MARKETING OF HOSPITALITY & TOURISM SERVICES

PRESENTED BY: 12MBA001 Abhishek Solanki 12MBA036 Vinod 12MBA041 Divya Verma 12MBA042 Shobhit Bhatnagar 12MBA043 Vaibhav Hitkari

HOSPITALITY & TOURISM SECTOR

3

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 & tourisms contribution to capital investment is projected to grow at 6.5% per annum during 2013-2023

HOSPITALITY MARKETING
4

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

TEN Ps OF TRAVEL, TOURISM & HOSPITALITY MARKETING

5

Given By David L. Edgell (2002)

PRODUCT PACKAGING

PRICE

PROGRAMMING

PLACE

POSITIONING

PROMOTION

PEOPLE

PARTNERSHIP

PLANNING

PRODUCT
6

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 customers eyes The closer one can determine how to satisfy the customers needs, the more successful the destination will be

PRICE
7

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 o o

o
o

Survival; Profit maximization; Market share; Competition; Positioning

PLACE
8

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

PROMOTION
9

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

PARTNERSHIP
10

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 costs
o

Strategic Alliances: Two or more organizations that can benefit from each others strengths Coopetition: Cooperative efforts between competitive local or regional organizations that enable them to compete effectively at the national & international levels

PACKAGING
11

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.

PROGRAMMING
12

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

POSITIONING
13

Finding a special place in the market for the product to differentiate from ones competitors, such as Niche marketing
o

o o

Identify a set of possible competitive advantages upon which to build a position Select the right competitive advantage Effective communication & delivery of the chosen position to a selected target market

PEOPLE
14

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 advertisingparticularly about the service received-what customers say after they depart can thrust a business forward or send it into a downward

PLANNING
15

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

SERVICE CHARACTERISTICS
16

PERISHABILI TY

INTANGIBLIT Y

VARIABILITY

INSEPRABILI TY

CHALLENGES FOR HOSPITALITY MARKETERS

17

INTANGIBILITY

To reduce the feelings of uncertainty in consumers. &

manage the provider-customer INSEPARABILI To TY customer-customer interactions. To manage the quality consistency.

VARIABILITY

PERISHABILIT Y

To manage the demand & supply levels.

SUGGESTIONS
18

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.

SUGGESTIONS
19

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.

SUGGESTIONS
20

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

SUGGESTIONS
21

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.

SUGGESTIONS
22

PERISHABILITY To manage the supply level:

a) b)

c)

Use part-time employees during peak demand period. Cross-train the employees so that they can perform various tasks especially when there is a labor shortage. Encourage customers to participate in the production process.
Example: Fast food companies in the USA require customers to fill their own beverages

THANK YOU