TOURISM MARKETING MAM 111 LEVEL 5 PREPARED BY – SHEIKH BILAL
UNIT 1 INTRODUCTION TO TOURISM MARKETING
Tourism marketing is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational goals. Tourism marketing is the analyzing, organizing, planning and controlling of the firm‘s tourist impinging resources, policies and activities with a view to satisfying the needs and wants of chosen tourist groups at a profit. The activity aimed concisely as ascertaining tourist needs, tailoring the product as closely as possible to meet those needs, persuading the tourist to satisfy his needs, and finally, ensuring that the product is easily accessible when the tourist wishes to purchase it. Tourism marketing can be defined as systematic and balanced effort exerted by the national tourist organization at the national, international and local level to satisfy the tourist, groups and individuals .
THE MARKETING ASPECTS OF TOURISM Tourists of new tourism consider the environment and culture of the destinations they visit to be a key part of the holiday experience. Unlike mass tourism, production will be driven by the wants of tourists. Mass marketing is no longer the dominant ethos – holidays will be marketed differentially to different needs, incomes, time constraints and travel interests. Holidays are not simply aiming at economies of scale, but will be tailored to individual wants. Holidays must be flexible and able to be purchased at prices that are competitive with mass-produced holidays. Holidays are consumed on a large scale by more experienced, more educated, more destination-oriented, more independent, more flexible and more green ‘ travelers.
Marketing concept of tourism involves: What the tourist buys ‘ Beautiful location with clean beaches. Transport facilities within the town and links to surrounding areas. Accommodation. Catering products. Access to visitor attractions. Access to shopping for general and special purchases relating to the holiday. Access to recreational facilities such as leisure parks, bars, nightclubs, cinemas, water sports, etc . Destination Market
MARKETING CAMPAIGNS IN TRAVEL AND TOURISM HAVE TWO MAIN DIMENSIONS Promotional techniques designed to motivate and move prospective tourists towards a point of sale and also to provide incentives to purchase (includes promotion to distributors ). Facilitation of access techniques designed to make it as easy as possible for motivated people to achieve their intended purchase, especially at the point of sale.
TOURISM MARKETING MANAGEMENT CYCLE
The diversity of marketing is also a function of the fact that: different types and sizes of organizations are involved from one-person businesses to large transnational corporations . marketing can be international or domestic, or both.
SCOPE OF TOURISM MARKETING MARKETING PEOPLE ARE INVOLVED IN MARKETING 10 TYPES OF ENTITIES MARKETERS HAVE ACCESS TO SEVEN TOOLS WITH WHICH THEY CAN MANAGE THEIR BRAND PORTFOLIOS Goods. Services. Experiences. Events Persons. Places. Properties. Organizations. Information. Ideas. Extension. Repositioning. Over branding. Co branding. Amalgamation. Positioning. Scaling.
SCOPE OF TOURISM MARKETING DESTINATION MARKETING HOSPITALITY MARKETING ADVENTURE TOURISM MARKETING EVENT AND FESTIVAL MARKETING ONLINE AND DIGITAL MARKETING
SIMPLE TOURISM MARKETING SYSTEM
Tourism Marketing is not advertising. Tourism Marketing is not direct mail . Tourism Marketing is not telemarketing. Tourism Marketing is not brochures. Tourism Marketing does not mean advertising only in the Yellow Pages Tourism Marketing is not show business. Tourism Marketing is not a stage for humor. Tourism Marketing is not an invitation to be clever. Tourism Marketing is not a miracle worker. Tourism Marketing is important! Tourism Marketing is essential! Tourism Marketing is strategic! Tourism Marketing is central to business! Tourism Marketing is THE only path to growth For Hospitality Industry Tourism Marketing is the engine that drives performance!
STUDENT ACTIVITIES 1. Define Tourism Marketing. TRUE / FALSE STATEMENTS Different types and sizes of organizations are involved from one-person businesses to large transnational corporations. Interactive marketing is only between customers. CHOOSE THE CORRECT ANSWER __________ are not simply aiming at economies of scale, but will be tailored to individual wants. NEEDS WANTS HOLIDAYS None
CHAPTER 2 AIM OF TOURISM MARKETING The aim of tourism marketing is to achieve an appropriate and maximum return for the growth of tourism in the country. The marketer‘s goal is to build a mutually profitable long-term relationship with its tourists, not just sell a product.
Marketing Objectives And Targets At Tactical Level Derive Logically From The Previous Stages Of The Planning Process. Targets Express What Managers Believe Can Be Achieved From A Business Over A Specified Time Period. To Be Effective And Actionable In Practice, Tactical Marketing Objectives Must Be – Integrated With Long-run Corporate Goals And Strategy. Precise And Quantified In Terms Of Sales Volume, Sales Revenue And, If Possible, Market Share. Specific In Terms Of What Products, Which Segments. Specific In Terms Of The Time Period In Which They Are To Be Achieved. Realistic And Aggressive In Terms Of Market Trends (Revealed By Prognosis And Swot ) And In Relation To Budgets Available. Agreed And Endorsed By The Managers Responsible For The Programs Of Activity Designed To Achieve Results. Measurable Directly Or Indirectly. TOURISM MARKETING OBJECTIVES AND TARGETS
TOURISM MARKETING OBJECTIVES OF DIFFERENT TYPES OF ORGANIZATIONS
FEATURES OF TOURISM MARKETING
Availability of a 'product' is the requirement in the marketing function. If there is no product, marketing is not possible. The tourism product cannot be transported. A tourist has to reach it to make use of it. Example – airline seat, hotel room. The tourism product cannot be stored for sale at a later date. For example –airline seat, hotel room has to be used every day or it is a total waste.
Other Features Are As Follows - INTANGIBLE NON MATERIAL – No transfer of ownership of goods is involved as compared to a tangible product. Eg – a motor car. PRODUCTION AND CONSUMPTION CLOSELY INTERRELATED – Production can only take place or can only be completed if the tourist is actually present. There is a close link between production and consumption of tourist service. Most tourist services cannot be consumed incrementally. ASSEMBLED BY MANY PRODUCERS – The tourist product cannot be provided by a single enterprise.
HIGHLY UNSTABLE DEMAND – The demand is influenced by factors such as seasonal demands, economy, political reasons etc. Seasonality means the tourism plant is frequently used for a limited part of the year and therefore uneconomic.
NEED FOR MARKETING IN TOURISM Tourism is the fastest growing industry in the world and therefore need for marketing it become imperative. Tourism needs to be marketed just as any other product, indeed more so, because it is an industry where the tourist still has an immense variety of choice. Tourism is a complex industry because of various sub – sectors that are in themselves complete industries, if considered independently (lodging, transport etc ). Its complexity, furthermore, lies in the fact that tourism promotion in its various forms has to be directed at large number of people in various lands of different socio economic structures, having different needs, taste, attitudes, expectations and behaviour patterns.
ROLE OF TOURISM MARKETING MANAGER PRODUCT QUALITY : The quality of the product really determines the price-value relationship. It is common sense that a product that offers greater utility and fills more tourist needs than a competitive product can command a higher price. PRODUCT DISTINCTIVENESS : A staple or standard product with no distinctive features offers little or no opportunity for price control. However, a novel and different product may be able to command higher prices. The Hyatt Corporation, for example, features lobby atriums; this attractive novelty combined with excellent service and facilities makes it possible for the Hyatt Hotels to command higher prices. EXTENT OF THE COMPETITION : A product that is comparable to competitors‘ products must be priced with the competitors‘ prices in mind. The product‘s price to some extent determines its position in the market. METHOD OF DISTRIBUTION : The price of the product must include adequate margins for tour operators, travel agents, or the company‘s own sales force.
CHARACTER OF THE MARKET : It is necessary to consider the type and number of possible tourists. If there is a small number of tourists, then the price must be high enough to compensate for a limited market. However, one must also consider the ability of tourists to buy and their buying habits. COST OF THE PRODUCT AND SERVICE : It should be obvious that price must exceed cost over the long run or else the business will not survive. Both cost and market conditions should serve as guides to pricing.
COST OF DISTRIBUTION : Distribution costs must also be included in the pricing equation. Unfortunately, in many cases they are much more difficult to estimate than other costs. MARGIN OF PROFIT DESIRED : The profit margin built into the price of the product must be more than returns realized on more conventional investments in order to compensate for the risk involved in the enterprise. SEASONALITY : Most tourism products are affected by seasonality because of school-year patterns and vacation habits; consequently, the seasonal aspects must be considered in developing prices.
STUDENT ACTIVITIES 1. Write a short note on product quality. TRUE / FALSE STATEMENTS Tourism is the slowest growing industry in the world. Tourism is a complex industry because of various sub – sectors like lodging and transport. CHOOSE THE CORRECT ANSWER Seasonality means the tourism plant is frequently used for a _______ part of the year. a) MAXIMUM b) LIMITED c) TOURISM d) NONE
CHAPTER 3 4 A’S OF TOURISM MARKETING
4 A’s OF TOURISM MARKETING
ACCEPTABILITY Acceptability is an essential factor when it comes to marketing your product. For your product to be successful, it must be accepted by tourists. Therefore , acceptance is a crucial factor to consider when creating a marketing strategy for your product. Several factors can impact the success of your product, including the quality of the product itself, the price of the product, and how easy your product is to use.
Example : A restaurant offering a diverse menu that caters to different dietary preferences, making it acceptable to a wider range of customers, including vegetarians, vegans, and meat-eaters.
There are two types of Acceptability, which are: FUNCTIONAL ACCEPTABILITY Functional acceptability is the degree to which a product or service meets a tourist’s actual needs and is acceptable for them. These needs are essential to the person when making choices and decisions. Functional acceptability is very important because it can determine whether a product or service will likely succeed. For example, if the location of the hotel or a restaurant is not good, it would not be an acceptable product for most people.
PSYCHOLOGICAL ACCEPTABILITY Psychological acceptability is the extent to which a tourist perceives that a brand, product, or service is acceptable to them. It is closely related to consumers’ perception of quality. Acceptability generally refers to an opinion on whether or not a tourist would be willing to purchase something. Psychological acceptability may also refer to whether or not tourists are comfortable expressing a positive view of a particular product.
AFFORDABILITY Affordability means the ability to afford something with the necessary resources and money and how cost-effective a product is. There are many ways that travel agencies can sell their products or services, but some of the most common strategies are advertising, direct sales, and distribution. When marketing your product or service, you want to remember that the more affordable your product or service is, the better it is for your business.
Example - A budget airline like FLYNAS or FLYADEAL offering discounted fares during off-peak seasons to make air travel more affordable for leisure travelers.
ACCESSIBILITY Accessibility is the idea of making your product or service easily accessible to everyone. You want to ensure that everyone can get your product or service and have a good experience with it. You can think of accessibility as two things: how easy it is for people to get to your products and how easy it is for them to use the product. If you make it easy for people to find and reach you, they are more likely to buy from you. Accessibility means different things in different contexts, but it usually means ensuring everyone has equal access to your product or service.
Example - A multinational TRAVEL AGENCY strategically locating its stores at Airports, making it easily accessible to tourists
AWARENESS Awareness is the first step in any marketing campaign, and it’s the process of creating attention and interest in a product, service or idea. Awareness is essential because it helps build confidence among potential customers. If people are aware of your business, they are more likely to trust and purchase from you . Awareness can be achieved in many ways. You can advertise your business online, through social media, in-person events, etc. You can also build a loyal customer base by offering great products and services at affordable prices.
Example - A new AIRLINE launch accompanied by a nationwide television commercial and online marketing campaign, generating widespread awareness among potential customers.
Your texttHE here 2025 – Start Date of RIYADH AIR
WHY SHOULD YOU KNOW THE 4A’S OF MARKETING? MARKET SUCCESS : Understanding and implementing the 4A’s framework can significantly improve the chances of a product or service succeeding in the market. Meeting customer needs, offering competitive pricing, ensuring availability, and creating awareness all contribute to market success . The 4A's emphasize the importance of understanding the target market and catering to customer preferences .
CUSTOMER-CENTRIC APPROACH : The 4A’s emphasize the importance of understanding the target market and catering to customer preferences. By adopting a customer-centric approach, businesses can build stronger relationships with their customers and gain their loyalty.
COMPETITIVE ADVANTAGE : Implementing the 4A’s effectively can create a competitive advantage for a business. It allows them to differentiate themselves from competitors and offer unique value propositions that resonate with customers.
EFFECTIVE MARKETING STRATEGIES : The 4A’s framework provides a comprehensive guide for developing effective marketing strategies. It ensures that marketing efforts are well-rounded, covering crucial aspects that impact the customer’s decision-making process.
SUCCESSFUL SOLUTION FOR 4 A’s OF TOURISM MARKETING
STUDENT ACTIVITIES Why Should You Know The 4A’s Of Marketing? Give an example of acceptability of tourism product. TRUE / FALSE STATEMENTS For your product to be successful, it must be accepted by tourists. If the location of the hotel or a restaurant is not good, it would be an acceptable product for most people . CHOOSE THE CORRECT ANSWER _________________________ is closely related to consumers’ perception of quality. a) TOURISM b) PSYCHOLOGICAL ACCEPTABILITY c) FUNCTIONAL d) NONE
UNIT 4 4 P’s OF MARKETING MIX
The marketing mix is the mixture of controllable marketing variables that the firm [or company] uses to pursue the sought level of sales in the target market . The marketing mix is a broad concept which includes several aspects of marketing which all inquire to obtain a similar goal of creating awareness and tourist loyalty. The marketing mix is not only an important concept, but a guideline to reference back to when implementing the price, promotion, product, and distribution. The marketing mix refers to the set of actions, or tactics, that a company uses to promote its brand or product in the market. This means that in any tourism organization, there are four main marketing variables that need to be harnessed:
OBJECTIVE OF MARKETING MIX – Is to identify, anticipate and satisfy the tourist needs in relation to markets.
PRODUCT List everything you offer to a customer, whether it is a product or a service. If it is a product, clearly identify the product itself and list the variations of the product, whether there is a size, shape, weight, or color differential. Identify what makes the product unique. Recognize the key features and selling points of the product.
PRICE Price it Right. While your product or service might be amazing, it will not sell if the launching price is not right. Consider a tier or value system to determine whether the product or service is mid or top-of-the-range, affordable, or luxury value. Price the product correctly by establishing where in the market it fits. Obtain data relating to the spending habits of your customer base.
PROMOTION Decide on your budget for promoting your product. Research can assist in locating the focus of your target market
PLACEMENT Select where to sell your product or service, will it be a specific demographic area. Will you focus on domestic or international markets as well?
PRODUCT PLACE PROMOTION PRICE PHYSICAL FEATURE CHANNEL TYPE SALES PROMOTION FLEXIBILITY QUALITY LEVEL OUTLET LOCATIONS PUBLICITY DISCOUNTS BRANDING TRANSPORTATIONS INTERNET AND WEB STRATEGY PAYMENT PERIODS DESIGN STORAGE USE OF SOCIAL MEDIA TERMS AND CONDITIONS RETURN INVENTORY WARRANTIES
The 4 Ps of Marketing are summarized as follows: Product – What you sell? Price – How much you charge? Promote – How do your customers find out about you? Place – Where you promote your product?
STUDENT ACTIVITIES 1. Define Marketing Mix . TRUE / FALSE STATEMENTS Place means the product is available in different colors and sizes . Design and branding is a part of place. CHOOSE THE CORRECT ANSWER Flexibility and discounts are part of – a) PRICE b) PLACE c) PRODUCT d) PROMOTION
CHAPTER 5 7 C’s OF TOURISM MARKETING TOURISM
CUSTOMER - THE CUSTOMER IS THE CEO OF YOUR COMPANY Whatever your marketing or company plan is, you must keep the tourist in mind. To optimize the success of your efforts, though, you must get to know your clients well and prepare for the long term. It is an important step that should be performed early in your company strategy to ensure that your marketing message reaches the intended target, therefore enhancing your brand presence. You must also keep an eye on the client's behavior. Consumers today place a high value on honest, transparent, and individualized communications and experiences with brands at all stages of the sales cycle .
Your customers are online. Are they going to find you or your competition? Do all you can to get listed in the local search results. Be where your customers are looking for you. Naturally you need to have a website, produce some great content, and connect through social media. That will put you in place to be found by your customers.
CONTENT - THE KING OF SEO SUCCESS IS CONTENT A great tourism marketing plan requires more than just high-quality, distinctive, and skilled content. Other important variables include being innovative with your content structure, updating obsolete material, and adhering to the most recent search engine algorithm modifications. Overall , this implies you must learn how to create exceptional search-engine-optimized (SEO) content. SEO content is any information developed with the goal of assisting your target audience in finding your business through a faster and simpler search.
CONTENT-BASED OPPORTUNITIES Despite the significant challenges travel and tourism marketers must overcome, they have plenty of attributes that work in their favor when it comes to creating content – not the least of which is the potential to put a world of travel experiences at the consumer’s fingertips. The right content experience can make a traveler’s planning process simpler, their journey easier to manage, and their overall experience more enjoyable
CONTEXT - THIS IS THE KEY TO MAXIMIZING THE IMPACT OF YOUR MESSAGE. If you want to effectively COMMUNICATE your brand message, you must be aware of the larger context of your target audience. This simply involves considering buyer intent, comparing it to current events, and then creating and advertising content that is actually relevant to your audience's requirements .
COMMUNITY Customers now have more purchasing power than ever before, and as a result, intimately engaging with them is critical to the success of any organization . Harnessing the power of a community is one of the most successful methods to establish customer connections, enhance a brand's trust and loyalty, and attract strong leads. Community marketing is an excellent method for engaging your audience in a transparent, non-intrusive, and natural manner. It will assist you in developing long-term positive connections with current and future consumers by bringing them together around issues connected to and aligned with your brand .
The aim of community-based tourism is directly benefiting local communities financially, while travellers experience local way of life. Communities that participate in community-based tourism are strong, resilient and committed to show travellers their culture.
What are the benefits of community-based tourism? The unique feature of community-based tourism is that the tourism experiences are hosted and managed by local communities. It is a promising niche tourism experience with lots of opportunities. More and more travellers are interested in learning about local cultures and ways to genuinely interact with local communities .
CONVENIENCE Convenience is an important aspect of a brand's customer experience and a vital customer service philosophy for every company. Take, for example, the rise of e Commerce . People may now buy not just on their computers at home, but additionally on their tablets and cell phones while commuting, eating at a restaurant, or simply passing time before a meeting, thanks to the internet and technological improvements. Convenience in tourism marketing , involves giving the appropriate information to the right person, at the right time, and on the right platform. This entails improving the customer journey so that prospects can obtain the information they need to make a buying choice more easily, resulting in a better overall experience.
How easy is it for customers to discover, purchase, and use your product? Convenience is key in enhancing the customer experience
Convenience thus means - Access to your material is quick and simple. Previous conversations and encounters with your brand are easily remembered. A straightforward acknowledgment of their worth as a consumer. Service and communication customization.
COHESION – THE MULTICHANNEL MARKETING SOLUTION If you want to successfully advertise any firm as a marketer, you must have a coherent tourism marketing plan. It refers to providing the same service, content quality, and brand values irrespective of the medium employed. It is all about integrating each channel that supports your brand into a single omni channel marketing plan. This will ensure that everything is consistent and that you get a decent return on Everything should be in sync and consistent, from your blog, FAQs page, and contact form to your social media, email, and beyond.
What is Tourism Marketing Cohesion? It is commonly referred to as the glue that holds tourists together .
CONVERSION - THE MOST IMPORTANT METRIC FOR TOURISM MARKETING SUCCESS After you have used all of your important resources to develop a great tourism marketing plan, you must assess the effectiveness of your efforts. Your conversion rate is the finest critical performance indicator to employ here. Conversions may be any hoped-for user activity that helps your business reach its goals, depending on your campaign.
STUDENT ACTIVITIES 1. What is the aim of community based tourism in marketing? TRUE / FALSE STATEMENTS Convenience in tourism marketing, involves giving the appropriate information to the right person, at the right time, and on the right platform. Convenience is not the key in enhancing the customer experience. CHOOSE THE CORRECT ANSWER A great tourism ____________ requires more than just high-quality, distinctive, and skilled content. a) MARKETING PLAN b) DECISION c) COST d) NONE
CHAPTER – 6 PRODUCT LIFE CYCLE
The product life cycle is a description of the phases that a product category goes through from its inception to its ultimate withdrawal from the market. The concept “ Tourism Product life cycle ” is used to explain the development of a particular destination and the succeeding levels they go through over time to time. In tourism and tourism related businesses, achievement means knowing this whole procedure.
In tourism reference, it can be explained as – Exploration (Introduction Stage / Discovery Stage) : The time when area is unexploited. Involvement (Growth Stage / Launch Stage) : The time when area is little visited and services starting to facilitate. Development & Consolidation (Maturity Stage) : The time when area starts developing as a destination i . e. the time when there is increment in tourists. Stagnation (Decline) – The time when there is declination in facilities. Maturity
There are 4 Stages Of The Product Life Cycle – Introduction Phase Growth Phase Maturity Phase Decline Phase
The INTRODUCTION STAGE happens when a product is launched in the marketplace. This is when marketing teams begin building product awareness and targeting potential customers. Typically , when a product is introduced, sales are low and demand builds slowly. The introduction phase is the first time customers are introduced to the new product. This is the stage where the product is developed based on market research and is exposed to the market. The introduction phase consists of the period between product launch and that point in time where growth starts to increase at a decreasing rate.
The GROWTH PHASE extends from the time that sales start to increase at a decreasing rate to an ill-defined point in time. In the growth stage, consumers start to take action. They buy the product; the product becomes popular and results in increased sales . During the growth stage, consumers have accepted the product in the market and customers are beginning to truly buy in. The usual characteristic of a successful new product is a gradual rise in its sales curve during the market development stage.
The MATURITY PHASE extends over a that period when a sales are at their maximum. This can be an extremely profitable stage of the product life cycle, especially if the market is large and is sustained over a multi-year period. The maturity stage is when the sales begin to level off from the rapid growth period. At this point, companies begin to reduce their prices so they can stay competitive amongst the growing competition. The maturity stage of the product life cycle is the most profitable stage, the time when the costs of producing and marketing decline.
The DECLINE PHASE suggests that product sales have started to fall and will continue to fall toward an eventual withdrawal from the market . The decline stage in the product life cycle is when a product dissolves as a result of decreased or negative growth . It is a result of lower demand, which ultimately results from new inventions and technology advancements. The decline stage of a product is when a mature product loses customer interest and its sales start drifting downward.
STUDENT ACTIVITIES 1. Define Tourism Product Life Cycle. TRUE / FALSE STATEMENTS The time when there is declination in facilities is known as maturity stage. There are 5 stages of Tourism product life cycle. CHOOSE THE CORRECT ANSWER Profit is high in_________________stage a) Introduction stage b) Growth stage c) Maturity stage d) Decline stage
CHAPTER 7 CHANNELS OF TOURISM MARKETING
Generally, there are four steps to the distribution chain in tourism: 1. Suppliers / Principals 2 . Wholesales 3. Resellers 4. End consumers - Tourists
SUPPLIERS The principals are the separate components of a travel product. Suppliers or principals include the primary providers across accommodation, transportation and car hire companies, attractions, and experiences.
Examples include hotels, airlines, and the attractions such as the Empire State Building, Madame Tussauds Museum. Detailed Example - A leisure traveler buys a three-night stay in Paris that includes flights, accommodation, entrance to the Louvre and the Eiffel Tower, with other ancillary services such as travel insurance and foreign exchange thrown in too. In this case, each of the principals could have been sold separately. Instead, they were bundled together by a travel business and sold as a mini-break promotion.
WHOLESALERS Tour operators take various components of the travel experience and create a travel product which is then traditionally sold by a travel agent . Wholesalers develop packages of travel products for retailers to sell on, though in some cases they may actually sell directly to the consumer. These packages or itineraries might include tours, activities, accommodation, transport, and/or travel insurance.
Wholesalers can include : Destination Management Organizations (DMOs) or inbound tour operators, such as government tourism boards or tourism authorities like Saudi Tourism. Global Distribution Systems (GDSs), are used by retailers such as OTAs (online travel agencies) to easily see an inventory of availability from tourism operators.
A global distribution system (GDS) is a computer system that holds records of availability from airlines, hotels, and car hire.
RETAILERS / RESELLERS Resellers purchase and bundle experiences to be sold directly to the consumer. A common example includes traditional travel agents, which create personalized travel packages. However, online travel agents (OTAs) such as Expedia and Tripadvisor are more commonly used these days. They provide accessibility to a range of tourism products such as airline tickets, hotel bookings, tours and activities, and more.
CONSUMERS / TOURISTS Consumers are the most critical component of the marketing channel. That is because they are the end user of the product. The choices and decisions consumers make have a huge impact on the rest of the distribution chain. Trends in consumer behavior, or individual decisions all influence how tourism products are marketed and sold.
OTHER MARKETING CHANNELS IN TOURISM
Tourism Marketing Channels Represent The Various Ways To Sell Or Market Your Tourism Product. The Distribution Channels In Travel And Tourism Can Be Divided Into Offline And Online Channels.
Tour company’s website – the number ONE direct distribution channel in travel and tourism. Hostels & tourist information centers – sell more tours and activities. Online travel agencies – online giants with huge audiences . Choosing wisely the right distribution channels in travel and tourism means a strategic advantage for your tour company.
STUDENT ACTIVITIES 1. Write 4 steps of distribution chain of tourism. TRUE / FALSE STATEMENTS A global distribution system (GDS) is a computer system that holds records of availability from airlines, hotels, and car hire. Resellers purchase and bundle experiences to be sold indirectly to the consumer. CHOOSE THE CORRECT ANSWER _______________ are the most critical component of the marketing channel a) CHAIN b) GROWTH c) DECLINE d ) CONSUMERS
CHAPTER 8 TOURISM MARKET SEGMENTATION
Tourists are not all the same, they have different pictures of their ideal vacation. Tourists are heterogeneous.
It is the process of identifying tourists from the market with different desires and lifestyles. A simple definition for market segmentation is pursuing a marketing strategy whereby the total potential market is divided into homogeneous subsets of tourists, each of which responds differently to the marketing mix of the organization. In other words, for tourism marketing segmentation, tourist segments are defined in terms of basic descriptions of age, sex, occupation, income grouping and place of residence. Known collectively as tourist profiles, such facts are often easily obtained for existing tourists in travel and tourism as a by-product of booking records, registration procedures and regular tourist surveys such as the in flight studies undertaken by airlines and tour operators. Descriptive information about buyers of travel products generally is usually also available in many countries from national tourist offices and commercial surveys of travel and tourism markets. These are commonly available for purchase in countries with developed tourism industries .
The main methods of segmentation are - Purpose of travel. Buyer needs, motivations, and benefits sought. Buyer behavior / characteristics of product usage Demographic , economic, and geographic profile. Psychographic profile. Geo demographic profile Price .
MAIN OBJECTIVES OF TOURISM MARKET SEGMENTATION Developing new markets for new tourist products. Developing marketing program and budgets
BASIS OF TOURISM MARKETING SEGMENTATION
ADVANTAGES OF TOURISM MARKETING SEGMENTATION Allowing the travel company to exploit services by better selecting compatible market niches. Identifying gaps in the market which may represent new market opportunities. Encouraging more sharply focused strategies. Encouraging tourist loyalty as a company‘s offering is more closely geared to those in a market segment .
Develop More Effective Strategies Create Hyper-focused Messaging Increase Response Rates Attract The Right Tourist Improve Brand Loyalty And Retention Expand Your Reach Promote New Product Development Specialize On A Particular Market Segment Like A Travel Agency Selling Tour Packages To Europe Higher Success Rate Higher Tourist Satisfaction
MAIN FACTORS WHICH HELP IN TOURISM MARKET SEGMENTATION Travel expenditure data. Historical trends in travel in different socio economic categories. Influence of travel agents, tour operators on destination choice
STUDENT ACTIVITIES Define Tourism marketing segmentation Write any 2 methods of Tourism marketing segmentation . TRUE / FALSE STATEMENTS Identifying gaps in the market which may represent new market opportunities is disadvantage of tourism marketing segmentation Tourism marketing segmentation helps in higher tourist satisfaction . Behavioral segmentation is of 5 types MULTIPLE CHOICE QUESTIONS Geographic pattern includes - a) Country of origin b) Language c ) Culture d ) All correct 2. Demographic patter includes - a) Age group b ) Income Level c ) Hotel d ) None