This assignment delves into the evolving landscape of tourism marketing. It examines key issues facing the industry, such as sustainability, technology integration, and changing consumer behavior. The focus is on how digital platforms and strategies are shaping modern tourism marketing practices.
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Marketing in Travel and Tourism
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INTRODUCTION In a business process, travel and tourism management is interlinked with managing overall operations of tourism industry. It is one of the growing sector which is able to generate high revenue along with high growth. Moreover it has been growing career opportunities to event planners or to the travel agents or the companies who mainly provide travel packages (Baker, 2014). In simple words it is mainly providing services to the clients who wants to travel from one place to another. The company chosen for this report is Prudential hotel which is situated in Hong Kong and was established in 2008.This hotel mainly deals in providing hotel services to the customers who have visited Hong Kong for various purposes like business, holiday, honeymoon and many others. In this report, things discussed will be about the concept and the principles of marketing. Along with that role of marketing as management tool in travel Industry and functions of the marketing mix and usage of promotional mix techniques in travel Industry. TASK 1 1.1 The core thought of marketing for the travel and tourism industry Prudential hotel is one of the growing hotel industry in the Hong Kong. Various packages are being provided by the company to their clients like summer packages for the family, honeymoon packages and winter packages in which luxury services can be provided within budget price. While making the certain rules and policies of the hotel, cited hotel should analyse the market trends and thus develop those policies so that growth and success can be attained in desired time. Optimum utilisation of resources will make the company to remove the negative elements so that prosperity can be obtained within organisational environment (Buhalis and Foerste, 2015). Basically marketing is a process which aids a business process to anticipate and determine the needs of its targeted customer base and then taking effective measures to meet the needs and wants of the customers. Furthermore, basic concept of marketing in travel and tourism consist of five major elements: 1
Needs and wants:Prudential hotel have a desire to attract large amount of customers by satisfying them in maximum manner and thus other needs of social needs and wants of the customer for rapid growth. Products:The actual needs and wants of the customer is the basic and essential criteria which needs to be fulfilled in maximum manner and thus that will attract large amount of customers and thus automatic promotion can be observed in positive manner (Chon, 2015). Values Satisfaction and Quality:The services which are being provided by the hotel to the customers should be of quality and they should fulfil the criteria of satisfaction of customers. Exchange of transaction and Relationship:Transactions taking place between hotel and customers should not be complex in nature because that might create chances of issues rising. Market:potential should be there in market place so that actual needs and wants can be fulfilled in desired manner. Illustration1: Customer Relationship (Source: Customer relationships, 2016) 1.2 Effect of marketing environment on individual travel and tourism concern Basically there are three methods by which marketing environment of an individual travel and tourism are described below:ï·Political:It is one of the major aspect which affects the company's production and profitability (Dickinson and et. al., 2014). There are some policies made by the Govt. of Hong Kong which like the low tax policy which can directly affect the hotel and 2
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customers because prices of the services will be low and qualitative and thus the support of the Govt. can lead to more attractive offers and customers attraction.ï·Economic:Currency rate of a country plays a major role while making attractive offers for the customers and from the aspect of the customer, currency rate can affect the budget of the customer. So the more effective the currency rate, more customers specially the middle class will be encouraged to visit Hong Kong. ï·Technology:In order to promote the hotel and get the knowledge of the hotel specially its reviews, social media is an effective tool which can reach to the customers from another countries as well. So that is why it is said that social media is the best and effective way to promote the business products and services (Dolnicar and Ring, 2014). Thus by these it can be stated that above explained factors plays a major role in the productivity and profitability of the company and moreover it also provides the way by which the actual demands of the customers can be determined and fulfilled so that goals and objectives can be obtained in effective manner. 1.3 Factors affecting consumer motivation and demand in the travel sector There are various factors which affects the motivation and demands of customer and they are described below: Age:Age is the major factor and a key element of market segmentation in which customers are divided according to the age and thus products and services are being structure according to the group. Same age person should be classified into same group so that their needs and wants can be justified and further there are chances that they will similar kind of tasks and activities included in holiday packages. Gender:Services which are offered to the industry should be classified into gender factor. This can be further explained by the example like a group of male friends going out for holiday will require different requirement and females group will have another. So this kind of difference can bring varieties in product. Disability:No discrimination should be present when it comes to a disable person and all the facilities should be provided just like to a normal person. There should be additional services provide to the handicap person so that they should not feel inferior (Gössling, Scott and Hall, 2015). 3
Family Life Cycle:Another factor which can affect the choice of holiday Package is the family choices. Due to the presence of different people with different mind set and age can affect the decision making of selecting holiday package. Tourism and Work:Travel Industry services should be time bound and according to that services and products should be provided so that customers can be satisfied in effectual manner. There are travellers who travel majorly needs best accommodations and satisfaction regarding services. This can result in growth of services and the company as well. 1.4 Rule of the market segmentation and its utilization in the market plan Market segmentation is a process in which market is divided in order to analyse the market trend and actual needs and wants of the customers so that they can be classified and satisfied in effective manner (Horner and Swarbrooke, 2016). It is an essential aspect of marketing planning which can tap their target customers and this process involves three major steps of target marketing and they are described below: Step One:The first and major step is to divide the market into simpler parts so that analysation and determination can be done in ease manner and also they can determine the actual needs and wants of the customers. Classification can be done on the basis of gender, race, age and demands and many others. Dividing the market into various distinct groups which may needs the separate products and this might be obvious that variant products are required because it ain't necessary that every group will demand for the same product or even similar kind of product. So it may require different marketing mix from different groups which are divided into market segment. Step Two:Now it comes to target the market for which the hotel will design the packages. There are various sectors which will be targetted but before designing its should be analysed and report should be made on the the groups want and needs. Each segment should be studied and thus design should be made on the basis of the attractiveness of each segment. It is best to select more than one segment so that large amount of customers can be attracted towards the packages of Prudential Hotel. Step Three:The final step comesof market positioning and developing the position of competitive market fro the product and services which are being provided by the hotel and thus applying the appropriate marketing mix will lead to achieve the desired aims and objectives in effective manner (Mistilis, Buhalis and Gretzel, 2014). 4
TASK 2 2.1 Importance of strategic marketing plan It is an process in which operational and managerial staff of an organisation goes via it so that implementation of effective marketing strategy can take place. It takes various aspects of company marketing and promotion into consideration. This kind of process is highly essential because it aids the Prudential Hotel to maintain their focus on the demands of the customer. There are various advantages which a firm gets through it and they aredescribed below: ï·It helps to determine the idle customers who can be an useful source regarding company. ï·Aims and objectives needs to be defined so that determination and study can be done fro generating revenue. ï·It is highly important in making plans and policies so that leading position can be taken in the competition market and also to gain the sustainable growth and development of the hotel. ï·Thisnotonlyfocusontheexternalenvironmentbutalsomaintaintheinternal environment of the cited company so that outcomes which are expected should be obtained from the staff members. Modification of plans can be according to the changes which are taking place in marketplace (Neuhofer, Buhalis and Ladkin, 2014). ï·It also helps in determining the customer which needs to be targetted so that their perception can be changed for making long lasting relationships. 2.2 Relevance of market research in travel and tourism industry In order to collect data fro analysing the social and current trends in market and accordingly the activities can be planed and thus can be obtained by the help of marketing research. This is highly advantageous for the hotel so that they can provide their services to the customers and thus can establish long lasting relationships and those stages are described below: 5
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ï·Defining the Problems:This is related to the determining the actual needs and wants which directly or indirectly affects the activities Industry and accordingly solutions should be applied. ï·Developing Business Plan:There is research conducted and thus for that it is important to gather the vital data from appropriate sources so that particular plans can be made for running of operations in smooth manner. Various tasks are being included in developing the business plan and they are online tests, surveys and interviews and many other. ï·Implementation of Found Data:The data and information which is collected for the research should contain no error and proper resources should be addressed so that analysation can take place regarding the data collected. It should be ensured that data which is being analysed should be reliable in nature so that it can be moved on next stage (Pike and Page, 2014). ï·Interpretation:This is the considered as the last stage of the data analysed because after all the implementation work, there is need to keep track on the resources and operations and thus all the required steps should be measured so that at the time of difficult situations , certain steps can be taken. 2.3 Power of marketing on society Activities of marketing has high influence on the society. Moreover, it is helpful in collecting the vital information regarding the goods and services offered by the travel Industry. ï·Consumer Protection:Prudential Hotel should also look out for the safety of their social factors and thus they should regulate all the factors so that customer along with society members. For that particular act was enforced by the Govt. so that rights of individual can be protected and also company can acquire the growth and success within market place. ï·CorporateSocialResponsibilities:Companyhasdutiestowardsthesocialand economical factor and for that they need to donate some part of their profit to society so that development can take place and along with that can provide various elements which can be beneficial for the society and thus in turn helps company to improve their brand image (Schegg and Stangl, 2017). ï·Consumerism:This includes various elements like providing education and efforts to the employee so that qualitative production can be seen and thus services can be offered by 6
company. Another way can be that various plans and policies can be made so that products can be designed according to the actual needs and wants of the customers and thus they can be satisfied in effective manner. ï·Ethical and Social Responsibilities:It is a process in which the moral approaches which are aidful in identifying the right and wrong for the society and thus Prudential Hotel are conducting ethical task so that growth and development can take place in the society as well as the organisation (Standing, Tang-Taye and Boyer, 2014). Responsibilities should be determined and analysed by the hotel regarding the social factors and distribute their profits so that development can take place. TASK 3 3.1 Issues in product, price and place elements of marketing mix Marketing mix is on of the essential tool which is used in frequently by the marketers. It enables the organisation in determining its product or the offer of the brand. These are often related with four P'S and they are described below: ï·Production:It refers to the item which is being soldand thus it should produce according to the demand of the market place . This is the basic and foremost step of the company and the major issue which arise in this approach is that what to produce and whether those elements are produced in that product or not which is used to attract the customers in large amount. So if the performance is not meeting its minimum level then even the work will not be considered in effective manner. ï·Price:It refers to the value which is being set for the product and it totally depends on the cost of production, segment which is being targetted and the ability of market. Now the main issue which arises is to gain the competitive advantage and determining the ways by which that can be done. Wrong pricing may leads to loss of target market and the customer so pricing strategies should be effective in nature fro achievement of goals and objectives (Webster and Ivanov, 2014). ï·Promotion:It refers to the process in which all the activities are undertaken for making the product known to the customers. The main issue which comes in the promotion approach is that cost involved in marketing and promotion is mostly high according to the business and even risky because sometimes it does not give output just as expected. 7
So in order to get the best in budgeted price, effective strategies needs to be made so that competitive advantage can be taken and acquire large amount of customers. ï·Place:It refers to the point of sale and in every industry it is getting the attraction of the customer and making them to buy the services. The main issue occurs is the area of the operations where the Prudential Hotel deals. It may not attract the customer if it is established in outskirts of the country. So the area of operations is the major concern point in the marketing mix (Xiang, Magnini and Fesenmaier, 2015). 3.2 Importance of service sector mix elements Marketing mix common tools are discussed above question and thus they are important tool in the hand of marketer by which they can ensure that the product or service gets the proper customers in the marketplace and related to service sector described below:ï·People:People are considered as important part of the marketing mix and they are the only one behind which the organisation is able to run properly and gaining growth. Moreover the people are the reason behind the actual production of services and goods and thus creating the brand image and attracting customers in large manner. This can be mainly observed in the travel and tourism industry as there are lot of people who are involved in this sector by providing services to the customers.ï·Physical Evidence:It is a process in which the service is being delivered in an environment and the place where the organisation and the customer meets and interact and other tangible elements which facilitate the performance of the communication of services. There are many examples regarding the physical evidence like buildings, equipments, brochures, your website and many others. ï·Process:It is an approach in which products are being offered with the certain methods. Methods of handling sales, order procedure and its processing can be proved as essential element of the marketing mix. Owner and managers should have the detailed knowledge of the consumers behaviour and others services which are used by them. 3.3 The concept of total tourism product to an individual tourism business Total tourism products is the package system of an organisation and it is based on target customers to customise the services for the customers and which include tangible and intangible things and they are described below: 8
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ï·Tangible:All the assets which are visible and can be touched are called as tangible assets. In travel and tourism, tangible assets can be the products which are provided to the customers in the services like for an example it can be said that products which are provided while the accommodations are tangible like for example TV, AC, Bed and many more. These are the parts of the services provided to the customers for their maximum satisfaction level. Prudent hotel provide the same kind of tangible products to their customers in order to provide the best services with maximum satisfaction level. ï·Intangible:All the assets which can not be touched and seen are called intangible assets. In the travel and tourism sector, intangible things are mainly the service which are being provided to the customers so that they can be satisfied in maximum level. This can be further explained with the example like environment of the services which are being provided, behaviour of employees to the customers, free Wi-Fi and many others which can be used to make customer feel comfortable (Zeng and Gerritsen, 2014). TASK 4 4.1 Nature and role of Promotional Mix There are 4 promotional mix techniques which are being used as techniques and they are described below: ï·Direct Marketing:It is a process which can be defined as the paid form of non-personal presentation and promotion of idea and thoughts by a known sponsor. The most essential elementistheadvertisementwhicheffectsanpromotiontriestobydirectly communicating with the consumers regarding purchasing it. ï·Sales Promotion:it is an approach in which short term tools and techniques are being used so that customers can be attracted towards the product and thus make them buy the product. These are important because it gives effect on short term sales and they help company to gain the competitive advantage. ï·Personal Selling:personal selling is tool in which products are being sold personally. This involves the interactions face to face between the buyer and seller with the motive of selling. The main motive behind this kind of approach is to provide the customer satisfaction in maximum level so that long lasting relationships can be created. 9
ï·Public Relations:It is considered as n essential tool which helps to maintain the relations with the people. The main motive behind creating good relations with public is to create the goodwill and brand image and that is what the Prudential Hotel is trying to achieve. Public relations include shareholders, suppliers, intermediaries, consumers and many more. 4.2 Planning of promotional campaign for a travel and tourism business In today's era, business process is very intense competition so an organisation will integrate some promotion mix into some effective Idea in order to tap in lure the business effective. Social media is aidful in products reaching to their customers and this is an essential factor which helps in creating brand image for the company so that growth and development can be obtained. Social media crusades involve product advertisement via various ways like You Tube, emails, Facebook and Twitter and other social media trends. All these are methods which are effective tools utilised for promotions of the services provided by the Provident Hotel and moreover it is aidful to improve and expand the business operations and attain the defined goals and objectives resulting in growth of firms (Marketing In Travel And Tourism Industry. 2017). Tools and techniques which are being used fro promotion are unique and most effective and thus in results it shows the results by attracting large amount of customers. In today's era, world and people are changing and are most active on social media and thus they can know about products and services of the company. Therefore it can be stated that social media is one of the most effective ways of the promotional techniques. 10
CONCLUSION From the above report it can be concluded that different strategies can be utilised by the strategic planning so that growth and success can be gained in Travel and Tourism Sector. Effective strategies are being formed by Prudential Hotel for attracting large amount of customers. In order to create the brand loyalty awareness is being created regarding products and services with the help of promotional marketing campaign. Several channels are being adopted by organisation like social media which guide data regarding various offers ofefred by the company. 11
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