Transcript ###Marketing in the Travel and Tourism Industry

MARKETING IN THE
TRAVEL AND TOURISM
INDUSTRY
Definition
• Marketing is about anticipating and identifying the
wants and needs of a target market of
consumers, then satisfying those needs in order
to make a profit
• Firstly, travel and tourism organisations must
understand their customers’ demands. This is the
‘anticipating’ and ‘identifying’ part of the definition
Marketing Research
• Anticipating and identifying demands depends on
effective marketing research
• Research into the existing and potential market
• You will look into this in detail in the Activity
Marketing Research
• Classifying customers according to socio-
economic status, lifestyle, family circumstances,
gender and so on
• May involve primary research – surveys,
observation, questionnaires
• And/or secondary research – statistics and
records, quantitative and qualitative
Classifying Customers
• A target market consists of a whole group of
potential customers, drawn from the whole
population
• It’s better to define the target market as a
collection of ‘segments’
• Each segment will have different characteristics
• Each segment’s needs and wants must be
satisfied
Market Segmentation
• In the domestic tourism market the following
segments may be involved:
• VFR (look for a definition of this term during the
Activity)
• General business tourism
• Holidays and breaks pre-family
• Long holidays
• Activity holidays
• Group holidays
Marketing Mix
• The way in which current and potential
customers’ demands are satisfied depends on the
marketing mix of the organisation’s products and
services:
• Traditionally 4 elements of the mix – Product,
Price, Promotion and Place
• In the modern travel and tourism industry it’s
usual to look at 6
Elements of the Marketing Mix
Product or service
• Quality
• Value
• Lifecycle
• Perishability
• Differentiation
• Niche
Elements of the Marketing Mix
Price
• Seasonality
• Strategies
• Competitor analysis
• Loss leadership
• Skimming
Elements of the Marketing Mix
Promotion
• Advertising
• Endorsements
• Sponsorship
• Methods – use of different media,
brochures/leaflets, public relations, sales
promotion, press releases
• To gain attention/interest/desire/action
Elements of the Marketing Mix
Place
• Channels of distribution
• Getting tourism services to customers
• Retail services such as travel agents
• Direct marketing through targeted mail outs
• Electronic methods, such as using the Internet
• The growth of technology
Elements of the Marketing Mix
People
• Employees
• Management
• Culture of organisation
• Attitude to customer service
Elements of the Marketing Mix
Planning
• Mission statements
• Deciding on objectives
• ‘What are we trying to achieve?’ – profit, cut the
competition, boost share of market, enter new markets
and so on