Chapters+1+and+2 Slides

Chapter 1: Defining Hospitality and Tourism Marketing

Overview of Hospitality and Tourism Marketing

• Purpose of Marketing:

  • Provides real value to targeted customers

  • Motivates purchase decisions

  • Fulfills customer needs

  • Represents a philosophy and way of thinking in business structure

Definition of Marketing

• Key Functions of Marketing:

  • Used to satisfy customer needs and wants efficiently, leading to business success.

Understanding the Hospitality and Travel Industries

• Hospitality Industry:

  • Encompasses businesses providing accommodation, prepared food, beverage service, and entertainment.

  • Hospitality: things you do at home think local restaurant.

    • Tourism: spending more than a night away but less than a year.

• Travel Industry:

  • Comprises travel agencies, land transportation providers, tour operators, resorts, retailing, and convention centers.

• Beyond Traditional Marketing Mix (4Ps):

  • Incorporates planning, research, information systems, and buyer behavior analysis.

The Marketing Process

• Model Outlined:

  • Create value for customers

  • Build strong customer relationships

  • Understand the marketplace

  • Design a customer-driven integrated marketing program

  • Capture value from customers in return

Needs, Wants, and Demands

• Needs:

  • State of felt deprivation (physical, social, esteem)

• Wants:

  • Form of needs shaped by culture and personality.

• Demands:

  • Wants backed by buying power.

Customer Value and Satisfaction

• Customer Value:

  • Difference between benefits gained and costs of obtaining a product (monetary and non-monetary).

• Customer Expectations:

  • Based on past experiences and market information.

  • It is essential to manage these expectations properly.

Satisfaction and Loyalty Relationship

• Data Insights:

  • High satisfaction correlates with loyalty (though a rating of 3 yields limited return visits).

Customer Driven Marketing Strategy

• Marketing Management Focus:

  • Art and science of targeting markets while creating value for society.

• Key Questions for Marketers:

  1. What is the target market?

  2. What value do we provide in return?

The Selling Concept vs. Marketing Concept

• Selling Concept:

  • Focus on increasing sales over customer satisfaction.

  • Does not foster long-term relationships.

• Marketing Concept:

  • Organization focuses on satisfaction of target market needs and preferences.

Societal Marketing Concept

• Approach:

  • Goes beyond satisfying immediate customer needs to include societal well-being and sustainable practices.

Customer Relationship Management (CRM)

• Strategy Focus:

  • Managing customer touchpoints and maximizing customer loyalty.

Customer Engagement**

• Definition:

  • Direct participation in shaping brand experiences via digital media, leading to consumer-driven marketing and co-creation.

Customer Lifetime Value and Customer Equity

• Definition:

  • The potential profit associated with the entire future relationship with a customer.

• Importance:

  • Focus on profitable customers to enhance organizational success.

Customer Relationship Groups**

• Categorization:

  • High vs. Low relationship potential (e.g., Butterflies, True Friends, Strangers, Barnacles).

Chapter 2: Services Marketing Applied to Hospitality & Tourism

Service Culture

• Emphasis:

  • Focus on serving and satisfying customers, rooted in the organization’s vision and values.

Four Service Characteristics

• Intangibility:

  • Quality is evaluated post-experience; marketing must create tangible evidence (e.g., websites, branding).

• Inseparability:

  • Both provider and consumer are present in service delivery; requires training for all parties.

• Variability:

  • Service quality can vary based on provider; implying non-consistency in delivery.

• Perishability:

  • Services cannot be stored; must manage demand effectively.

Managing Quality and Differentiation**

• Key Aspects:

  • Measure service quality based on expectations.

  • Differentiate through innovation, branding, and service environments.

Managing Perceived Risk

• Strategies:

  • Engage customers through direct experiences and promotions to mitigate risk perception.

Managing Demand and Capacity

• Revenue Management Techniques:

  • Dynamic pricing strategies, overbooking, managing customer involvement, and optimizing employee training.

Overbooking on Airlines and Hotels

• Definition of "Bumping":

  • Involuntary seat forfeiture; passengers may volunteer for compensation.

• Regulatory Framework:

  • Governed in part by the Department of Transportation and state laws.

Denied Boarding Compensation

• US Overview:

  • Different compensation rules based on delay duration; specific conditions for eligibility.

Overbooking in Hotels: "Walking"**

• Definition:

  • Sending guests to nearby hotels, typically governed by state laws.

Regulatory Compliance for Overbooking

• Florida Administrative Code 61C-3:

  • Requirement for hotels to protect customers and address overbooking ethically.