Hospitality & Tourism - Strand 1

4 Segments of Hospitality & Tourism

Lodging, Food Service, Transportation, Entertainment

hospitality industry

businesses that provide services to customers; focused on the satisfaction of customers and providing experiences

tourism industry

focused on people traveling to and staying in places away from home for leisure or business

service

useful labor that does not produce a tangible thing

sustainability

ability to be maintained; not depleting resources

perishability

something that is only useful for a short time; a service cannot be stored for sale in the future; food prepared tonight cannot be served tomorrow; hotel rooms left empty tonight are wasted

intangibility

lacking physical existence (example: a service)

changeability

subject to change at any time; in hotel and restaurant industries, change is often unpredictable

Egocentrism

it's all about you; self-centered

Ethnocentrism

one's own culture is superior and more important

Ecotourism

involves trips to natural environments with focus on enjoying, but also sustaining or preserving for future

Multiculturism

view that all cultures deserve respect and interest

infrastructure

the fundamental facilities and systems serving an area such as roads, transportation, electricity, phone lines, internet accessibility, plumbing, clean water, etc.

24 hour clock

AM & PM are not used; instead, 12n=1200, midnight=2400, 4pm=1600, etc.; used in flight schedules worldwide, used in many countries; subtract 12 to find PM times

international date line

the line of longitude on the earth that marks where each new day begins, centered on the 180th meridian (Greenwich, England)

ripple effect of tourism

money spent by tourist enriches business owners which employs and enriches citizens who spend money in the community enriching others

direct economic impact of tourism dollars

tourist enrich businesses, create jobs, and enrich employees

indirect impact of tourism dollars

suppliers of businesses who are selling to tourist benefit indirectly from tourism dollars

induced impact of tourism dollars

those enriched by tourism dollars spend money on any number of things, thereby enriching others who have nothing to do with tourists

socio-cultural impact of tourism

Cultural appreciation, new ideas, social exposure, understanding, diversity, etc.;

Increase in related crime (drugs, prostitution, etc.);

Property values push out locals;

Commodification of culture;

Younger generations impacted by visitor consumption

environmental impact of tourism

Awareness, support of environmental issues;

Transit impact (the effect of planes and buses moving people to remote areas);

Increased activities take toll on environment;

As demand increases, so does construction, invasive infrastructure projects

product life cycle

describes the stages a really new product idea goes through from beginning to end; includes Intro, Growth, Maturity, Decline

intro stage of product life cycle

cost high; sales low; little or no competition; goal is to establish a market and build consumer demand

growth stage of product life cycle

period of rapid sales growth; profits are driven by increased sales; economies of scale; increased marketing expenditure

maturity stage of product cycle

sales growth slows/peaks; market makes most profit here;. defend market share; prices drop due to increased competition

decline stage of product life cycle

sales and profits start fall; market saturated; product obsolete, or customer tastes have changed; can try changing pricing strategy, but ultimately the product will have to be re-designed, or replaced

inflation

a general increase in prices and fall in the purchasing power of money

staycation

a "vacation" where a family opts to stay home and entertain itself locally with backyard pools, local shows, restaurants, amusement parks, etc.

exchange rates

determine the ratio at which one currency can be traded for another

marketing

the action or business of promoting and selling products or services, including market research and advertising

target market

the group of people most likely to become customers; identified for a specific marketing program

segmentation

the process of classifying people who form a given market into even smaller groups; the goal is to identify specific markets to target with specific marketing campaigns; may segment by demographics, psychographics, geographics, behavior, and more

demographics

Characteristics such as age, gender, income,, education, and occupation

psychographics

characteristics such as lifestyles, attitudes, values, opinions, etc

geographics

characteristics describing where people live - such as urban, rural, mountain, coastal, regional, etc.

behavioral segmentation

divides customers into groups based on how they buy and use the product or service

marketing mix

a combination of factors that can be controlled by a company to influence consumers to purchase its products; summarized in the four Ps: Product, Price, Place, Promotion

customer service

the assistance and advice provided by a company to those people who buy or use its products or services

target market

the group of people most likely to become customers; identified for a specific marketing program