covers, including such areas as accommodations, transportation, food, recreation & attractions
Often the product includes intangibles such as history, culture, etc.
Many times the hospitality or tourism product is viewed as more of a “service” in the customer’s eyes
The closer one can determine how to satisfy the customer’s needs, the more successful the destination will be
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PRICE
This refers to the amount customers pay for the product or service provided
A quality tourism experience at a fair price is what the customer is looking for in most cases
Pricing should be based upon clear-cut goals & objectives: o Survival;o Profit maximization;o Market share; o Competition;o Positioning
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PLACE
The place where the customer buys the tourism
product can vary greatly
Travel agents, tour operators & tour wholesalers
are a few examples of the distribution points for
tourism products
Look for new distribution points to sell such
services. For example: web sites like
Tripadvisor.com
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PROMOTION
A range of activities can be used to convince customers to buy the product, including information kits, web sites, advertising, personal selling, sales promotion, travel shows, & public relations
Utilize tourist information centers, such as welcome centers
Participation with the state, regional & local tourism offices & associations
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PARTNERSHIP
By forging partnerships with companies that share the same business objective, can help in meeting the overall demands of the tourism customer while sharing the total marketing costso Strategic Alliances: Two or more organizations
that can benefit from each others strengths o Coopetition: Cooperative efforts between
competitive local or regional organizations that enable them to compete effectively at the national & international levels
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PACKAGING
Because the tourism product often includes a variety of attractions, facilities & services, packaging must also take on several different forms
A presentation of products &/or services that would normally be purchased separately, but are combined in a single purchase for the convenience of the consumer in ease, pricing, etc.
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PROGRAMMING
Programming special events & activities enhances & enriches the tourism product & makes marketing much easier
Generates new business, encourages repeat business, increases customer spending, increases customer satisfaction, promotes off peak periods, etc.
Effective programming can provide an effective return on investment
Programming, just as any marketing, should include a plan of action including the customer groups to which it is to be aimed
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POSITIONING
Finding a special place in the market for the product to differentiate from one’s competitors, such as Niche marketingo Identify a set of possible competitive
advantages upon which to build a positiono Select the right competitive advantageo Effective communication & delivery of the
chosen position to a selected target market
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PEOPLE
The people who sell & service the products are an extremely important part of tourism marketing
Friendly personal service & trained employees can make or break a tourism business
Because much of the tourism industry is based upon word-of-mouth advertising-particularly about the service received-what customers say after they depart can thrust a business forward or send it into a downward spiral
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PLANNING
An important part of a viable business plan is to develop a strategic marketing plan in an effort to identify customer expectations
Research & planning also helps design & devise means by which a firm can meet these expectations. It provides a working document or ‘road map’
To be effective the plan must be maintained, reviewed & revised
Should have an annual marketing plan, with a component that mentions long-term goals as well
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SERVICE CHARACTERISTICS
INTAN-GIBLITY
IN-SEPRA-BILITY
VARIABIL-ITY
PER-ISHABIL-
ITY
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CHALLENGES FOR HOSPITALITY MARKETERS
INTANGIBILITY
To reduce the feelings of uncertainty in consumers.
INSEPARABILITY
To manage the provider-customer & customer-customer interactions.
VARIABILITY To manage the quality consistency.
PERISHABILITY To manage the demand & supply levels.
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SUGGESTIONS
INTANGIBILITY ‘Tangibilize’ the intangible - to provide
tangible evidence & images to customers to strengthen their confidence about the services before buying.
For instance, a restaurant that offers kitchen trips or food trial will provide clues to customers as to what to expect in terms of food & services.
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SUGGESTIONS
INSEPARABILITY Because providers & customers are likely to be part
of the service experience, it is important to recruit the right people & to train providers and/or customers to understand the service delivery system.
Additionally, providers should also try to manage their customers so that they do not cause dissatisfaction for others.
For instance, certain restaurants in the USA targeting at couples or adult buyers have implemented a “no-kids are allowed” policy in their premises.
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SUGGESTIONS
VARIABILITY Good hiring & training procedures
are more likely to increase quality consistency in the hospitality industry.
Other options will be to standardize the service-performance process & to monitor the level of customer satisfaction periodically
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SUGGESTIONS
PERISHABILITY To manage the demand level:
a) Use differential pricing to shift some demand from peak to off-peak periods.
Example: Some hotels promote discount prices for weekdays only to manage their room demands.
b) Cultivate non-peak demand. Example: Certain theme parks in Singapore have introduced night-time attractions & activities for this non-peak period.
c) Have a reservation system to manage the demand level. Hotels, airlines, & restaurants use reservation systems extensively.
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SUGGESTIONS
PERISHABILITY To manage the supply level:
a) Use part-time employees during peak demand period.
b) Cross-train the employees so that they can perform various tasks especially when there is a labor shortage.
c) Encourage customers to participate in the production process.
Example: Fast food companies in the USA require customers to fill their own beverages
THANK YOU