(2) TOURISM & HOSPITALITY MARKETING (LESSON 5)

Private and nonprofit sectors

Public sectors services

Suppliers such as transportation, accommodation, f&b services, attractions, and events

Travel intermediaries

Tourist

What are the 5 Key Players in the Tourism Industry

Private and nonprofit sectors

include industry associations that have been established to protect special interest groups such as travel agency associations, financial services, academe, media, and insurance companies.

PTAA –Philippine Travel Agency Association and

PHILTOA – Philippine Tour Operators Associations

Credit card companies

3 Types of Private and nonprofit sectors

Philippine Travel Agency Association

Meaning of PTAA?

Philippine Tour Operators Associations

Meaning of PHILTOA?

Public sector services

cover either national, regional, or provincial tourism organization.

Public sector services

Marketing programs to promote their destinations to both intermediaries and individual tourist.

DOT and its attached agencies

Local Tourism offices

2 Types of Public sector services

Transportation Industry

Accommodation sector

Food and Beverage service sector

Attractions

Events and Conferences

Travel Intermediaries

Tourists

7 Types of Suppliers

Tourism and Hospitality

In consumer marketing, a product is anything that can be offered to a market for attention, acquisition, use or consumption that might satisfy a want or need.

Product, Market

In consumer marketing, a _______ is anything that can be offered to a ______ for attention, acquisition, use or consumption that might satisfy a want or need

Destination Attractions

Destination Facilities

Accessibility

Image

Price

5 Components of Tourism and Hospitality

Destination Attractions

a destination is a collection of attractions

Destination Attractions

these are what the visitors want to see

Destination Attractions

Philippine attractions fall under the “sun, sand, and sea” – but also include old churches. Historical and cultural artifacts, festivals.

The Filipinos – known to be the friendliest people in the world.

Destination Facilities

A wide range of tourist facilities within the destination will help the tourist enjoy the destination attractions.

Includes: accommodation facilities, transportation, food and beverage, shopping centers, and many other facilities.

Accommodation Facilities

Transportation

Food and Beverage

Shopping Centers

4 Types of Destination Facilities

Accessibility

Infrastructure services ▪ Airports, roads, bridges

Transportation Systems ▪ Direct flight of airplanes, trains, buses

Airports

Roads

Bridges

3 Types of Infrastructure services

Direct Flight of airplanes

Trains

Buses

3 Types of Transportation Systems

Image

Central to the product is its image.

Image

It is the perception of the hospitality product or service by the consumer (Buenaventura & Buenaventura-Gutierrez, 2022)

Image

It also motivates them to make a decision to visit the destination.

Price

An expression of the value provided by the tourism & hospitality establishment through its location, facilities, services, and the satisfaction derived by the customer.

Price

It allows consumers to determine the level of services they may receive at the destination.

Pricing High

expectation of excellence and high standards.

Pricing it too low

doubts about the product quality.

Core products – hotel room

Facilitating product – check-in and check-out service

Tangible Products – swimming pool and cottage

Supporting products – business center and room service

Augmented products – interaction with service providers and other customers

What are the 5 Different Types of Product and Services

Hotel Room

Core Products

check-in and check-out service

Facilitating Product

swimming pool and cottage

Tangible Products

business center and room service

Supporting Products

interaction with service providers and other customers

Augmented products

Accessibility

Atmosphere

Customer interaction with service system

Customer interaction with other customers

Co-production

What are the 5 Tourism Products and Services that Consumer Consider

Accessibility

how available the product to the consumer, in terms of location, hours of operation, and ease of availing the products and services.

Atmosphere

overall feel of the place – five senses.

Customer interaction with service system

inevitable for the tourism product

Co-production

customers do co-production of the product and service.

Product life cycles

are used by management and marketing professionals to help determine advertising schedules, price points, expansion to new product markets, packaging redesigns, and more.

Product life cycles

They can also help determine when newer products are ready to push older ones from the market.

Butler (1980)

He developed a concept popularly known as the Destination Life Cycle (DLC) which uses the product life cycle as its foundation.

Destination Life Cycle

What is DLC?

Destination Life Cycle

It provides a framework for the marketing and management of destinations as it develops over time (Hsu et al. 2007).

Exploration

Involvement

Development

Consolidation

Stagnation

Decline/Rejuvenation

6 Types of Destination Life Cycle

Exploration

Marks the beginning of a tourist destination.

Involvement

marks the beginning of tourism development; Infrastructure development begins.

Development

When tourist arrivals are fast increasing; there is loss of local control and rise of foreign-owned facilities.

Consolidation

Occurs when tourism has become major economic factor; discontentment of local people becomes evident.

Stagnation

Occurs when the carrying capacity of the destination has been reached or exceed.

Decline/Rejuvenation

Downward rate of tourist arrivals.

Idea Generation

Idea Screening

Concept Development and Testing

Marketing Strategy

Business Analysis

Prototype Creation

Test Marketing

Commercialization

Evaluation

What are the 9 Stages in Product Development, adapted from Kotler et al. (2010)