05 Tourism Marketing and Promotion

Chapter 5
Tourism marketing and promotion

5.1 Tourism
ch©Ub
Tourism has been defined as a temporary movement of people (visitor) from one place to
anotherIn search of leisure, pleasure, and business activities .The traveler and tourism is a vast
group of business with one goal in common providing necessary and desired product and
service to travel.Marketing is a total system of business activities for customers and builds
strong customer relationships in order to capture value for the customer in return. It is the
business process in which products are matched with the market and through which transfers of
ownership are affected.Marketing in tourism is to be understood as the systematic and
coordinated execution of business policy by tourist understood whether private or state owned
at local, regional, of business policy by tourist undertakings achieve the operational satisfaction
of the needs of identifiable consumer groups and doing so to achieve an appropriate return.
Tourism is unique among industries and the application of marketing principles to the
industry need to address at least seven important sub-sectors or dimensions; travel,
transportation, accommodation, food-service, tour operators, attractions and merchandisers,
Figure 5.1.
Each of these requires the employment of marketing functions, in whole or in part, which are
different yet they must be coordinated and integrated one with the other. Travel services, for
example, are used by customers to reach a selected destination where they are fed, sheltered
then entertained by a variety of enterprises and related services. Thus the marketing activity
needs be multifaceted and directed toward a number of customer targets. The remarkable
aspect about cruise ship tours, such as those offered by Royal Caribbean is that all four
sectors are contained in the package, and many packages also includes the travel from
ones home to the embarkation point.
Figure 5.1 Tourism Industry Sectors

248 Fundamentals of Tourism and Hospitality Management
Figure 5.1 Tourism Industry Sectors

A fifth dimension in tourism is referred to as the destination environment. It usually
resides in a pleasant, natural setting and typically is characterized by natural beauty or as
in the three Ss, sun, sand and surf. However the format or setting is now past the maturity stage
of the product life cycle and competes with hundreds of sites world-wide in the beta
economy sector where price and utility are the principle determinants. It resides in the era of
mass marketing which no longer ensures success. The principle advocacy of marketing is to
create value. The tourism market is not a single mass group of holiday revelers looking for a
fun haven but rather is comprised of hundreds of different individuals each with their own
particular objective and need-satisfaction goal.
Each of these has their own perception of their needs and wants and each acknowledge
some value in the product/service being offered. The strategy that each dimension in the tourism
industry must apply is that of creating value in the perception of customers about their particular
offering.
Review Question
1. What is Tourism?
5.2 Tourism Marketing

ch©Ub wecYb
Tourism marketing is a term which is used to
refer to that business discipline by which the
visitors are attracted to a particular location
which can be a state, a city, a particular heritage
site or tourist destination spot, a hotel or a
convention center anything.
The location can be anything which has the
potential for attracting a tourist who comes to
visit a new place.
Chapter -5: Tourism Marketing and Promotion 249
Opinion of different authors in this regards are given below:

1. According to Kotler, ” Marketing is a social and managerial process by which consumers
obtain what they need and want through creating and exchanging product services and
values with other.” He has emphasized more on wants, needs, satisfaction, demand, and
marketers.
2. According to the British Chartered Institute of Marketing, ” It is the management
process responsible for the identification, anticipating, assessing and satisfying the
customer’s client’s requirements profitable.”
3. Krippendorf defines, tourism marketing – “as the systematic and coordinated execution of
business policies by both private or public sector tourism organizations operated at the
local, regional, national, or international level to achieve the optimal satisfaction of the
needs of identifiable tourist groups, and in doing so to achieve an appropriate return.”
4. According to Paynter (1993), “tour marketing is a systematic process consisting of
marketing objective, strategies, schedules, marketing media, focused on the specific market
segment and based on a substantial return on investment.”
5. World Tourism Organisation (UNWTO) at Ottawa Seminar, has defined tourism
marketing as,” a management philosophy which, in the light of tourist demand, makes it
possible through research, forecasting and selection of tourism products/services from
suppliers, on the line with organization’s purpose and tourist satisfaction.”
The modern marketing concept is not limited only to the identification and satisfaction of
customers. It is a comprehensive process which encompasses research and analysis of society’s
as well as consumer’s needs, asserts the company’s resources and marketplace and delivers the
products/services to those whose experience provides a set of satisfactions which are preferable
to those of the competitors.
The following aspects can be identified from the above definitions:
 Tourism marketing is a thought-provoking process.
 Identification and selection of the target market.
 Positioning and product lifecycle is important.
 Future tourism marketing strategies.
 Innovative/proactive marketing.
Review Question
1. What is tourism marketing?
2. What are the aspects of tourism marketing?
5.3 Features of Tourism Marketing

ch©Ub wecY‡bi ‰ewkó¨
Tour package as a specialized product creates a number of significant considerations which
need to be fully analyzed. The management of tour package cannot be divorced from the
management of service and quality. Thus, the marketing of the tour package is different from
other products because the tour package is a service product where instead of selling physical
goods an intangible experience is sold.
An understanding of the complexity of the tourism product concept is an essential pre-requisite
for effective tour package marketing in this context. The specific features of tourism marketing
are:
 The demand for tour package is highly elastic and seasonal in nature.
 Tour package is a combination of various service ingredient.
 Designing, developing and marketing of tour package a number of intermediaries are
involved. Bed experience at one level can spoil the entire image of the package as well as
the tour operator.
 A tourist does not only by the tour package in advance because it is consumed and felt at
the same time at a particular destination.
It is not possible to evaluate/demonstrate/sample the tour package in advance because it is
consumed and felt at the same time at a particular destination.
Review Question
1. What are the features of tourism marketing?
5.4 Different concept of Tourism Marketing

ch©Ub wecY‡bi wewfbœ aviYv
 Business Level (eëmvq †k«bx): Different type of business organization are like the hotel,
trekking, travel agencies are the agencies which are instead in services delivery or selling
process. It involved in different type of tourism business that may be national or
international for marketing. It helps to increase the level of business level of tourism.
 National tourism organization (NTO) [RvZxh় ch©Ub ms¯’v (GbwUI)]: National tourism
organization is an organization which is done by the government which is done by the
government. This type of organization can neither formulate rules and implement them. It
arranges marketing campaigns and develops all the tourism product but it cannot
involvement in tourism product of marketing.
 Government (miKvi): Its marketing object is given below.
 To create the positive image of country, region.

 To motivate the business organization to involve in social in social justice.
 To generate and increase visitors.
 To generate revenue and fair distribution of the income.
 To protect nature, a social, and cultural heritage for the future generation.
 To create a positive image of tourism among the people.
 To increase investment in the tourism industry and in tourism plant.
Review Question
1. Explain different concepts of tourism marketing?
5.5 Tourism Marketing Mix

ch©Ub wecYb wgkªY
The marketing mix is the process of managing the quality of the market. To manage the market
of an organization should be used in different types of materials tools and product which is
called marketing mix. The word marketing mix was used by the Neli H Borden in 1964 A.D.
The concept of marketing mix was found by James Colleton. To control the marketing mix the
combining of strategies of 4p. "Mix" is the elements which help to get the target or the goal of
company or organization. Tourism marketing mix is the joint effort so one single organization
have no control over the other organization. For example
In this ways, mix marketing has many kinds of definition in the world and some of them are
given below:
1. According to Philip Kotler— Marketing mix is the setting of the firms of marketing
decision variables at a particular point in time.
2. According to William J. Stanton -Marketing mix is the term is the term that is used to
describe the combination of the four input that constitutes the core of company marketing
system: the product, the distribution system, the price structure and the product distribution
to consumers.
3. According to Petter D. Bennett- Marketing mix is the marketing program including
product conception and development, pricing decision, promotion of the product and
distribution to the consumer.
4. According to Jerome E. McCarthy- Marketing mix is the controllable variable which the
company puts together to satisfy its target market.
5. According to Thomas A. Staudt and Donald A. Taylor- Marketing mix refers to the
actual work that must be done to reach the target market and achieve corporate objectives.
In conclusion, marketing means the process of things or company in the same way of time.
Tourism marketing helps to fulfill the demands of the more by or the customer and that kind of
activities helps to score the goals of an organization.
Review Question
1. What is tourism marketing mix?
5.6 Factor that Influences the Marketing Mix

wecY‡bi wgk«Y‡K c«fvweZ K‡i Ggb Dcv`vb
The marketing program combines a number of elements into a workable whole — a
viable, strategic plan. The tourism marketing manager must constantly search for the
right marketing mix — the right combination of elements that will produce a profit.
The marketing mix is composed of every factor that influences the marketing effort.
1. Timing (mgh়). Holidays, high season, low season, upward trend in the business
cycle, and so on, must be considered.
2. Brands (gvK©v). The consumer needs help in remembering your product. Names,
trademarks, labels, logos, and other identification marks all assist the consumer in
identifying and recalling information about your product.
3. Packaging (†gvoKxKiY). Although tourism services do not require a physical
package, packaging is still an important factor. For example, transportation, lodging,
amenities, and recreation activities can be packaged and sold together or separately.
Family plans or single plans are other forms of packaging.
4. Pricing (g~j¨ wba©viY). Pricing affects not only sales volume but also the image of the
product. A multitude of pricing options exist, ranging from discount prices to
premium prices.
5. Channels of distribution (e›U‡bi gva¨g) . The product must be accessible to the
consumer. Direct selling, retail travel agents, wholesale tour operators, or a
combination of these methods all comprise distribution channels that must be
developed.
6. Product (cY¨). The physical attributes of the product help to determine its position
against the competition and provide guidelines on how to best compete.
7. Image (fveg~wZ©). The consumer’s perception of the product depends to a great extent
on the important factors of reputation and quality.
8. Advertising (weÁvcb). Paid promotion is critical, and the questions of when, where,
and how to promote must be carefully considered.
9. Selling (weµh়). Internal and external selling are essential components for success,
and various sales techniques must be incorporated in the marketing plan.
10. Public relations (Rbms‡hvM). Even the most carefully drawn marketing plan will fail
without good relations with the visitors, the community, suppliers, and employees.
11. Service quality (cwi‡levi gvb). Outstanding service is necessary to have satisfied
customers and repeat business.
12. Research (M‡elYv). Developing the right tourism marketing mix depends in large
part on research.
Review Question
1. What are the factors that effects tourism marketing mix?
5.7 Product Branding

cY¨ eª¨vwÛs
A fundamental concept in traditional marketing is that of the product brand: “ a distinguishing
name and/or a symbol (such as a logo, trademark, or package design) intended to identify the
goods or services of one seller, or groups of sellers, and to differentiate those goods or services
from competitors who would attempt to provide products that appear to be identical. ”
Recently, tourism marketers have been attempting to “ brand ” their destinations. While the
approach has considerable potential, the transference of its application from traditional products
and services to the tourism setting is not without its difficulties.
One particularly useful transference of branding from products to tourism destinations
postulates that “ place branding ” performs four main functions.
Tourism icons, such as the Golden Gate Bridge in San “Virginia Is for Lovers” is a destination branding
Francisco, can be used to promote travel to a given location.
Not all icons are bridges or statues, however. For example, tagline that has proven to be very successful,
the Southern Belle of Mississippi is an enduring symbol of demonstrating the value of sticking with a successful
southern hospitality. Golden Gate Bridge photo by Robert
Holmes; courtesy of the California Division of Tourism. theme over the long term. Photo courtesy of
Southern Belle photo courtesy of the Mississippi Department
of Community Development/Division of Tourism Washington, D.C., and the Capital Region, USA.
Development.
 First, destination brands serve as “communicators, “where brands represent a mark of

ownership and a means of destination differentiation that is manifested in legally protected
names, logos, and trademarks.
 Second, they provide an image for the destinations, which is characterized by a set of
associations or attributes to which consumers attach personal value.
 Third, brands serve as “value enhancers” that create brand equity for the destination in the
form of improved streams of future income.
 Finally, a destination brand can be viewed as possessing a personality that enables it to
form a relationship with the visitor.
Review Question
1. What is product brand ?
2. What are the four main functions of product brand tourism marketing?
5.8 Production Concept of Tourism Marketing Mix

UÿwiRg gv‡K©wUs wg‡·i aviYvi Dcv`b
Production concept of tourism marketing mix is the supportive component of the marketing
mix. As the first letter of all the seven star with p so that it is called as 7p also. The product
concept of tourism marketing mix is as follows:-
1. Product (cY¨): The product is the process of providing good and service to the organization
to get the goals of the organization of the market. The product is a group of utilities which
helps to get to a need of the customer to satisfies them in their life.
2. Price (g~j¨): Price is the amount of money which customer have to pay to get the product. It
is directly affected the demand of good and services. Price is one of the important factors of
the product of sales revenue. The price of the product or the tourism product is the total of
monetary and non-monetary elements.as many tourism products are available at free of cost
such as natural beauty , social hospitality . Tourism product always includes the value of
time and the value of money.
3. Place (¯’vb): Different distribution strategies can be selected for tourism marketing. It
includes various activities undertaken to make the product accessible and available 1c target
customers Infrastructure facilities, transportation, communication are important for the
development of tourism center. ln the tourism, as the product is immovable channel refers
to the transport of customers from the point of sale(POS) to the point of service
delivery(POSD).lt includes transport system channel members.
4. Promotion (c‡`vbœwZ): It is related to informing, educating, persuading, reminding the
customers about the benefit of an organization offers. Promotion helps in maximizing the
duration of stay, frequency of visit by offering new tourists products in the same country to
areas. Advertisement, sale promotion, public relation and personal selling are the elements
of Traditional Promotional Mix.
5. People (RbMY): People plays an important role in tourism.Customer service is focus issue in
tourism. The travel agents, guides staff of travel companies, sales staff etc. are the people.
Their skill, efficiency, knowledge, motivation and customer care are very important. People
mix includes staffs, customers, and other which create tourism environment.
6. Physical evidence (kvixwiK ¯^ÿgZv): Tourism product is the combination of the tangible
product like comfortable seat while traveling, layout and design of the resort, natural service
scope, etc. The service concept needs physical evidence. Consideration is given to decor,
environment, and ambiance of the product or where the product is consumed.
7. Process (c×wZ): The operation process of the tourism firm will depend on the size of the
tourism. The attributes of a process include speed, efficiency, service time, "waiting time",
appointment system and forms and documents.
Review Question
1. Explain the production concept of tourism marketing mix.
5.9 Product Planning and Development

cY¨ cwiKíbv Ges Dbœh়b
The objective of most firms is to develop a profitable and continuing business. To achieve this
objective, companies must provide products and services that satisfy consumer needs, thereby
assuring themselves of repeat business. Product planning is an essential component in
developing a profitable, continuing business and has frequently been referred to as the “five
rights” — planning to have the right product, at the right place, at the right time, at the right
price, in the right quantities.
A product is much more than a combination of raw materials. It is actually a bundle of
satisfactions and benefits for the consumer. Product planning must therefore be approached
from the consumer’s point of view. Creating the right service or product is not easy: Consumer
needs, wants, and desires are constantly changing, and competitive forces typically carry
products through a life cycle, so that a product that is successful at one point declines and “dies”
at a later time.
Figure 5.2 shows the phases that a new product goes through from inception to decline:
1. introduction,
2. growth,
3. maturity,
4. saturation, and
5. decline.
Because of the rapidly changing consumer lifestyles and technological changes, the life cycle
for products and services has become shorter, but the product life cycle remains a useful
concept for strategic planning. Each stage of the product life cycle has certain marketing
requirements.
Figure 19.1 Product life cycle.
1. Introduction (cªeZ©b): The introductory phase of the product’s life cycle requires high
promotional expenditures and visibility (the most productive time to advertise a product or
service is when it is new). Operations in this period are characterized by high cost,
relatively low sales volume, and an advertising program aimed at stimulating primary
demand; in this stage of the life cycle, there will be a high percentage of failures.
2. Growth (cªe…w×): In the growth period, the product or service is being accepted by
consumers. Market acceptance means that both sales and profits rise at a rapid rate,
frequently making the market attractive to competitors. Promotional expenditures remain
high, but the promotional emphasis is on selective buying motives by trade name rather than
on primary motives to try the product. During the growth stage, the number of outlets
handling the product or service usually increases. More competitors enter the marketplace,
but economies of scale are realized and prices may decline some.
3. Maturity (cwiYwZ): The mature product is well established in the marketplace. Sales may
still be increasing, but at a much slower rate; they are leveling off. At this stage of the
product’s life cycle, many outlets are selling the product or service; they are very
competitive, especially with respect to price, and firms are trying to determine ways to hold
on to their share of the market. The ski resort is an excellent example of a mature product.
After years of spectacular growth, sales are now leveling off, and the resorts are looking for
ways to hold market share and diversify.
4. Saturation (cwic…w³): In the saturation stage, sales volume reaches its peak: The product or
service has penetrated the marketplace to the greatest degree possible. Mass production and
new technology have lowered the price to make it available to almost everyone.
5. Decline (cZb): Many products stay at the saturation stage for years. However, for most
products, obsolescence sets in, and new products are introduced to replace old ones. In the
decline stage, demand obviously drops, advertising expenditures are lower, and there is
usually a smaller number of competitors. While it is possible for a product to do very well
in this stage of the product life cycle, there is not a great deal of comfort in getting a larger
share of a declining market. Hot springs resorts are a good example of a tourist product in
the decline stage. These facilities, at their peak in the 1920s, are no longer the consumer’s
idea of an “in” place to go.
Review Question
1. Explain the Product Planning and Development.
2. Explain the phases that a new product goes through from inception to decline.
5.10 Pricing in Tourism Marketing

ch©Ub wecY‡b g~j¨ wba©viY Kiv
One of the most important marketing decisions is the pricing decision. Price determines how
consumers perceive the product and strongly affects other elements of the marketing mix.
 First, they may decide to sell their product at the market price, which is the same price that
everyone else charges. They then compete on non-price terms. Selling at a price equal to
competitors tends to prevent price cutting and protect margins, and customers are not driven
away by price. However, because there is no price individuality, there can be no price
demand stimulation.
 Second, firms may decide to price below the current market price. Firms that adopt
such a discount policy are trying to create the reputation of having the lowest prices and
underselling all competitors. To be successful, such firms must make sure that demand
is elastic; otherwise, they will gain only at the expense of their competitors and start a
price war. This pricing strategy is more successful when it is based on the elimination
of services. Firms have a choice of three strategies in pricing their products.
Southwest Airlines is well known for its low airfares, but they also have a
reputation for going out of their way to deliver fun service to keep customers happy.
 The third approach is to charge above - market prices. Premium pricing strategy must be
coupled with the best service in the industry and other features and amenities to make this
higher price attractive. Such an approach emphasizes quality, which many consumers think
is a function of price; provides higher margins; generates more revenue for promotion; and
makes better service possible. However, premium pricing reduces volume, raises overhead
costs, and encourages substitution.
Review Question
1. What are the three strategies in pricing their products?
5.11 Factors that Influence Price Policies in Tourism Marketing

Dcv`vb hv ch©Ub wecY‡b g~j¨ bxwZ¸wj‡K c«fvweZ K‡i
Some firms choose to employ two or three pricing strategies and develop a product to appeal to
consumers in each market segment. The tourism marketing manager must consider the
following factors that influence price policies.
1. Product quality (c‡Yï gvb). The quality of the product really determines the price – value
relationship. It is common sense that a product that offers greater utility and fills more
consumer needs than a competitive product can command a higher price.
2. Product distinctiveness (c‡Yï ¯^Zš¿Zv). A staple or standard product with no distinctive
features offers little or no opportunity for price control. However, a novel and different
product may be able to command higher prices. The Hyatt Corporation, for example,
features lobby atriums; this attractive novelty combined with excellent service and facilities
makes it possible for the Hyatt Hotels to command higher prices.
3. Extent of the competition (c«wZ‡hvwMZvi e¨vwß). A product that is comparable to competitors’

products must be priced with the competitors’ prices in mind. The product’s price to some
extent determines its position in the market.
4. Method of distribution (e›Ub c×wZ). The price of the product must include adequate
margins for tour operators, travel agents, or the company’s own sales force.
5. Character of the market (evRv‡ii PwiÎ). It is necessary to consider the type and number of
possible consumers. If there is a small number of consumers, then the price must be high
enough to compensate for a limited market. However, one must also consider the ability of
consumers to buy and their buying habits.
6. Cost of the product and service (cY¨ I ‡mev LiP). It should be obvious that price must
exceed cost over the long run or else the business will not survive. Both cost and market
conditions should serve as guides to pricing.
7. Cost of distribution (e›Ub LiP). Distribution costs must also be included in the pricing
equation. Unfortunately, in many cases they are much more difficult to estimate than other
costs.
8. Margin of profit desired (jv‡fi gvwR©b KvwO&¶Z). The profit margin built into the price of the
product must be more than returns realized on more conventional investments in order to
compensate for the risk involved in the enterprise.
9. Seasonality (FZy wbf©i). Most tourism products are affected by seasonality because of school
- year patterns and vacation habits; consequently, the seasonal aspects must be considered
in developing prices.
10. Special promotional prices (we‡kl c«Pvi g~j¨). Many times it is good strategy to offer
introductory prices and special one - time price offers to acquaint consumers with your
product. However, these must be carefully planned so that they fill the proper intent and do
not become a regular discount price.
11. Psychological considerations (gvbwmK we‡ePbv). Throughout our economy we see
psychological pricing employed, usually using prices that are set in odd amounts, such as 19
¢, 99 ¢ , $ 19.95, or $ 29.99. Consumers respond well to odd pricing, and there seems to be
something particularly magical about prices that end in nine.
Review Question
1. What are the factors that influence price policies that a tourism marketing manager must
consider?
5.12 Price Skimming

`vg w¯‹wgs
When a new product or service is introduced, two pricing philosophies prevail: price skimming
and penetration pricing. A price - skimming strategy sets the price as high as possible. No
attempt is made to appeal to the entire market. The price is set to appeal only to the top of the
market; consequently, this approach is frequently called skimming the cream. The strategy is to
sell the product to as many consumers as possible at this price level; then, as either buyer
resistance or direct competition develops, the seller will lower prices step by step. This
approach typically results in higher profits and more rapid repayment of development and
promotion costs. It also tends to invite competition. Skimming is appropriate when the product
or service has the following characteristics:
 price inelasticity,
 no close substitutes,
 high promotion elasticity, and
 distinct market segments based on price.
Review Question
1. What is price skimming?
5.13 Penetration Pricing

Abyc«‡ek g~j¨
The opposite approach to price skimming is market penetration, in which the seller attempts to
establish the price of the product as low as possible to penetrate the market as completely as
possible. A low price makes the product available to as many income levels as possible, and the
sellers are likely to establish a large market share quickly. When penetration pricing is used, this
introductory price tends to become the permanent price of the product. It results in a slower
recovery of fixed costs and requires a greater volume to break even. The factors that would
recommend a penetration - pricing approach would be:
 high price elasticity,
 large savings from high - volume production (economies of scale), and
 an easy fi t of the product into consumer purchasing patterns.
Review Question
1. What is penetration pricing?
5.14 Place (Channels of Distribution)

¯’vb (weZi‡Yi P¨v‡bj)
Another difficult decision for the marketing manager concerns what distribution channel or
channels will be used. The distribution decisions affect the other elements of the marketing mix,
and in the best marketing mix all aspects will be compatible with one another. Channels of
distribution are selected by:
 analyzing the product,
 determining the nature and extent of the market,

 analyzing the channels by sales, costs, and profits,
 determining the cooperation, you can expect from the channel,
 determining the assistance, you will have to give to the channel, and
 determining the number of outlets to be used.
For example, if you want intensive distribution, exposing your product to maximum sale, you
will use many travel agents. In contrast, with an exclusive distribution policy, you would sell
your product through one or a few agents who would have the sole right to sell your product or
service in a given area.
Review Question
1. What is channels of distribution? How is it selected?
5.15 Promotion
cªPvi
The aim of promotion activities is to create demand for a product or service. Promotion is a
broad term that includes advertising, personal selling, public relations, publicity, and sales
promotion activities such as familiarization tours, giveaways, trade shows, point of purchase,
and store displays. To sell the product, it is necessary to:
 attract attention,
 create interest,
 create a desire, and
 get action.
Either personal selling or advertising can carry out all of these steps in the selling process;
however, the two used together tend to be much more powerful. Advertising is ideally suited to
attract attention and create interest in the products and services. Personal selling is best suited to
creating desire and conviction on the part of the customer and to closing the sale. Advertising
and personal selling are even more effective when supplemented by publicity and sales
promotion activities. Familiarization tours (or “famtours,” as they are commonly called) are a
form of promotion of particular importance in the travel industry. Travel agents and other
persons who infl ence travel decisions are invited on a “ famtour” in order to become more
knowledgeable about the destination.
Review Question
1. What is publicity and sales promotion activities?
5.16 Advertising
weÁvcb
Advertising has been defined as any non-personal presentation of goods, ideas, or services by an
identified sponsor. In travel marketing, these paid public messages are designed to describe or
present a destination area in such a way as to attract consumers. This can be done through the
use of the major advertising media such as newspapers, magazines, direct mail, television,
outdoor, or radio. Effective advertising gains the attention of the prospective visitor, holds the
attention so the message can be communicated, and makes a lasting positive impression on the
prospect’s mind.
Review Question
1. What is advertising?
5.17 Major Media Advertising

weÁvc‡i c«avb wgva¨g
Advertising Each advertising medium has advantages and disadvantages. A key decision in
developing promotional strategy is to select the right medium to maximize advertising
expenditure. The advantages and disadvantages of the major media are as follows.
1. Newspapers: Newspapers give comprehensive coverage of a local market area, are lower in
cost than other media, are published frequently, are flexible (short lead time) and timely,
have a wide audience, and get a quick response. Most newspapers have travel sections. The
major disadvantages are low printing quality and short life.
2. Direct Mail: Although mail costs have increased rapidly, direct mail is one of the most
important advertising methods for tourism enterprises. It is the most personal and selective
of all the media; consequently, it is the most effective medium in minimizing waste
circulation. Direct mail gets the message directly to the consumers that one wishes to
contact. Direct - mail advertising is self - testing when it asks for a response.
The critical problem with direct mail is obtaining and maintaining the right mailing lists.
Many types of lists are commercially available through firms specializing in this activity.
(One source of such information is Standard Rate and Data Service.)
For the tourism industry, previous visitors comprise the most important mailing - list
sources. However, names and addresses must be correct, and the lists must be kept in ready
- to - use form on a computer. Other good sources of prospects are the inquiry lists.
3. Internet: Although a relatively recent arrival on the advertising scene, Web sites have very
rapidly established themselves as one of the most pervasive and most powerful means of
directly communicating with individuals in the marketplace. They are particularly valuable
to small and medium - size tourism operators, who in the past had difficulty conveying
information regarding their products and services to their many potential customers. Care
must be taken, however, to ensure a well - designed Web site. Because of the ease of access
to Web sites, many firms assume that a simple listing of products and services is adequate.
This is far from true. The growing sophistication of Web site marketers means that both
innovation and functionality must be carefully built into a Web site for it to be successful.
4. Television: Television presents both an audio and a visual message and comes as close to
approximating personal selling as a mass medium can. Television requires minimal exertion
on the part of listeners and is very versatile. However, television is not a flexible medium;
commercials have a short life; and advertising on television is expensive relative to the
costs of using other media. Nevertheless, despite television’s expense, many destinations
are using television and finding it very cost effective.
5. Magazines: The major advantage of magazines is their print and graphic quality. Other
advantages are secondary readership, long life, prestige, and favorable cost per thousand
circulations. Many special - interest magazines reach specialized market segments
effectively, making it possible to target markets. Regional editions allow further selectivity,
with a minimum of waste circulation. Some of the unfavorable characteristics of magazines
are that they require long lead times and that changes cannot be made readily. Magazines
also reach the market less frequently than do newspapers, radio, and television.
6. Radio: Radio has the advantage of outstanding flexibility and relatively low cost. While the
warmth of the human voice adds a personal touch to the selling message, radio has the
disadvantage that it presents only an audio message. Tourists driving in their automobiles
are typically radio listeners, and many attractions find radio an excellent medium.
7. Outdoor Advertising: Outdoor advertising has been used with great success by many
tourism organizations. It is a flexible, low - cost medium that reaches virtually the whole
population. Outdoor advertising has the disadvantage that the message must be short;
however, it does reach travelers. An additional problem is highway signing laws, which are
making it more difficult to advertise tourism attractions.
8. Using an Advertising Agency: While promotion managers must know the fundamentals of
marketing, advertising, personal selling, and public relations, the specialized skill and
experience of an advertising agency can greatly increase business — and can do it
profitably. An advertising agency will do the following:
1. Work with ideas in copy and layout. Copy is the term used to describe written
messages; layout refers to the arrangement of copy, art, and pictures.
2. Advise on the choice of media to convey advertising messages, devising an organized
and carefully worked - out plan using newspapers, magazines, radio, TV, guidebooks,
posters, direct mail, postcards, folders, or other advertising media.
3. Conduct market analysis and research so that advertising efforts can be directed to the
best prospects.
4. Assist in planning and carrying out a public relations program. The advertising program
must be planned objectively by setting forth specific, achievable goals.
The advertising agency can help to establish such goals. When seeking the services of an
advertising agency, look at the agency’s experience in promoting tourism, and check its past
advertising campaigns and clients to determine the campaign’s effectiveness.
Review Question
1. What are the advantages and disadvantages of the major media of advertising?
5.18 The Advertising Budget

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No magic formula exists for setting the advertising budget. How much to spend is always a
perplexing question. Commonly used methods include a percentage of last year’s sales, a
percentage of potential sales, or the industry percentage. These methods are all fl awed because
advertising should create sales and cause things to happen, not react to what has happened in the
past or in other companies. Consequently, the best method of setting advertising budgets is to
determine the objectives to be performed and allocate the proper amount to reach these
objectives.
Promoting a new tourist destination area will require more money than will promoting one with
an established clientele. The specific amount to budget for advertising and sales promotion will
depend on each situation. However, as a general rule, most resorts spend about 3 percent of
sales on media advertising and about 3 percent on other sales promotion activities.
No matter what expenditures are, efforts should be made to coordinate the promotion program
so it is consistent with the product offered and consumer expectations will be met. Word of
mouth is the least expensive, most convincing form of personal advertising. A friendly and
capable host encourages this type of communication.
Visitors who are treated as very important persons will not only come back, they will
recommend the area to their friends. All facilities, services, hospitality, and pricing policies
must be directed to this one goal - a happy, satisfied visitor.
Review Question
1. What is Advertising Budget?
5.19 Research
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Successful tourism marketing depends in large part on research. Tourism promotion efforts
undirected by research are largely wasted effort. Unless the following characteristics are known,
advertising expenditures cannot be productive.
1. Who are the present visitors, and where do they live?
2. What do you know about their likes and dislikes?
3. Who are your potential customers, and where do they live?
4. What are their travel and vacation preferences and interests?
5. What are your visitors’ travel destination preferences?
6. What are your visitors’ preferences for shopping and entertainment?
7. What is your competitive situation?
8. What are the trends in competition?
9. What are the likely future trends in your share of the market?
10. What are the prospects for increasing demand for your area?
11. What kind(s) of marketing program(s) do you need?
12. How will these programs be implemented?
Carefully review questions of this kind; adequate answers to them are obtained only through
research. Market research can be classified into three main categories: geographic market
orientation (where present and potential visitors reside), demographic market orientation (age,
sex, levels of education, income, population distribution, family status, and similar data), and
psychographic market orientation (motivations, interest, hobbies, responsiveness to advertising,
and propensity to travel). Guidance of the subsequent marketing program will rest largely on the
results of such research, and the success of the marketing upon the adequacy of the research.
See Chapter 18 for methods of conducting tourism research.
Review Question
1. What are the questions that arises in research of tourism marketing?
5.20 Personal Selling

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Personal selling is the most - used and oldest method of creating demand. Because it is
adaptable to the prospect, it is the most compelling and effective type of selling. In contrast to
advertising, which is the impersonal component in the promotional mix, personal selling
consists of individual, personal communication. The U.S. economy depends on salespeople;
there are over 13 million people working in sales compared to about 500,000 working in
advertising. In many companies, personal selling is the largest operating expense item, ranging
from about 8 to 15 percent of sales. Expenditures for salespeople’s compensation, expenses,
training, and supervision and the cost of operating sales offi ces make management of the sales
force an important task.
Personal selling is so widely used because it offers maximum flexibility. Sales representatives
tailor their presentation to each individual customer. They can tell which approaches are
working and which are not and adjust accordingly. Prospects can be identified so target market
customers are approached and efforts are not wasted.
Counterbalancing these advantages is the fact that personal selling is the most expensive means
of making contact with prospects, and productivity gains are unlikely. Another limitation is that
it is not always possible to hire the caliber of person needed for the sales job.
Because of the importance of personal selling, all staff should be sales - minded. They must be
trained to offer sales suggestions to prospects when opportunities present themselves. This
includes expert selling on the telephone; the telephone receptionist, for example, can create a
favorable image for a resort. Inquiries can often be the opening for a polite and skillful sales
effort. Obviously, an unfriendly manner can discourage customers and sales.
Review Question
1. What is personal selling?
5.21 Public Relations

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Public relations may be defined as an attitude — a “social conscience” that places first priority
on the public interest when making any decisions. Public relations permeate an entire
organization, covering relations with many publics: visitors, the community, employees, and
suppliers.
Acceptance of any tourist destination by the public is of utmost importance. No business is
more concerned with human relations than is tourism, and all public interests must be served.
Serving one group at the expense of another is not sound public relations. Furthermore, each
individual business manager and the group he or she represents must be respected and have the
confidence of the community. There is no difference between a personal reputation and a
business reputation.
Favorable public relations within the firm emphasize respect for people. Employees must have
reasonable security in their jobs and be treated with consideration.
Externally, tourism employees have a powerful influence on the public as they represent the
owners in the public’s eye. Employees should be trained to be courteous, respectful, and helpful
to guests. Little things make a big difference, and the attitude of employees can make or break a
public relations effort.
Considerations for the public relations effort include being aware of public attitudes toward
present policies; ask some of the visitors for feedback. Communication is the lifeblood of good
relations. In publicizing the firm, first do good things and then tell the public about them. Above
all, give the public factual information about your area. False information is detrimental; you
must describe conditions as they exist.
Review Question
1. What is public relation?
5.22 Service Quality

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Service quality is the customers’ perception of the service component of a product. Service
quality is an important element of the marketing mix and in building and delivering a
competitive advantage in tourism.
Outstanding service quality leads to customer satisfaction, which leads to repeat business.
Customer satisfaction and loyalty are the keys to repeat business and long - term profitability.
Keeping customers satisfied is everybody’s job in an organization.
Employees should strive to exceed customer expectations. Since in tourism, there are many
service transactions over the course of a trip, or a vacation, it is increasingly useful to introduce
the concept of the quality of the experience (QOE) — where tourism experience consists of a
complex chain of service transactions and visitor participation in a broad range of activities and
events. Using this framework, the goal of the tourism managers is to provide the visitor with a
holistic combination of services, activities, and events from which he/she derives a high level of
satisfaction.
Unfortunately, because the experience chain involves such a diverse mix of services, activities,
and events, a great number of the links in the chain are outside of the control — or even the
influence — of any single manager. As such, it is important to develop management structures
and processes that can assist in coordinating and enhancing the quality of the various services,
activities, and events of the experience chain. It is here where the destination management
organization (DMO) plays a critical role.
Review Question
1. What is service quality?
5.23 Internet Marketing Strategy

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The Internet has become pervasive in tourism marketing today. It is being used by the tourism
industry to perform multiple tasks and impact a number of areas of the marketing mix. Direct e -
mail marketing, advertising, customer service, relationship marketing, providing information,

distribution and sales, and research are all tasks being performed via the Internet. The Internet
provides the same capabilities found in direct mail and telemarketing; it provides a new
advertising medium; it can provide interaction with the customer; and it has the ability to
deliver a message 24 hours a day, 7 days a week, 365 days a year. A large segment of
consumers are looking to the Internet for information, research, trip planning, and even booking
trips; therefore, the Internet will continue to grow as an important marketing tool.
A relatively new area where the Internet is attracting attention is consumer - generated media —
also called social media, citizen media, and alternative media. These are discussed below:
 Social Media (Consumer - Generated Media): Social media is online content created by
Internet users themselves, anyone other than professional writers or journalists, and made
available to other internet users via interactive technology. Social media includes discussion
boards; blogs;; experience and photo sharing; and any other opportunity for the consumers
to share their knowledge. Tourism firms are starting to embrace the powerful technologies
of social media, especially blogs, online video, and podcasting.
 Blog: A blog is a weblog, a Web site that is like a formal journal, diary, or newsletter. It
is frequently updated and for public consumption. Most people can create a blog and
then write on that blog. A blogger is a person who keeps a blog and writes about his/her
opinions and thoughts. Blogging is the act of updating or reading the blogs and the
blogosphere is where it all happens. From a marketing standpoint, blogging is a
technology that lets a company have a one - on - one dialogue with customers and
adversaries. Tourism firms can benefit from blogs by listening to what consumers are
saying and gaining unfiltered insights into the customer experience. Blogs are used by
travelers to post their experiences about places they visit, stay, entertain, and eat.
 Wiki: A wiki is a type of Web site, like Wikipedia, that lets anyone create and edit its
pages. The word is Internet slang. The word wiki is short for Wikiwikiweb. Wikiwiki is
Hawaiian, meaning “ fast ” or “ speed. ” In a wiki, people can write pages together.
People can change or add something new to the pages. People can discuss as well and
tell their views.
 Podcasting: According to Wikipedia, the free encyclopedia Web site, a podcast is a
media file that is distributed over the Internet using syndication feeds for playback on
portable media players and personal computers. Podcasting is a combination of the
words ipod and broadcasting, and it is a new way to share and information through MP3
audio files.
 Podcasts can be found for almost anything, including TV shows, movies, radio shows,
blogs, books, and games to mention a few. A visit to podcast.com provides an
indication of the variety available. Small businesses have discovered podcasting, with
everyone from fi tness experts to travel agents using podcasts to stimulate their
business.
An Internet marketing strategy is comprised of many tactics to grow the direct online
distribution channel. Social media is a new tool to be added to this strategy. Consumer -
generated media provides a unique value proposition to customers.
Review Question
1. Explain the strategy of internet marketing?
5.24 Marketing Segmentation

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All tourists are not the same. Just as they may belong to different regions, they may be of
different age groups and earn different incomes and have different tastes and preferences to live
their lives in a certain manner; the tourists also have different choices when it comes to
selecting the mode of travel, destination, and the activities at the destination.
Tourism market segmentation is the strategic tool for getting a clear picture of diversity among
the tourists. The tourism researchers and the tourism industry use market segmentation
information to study the opportunities for competitive advantage in the marketplace.
Market segmentation is nothing but dividing the total consumer market into groups to be able to
communicate with them and provide their specific needs.
Smith (1956) introduced the concept of market segmentation as a strategic tool. He stated that
“Market segmentation (…) can be viewed as a heterogeneous market (one characterized by
divergent demand) as a number of smaller homogeneous markets”.
Review Question
1. What is tourism market segmentation?
5.25 Why Segment the Tourism Market?

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Every tourist being different, the tourism industry possibly is not capable of satisfying every
individual’s need. This is the foundation of segmenting the total market.
While all tourists are different, some of them are similar to each other. Marketing force of a
tourism business group the tourists into various segments that categorize the similar as well as
distinct members. Market segmentation can be applicable to any of the tourism supply
components and provides benefits as given below −
 It helps to understand specific demands of the consumers.
 It helps to allocate marketing expenses efficiently.
 It helps to create effective marketing strategies to target specific market segment.

Review Question
1. Why does we segment the tourism market?
5.26 Tourism Market Segmentation

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The tourism market segmentation can be broadly divided into the following types −
1. Geographic: Geographic market segmentation is done considering the factors such as
tourists’ place of origin. This factor is important as the tourists belonging to different places
are brought up with different cultures and show different traits of behavior. It is the most
basic type of segmentation.
2. Demographic: This segmentation is done by considering the tourist’s gender, age, marital
status, ethnicity, occupation, religion, income, education, and family members.
3. Psychographic: The marketing people do this segmentation by taking into account the
psyche of the tourists. They gather information about the tourists’ interests, attitudes, their
way of living life, opinions, and overall personality.
Review Question
1. What are the types tourism market segmentation?
5.27 Classes of Tourists

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Depending upon the motives and the way of touring, there are various classes of tourists −
1. Tourists Travelling with Families: The tourists who visit places with their first and
extended families, or families of relatives. One person, generally the head of the tourist
family is the decision maker. The families generally travel for holidays and leisure and tend
to expend sparingly. They generally are keen on receiving the best services for what they
have paid. They tend to carry more luggage.
2. Single Tourists: They travel alone and are independent. They are alone but not lonely; as
tourism is what they pursue as a hobby. The gap year travelers, unmarried persons,
widows/widowers, backpackers, and solitary tourists travel single. They decide for
themselves and tend to expend more. They tend to carry less stuff on the journey. They tend
to behave balanced if any challenging situation occurs and are rational towards tour
schedules.
3. Groups of Tourists: Students from schools and universities as members of educational
tours, fellows of various fraternities with common interests, groups of newly-weds, or
senior citizens.
4. Tourists Visiting Friends and Relatives: These tourists travel to meet friends or relatives,
or to attend a celebration or gatheringl. These tourists generally plan their tours in the
breaks such as Diwali holidays, Christmas holidays, or any kind of long break when most of
the people have break.
5. Business Tourists: They are the professional tourists on the business trips. They decide for
themselves but do not spend much money. For example, a sales or a marketing person
travels to another city to attend a business fair, and business manager travels to another
country for business deals.
6. Incentive Tourists: They tour for consuming the reward they received in the form of a few
days’ family holiday package at some hotel or resort. Such rewards are generally distributed
if an employee performs outstanding to achieve the goals.
7. Health Tourists: These tourists travels to places with the agenda of health on their mind.
They travel to avail some special medical treatment, operation, surgery, medication, or
inexpensive aesthetic surgeries available in different country. Some tourists in this category
also travel if they are receiving some illness from the climate at their residence such as
Asthma.
Review Question
1. Define each of the following:
a. Tourists Travelling with Families
b. Single Tourists
c. Groups of Tourists
d. Tourists Visiting Friends and Relatives
e. Business Tourists
f. Incentive Tourists
g. Health Tourists
5.28 Marketing Plan

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A marketing plan will help you answer important questions about your business and act as a
reference point to help you execute your marketing strategy. It will also help you create services
and products your customers want to buy.
Review Question
2. Define marketing plan .
5.29 Marketing Strategy vs Marketing Plan

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Although the two terms are sometimes used interchangeably, they are different concepts.
A marketing strategy has broad scope, looks at every possible influencing factor and sets the
overall direction for your business. A strategy tackles the question of ‘why?’ It will help you
define your vision, mission and business goals. Your business goals might be identified as:
 increase awareness of your product or service
 sell more products from a certain provider
 reaching a new customer segment.
A marketing plan focusses on the how, when, where, who and what. It outlines the specific
steps you need to take to accomplish the goals in your marketing strategy. Your marketing goals
are based on your business goals. An example might include:
 increasing market penetration – selling more to existing customers
 market development – selling to new target markets.
Review Question
1. Compare between Marketing Strategy and Marketing Plan .
5.30 What to Include in a Marketing Plan

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Your marketing plan should show that you’ve carefully considered how to produce a product or
provide a service that is innovative, unique and marketable. The contents of the plan should
include:
1. A background analysis – identify and describe your marketplace and customers. It may
include a SWOT (strengths, weaknesses, opportunities, threats) analysis and should help
define your business’s capabilities in its market.
2. Marketing objectives – set achievable goals by using the SMART acronym: specific,
measurable, achievable, realistic and timely.
3. Marketing tactics –outline the method you’ll use to achieve your goals. Your tactics
should focus on the seven factors that address the needs and wants of your customers:
product, place, price, promotion, people, process and physical environment.
4. Action plans and budget – the action plan contains what you need to do to implement your
plan. List the specific steps to deliver each tactic. For example, what is the timeframe and
which team member is responsible for actioning it. Your budget needs to support your plan.
Get quotes for proposed work and ensure someone is assigned to monitor the budget
throughout a campaign.
5. Evaluation – formal methods of evaluation and monitoring help evaluate the effectiveness
of your marketing plan and return on investment. By setting measurable goals, you should
be able to evaluate your progress. For example, review your sales against your forecasts or
record how many leads are generated from an event.
6. A summary – key components of your marketing plan that can be used as a quick reference
to keep your goals on track.
Review Question
1. What are the contents Marketing Plan?
5.31 The Importance of Tourism Marketing

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A solid marketing strategy is crucial in any business and the tourism industry is no
different.
It seems that everywhere we look there are new lodges being launched, and more
companies becoming involved in the niche business of destination planning,
transportation, accommodation and catering for tourists.
Tourism is one of the fastest growing industries in the world and is also one of the best
ways to boost a country’s economy. With more and more destinations realising this and
seeking to attract more tourists, the industry is becoming increasingly competitive. This
is why it’s now more important than ever to ensure that your marketing strategy is up to
scratch.
5 reasons why a good marketing strategy is vital to your tourism business:
1. Identify the ideal target market: The first step to developing a successful
marketing campaign is identifying who the ideal target market is. Depending on the
experience on offer, the customer will vary.
2. Attract new customers and develop loyalty: Once the ideal target market has been
identified, a strategy to reach these potential customers must be developed. Because
customer loyalty is key, a lot of time needs to be devoted to building brand
awareness and creating ongoing, interconnected campaigns that both target previous
guests, and attract new ones.
3. Understand the customer journey: In tourism, the ultimate end goal is the sale of
an ‘experience’ – not a material object. This means that the customer journey to
making a purchase is rather different and comes with its own set of challenges.
Understanding this ‘journey’ that the customer takes before going through with a
purchase is critical to a successful marketing campaign.
4. Stand out from competitors: As the tourism industry becomes more and more
competitive, it’s important to make sure that your business stands out. Highlighting
what is unique or different about the business is one of the best ways to achieve this.
A really good marketing strategy is able to communicate these points effectively to

the customers in a way that ‘speaks’ to them.
5. Hone in on the most effective tactics: Using research and analytical tools, a
marketing strategy allows you to assess which resources are best helping to reach
your audience, and then focus on those resources to ensure the best ROI possible. At
the end of the day, having a good marketing strategy in place allows you to feel
confident in knowing that all your business’s marketing needs are being carefully
looked after.
In today’s integrated and interdependent world, multiple forces represent both
opportunities and threats to tourism. This chapter explores the topic of globalization
and how it relates to tourism, and then examines trends (political, economic,
environmental, societal, and technological influences). The chapter closes with a
reflection on what all this means for tourism in British Columbia.
Review Question
1. Explain the importance of Tourism Marketing?
5.32 Globalization and the Tourism Industry

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Depending on the focus of the discussion, globalization can be defined in several ways.
One broad definition is:
Figure 14.2 Bye floating market in Thailand

A complex web of social processes that intensify and expand worldwide economic,
cultural, political and technological exchanges and connections.
Globalization can also be simply described as the movement of goods, ideas, values,
and people around the world. The term was first used in the early 1950s to recognize the
increasing interdependence of economies and societies around the world. Globalization,
however, has existed for centuries by way of evolving trade routes, including the slave
trade, colonization, and immigration.Today, we are divided into separate countries, each
looking out for its own national self-interest. At the same time, other entities such
as multinational corporations cross borders, which leads to global economic and
political integration. Many benefits can result from global integration and
interdependence, but we also need to heed its negative effects.
We can look at the relationship between globalization and tourism in several ways. For
the purposes of this chapter, we will consider the impact of tourism and travel
on globalization, and the impact of globalization on tourism. But first, let’s keep in
mind why it is important for a local tour operator, general manager, or tourism business
owner to think about globalization. More importantly, let’s consider where we should
be looking to understand globalization and future trends. The rest of this chapter
will address these topics.
Review Question
1. What is Globalization?
2. What are the relationship between globalization and tourism?
5.33 The Impact of Globalization on Tourism

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We can assess the impact of globalization on tourism from a number of perspectives.
Here, we will discuss five examples: global mobility and ease of travel; population and
demographic trends; terrorism, safety, and security; increased awareness of new
destinations; and poverty.
 Global Mobility and Ease of Travel: The advances made in transportation that have
enabled global mobility are particularly significant. Modern aircraft, cruise ships,
trains, and other modes of transport allow people to move quickly and relatively
cheaply. Aircraft., fast trains, road systems, and even city bike rental programs
enable people to move, tour, and explore the world. These changes have allowed
more people to travel more often in less time. Ease of travel has also helped to
overcome the barriers of fear, frustration, and expense.
 Population and Demographic Trends: The population continues to increase, but
not uniformly across the world. Birth and death rates are vastly different between
developed and developing nations. In the developed world, there are more older
citizens than there are children. In contrast, in the developing world, this is not
expected to occur until the middle of this century.
 Terrorism, Safety, and Security: Terrorist attacks and political unrest globally
have certainly disrupted tourism, but not halted it. The areas most affected, of
course, are those where unrest has occurred and has been the focus of extensive
media attention.
While safety and security may not be the driving reasons for tourists selecting a
particular destination, certainly a lack of safety and security often eliminates a
location from travellers’ “wish lists.”
Safety and security for travellers is becoming more important as countries move to
protect their citizens. Government agencies around the world produce advisories
and warnings for their citizens to stay away from dangerous locations and political
unrest.
Other security requirements, such as showing passports and providing fingerprints,
have been implemented for entry into some countries. While all acts of terrorism
cannot be stopped, the tourism industry is attempting to provide as much safety and
security as it can.
 Increased Awareness of New Destinations: Another influence of globalization on
tourism is a greater awareness of destinations and the range of leisure activities,
sites, and cultures to visit around the world. Generating knowledge of a destination
is obviously a key first step in marketing a destination, and this is achieved by way
of travel shows, films, blogs, and other forms of communication. The competition to
attract visitors is fierce considering the sheer number of places available for travel;
it can be easy to get lost in the noise of global competition.
 Poverty: Globalization has contributed to increased demand for goods and services
and overall economic growth, with the
result of global poverty having
decreased over the years. However, at
the same time, the gap between the
richest and poorest has expanded. A
significant portion of the world’s
population is simply unable to
participate in, or benefit from,
tourism. Environmental costs are also
unevenly distributed in the world,
with poor countries lacking the resources to adapt to impacts (such as droughts,
increased disease, soil erosion), and shouldering the majority of the repercussions of
phenomena such as global warming.
Review Question
1. What are the impact of globalization on tourism?
5.34 Impact of Tourism on Globalization

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In this section, we will look at tourism as a global force — for peace, for cultural
homogenization, for commodifying cultures, and for shaping the way we see the world.
1. Tourism as a Force for Peace: In the 1980s, a popular hypothesis was that tourism
supported global peace by allowing travellers to learn about other cultures and meet
people from other nations, as well as offering benefits accrued from international
business. Peace is an obvious requirement for tourism if the industry is to be robust
and sustainable. However, to date, there is little empirical evidence to support the
claim that tourism fosters peace, however attractive as the idea may be.
2. Tourism as Cultural Homogenizer: Nevertheless, tourism does offer the
opportunity to teach people about
how to respect other cultures. Some
argue that globalization has
a homogenizing effect on cultures,
as Western values are spread through
music, fashion, film, and food,
rendering one culture
indistinguishable from the next.
“Patriotic Kick Line” on a cruise from Alaska to Vancouver
Some beliefs and values, such as embracing equality and diversity, or the need to
protect children from harm, should be shared around the world. In the context of
tourism and travel, these two issues are significant. For instance, companies need to
ensure that their human resource practices are consistent and fair throughout the
world. Exploiting children for sex is illegal, punishable in both the country visited
and the home country of the tourist; some airlines and hotels are actively involved in
supporting the prohibition of child sex tourism. Travellers are expected not to
deface heritage sites or take rare or endangered natural or cultural objects as
souvenirs. Such regulations speak to the universality of certain values and beliefs,
which we all are required to follow as global citizens.
Tourism as Commodifier: As one of the world’s largest industries, tourism impacts
local, regional, and global economies. Resorts dot coastlines around the world and
offer a welcome respite from colder

climates to anyone wishing to experience
a tropical beach, as well as the local
culture and nature. While benefit comes
to the community in the form of jobs,
more often than not the larger share of
the wealth leaks offshore. In response,
local entrepreneurs and aid organizations
have helped with initiatives that embrace
local ownership in order for the Dancers at Germaine’s Luau near Honolulu, Hawaii
wealth generated from tourism to stay in country. Community-based tourism,

responsible tourism, and social entrepreneurship all aim to bring greater benefit to
local communities.
3. Tourism as a World View: Tourism is also a major influence in how we see and
understand the world. Unlike local people, travelers experience a place for a few
days, with limited knowledge of the
culture and local way of life. Some
visitors rely on available tourist
information to make the most of the
experience and to see the highlights.
Others turn away and attempt to “go
local” in search of the authentic
experience with the belief that they
can truly understand a place by
avoiding the tourist sites.
If tourists stay in their resort in a given country, their only interaction with a local
culture may be the staff at the hotel. In many cases, visitors experience a place in a
fragmented, disconnected way, seeing only a portion of a place.
Review Question
1. What are the impact of tourism on globalization?
5.35 Top Trends Due to Globalization

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A useful tool to use in the analysis of global trends is PEEST, an acronym for political,
economic, environmental, social, and technological forces that affect the person, organization,
or destination under study. Let’s delve into PEEST in more detail.
P 1. Political Trends
E 2. Environmental Trends
E 3. Economic Trends
S 4. Social and Cultural Trends
T 5. Technology
1. Political Trends: While we may be intrigued by global issues and their macro implications
on the world in which we live, we also need to pay attention to local politics and policies.
Let’s have a look at political trends from different scales.
 Global Policies: According to the UNWTO report Policy and Practice for Global
Tourism, whereas “growth and development were major priorities in the period since
the 1950s.
 National Policies: While from a policy perspective, countries such as New Zealand,
Australia, the United States, and the United Kingdom have embraced tourism growth
through a planned approach, tourism policy in Canada.
Tourism Industry Association of Canada, have made recommendations for strong
government policy support that could help strengthen the industry. Two key policy
reforms suggested include:
1. Changes to air travel regulations, such as increasing air access, phasing out rents
paid by airports to the federal government, and transferring airport ownership to
local authorities
2. Streamlining the travel visa issuance process, using technology to make it faster for
visitors to obtain visas and continue to pursue visa-related partnerships with other
countries
2. Environmental Trends: The United Nations Intergovernmental Panel on Climate Change
has produced irrefutable evidence that climate change is human-made. Dependence on a
global economy fuelled by population growth and ever-increasing demand for consumer
goods has led to significant debate as to how to respond to climate change, although action
is clearly required.
 Environmental Impacts: In the transportation sector, drastic temperature changes from
sudden ice thaws to heatwave conditions affect highways and runways, landslides close
road systems, and rising sea levels threaten infrastructure such as airports and cruise
ship wharves.
 The challenge for tourism is that our economic interdependence requires far-reaching
transportation routes, be it by air, sea, or land.
3. Economic Trends: Like most other industrial sectors, tourism is affected by global
economic trends. Economic uncertainties for the tourism industry have persisted, however,
leading many industry insiders to monitor several economic trends, including collaborative
consumption, shifts in emerging economies, and conscious consumerism.
A crowd gathers at an airport that now serves as a museum

 Collaborative Consumption: Although the phenomenon of collaborative
consumption, also known as the sharing economy, began before the global financial
crisis, it gained strength as a result of it. Collaborative consumption is a blend of
economy, technology, and a social movement where access to goods and skills is more
important than ownership.
 Emerging Economies: In 2001, a new acronym was introduced into the economic
world — BRIC. This refers to the growing economies of Brazil, Russia, India, and
China. Other countries have since joined the race, creating another new acronym —
MINTS — for the countries of Mexico, Indonesia, Nigeria, Turkey, and South Korea.
Time will tell where new tourism growth and opportunities arise in the frenetic global
economy, and who will be the next powerhouse to watch.
 Conscious Consumerism: Conscious consumerism, or socially conscious consumer
behaviour, is another economic trend with implications for the tourism industry. This
term refers to consumers who are using their purchasing power to shape the world
according to their values and beliefs, leading organizations to project a more ethical or
responsible image
4. Social and Cultural Trends: Defining culture as “a way of life” brings us to consider the
implications of globalization as a defining influence in how we live and, therefore, who we
are as individuals. Some argue that globalization has created a culture crisis, with values,
beliefs, and identity all made secondary to economic interests and the pervasive and ever-
growing nature of technology in our lives. Below are three cultural trends, followed by two
societal trends.
 The Tourist Experience as the Good Life: Some people are motivated to travel as a
form of escape from the pressures of the globally interconnected world. Unplugging,
where a hotel or resort offers no technological access in the form of Wi-Fi, television,
or phones, is certainly one way to get people to slow down and, perhaps ironically,
reconnect with themselves and loved ones. Biking, walking, small sailboat cruises, rural
tourism, as well as the slow food movement are examples of experiences that simplify
life in order to better appreciate and enjoy it.
 Travel as a Time to Bond: Visiting friends and relatives, known in the industry simply
as VFR, is a common and important subset of tourism demand worldwide. With their
busy lives, people are seeking a moment, place, and activity to share with family or
friends. In addition to the growing VFR trend is the increasing popularity of group
travel, as exemplified in the sports tourism sector (see Chapter 6 on entertainment) with
sports clubs and teams who travel together, and associations that bring together people
with shared interests in cuisine, walking, birdwatching, or other avocations.
 Global Migration: Certainly a trend in globalization is the significant movement of
people around the world. For British Columbia, immigrants (35,160) and non-
permanent residents (11,949) represented the main source of population growth in
2014, along with just over 10,000 people from other provinces (BC Stats 2015). The
population of British Columbia as of January 1, 2015, was estimated at 4.6 million of
which nearly 25% are a visible minority (BC Stats 2015). The largest groups are
Chinese (10.0%), South Asian (6.4%), Filipino (2.2%), and Korean (1.2%) (British
Columbia Ministry of Attorney General, 2008).
Implications for the tourism industry include a growing need to address the challenges
of a multicultural workforce, including preconceptions related to customer service and
management. It’s important for diverse teams to be able to work well together and to
communicate well with visitors and guests.
5. Technology: For many years, technology has been strongly tied to tourism as the industry
has looked to take advantage of developments and changes, opening destinations and
providing new products and services. From the early days of Thomas Cook’s first
recognized tours, offering train rides to the seaside, to the adoption of mobile technology
today, tourism and hospitality has incorporated technological advances into all aspects of
the industry. Two key technology trends affecting tourism and hospitality today and into the
foreseeable future are mobile technology and access.
 Wireless Ways: Mobile technology and wireless connections affect many aspects of the
tourism industry on a global scale. Mobile technology allows people increased freedom
to negotiate their day-to-day lives while staying connected. Mobile apps are replacing
the hotel concierge by providing up-to-date information, along with maps and
directions, for many of the desired activities at destinations. Wireless technology has
also given rise to location-based advertising, allowing product or service providers to
market themselves when travellers are in the general area. Internet access has become a
standard requirement for accommodations, ahead of other amenities such as in-house
restaurants or pools.
 Advancing Access: Technological advances in transportation are affecting not only how
people travel to and within destinations, but also the impacts that those forms of
transportation are having on the environment. Transportation advances are also
opening more access to the world for more people.
A cruise ship leaving Vancouver harbour for Alaska
Review Question
1. Explain global trends.
2. What is PEEST?
5.36 Key Terms

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1. Asia-Pacific Economic Cooperation (APEC): a forum that brings together countries from
the Asia Pacific region (including Canada), and which has a Tourism Working Group that
looks at policy development in a tourism context
2. Authenticity of experience: a hot topic in tourism that started with MacCannell in 1976
and continues to today; discussion of the extent to which experiences are staged for visitors
3. BRIC: an acronym for the growing economies of Brazil, Russia, India, and China
4. BRICS: the acronym for the BRIC countries with the addition of South Africa
5. Collaborative consumption: also known as the sharing economy, a blend of economy,
technology, and social movement where access to goods and skills is more important than
ownership (e.g., Airbnb)
6. Conscious consumerism: refers to consumers using their purchasing power to shape the
world according to their values and beliefs
7. Cultural commodification: the drive toward putting a monetary value on aspects of a
culture
8. Fad: something taken up in a finite, short amount of time — can represent a valuable
business opportunity, but investment can be risky
9. Globalization: the movement of goods, ideas, values, and people around the world
10. Homogenizing: making the same, as in the effect of tourism helping to spread Western
values, rendering one culture indistinguishable from the next
11. In country: a term to describe using a local-ownership approach in order for the wealth
generated from tourism to stay in a destination
12. International Civil Aviation Organization (ICAO): a specialized agency of the United
Nations that creates global air policy and helps to develop industry capacity and safety
13. MINTS: an acronym for the countries of Mexico, Indonesia, Nigeria, Turkey, and South
Korea
14. Organisation for Economic Co-operation and Development (OECD): an organization
31 member countries who gather to discuss a range of policy issues, with a special
committee dedicated to tourism
15. PEEST: an acronym for political, economic, environmental, social, and technological
forces
16. Tourism world-making: the way in which a place or culture is marketed and/or presented
to tourists
17. Trend: a phenomenon that influences things for a long period of time, potentially shifting
the focus or direction of industry and society in a completely different direction
18. VFR: an acronym for visiting friends and relatives; a tourism consumer market
Review Question
1. What is:
a. Asia-Pacific Economic Cooperation (APEC):
b. Authenticity of experience:
c. BRIC:
d. BRICS
e. Collaborative consumption
f. Conscious consumerism
g. Cultural commodification
h. Fad
i. Globalization
j. Homogenizing
k. In country
l. International Civil Aviation Organization (ICAO):
m. MINTS
n. Organisation for Economic Co-operation and Development (OECD
o. PEEST
p. Tourism world-making
q. Trend
r. VFR
Exercise: Part A & B

1. What is Tourism?
2. What is tourism marketing?
3. What are the aspects of tourism marketing?
4. What are the features of tourism marketing?
5. Explain different concepts of tourism marketing?
6. What is tourism marketing mix?
7. What are the factors that effects tourism marketing mix?
8. What is product brand ?
9. What are the four main functions of product brand tourism marketing?
10. Explain the production concept of tourism marketing mix.
11. Explain the Product Planning and Development.
12. Explain the phases that a new product goes through from inception to decline.
13. What are the three strategies in pricing their products?
14. What are the factors that influence price policies that a tourism marketing manager
must consider?
15. What is price skimming?
16. What is penetration pricing?
17. What is channels of distribution? How is it selected?

18. What is publicity and sales promotion activities?
19. What is advertising?
20. What are the advantages and disadvantages of the major media of advertising?
21. What is Advertising Budget?
22. What are the questions that arises in research of tourism marketing?
23. What is personal selling?
24. What is public relation?
25. What is service quality?
26. Explain the strategy of internet marketing?
27. What is tourism market segmentation?
28. Why does we segment the tourism market?
29. What are the types tourism market segmentation?
30. Define each of the following:
a. Tourists Travelling with Families
b. Single Tourists
c. Groups of Tourists
d. Tourists Visiting Friends and Relatives
e. Business Tourists
f. Incentive Tourists
g. Health Tourists
h. Define marketing plan .
31. Compare between Marketing Strategy and Marketing Plan .
32. What are the contents Marketing Plan?
33. Explain the importance of Tourism Marketing?
34. What is Globalization?
35. What are the relationship between globalization and tourism?
36. What are the impact of tourism on globalization?

37. Explain global trends.
38. What is PEEST?
39. What is:
a. Asia-Pacific Economic Cooperation (APEC):

b. Authenticity of experience:
c. BRIC:
d. BRICS
e. Collaborative consumption
f. Conscious consumerism
g. Cultural commodification
h. Fad
i. Globalization
j. Homogenizing
k. In country
l. International Civil Aviation Organization (ICAO):
m. MINTS
n. Organisation for Economic Co-operation and Development (OECD
o. PEEST
p. Tourism world-making
q. Trend
r. VFR

05 Tourism Marketing and Promotion

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05 Tourism Marketing and Promotion

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Chapter 5

Tourism marketing and promotion

Figure 5.1 Tourism Industry Sectors

Figure 5.1 Tourism Industry Sectors

5.2 Tourism Marketing

Opinion of different authors in this regards are given below:

5.3 Features of Tourism Marketing

5.4 Different concept of Tourism Marketing

 To create the positive image of country, region.

5.5 Tourism Marketing Mix

5.6 Factor that Influences the Marketing Mix

5.7 Product Branding

 First, destination brands serve as “communicators, “where brands represent a mark of

5.8 Production Concept of Tourism Marketing Mix

5.9 Product Planning and Development

Figure 19.1 Product life cycle.

5.10 Pricing in Tourism Marketing

5.11 Factors that Influence Price Policies in Tourism Marketing

3. Extent of the competition (c«wZ‡hvwMZvi e¨vwß). A product that is comparable to competitors’

5.12 Price Skimming

5.13 Penetration Pricing

5.14 Place (Channels of Distribution)

 determining the nature and extent of the market,

5.17 Major Media Advertising

5.18 The Advertising Budget

5.20 Personal Selling

5.21 Public Relations

5.22 Service Quality

5.23 Internet Marketing Strategy

mail marketing, advertising, customer service, relationship marketing, providing information,

5.24 Marketing Segmentation

5.25 Why Segment the Tourism Market?

 It helps to create effective marketing strategies to target specific market segment.

5.26 Tourism Market Segmentation

5.27 Classes of Tourists

5.28 Marketing Plan

5.29 Marketing Strategy vs Marketing Plan

5.30 What to Include in a Marketing Plan

5.31 The Importance of Tourism Marketing

A really good marketing strategy is able to communicate these points effectively to

5.32 Globalization and the Tourism Industry

Figure 14.2 Bye floating market in Thailand

5.33 The Impact of Globalization on Tourism

5.34 Impact of Tourism on Globalization

offer a welcome respite from colder

wealth generated from tourism to stay in country. Community-based tourism,

5.35 Top Trends Due to Globalization

A crowd gathers at an airport that now serves as a museum

A cruise ship leaving Vancouver harbour for Alaska

5.36 Key Terms

Exercise: Part A & B

17. What is channels of distribution? How is it selected?

36. What are the impact of tourism on globalization?

a. Asia-Pacific Economic Cooperation (APEC):

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