Learning Objectives Chapter 2: Marketing Hospitality and

Travel Services

1. Explain the meaning of services marketing.2. Identify four reasons why marketing in the

services industries has lagged behind marketing in other industries.

3. List and describe six generic differences between the marketing of services and products.

4. List and describe six contextual differences between the marketing of services and products.

Learning ObjectivesChapter 2: Marketing Hospitality and

Travel Services

5. List and explain eight specific differences affecting the marketing of hospitality/travel services.

6. Explain five unique approaches required in hospitality and travel marketing.

7. Identify three unique relationships among hospitality and travel organizations.

Services Marketing

A concept based on a recognition of the uniqueness of all services; it is a branch of marketing that specifically applies in the service industries.

Four Reasons Why Services Marketing Has Lagged Behind Other Industries

1. Marketing terms and principles were defined for the manufacturing industry.

2. Parts of industry have been highly regulated.

3. Industry is dominated by small businesses.

4. There has been an historical tendency for technical-and operations-oriented people to create and manage businesses.

Six Generic Differences

1. Intangible nature of services

2. Production methods

3. Perishability

4. Distribution channels

5. Cost determination

6. Relationship of services to providers

Six Contextual Differences

1. Narrow definition of marketing2. Lack of appreciation of marketing skills3. Different organizational structures4. Lack of data on competitors performance5. Impact of government regulation and

deregulation6. Constraints and opportunities for nonprofit

organizations

Eight Specific Differences of Hospitality and Travel Services

1. Consumed within short time periods2. More emotional and irrational buying

appeals3. Greater importance of managing evidence4. Greater emphasis on stature and imagery

Eight Specific Differences of Hospitality and Travel Services

5. More variety and types of distribution channels

6. More dependence on complementary organizations

7. Copying of services easier8. More emphasis on off-peak promotion

Five Unique Approaches Required in Hospitality and Travel Marketing

1. Use of more than 4 Ps

2. Greater significance of word-of-mouth advertising

3. More use of emotional appeals in promotions

4. Greater difficulties with new-concept testing

5. Increased importance of relationships with complementary organizations

Three Unique Relationships Among Hospitality and Travel Organizations

1. Suppliers, carriers, and the travel trade2. The destination mix concept3. Visitor and resident interaction

CarriersSuppliers

Travel TradeDestinationMarketingOrganizations

Industry Organizations

InfrastructureTransportation

Facilities Hospitality

The Destination Mix

Attractionsand Events

Attractions andevents play thepivotal role

VisitorsResidents

Visitor-Resident Interaction