The Tourism and Hospitality Product

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THE TOURISM AND HOSPITALITY PRODUCT

Prepared by Simon Hudson, Haskayne School of Business University of Calgary
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The Tourism and Hospitality Product
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Topics
Components of the tourism and hospitality product Various levels of products or services Tools used in product planning Packaging and branding New product development in the tourism and hospitality sector
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Three Levels of Product: Core

Core product the basic need function served by the generic product. Examples
airline or train = transportation hotel = shelter and rest.
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Three Levels of Product: Tangible

Tangible product specific features and benefits residing in the product itself Examples:
styling, quality, brand name, design, etc.
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Three Levels of Product: Augmented

Augmented product the add-ons that are extrinsic to the product itself but which may influence the decision to purchase features may include credit terms, after-sales guarantees, car parking etc
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Three Levels of Product
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Elements of Physical Evidence
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Physical Evidence and the Servicescape

Servicescape
the environment in which the service is delivered and in which the firm and customer interact, and any tangible components that facilitate performance or communication of the service
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Response to Servicescapes
Employees and customers in service firms respond to dimensions of their physical surrounding in three ways:
cognitively emotionally physiologically
Those responses influence their behaviours in the environment

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Product Planning
Product mix
portfolio of products that an organization offers to one market or several five basic market/product options exist
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Five Product Options

1) Several markets/multi-product mixes for each Example:
mass tour operators that offer a wide range of multi-destination packages to a variety of market segments
2) Several markets/single product for each Example:

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airlines with a product for business and economy class travellers continued...
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Five Product Options

3) Several markets/single product for all Example:
- national tourist organization promoting a country
4) Single market/multi-product mix

Example: - specialist tour operator with a range of cultural tours aimed at a wealthy, educated market
5) Single market/single product

Example: - a heliskiing operator targeting the very rich
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Feature and Benefits Analysis
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Product Life Cycle
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Positioning
The objective is to create a distinctive place in the minds of potential customers Four key positioning strategies
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Four Key Positioning Strategies

Relative to target market
business travellers, families with children under ten, etc.
By price and quality

a premium product such as a room at the Four Seasons Hotel
Relative to a product class

winter sports tourism category
Relative to competitors
Hertz Rental Car campaign We try harder
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Branding
A brand offers the consumer relevant added value, a superior proposition that is distinctive from competitors and imparts meaning above and beyond the functional aspects Snapshot: Chefs as Brands
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Advantages of Branding
helps reduce medium and long-term vulnerability to the unforeseen external events reduces risk for the consumer at the point of purchase facilitates accurate marketing segmentation by attracting some and repelling other consumer segments provides the focus for the integration of stakeholder effort strategic weapon for long-range planning in tourism
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Brandicide
It has been suggested that companies can commit brandicide by stretching a well-known brand too far Think of a brand that has done this.
What was it that killed it off? Take a tourism brand you are familiar with and keep stretching it.
How far can you go?
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Packaging
Packaging
the process of combining two or more related and complementary offerings into a single-price offering customer benefits include:
ability to budget for trips increased convenience greater economy opportunity to experience previously unfamiliar activities and attractions opportunity to design components of a package for specialized interests.
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Packaging and Tourism

For tourism operations, packages are attractive for the following reasons:
improve profitability smooth business patterns allow joint marketing opportunities effective tool to tailor tourism products for specific target markets
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Product Options in New and Existing Markets
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New Service Development (NSD) Model
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Examples of New Products

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Gourmet holidays Mobile check in Smart glasses Flying casinos Branded hotel floors Iceberg tourism

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