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