TOURMARK

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Hospitality Marketing

It is how segments of the tourism industry (transportation, hotels, restaurants, resorts, amusement parks, and other entertainment or accommodation businesses) promote their products or services.

What does the four-P framework in marketing stand for?

Product, Price, Place, and Promotion.

Marketing

It is the process of getting a company’s products or services out to consumers, drawing attention to destinations, hotels, transport services, and activities.

What is the primary focus of marketing in tourism?

To create memorable customer experiences and ensure excellent customer service.

Hospitality Marketing

It focuses on hotels, motels, food services, recreation outlets, tourist destinations, museums, amusement parks, gambling establishments, and other similar sectors.

Tourism Marketing

It emphasizes the value of memories, makes services easily available, and adds value through additional programming.

What is a product in tourism and hospitality marketing?

Services a company offers, such as flights (airlines) or rooms (hotels), including features and benefits.

Give examples of a hotel’s product mix.

Guest rooms, fitness center, pool, restaurants, valet services, concierge, housekeeping service.

Give examples of a restaurant’s product mix.

Meals, food quality, host/hostess, and waiters.

Travel Product

It consists of a chain of services and experiences starting from booking until the trip ends.

“Place” in the 4Ps of marketing

The location or channels where customers access or buy services, emphasizing convenience and accessibility.

Marketing Intermediary

Online platforms like hotels.com that help hotels sell their services.

Promotion

The combination of marketing techniques such as advertising, public relations, and personal selling that provide product and price details.

What are the key characteristics of a travel marketing strategy?

The method of communication, content of the promotion, and cost to the operator.

Pricing

It is part of a revenue management plan where the price must match the product but appear attractive to customers.

What factors influence pricing in tourism?

Destination location, seasonality, competitor pricing, and government regulations.

What are non-monetary elements of price?

Time spent searching and evaluating alternatives, and convenience of location.

"People" in the 7Ps

Staff interacting with guests, such as managers, receptionists, concierge, spa staff, and waiters.

Process

The procedures, mechanisms, and flow of activities between customers and the business.

Physical Evidence

Tangible evidence like reviews, stories, signage, and components that validate the service quality.

Why is the hospitality industry considered difficult to succeed in?

Due to high competition and high failure rates, e.g., restaurants have a failure rate of 20%–30%.

Why is customer focus crucial for success in hospitality?

Because customer satisfaction determines repeat business and brand reputation.

What role do marketing campaigns play in tourism?

They promote products and services to attract customers.

Why won’t marketing campaigns work on their own?

If the product is low quality or not engaging, marketing cannot compensate.

Why is quality of service important?

It creates positive customer experiences and requires investing in well-trained, motivated employees.

What are marketing management philosophies?

Philosophies used by businesses to guide marketing efforts and fulfill customer needs.

What objectives drive marketing concepts?

Cost efficiency, product quality, and customer satisfaction.

The Production Concept

The idea that consumers prefer inexpensive and widely available products.

What is the main advantage of mass production?

It lowers production costs due to economies of scale.

What is the main drawback of the production concept?

It focuses on quantity and price over quality.

What is an example of mass production?

"Made in China" goods.

The Product Concept

The belief that consumers favor products with quality, performance, and innovative features.

Which company is known for using the product concept effectively?

Apple, due to its high-quality and innovative products.

The Selling Concept

Focuses on aggressively selling products, regardless of customer needs.

Which type of products typically use the selling concept?

Unsought goods, such as insurance.

Why is the selling concept considered risky?

It prioritizes sales over customer satisfaction, which can harm the brand.

Marketing Concept

Businesses succeed by identifying and satisfying customer needs better than competitors.

What are needs, wants, and demands?

Needs: essentials for life (e.g., food, shelter). Wants: desires shaped by culture and society. Demands: wants backed by purchasing power.

What does "the customer is always right" mean?

Businesses must prioritize customer satisfaction to succeed.

What example highlights marketing positioning in the customer’s eye?

Coke vs. Pepsi.

The Societal Marketing Concept

It aims to fulfill customer needs while considering environmental and societal well-being.

What are examples of societal marketing concerns?

Environmental issues like pollution, poverty, and population growth.

What is an example of a societal marketing issue in tourism?

Boracay’s environmental rehabilitation.

The Holistic Marketing Concept

Viewing a business as one whole entity where all parts work together toward a common goal.

Give an example of a brand using holistic and societal marketing.

A brand that uses biodegradable cups and personalizes packages with customer names.

Who are the key players in the tourism and hospitality industry?

Private and non-profit sector, public sector, transportation, accommodations, food & beverages, attractions, events, intermediaries, and tourists.

What does the private and non-profit sector include?

Travel agencies, tour operators, banks, educational institutions, and insurance companies.

What is the role of the public sector?

Provincial tourism organizations work to create attractive tourism products.

Tourism Promotion Board (TPB)

A government corporation promoting the Philippines as a meeting and convention destination.

Why is transportation important in tourism?

It facilitates accessibility and convenience for tourists.

What are the main modes of transportation in the Philippines?

Trains, taxis, jeepneys, buses, and tricycles.

What is the role of airlines in tourism?

They meet increasing local and international travel demand.

Why is cruising popular in tourism?

It offers luxury travel experiences and is a growing industry segment.

Metroten

A railway system operated by Philippine National Railways.

What does accommodations include?

Hotels, hostels, bed and breakfast, timeshare apartments, holiday dwellings, and campsites.

What businesses are in the food & beverage sector?

Companies that process, package, and distribute fresh and pre-packaged foods and drinks.

What types of attractions exist?

Natural (beaches, mountains) and man-made (theme parks, monuments).

Why are events and conferences important?

They boost tourism and have social, cultural, and economic significance.

Who are intermediaries in tourism?

Tour operators, travel agents, and online booking platforms.

Who are the most critical players in tourism?

Tourists, as they generate revenue for the entire industry.

Quality Customer Service

It is an experience where the customer feels valued or heard.

Quality Culture

Reducing and removing difficulties and deficits to improve customer experience.

Why is a quality culture important?

Companies with a strong quality culture survive longer in the industry.

What does culture prescribe in tourism businesses?

Policies and processes that help the company operate within its mission.

Why is tourism and hospitality considered part of the service industry?

Because they provide intangible services instead of physical products.

Intangibility

Services cannot be seen, touched, tasted, or tried before purchase.

What is the challenge of marketing intangibles?

It is hard to demonstrate quality or value before consumption.

Physical Evidence

Tangible elements like signage, cleanliness, and staff appearance that influence customer perceptions.

Give examples of mismanaged physical evidence.

Burnt-out light bulbs, dirty uniforms, unkempt parking areas, and outdated advertisements.

Inseparability

Services exist only when delivered and require interaction between customer and employee.

How does inseparability affect customer experience?

Even if the product is excellent (e.g., food), poor service (e.g., inattentive waiter) leads to dissatisfaction.

What role do customers play in inseparability?

Customers co-produce services (e.g., understanding hotel package inclusions).

How can businesses manage inseparability issues?

By ensuring compatible customer segments, suitable operations, good booking policies, effective waiting systems, and well-trained staff.

Perishability

Services cannot be stored for future sale (e.g., unused hotel rooms).

What strategy is used during peak demand?

Pricing is set to ensure the highest returns.

What strategy is used during low demand?

Attractive promotions to encourage sales.

Variability

Service quality varies by time, place, and who delivers it.

Why is variability a challenge?

Human interaction makes it hard to maintain consistent quality.

Provide an example of variability in customer experience.

Two customers can have different dining experiences at the same restaurant with the same meal.

Service Profit Chain

A model linking profitability, customer loyalty, employee satisfaction, and productivity.

Quality

The reliable delivery of products and services based on expected standards.

Why has quality management become important?

Due to high competition and globalization in the industry.

Why is tourism considered a fast-growing industry?

Because of its increasing global demand and job creation.

What is a major labor issue in tourism and hospitality?

A shortage of skilled and competent workers.

What other issues challenge the industry?

Safety concerns and high differentiation between businesses.

SERVQUAL technique

It compares customer perceptions of service with their expectations.

What are the five SERVQUAL dimensions?

Reliability, Assurance, Tangibles, Empathy, and Responsiveness.

Reliability

Delivering the promised quality and level of service consistently.

Assurance

Employees’ knowledge, courtesy, and ability to build trust.

Tangibles

Physical facilities, equipment, websites, and employee appearance.

Empathy

Providing caring, individualized attention to customers.

Responsiveness

Willingness of employees to assist customers and offer speedy service.

CRM

Tools used by businesses to manage customer relationships and increase lifetime value.

What are examples of CRM touchpoints?

Website visits, reservations, front desk interactions, welcome notes, facility upkeep, newsletters, and social media engagement.

Mystery shopping

Hiring an undercover customer to evaluate service quality.

Post-service Rating

Asking customers to rate the service immediately after it is delivered.

Follow-up survey

Email surveys that give customers time to provide detailed feedback.

Social Media Monitoring

Tracking customer feedback and complaints on social platforms.

What are objective service metrics?

Quantitative measures of service quality (e.g., response time, problem resolution time).

What does volume per channel track?

The number of customer inquiries per communication channel.