Transcript Chapter 12
MARKETING & TRAV E L H O S PI TALI TY Chapter 12 Packaging and Programming Copyright 2010 Delmar, a part of Cengage Learning. All Rights Reserved. MARKETING & TRAV E L H O S PI TALI TY Definition of Packaging The combination of related and complementary services into a single-price offering Copyright 2010 Delmar, a part of Cengage Learning. All Rights Reserved. MARKETING & TRAV E L H O S PI TALI TY Definition of Programming The development of special activities, events, or programs to increase customer spending, or to give added appeal to a package or other hospitality/travel service Copyright 2010 Delmar, a part of Cengage Learning. All Rights Reserved. MARKETING H O S PI TALI TY & TRAV E L Figure 12.1 Relationship of packaging and programming. Copyright 2010 Delmar, a part of Cengage Learning. All Rights Reserved. MARKETING H O S PI TALI TY & TRAV E L Figure 12.2 Reasons for the increased popularity of packaging and programming. Copyright 2010 Delmar, a part of Cengage Learning. All Rights Reserved. MARKETING & TRAV E L H O S PI TALI TY Key Roles of Packaging and Programming 1. Smoothing patterns of business 2. Improving profitability 3. Assisting in use of segmented marketing strategies Copyright 2010 Delmar, a part of Cengage Learning. All Rights Reserved. MARKETING & TRAV E L H O S PI TALI TY Key Roles of Packaging and Programming (continued) 4. Complementing other product/servicemix elements 5. Bringing together related hospitality and travel organizations Copyright 2010 Delmar, a part of Cengage Learning. All Rights Reserved. MARKETING & TRAV E L H O S PI TALI TY Packaging Concepts Offered by Industry Packages developed by intermediaries— including tour wholesalers and operators, some travel agents, and convention/ meeting planners Packages developed by others—suppliers, carriers, destination marketing organizations, clubs, and special-interest groups Copyright 2010 Delmar, a part of Cengage Learning. All Rights Reserved. MARKETING & TRAV E L H O S PI TALI TY Four Ways of Classifying Packages Package elements Target markets Duration or timing Travel arrangements or destinations Copyright 2010 Delmar, a part of Cengage Learning. All Rights Reserved. MARKETING & TRAV E L H O S PI TALI TY How to Develop Effective Packages Include attractions or other demandgenerators. Provide value to the customers. Offer consistent quality and compatibility among elements. Be well planned and coordinated. Provide a distinctive customer benefit. Cover all the details! Copyright 2010 Delmar, a part of Cengage Learning. All Rights Reserved. MARKETING & TRAV E L H O S PI TALI TY How to Effectively Price Packages 1. Identify and quantify the fixed costs. 2. Identify and quantify the variable costs. 3. Calculate the total package costs on a per-person basis. 4. Add a markup or margin for profit. 5. Calculate the single supplement. Copyright 2010 Delmar, a part of Cengage Learning. All Rights Reserved.