Marketing of Hospitality
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Transcript of Marketing of Hospitality
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Marketing of Hospitality
REJITHA C R
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UNIT III
Marketing of hospitality :- Perspectives
of Tourism, Hotel and Travel services -
Airlines, Railway, Passenger andGoods Transport - Leissure services.
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HOSPITALITY MARKETING
ORIGIN:
The word HOSPITALITY isderived from the Latin hospes, which is
formed from hostis, which originally
meant a STRANGER.
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Hospitality refers to the reception and
entertainment of guests, visitors or
strangers with liberality and goodwill.
Hospitality frequently refers to the
hospitality industry jobs in hotels,
restaurants, casinos, catering, resorts,
clubs and any other service positionthat deals with tourists.
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The concept of Hospitality Services,
also known as accommodation
sharing, hospitality exchange and
home stay networks, refers to
centrally organized social networks of
individuals who trade accommodation
without monetary exchange.
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DEFINITION
A total system designed to plan, price,
promote, and make available to
selected markets, hospitality products
and services in the form of benefits and
experiences that create satisfied guests
and achieve organizational objectives.
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Transition of Hospitality
Marketing
Product-centered outlook to market
centered outlook
Marketer concentrates on competition
rather than negotiation
Resource accumulation to resource
management
Today, opportunity as learning
experience
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Longstanding relationship with its
customers
Transaction- based information system
to Relationship-based information
system
Network membership than self
contained business to face future
challenges
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Hospitality marketing
orientation
Hospitality services marketing are
highly dynamic in nature.
It is involved more with providing
services to customers than supplying
goods.
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Supplier/ Provider Orientation
Sales Orientation Promotional Orientation
Marketing Orientation
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Supplier/ Provider
Orientation
Situation where the market demand is
higher or there is a scarcity of
resources, provider orientation is a
better option.
As per this approach, industry focuses
on internal operations, activities and
procedures
Guests are expected to adjust to the
hospitality offerings.
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Sales orientation
Believes in cut-throat competition and
concentrates on forceful sales through
competitive pricing
Service provider does not bother about
the profits.
Lack of standardization of products and
services.
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Promotional Orientation
Importance to the promotional activities
Service provider feels that forceful selling
does not work unless promotional
activities are undertaken to buildawareness and image of the service
Service will not survive without
promotional activities Concept ignores the importance of guest
needs and wants and focuses more on
sales volume
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Traditional marketing orientation
Vs.
Modern marketing orientation
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ProviderStrengths
StartBusiness
ProvideService
GuestReaction
Identify Customerneeds, wants
MobilizeResources
Identify Targetmarket
Provide service
Guest reaction
Feedback
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Importance of Hospitality
Marketing
Encompasses a wide range of activities
related to travel
Service oriented business providing awide variety of services from food,
accommodation, shopping,
entertainment to the travelers
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Assignment
Briefly describe the characteristics ofservices on the basis of hospitality
services with examples and what are its
means of implications and ways toovercome the implications of service
characteristics?
Not more than five pages Last date: 22.07.2013 (Monday) at 2.00 pm
In the assignment format (Hard copy)
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Types of marketing in
service industries
There are 3 interlinked groups that
work to develop, promote and deliver
services.
The company
The customers
The providers(whoever it is that actually
deliver the service to customers)
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There are three types of marketing that
must be
External marketing
Interactive marketing
Internal marketing
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COMPANY
EMPLOYEES CUSTOMERS
INTERNAL MARKETING EXTERNAL MARKETING
INTERACTIVE MARKETING
Service triangle
M i C t E t ti
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Managing Customer Expectations
and Perceptions of Hospitality
Services
One should understand that it is highly
difficult for any company or service
firm to meet all expectations of all of
its customers.
Expectations of every customer are
changing and increasing.
A firm should look to the determinants
of expectations and check the firms
capabilities
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Hence, the service provider should set
an optimum level of service
expectation for its customer as very
high expectation can lead to highlydissatisfied customer
Customers derive maximum
satisfaction out of unprompted andunsolicited employee actions.
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TYPE OF SERVICE PRINCIPAL EXPECTATIONS
HOTELProvide a Clean RoomProvide a secure room
Treat me like a Guest
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Hospitality Service
Encounter
Hospitality service encounter is
referred to as an interaction between
hospitality service provider and guests.
The success or failure of such an
encounter depends on factors like
attitudes, skills, expectations, desires,
and personalities.
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The guests come with a whole lot of
expectations about the quality of
service and the service provider brings
human resource, training, and other
resources along with managementexpectations.
If the guest expectations is less or
equals the service provider'sexpectations then the service encounter
is successful. If not there comes a GAP
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At the time of checking into a hotel, the following
service encounters might take place:
Arrival of guest at the entranceGreeting
Reception
Luggage handling
Trip to room
Entry into the room
Hospitality encounters may be simple or complex,
standard or custom, low-tech or high-tech,
remoter or friendly, low or high skill, frequent or
occasional. The service provider must identify the
critical components of each of the encounter.
M k i Mi f
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Marketing Mix of
Hospitality Services
Product
Price
Promotion Place
People
Physical evidence Process
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HOTEL MARKETING
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Hotel Industry
Hotels are a major service industry inIndia
A number of international hotel chains
have come to India, eitherindependently or with a tie-up with an
Indian partner
The GOIs tourism department has alsorealized their importance and started
classifying them on the basis of the
standard of their facilities
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Some basic assumptions
regarding hotel marketing
Hotel customers are referred to as
guests as they receive hospitality by
way of accommodation, food and drinkor all for which they pay
A hotel is immovable
Some hotel facilities are quicklyperishable
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The capital investment in a hotel
industry is generally high and the
gestation period for adequate returns on
the investment is normally long
The demand for hotel facilities has a
variety which a few manufactured
products have.
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Hotel Market Segments
Independent Guests
Groups
Special groups
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Hotel Products
The hotel product has a number of
components like accommodation, food
and beverage, recreation and health,
shops, car rental service.
But of all these, the accommodation
and food and beverage components are
the primary ones.
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The accommodation component of
the hotel product requires a clear
identification of the type of clientele
the hotel wishes to attract andserve.
The food and beverage component
of the basic hotel product offersgreater scope for flexibility.
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Pricing
It is difficult for a hotel to exercisedifferential pricing except for certain
specific purposes.
These may typically be differentials intariffs and prices during the peak and lean
seasons.
However, by and large, hotel pricing tendsto follow or conform to pricing standards
applicable to the particular city area or
resort; to competitive hotels and so on.
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Distribution
The hotel does not journey to its customers
to consummate a sale.
It is the reverse that takes place- customers
come to the hotel.
Hotel distribution relies on interdependence
with other industries serving travelers and
tourists such as the transportation industry,
travel agents and tour operators, shopping
and entertainment providers.
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Cooperative distribution:
Which operates in passing on traffic
overflow from one hotel to its neighbour,
on a reciprocal basis, without affectingregular business with the main
intermediaries in the distribution system
Franchising
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Communications
Communication element of the hotel
marketing mix is most important as it is
directly responsible for bringing
customers to the hotel.
Hotel marketing communications are
either direct or indirect.
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The direct communications are through
Personal selling
Advertising
Sales promotion
Direct mail
Indirect communications for hotels
include
public relations
publicity
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The major elements of the hotel
communication mix are
Mass media advertising
Direct mail
Sales promotion
Public relations
Publicity