Understanding Tourism and Hospitality Marketing

Summary

In this video, we explore the core principles of marketing in the tourism and hospitality industry. We delve into key characteristics such as intangibility, inseparability, variability, perishability, and substitutability, which make marketing in this sector unique. Unlike basic needs, tourism is a 'want' that requires careful attention to consumer behavior. Effective marketing helps guide customers through complex decisions, ensuring satisfaction and loyalty. The video emphasizes how critical it is to maintain high service standards, as poor experiences are difficult to recover from, making research and strategy essential for success.

Takeaways

• 😀 Marketing is essential for business survival, and without it, a company may fail or struggle to sustain profits.
• 😀 Marketing, according to Philip Kotler, is a social process where individuals and groups obtain what they need and want through creating and exchanging products and value.
• 😀 There is a distinction between needs (necessities) and wants (desires); tourism and hospitality mainly fall under 'wants,' which makes marketing in this industry more challenging.
• 😀 The tourism and hospitality industry has unique characteristics like intangibility, where experiences cannot be touched but are validated through personal experience.
• 😀 Inseparability is another key feature: tourists cannot separate themselves from the product, such as needing to be at a location to experience the service, like a restaurant or hotel.
• 😀 Variability in service delivery means experiences can differ depending on factors like who is providing the service or how it’s delivered.
• 😀 Tourism products are perishable, meaning once a service (like a hotel room or airline seat) is not sold today, it cannot be sold the next day.
• 😀 The industry is seasonal, with demand peaks during holidays, special events, and weather-driven periods like summer or Valentine's Day.
• 😀 The tourism and hospitality market is highly competitive and often homogeneous, meaning customers have low loyalty and may easily switch to competitors.
• 😀 Consumer behavior in tourism is influenced by extensive research and decision-making before purchase, making it a high-involvement, once-in-a-lifetime purchase, requiring marketers to build trust and confidence.

Q & A

Why is marketing considered the lifeblood of an organization?

Marketing is essential because it drives the creation and exchange of products or services that meet the needs and wants of consumers. Without effective marketing, a business may struggle to generate profit or sustain itself in the long run.

What is the difference between a 'need' and a 'want' in marketing?

A 'need' is a necessity that people must have to survive, making it easier to sell. A 'want' is something that is not essential for survival, but people desire it. Tourism and hospitality primarily cater to wants, which makes it more challenging to sell.

What are the key characteristics of the tourism and hospitality industry?

The tourism and hospitality industry is characterized by intangibility, inseparability, variability, perishability, seasonality, and substitutability. These features make it distinct from other industries and affect how services are marketed.

What is meant by the intangibility of tourism products?

Intangibility refers to the fact that many tourism products, such as experiences in hotels, restaurants, and travel, cannot be physically touched or owned. Customers seek an experience rather than a tangible product, which can only be validated through personal experience.

How does inseparability affect tourism and hospitality services?

Inseparability means that services in tourism and hospitality cannot be separated from the provider. For example, tourists must be present at a destination to enjoy the experience, such as traveling in an airplane or dining at a restaurant. The quality of the experience is directly tied to the location and service provider.

Why is variability an important consideration in tourism and hospitality?

Variability refers to the fact that the quality of experiences can change depending on various factors, like who is providing the service or when it’s offered. This means that customers may receive different levels of service on different occasions, which can influence their satisfaction.

What does perishability mean in the context of tourism products?

Perishability refers to the fact that tourism products, such as hotel rooms, airline seats, or restaurant bookings, cannot be stored or resold once the time has passed. If a hotel room is not booked tonight, it cannot be sold tomorrow, making inventory management crucial in the industry.

How does seasonality impact tourism and hospitality marketing?

Seasonality refers to the variation in demand for tourism products based on time of year or specific events. Certain destinations or services may be more popular during holiday seasons or summer months, affecting pricing and marketing strategies.

What is meant by the substitutability of tourism products?

Substitutability refers to the fact that many tourism and hospitality products are highly competitive, with consumers having many choices. For example, if a restaurant is full, customers may quickly choose an alternative. This leads to low customer loyalty and requires businesses to continually attract new customers.

Why is it more challenging to market tourism and hospitality products compared to tangible products?

Tourism and hospitality products are often intangible and involve direct interaction with customers. Unlike tangible products, which can be returned or replaced if faulty, bad experiences in tourism and hospitality are hard to redeem. A poor customer experience may result in lost future business and damage to the brand’s reputation.