CHAPTER 5

THE TOURISM PRODUCT

LEARNING OBJECTIVES
At the end of the chapter, the students should be able to:
1) Identify what a tourism product is and its components;
2) Enumerate the stages of the product life cycle and the destination life cycle;
3) Recognize that the Philippines has a lot of tourists – worthy attractions; and
4) Discuss the product development process.

INTRODUCTION
Hospitality and tourism managers need to deliver service products in a dynamic
global world. Arguably, the term “global service” sounds paradoxical and oxymoronic.
Global suggests a uniform standard. A successful service encounter often requires that
each customer touch point unfolds in a manner that matches an individual customer's
unique expectations. Although this outcome may seem easy to accomplish, ecological
influences, unconscious thoughts, and price influence consumers' expectations. A
tourism product is anything that is tied to travel and the travel and tourism industries.
The importance of marketing to a tourism product would be associated with how you
wish to attract customers for the product in question. It’s important to market your
product (s) and services to get the attention of perspective customers. In this chapter,
product will be illustrated and give emphasis on how it’s important to the tourism and
hospitality sectors and how it helps in terms of the development of the consumer, the
business, and the whole industry.

LESSON PROPER
TOPICS TO BE DISCUSSED
• Concept of Product
• Key Players in the Tourism and Hospitality Industry
• Tourism and Hospitality Product
• Product Types
• Different Model of Products
o Product Life Cycle
o Destination Life Cycle
o Product Development Process
Key Players in the Tourism Industry
Before we focus on the product, let’s have a discussion about the key players in
the industry that makes the product important and how it was delivered in the industry.
The tourism industry is a conglomeration of various products and services, individuals
and organizations, each with specific economic and / political interest. Hudson ( 2008 )
enumerated these players: (1) private and non - profit sectors, (2) public sector
services, (3) suppliers such as transportation, accommodation, food and beverage
services, attractions & events, (4) travel intermediaries, and (5) the tourist themselves.
1. Private and Non – Profit Sectors – Include industry associations which have
been established to protect special interest groups, such as travel agency associations
(e.g., Philippine Travel Agency Association and PHILTOA), financial services (e.g.,
credit card companies) academe, media, and insurance companies. Private Sectors are
part of the economy that is run by individuals and companies for profit and is not state
controlled. Therefore, it encompasses all for-profit businesses that are not owned or
operated by the government. Companies and corporations that are government run are
part of what is known as the public sector, while charities and other non-profit
organization are part of the voluntary sector. They are big players in the tourism and
hospitality industry in terms of generating revenues for the development of the sectors.
2. Public Sectors Company – Cover either national, regional, or provincial tourism
organizations. They come up with marketing programs to promote their destinations to
both intermediaries and individual tourists. The Department of Tourism and provincial
tourism offices fall under this category. Development of tourism infrastructure requires
heavy investment in wide-ranging and diverse activities. Many of these activities are in
the form of public utilities like power, water, gas and transport etc. These services are
so vital to the society that government intervention is considered inevitable even in
those countries which follow "free market" policies. This serves to be the major
responsibility of the government by ensuring smoothness tourism development and
sustainability.
3. Suppliers
a. Transportation Industry – Crucial to the success of tourism. Without an efficient
transport system and road networks, tourism would not be encouraged to come to
destinations that have lengthy, tiresome, and costly travel. This industry includes
airlines, cruises, buses, and railways. The importance of transport consists not only in
the function they have in the development of the national socio-economic complex, but
also in the important role exercised over the amplification of the relations between
states. Transport through its role of movement of goods and people, decisively
influences the other branches of the world economy, including international tourism.
Without transportation there won’t be the travel and tourism industry, people won’t have
means to reach other places that they desire to see. Therefore, the development on
transportation is linked to the development of tourism, if international tourism grows,
international transportation also grows. To reach their destinations tourists have to
choose between four main types of transportation, depending on many factors.
b. Accommodation Sector – Covers a huge part of tourist’s expenditure during
travel. Accommodation is a base of tourism industry as it is a vital and important part of
the tourism supply. It makes the tourism product unique in a way that people can have
shelter in their travel. Tourists in their travel require location where they can rest and
revive during their travel. The services of accommodation facilities vary from each other
based on their targeted customer groups. There are variety of accommodation facilities
to meet the customer’s needs, preferences, and budget. Types of accommodation
facilities range from five – star to economy hotels, apartelles, inns, lodges, motels, bed
and breakfast, timeshare apartments, and campsites.
c. Food and Beverage Sector – Another important supplier of tourism industry. a
travel cannot be complete if there is no food or beverage supply included in the
package. This will add authenticity and satisfaction in the travel experience of the
tourist. Restaurants, bars, food stalls and coffee shops help shape the total travel
experience of tourist. These can range from establishments serving local food to
multinational franchise restaurants such as McDonalds and Starbucks.
d. Attractions – An Attractions main purpose is to grab the customer's attention so
they come to a certain place and explore the different attractions on holiday. In the
travel and tourism sector, attractions are an important part as this is what bring in tourist
from all over the world. Basic requirements in having a successful tourist destination.
These can be classified as a natural or man – made. Tourist are drawn to attractions for
various reasons such as entertainment, leisure and recreation, education, adventure,
etc. A variety of attractions should be made available in destinations for tourists to keep
coming back to your destination.
e. Events and Conferences – Play a key role in attracting both leisure and
business. This is one of the rising sectors of tourism which deals with business tourism.
It could be either through leisure/recreational events such as sports, concerts, festivals
or business events such as meetings, conferences, and exhibition. Huge sporting
events such as the Olympics and World Cup attract tourists from all over the world
either as participants or spectators in the event. Festivals such as the Sinulog Festival
in Cebu and Panagbenga Festival in Baguio are able to attract thousands of tourists,
both local and foreign.
4. Travel Intermediaries – Help bring the tourism product to the customer. These
are also known as channels of distribution. Travel Intermediaries include travel agents,
tour operator, web – based distributors, etc. They normally offer travel packages that
make the experience less complicated to the tourists. These packages include
transportation (both inbound and inland) accommodations, food, city tours, etc.
5. Tourists – The center of the tourism industry. Being the main consumers of
tourism products, they choose where they want to go, what they want to eat, and what
they want to do. The tourist’s satisfaction is the utmost goal of all other key players in
this industry. For the tourism industry to grow, more people need to be attracted to
travel.
What is Product?
In general, a product is defined as a “thing produced by labor or effort” or the “result of
an act or a process.” The word “product” stems from the verb “produce”, from the Latin
produce “(to) lead or bring forth. ” Since 1575, the word “product” has referred to
anything produced.
In marketing, a product is anything that can be offered to a market that might satisfy a
want or need. In retail, products are called merchandise. In manufacturing, products are
purchased as raw materials and sold as finished goods. Commodities are usually raw
materials such as metals and agricultural products, but the term can also refer to
anything widely available in the open market. In project management, products are the
formal definition of the project deliverables that form the objectives of the project.
A product can be classified as tangible or intangible. A tangible product is a physical
object that can be perceived by touch such as a building, vehicle, or gadget. Most
goods are tangible products. For example, a soccer ball is a tangible product. An
intangible product is a product that can only be perceived indirectly such as an
insurance policy. Intangible data products can further be classified into virtual digital
goods (“VDG”), which are virtually located on a computer OS and accessible to users as
conventional file types, such as JPG and MP3 files. Virtual digital goods require further
application processing or transformational work by programmers, so their use may be
subject to license and or rights of digital transfer. On the other hand, real digital goods
(“RDG”) may exist within the presentational elements of a data program independent of
a conventional file type. Real digital goods are commonly viewed as 3-D objects or
presentational items subject to user control or virtual transfer within the same visual
media program platform. Services or ideas are intangible.
The Tourism Product Defined
In consumer marketing, a product is anything that can be offered to a market for
attention, acquisition, use or consumption that might satisfy a want or need. It may
include physical objects, services, places, organization, and ideas. In tourism marketing,
products have different components that make up the over – all tourism experience.
Hsu et al. (2008) discuss these components as destination attractions, destination
facilities, accessibility, image, and price.
1. Destination Attractions. A destination is a collection of attractions, which is the
element of the tourism product that pulls people to a destination. These are what the
visitors want to see. Philippine attractions mainly fall under the “sun, sand, and sea
“category but they also include our old churches, historical and cultural artifacts,
festivals, and many others. The Filipinos, known to be the friendliest people in the world,
are also a major tourist attraction. Destination Attractions are major products that push
tourist to go to the destination. This is what the objective and satisfaction they need.
Attractions are crucial since it needs to satisfy the customer and in order to do this, the
management should put extra effort in making it saleable and sustainable as well.
2. Destination Facilities. A wide range of tourist facilities within the destination will
help the tourist enjoy the destination attractions. These include accommodation,
facilities (hotels, inns, and apartelles), transportation (taxi and rent – a – car), food and
beverage (restaurants and bars), shopping centers, and many other support facilities.
3. Accessibility. It is important to establish strong infrastructure and transportation
areas in a certain country. Accessibility is very important in the tourism and hospitality
and delivering its product. This compose of the areas or pathways that connect people
from one place to another. This stands for airports, port area, terminals, parking spaces,
roads and highways and other infrastructure components.
4. Image. Central to the product is its image. Destination image helps the visitor
form expectations of what they will experience. Its also motivates them to make a
decision to visit the said destination.
5. Price. Pricing is an important component of the tourism product. It allows
consumers to determine the level of services they may receive in the destination.
Pricing products highly will create an expectation of excellence and high standards
while pricing it too low might give consumers doubts on the product‘s quality. Factors
such as seasonality, distance, product classification, and length of time may affect
pricing.
Products Types
According to the book Tourism Marketing by Dr. Maricel Badilla, In most
destination facilities, products and services have different types. These include (1)
core, (2) Facilitating, (3) supporting, and (4) augmented products. Core products
are products that the consumer is really buying. This is the main reason why consumer
go to the place or decided to purchase on the store. Example are rooms for hotel, travel
ticket from travel agency. Facilitating products are goods and services that must be
present for the guest to enjoy and use the core product. This refers on a way on how
the customer can able to purchase or enjoy the product. Supporting products, on the
other hand, add value to the core product and help differentiate it from its competitors. If
properly planned, they offer the product’s competitive advantages. Augmented
products are factors that help the consumer consider the product over other products
because these include products accessibility, geographical location, operating hours,
atmosphere, customer satisfaction, and customer interaction with each other.
For instance, if a businessman travels and stays in a hotel, the product that he is
really paying for would be the hotel room that will be his home for a few days, including
the bed and everything else inside the room. But for him to enjoy the core product,
facilitating products such as the check – in and check – out services should be
available. The business traveler cannot get into the hotel room without checking in.
Facilities that would be helpful to a businessman such as business center and room
service are supporting products. The presence of these services adds value to the
traveler’s comfort and convenience during his business trip. His interaction with the
service organization and with other customers form augmented products because these
offerings enhance the delivery of the products and services.
Another example to greatly identify the product types, let’s use restaurant as our main
sector:
• Core Product – Food and beverage (Restaurant)
• Facilitating Product – order taking, bill settlement
• Supporting Products – Parking area, Function Room/Area, Wine Service
• Augmented Products – interaction with service provider and other customers.
Product Consideration
In availing of tourism product and services, consumers consider several factors. These
factors include accessibility, atmosphere, customer interactions with service system,
customer interaction with other costumer and co-production. Consumers get attracted to
purchase if these considerations meet the standard of the costumer.
Accessibility refers to how available the product is to the consumer, in terms of
location hour of operation and case of availing the products and services.
Atmosphere is the over-all feel of the place. This is much appreciated through the 5
senses. The product and service should be appealing to the eye, soft to the ears, gentle
to the touch, and smelling sweetly. Another term for this is the ambiance of the place.
Customer interactions with the service system is inevitable for the tourism product.
Consumptions happen within the destination. Hence, customer interaction with service
staff should be pleasant and memorable. Customers interact with other costumers
consuming the product or service along with them. The experience becomes highly
variable depending on how costumer behaves and interacts with each other. Customer
also does co-production of the product or service. As much, involving the guest in the
delivery of the service that can actually improve customer satisfaction, reduce
expenses, and increase capacity. The presence of self-service counters, for instance is
aimed at making costumers becomes co-producers of value.
Product Life Cycle
In tourism and hospitality, product life cycle can be referred to in two levels. First is
specific product and service on a business or corporate level such as hotels, restaurant,
resort property, etc. Second is an aggregate of offering within a whole destination.
Products, like people, have life cycles. The product life cycle is broken into four stages:
introduction, growth, maturity, and decline. This concept is used by management and by
marketing professionals as a factor in deciding when it is appropriate to increase
advertising, reduce prices, expand to new markets, or redesign packaging.
A product begins with an idea, and within the confines of modern business, it isn't likely
to go further until it undergoes research and development and is found to be feasible
and potentially profitable. At that point, the product is produced, marketed, and rolled
out.
The product introduction phase generally includes a substantial investment in
advertising and a marketing campaign focused on making consumers aware of the
product and its benefits. Assuming the product is successful, it enters its growth phase.
Demand grows, production is increased, and its availability expands.

Figure 5.1 Product Life Cycle Diagram

As a product matures, it enters its most profitable stage, while the costs of producing
and marketing decline. However, it inevitably begins to take on increased competition
as other companies emulate its success, sometimes with enhancements or lower
prices. The product may lose market share and begin its decline.
Understanding the concept of product life cycle will help a marketer analyze the kind of
promotional tools and activities that will be most effective. Introducing a new product
entails a more aggressive information drive than a product that is at its maturity stage.
The following are the stages of the product life cycle.
A. Product Development
The product development stage begins with an idea of a new product that could
possibly satisfy an existing need or want in a specific market. The product idea is further
developed through market research and product testing to determine the feasibility of
the product. A business plan with a sound financial and marketing strategy is also
prepared during this stage. At this stage, you should not worry about sales or
introducing the product. Your focus should be on working with a team of designers,
manufacturers or product development experts on: producing prototypes, testing
prototyped product, sourcing and pricing materials, intellectual property issues. When
developing your product or service you need to establish the level of quality you are
aiming for, and how many different versions you want to develop to generate interest at
launch.
B. Introduction
The introduction phase is the period wherein the product is introduced to the market. It
may be a period of rapid or slow sales growth depending on market acceptability of a
new product. As the product is being introduced into the market, profits may be non-
existent on this stage since investments have been made during the product
development stage. An aggressive marketing strategy should be implemented to ensure
market awareness and penetration. Since the product is new, the feature of the product
should be introduced extensively to its target marketer. The introduction stage is when a
product is first launched in the marketplace. This is when marketing teams begin
building product awareness and reaching out to potential customers. Typically, when a
product is introduced, sales are low and demand builds slowly.
Usually, this phase is focused on advertising and marketing campaigns. Companies
build their brand, work on testing distribution channels, and try to educate potential
customers about the product. If those tactics are successful, the product goes into the
next stage — growth.
C. Growth Stage
The growth stage is a period of rapid market acceptance and increasing profits. As the
product becomes popular with its target market, an increase in sales os projected as
this stage. Return on investment will materialize at this stage of product life cycle.
During the growth stage, consumers have accepted the product in the market and
customers are beginning to truly buy-in. That means demand and profits are growing,
hopefully at a steadily rapid pace.
The growth stage is when the market for the product is expanding and competition
begins developing. Potential competitors see success and want in. During this phase,
marketing campaigns often shift from getting customers to buy-in to the product to
establishing a brand presence so consumers choose them over developing competitors.
Additionally, as companies grow, they'll begin to open new distributions channels and
add more features and support services.
D. Maturity Stage
The maturity stage is a period where sales plateau because the product has achieved
acceptance by most of its potential buyers. It is also likely competition has come in and
attempts to grab a product's market share. At this stage, to prevent decline, the
company can introduce some innovation, as follows:
1. Market Modification
The company may introduce innovation to the product in order to attract a related
segment of the market and increase consumption further. For examples, a restaurant
serves lunch and dinner menus and opts for market modification by offering breakfast
and merienda in the hope of attracting in another types of market and increasing
consumption of existing market
2. Product Modification
The company can opt to change product characteristics such as product quality,
features, and style to attract new users and stimulate more usage. An example is
offering sugar free drinks to attract health-conscious costumer.
3. Marketing Mix Modification
This is when the company attempts to improve sales by changing one or more of the
marketing mix elements to attract new costumer and prevent consumers from switching
brands. Examples of marketing mix modification strategies include using sales coupons
and price cuts or revitalizing an advertising campaign.
This is the phase where a company begins to become more efficient and learns from
the mistakes made in the introduction and growth stages. Marketing campaigns are
typically focused on differentiation rather than awareness. This means that product
features might be enhanced, prices might be lowered, and distribution becomes more
intensive.
During the maturity stage, products begin to enter the most profitable stage. The cost of
production declines while the sales are increasing.
E. Decline Stage
Some successful product stays in the business for a long period of time. By employing
products modifications, market modifications, and market mix modifications, some
product stay in the market and avoid decline. The decline stage is the period when sale
fall off quickly and profits drop.
Unfortunately, if your product doesn't become the preferred brand in a marketplace,
you'll typically experience a decline. Sales will decrease during the heightened
competition and are hard to overcome. To extend the product life cycle, successful
companies can implement new advertising strategies, reduce their price, add new
features to their increase value proposition, explore new markets, or adjust brand
packaging. The best companies will usually have products at several points in the
product life cycle at any given time.
Phase Out
Without a shift in strategy to adapt to the prevailing business environment, phase out
may be inevitable. This is the stage when the production of the product or availability of
the service will be shut down or deleted from the company's product line.

Destination Life Cycle

Butler (1980) developed a concept popularly known as the Destination Life Cycle (DLC)
which uses the product life cycle as its foundation. The DLC provides a framework for
the marketing and management of destination as it develops over time.

The Six Discrete stages of the DLC.

Figure 5.2 Destination Life Cycle

A. Exploration - The destination beings as a relatively unknown place to visitors.
Travelers initially come in small numbers that are restricted by access, facilities, and
local knowledge.
B. Involvement - Characterized by an increase in tourist arrivals, interaction with locals
still high, some changes in social, cultural, and physical environment. Infrastructure
development begins.
C. Development - As word spreads about the destination, attractions and amenities are
improved and there are more tourists that come to the area. Tourist arrivals are fast
increasing, loss of local control, rise of local foreign owned facilities, migrant laborers,
and promotions of artificial attractions.
D. Consolidation- Tourist has become a major economic factor. There is heavy
advertising and promotions. Facilities begin to deteriorate and growth rates decline.
E. Stagnation - This is when a destination cannot take any more visitors. It reaches a
set carrying capacity that is determined by social and environmental limits. It usually
happens pretty rapidly, and that is why it is shown as an exponential curve. When the
carrying capacity of the destination has been reached or exceeded. It is also
characterized by social, environment, and economic problem. Inflow of tourist comes
from repeat visits and conventions.
F. Decline - Characterized by a downward rate of tourist arrivals. The decline stage can
be mitigated depending on management and marketing effort to uplift the destination.
With increased congestion and unsustainable development at a destination, tourists are
less likely to travel to a place that is always full. This congestion also leads to a
decrease in resources and an increase in corruption. Improvements in the destination
such as changes in attractions, development of more exciting products, and marketing
modification strategies may be applied to rejuvenate the decline of a destination

PRODUCT DEVELOPMENT
According to the UNWTO Handbook in Product Development, Tourism product
development can be defined in many ways: at one extreme, it can be seen as
embracing all elements with which the visitor to a destination comes into contact,
including infrastructure (e.g. transport, utilities), the service personnel, places of
lodging, attractions and activities, facilities and amenities; while, at the other extreme,
Tourism Product Development can be defined as comprising only those attractions,
activities and facilities that are specifically provided for the visitor. Tourism Product
Development is a process whereby the assets of a particular destination are molded to
meet the needs of national and international customers.
Product development is an integral part of the success of any business. Competition
can come up with a new and innovative product that may affect the sales of your
existing product. The market always tries to find exciting new products for their
changing lifestyles and trends. Customers have become more discriminating and quality
conscious as they use products and services. They can get tired of using the same
thing over and over again. As the products go through the product life cycle and reach
maturity point, it is best that product development becomes an ongoing process to
ensure profitability and sustain interest on the product line.
The Philippines has rich natural resources and Filipinos are the warmest of hosts.
Tourism products and services should maximize these key strengths. Coming up with a
new product is risky; hence, companies need to ensure that they practice strong product
planning and have a systematic approach to product development. The stages in
product development, adapted from Kotler et al. (2010), are as follows:
1. Idea Generation
New products begin with an idea. Idea generation is a systematic way of coming up with
new ideas. Sources of new product ideas include the external environment, internal
sources, customers, competitors, distributors and suppliers, and other sources.
The external environment refers to the awareness of what happens in the real world.
Through one’s actual experiences in the outside world, new products can be generated.
Internal sources include your employees, especially the ones in guest contact positions,
who could give feedback on what customers are looking for. Brainstorming sessions
with employees can be a good source of new product ideas. By analyzing competitors’
products and services, new ideas can be generated (hopefully not copied!).
Other sources include trade magazines, websites, blogs, shows, seminars, product
consultants, marketing research firms, advertising agencies, media, and investors.
2. Idea Screening
Idea generation leaves you with so many new ideas that need to be screened to see
which ones matches the company’s objectives and can be developed further. A new
product committee can screen the ideas generated in a logical and objective manner.
3. Concept Development and Testing
The products that pass through the screening can now be developed further. A product
concept is developed and tested. The customers should be consulted on which product
concepts are actually helpful to them because they are the primary users of the product.
Successful products are usually those that address specific needs and issues of the end
users.
4. Marketing Strategy
A new product or service is developed to try to gain a marketing edge and to
differentiate itself from competitors. A marketing strategy should be kept in mind as the
new product is introduced to the market. How will the product be launched to the
market? A new product should be developed to match the company’s image and
resources, which in turn should be what its existing and potential markets need. In
short, there should be a product-company-market fit.
5. Business Analysis
The business analysis stage looks more deeply into how much revenue the product
could generate, what the cost will be, how much market share the product may achieve
and the expected life of the product (Kotler et al. 2010).
6. Prototype Creation
When the concept has been developed, when marketing seems to be feasible
and the product financially viable, a prototype of the product is created. The prototype is
then presented to its target market for comments on which adjustments and
enhancements should be done.
7. Test Marketing
The product is then launched in a small geographical are to test the
components of the marketing mix. There may be a need to adjust any of the marketing
mix components before it is launched in a larger scope.
8. Commercialization
This is when the product is fully launched to the entire target market either
nationally or internationally. It is expected that the stages of the new product
development, if fully observed, can merit market acceptance of the product.
9. Evaluation
This is the stage wherein the company will know whether the product has gained market
acceptance; hence, if production will be continued or be stopped.

Figure 5.3 Flowchart of New Product Development Process

 Checklist for New Product Appraisal
A company should be able to assess the product-company-market fit of a new product
if it can favorably answer the following questions (adapted from Shoemaker et al. 2007):
• Is the product compatible with the current product line?
• Do we have the know-how and appropriate skills?
• Will it be stable?
• Will the target market grow?
• What is the size of the target market?
• How can we reach the target market?
• What is the price-value relationship?
• How will we fare against competitors?
• Will there be loyalty impact?
• How is the product different from other products in the market?
• What are the copy possibilities?
• What is the product’s market life?
• How is the customer acceptance?
• Is marketing made easy?
• What are measures of success?
• Is there capital available?
• What are the continuing costs?
• What is the speed of Return on Investment?
• What are the profit margins?
• What is the expected impact on the current consumers?

CHAPTER SUMMARY
• The tourism product is a conglomeration of different products and services both
from the public and private sectors. It also covers products and services in the transport,
accommodation, food, and beverage, MICE, and attraction sectors.
• The tourism product is not just a single product; it is an overall experience.
• The components of the tourism product include the destination attractions,
destination facilities, accessibility, image, and price.
• Product types include core, facilitating, supporting, and augmented products.
• Factors to consider in purchasing tourism products include accessibility,
atmosphere, customer interaction with the service system and with other customers,
and the involvement of customers in co-producing products.
• The product life cycle and the destination life cycle help a marketer understand
how the product can remain competitive in the market and apply interventions
depending on what stage the product is currently on.
• The stages of the product life cycle include product development, introduction,
growth, maturity, decline, and phase-out.
• Butler’s destination life cycle has six discrete stages: exploration, involvement,
development, consolidation, stagnation, and decline.
• Product development planning involves idea generation, idea screening, concept
development, and testing, marketing strategy, business analysis, prototype creation,
test marketing, commercialization, and evaluation.

SELF- PROGRESS TEST

Guide Questions:
1. Using an example from the airline industry, explain the concept of core,
supporting, facilitating, and augmented products.
2. What are the components of the tourism product? Discuss each component and
make a personal assessment of how the Philippine fares in each component.
3. How does a company keep its product from going into the decline stage?
4. If you were the product development manager of a big hotel chain, where will you
generate ideas for new products?
5. Do you think the Philippines can come up with destinations, attractions, products,
and services that are par with the rest of the world? What products and services can
you recommend that the country should develop?

Quiz Master 04
____________ 1) Defined as anything that can be offered to a market that might satisfy
a want or need.
_____________ 2) Product can be classified as tangible and ____.
_____________ 3) Define as a collection of attractions, which is the element of the
tourism product that pulls people to a destination.
___________ 4) In tourism marketing, products can be classified as core product,
facilitated product, supporting product and ___________.
___________ 5) It can be defined as comprising only those attractions, activities and
facilities that are specifically provided for the visitor.
Answer to Quiz Master
1. Product
2. Intangible
3. Destination
4. Augmented Product
5. Product Development

Suggested Group Activity:

o Product Development has been one of the major activities in doing product
enhancement and innovation. Most of the school and universities offer it as a separate
subject. In this activity, you will be task to create a simple product development that you
believe will help the hospitality and tourism sectors. Use the following guide below about
the flow of activity.
o Product Name
o Product Objectives
o Product Description
o Product Details
o Product Picture (Prototype)
o Target Market
o Factors to consider in choosing the Target Market
o Possible Profit/Margin per Product
 REFERENCES
Books
Bowen, Kotler, Make 2014. Marketing for Hospitality and Tourism. 6th Edition. Pearson
Education Limited
Gatchalian-Badilla, Maricel 2015. Tourism Marketing. 1st Edition. REX Book Store
Hudson, Simon 2008. Tourism and Hospitality Marketing: A Global Perspective. 1st
Edition. Sage Publication Inc.
Internet Sources
American Marketing Association. 2013. “Definition of Marketing”
http://www.marketingpower.com/AboutAMA/Pages/DefinitionofMarketing.aspx.

Prepared by:

Prof. Jefferson S. Marcelo

Course Instructor/HM Society Adviser

Noted by:

Prof. Ravenal O. Dela Fuente

HM Program Chair

Approved by:

Prof. Rumar R. Abaigar

College Dean