Marketing in the Travel and Tourism Industry

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Marketing in the Travel and Tourism Industry
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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

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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

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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

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Classifying Customers

• A target market consists of a whole group of
  potential customers, drawn from the whole
  population
• Its better to define the target market as a
  collection of segments
• Each segment will have different characteristics
• Each segments needs and wants must be satisfied

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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

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Marketing Mix

• The way in which current and potential customers
  demands are satisfied depends on the marketing
  mix of the organisations products and services
• Traditionally 4 elements of the mix Product,
  Price, Promotion and Place
• In the modern travel and tourism industry its
  usual to look at 6

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Elements of the Marketing Mix

• Product or service
• Quality
• Value
• Lifecycle
• Perishability
• Differentiation
• Niche

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Elements of the Marketing Mix

• Price
• Seasonality
• Strategies
• Competitor analysis
• Loss leadership
• Skimming

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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

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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

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Elements of the Marketing Mix

• People
• Employees
• Management
• Culture of organisation
• Attitude to customer service

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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