Marketing for Tourism and Hospitality industry

MARKET SEGMENTATION:
Market segmentation strategy plays an important role in the success of tourism marketing objectives. A
tourist market may be identified corresponding to each tourist product. In that sense, we can define market
isa set of actual and potential buyers of each product. There are five segmenting variables: Geographic,
Demographic, Geo-demographic, Psychographic and Behavioral (Kotler et al.2002). Bangladesh Parjaton
Corporation (BPC) formulates the policy to regulate the tourism industry. To segment the target market, it
emphasizes two variables that are (i) Demographic segmentation and (ii) Psychographic segmentation.
Demographic segmentations are usually large because in that segment tourist products can attract a limited
number of groups and age provides the biggest range of options for defining a large number of groups.
Psychographic segmentation provides us with in-depth information about tourists. By this segmentation we
understand about tourists’ personal interests, motivations, aspirations and emotions etc.(i)

Demographic segmentation for international tourists:

(i)Ethnic identity and nationality: Most of the tourists coming from Europe, South Asia, USA, Gulf
Cooperation Council Countries, East Asia and the Pacific Rim, USA, England, Australia and New Zealand
and others.
Age: Tourists groups are usually young and middle-aged people; sometimes families with children and even
retired people are coming too visited at different locations.
Family life cycle: Some Bangali UK and USA immigrants like to visit Bangladesh with their children to
familiar about culture and its heritage.
Sex: Men and women both equally like to visit Bangladesh.
Religion: Muslims, Buddhists’ and Christian pilgrims are interested in their concerned religious sites in
Bangladesh.
(ii)Psychographic segmentation for international tourists:
Actually, demographic segmentation scope is vast and easy to understand but the variable of psychographic
segmentation is so depth that is needed to explore. The living pattern, day-to-day activities and the
entertainment item consumed by the tourists is most important. For psychographic segmentation customers
special interests, hobby, opinions, and attitudes towards different types of vacations are important.
Therefore, is trying to segment the market on the basis of tourists’ psychographic characteristics but not
success. If they could differentiate among these segments, they would be able to select appropriate segments
and develop as well as implement marketing strategy for each selected target group.
TARGET MARKETING:
Target marketing involves evaluating each market segment’s attractiveness and selecting one or more
segments to enter. In that phase BPC concentrates its marketing effort on Beaches, Hills & islands, Forest
& Jungle, Historical places, Archaeological Sites and others.
MARKET POSITIONING:
According to kotler et al. (2003), positioning is the way the product is defined by tourists on important
attributes; it is the place the product occupies in tourists’ mind relative to competing products. It is difficult
to promote specific tourists’ products when that product has several attractiveness. That’s why BPC
promotes bundle of tourist’s products for the tourists. According to data of MoCAT, BPC consider four
major tourist’s products which have attractiveness and demand and added competitive advantage to
Bangladesh. Those products, won good positioning in the tourist’s mind in the Europe, South Asia, East
Asia and the Pacific Rim, USA, England, Australia and New Zealand and the products are as following:
1.Beaches
2.Forest, Hills and islands
3.Historical place
4.Archaeological Sites
1.Niche Market for Beaches:
The Beaches product assortment includes Patenga, Parki, Cox’s Bazar, Teknaf, Saint Martin Island and
Kuakata. Among these Cox’s bazaar, Teknaf and Saint Martin attract more local and foreign tourists. The
tourists who want to stay relaxed, rescue from mental problems, physical fitness for body disorders and
visit for open air are included in this target group.
2.Niche Market for Forest, Hills and Islands (Eco-tourism):
Hills and Islands includes Sundarban (the home of the majestic Royal Bengal tigers), Rangamati (the lake
district), Kaptai (the lake town),Bandarban (the roof of Bangladesh) and Khagrachhari (the hilltop town).
Tourists who are looking for nature and different cultures of different tribes’ people are included in this
target group. These sites covered tourists’ eco-tourism needs. So, Bangladesh eco-tourism met the
interest of target group.
3.Niche Market for Historical place:
Mostly attracted historical place includes National Museum, Central shahid Minar, Curzon Hall, Martyred
Intellectual Memorial, Baldha Garden, Suhrawardy Uddaan, World War II Cemetery, Old high Court
Building, Nator-Rajbari etc. Bangladesh has rich history about its heritage. Tourists who want to enrich
their knowledge about history are included in this target group.
4.Niche Market for Archaeological Sites:
Mostly attracted archaeological sites are Mainamati, Paharpur,Shait Gombuge Mosque, Kantajis Temple,
Lalbagh Fort, Sonargaon, Ahsan Manzil etc. Tourists (researchers and students) who want to enrich their
knowledge about archaeology are included in this target group. This product met the interest of the target
group.

Future Trends and Forecast in Hospitality &Tourism Industry

As a business owner, keeping an eye out for the latest trends can help you stay on top of all the changes in
the industry, events that impact on how you do business. No aspect of the industry is left untouched by the
COVID-19 pandemic, save for the basic principles of hospitality. Safe to say, today’s business models in
the sector look like entirely different animals from their predecessors and there are many more hospitality
trends, which you will find out new.
These are as follows
Online Communities:
Concerning the hospitality industry, online communities changed the way businesses in the hospitality field
interact with customers. Company websites, social media networks, and travel websites like TripAdvisor
contribute to hospitality facilities’ take on transparency, leading to an improvement in the quality of services
they offer. Online marketing also heavily relies on multi-user interactivity. Hence, reviews found on the
internet heavily affect a customer’s booking decisions. Word-of-mouth remains a powerful marketing tool
and combines with today’s digital platforms; customers can easily share their experiences in hospitality
facilities. For business owners, this means they can easily find unique selling points.
Sharing Economy:
The sharing economy is way past the experimental stage in the hospitality industry. It has been redefining
the industry and is expected to grow in the coming years. Derived from the notion that mutual parties can
share an unused asset or property, the sharing economy leverages technology to facilitate value exchanges.
This could be through peer-to-peer applications, collaborative platforms, or shared marketplaces.In the
sharing economy, you can easily coordinate transactions via the internet. Although this occurs among
private individuals, it has nonetheless created an economic impact for major and leading brands in
distinctive industries. Airbnb, Expedia, and other sharing economy platforms are currently providing new
hospitality experiences for customers.
Voice Search:
Voice search is the current trend that cuts across different industries. Technology, after all, tends to be
limitless in terms of capabilities. Amazon’s Alexa, Apple’s Siri, Google Assistant, and Microsoft’s Cortana
are the latest digital assistant technologies on the rise. Though many consider this AI to be in its early stages
of development, the model is based on conversational language. It aims to understand the intent and context
based on previous queries. Furthermore, it wants to achieve perfection in contemplating multiple steps and
queries, with more focus on actions, tasks, and transactions. In the hospitality industry, voice search is
increasingly transforming the booking process. Via smartphones and tablets, customers can now research
and book their holidays. By equipping your website with voice search capabilities, you can increase
conversions as it connects you to qualified leads.
Sustainability:
As we face more environmental issues each day, sustainability becomes a primary concern. Thus, a large
section of the hospitality industry participates in Go Green acts to lessen negative environmental impact.
This proved good for the planet and for businesses. It brings and attracts more hotel guests. Also, customers
are more willing to pay for products and services from companies with sustainability practices. A
sustainable business culture influences customers’ booking decisions. Studies also noted that younger
employees are more willing to work in industries whose focus is extended to the community’s development.
Virtual Reality:
Virtual reality (VR) transformed and enriched the hospitality industry. It is one of today’s biggest emerging
technology trends, with 57.4 million users in the United States alone (eMarketer, 2020). Thus, many
businesses incorporate VR for the various opportunities it creates. VR in the hospitality industry is applied
in travel experiences, hotel tours, and booking processes. High-quality VR headsets are now a mainstream
consumer product, thanks to the increased investments from the likes of Samsung, Facebook, and Google.
Along with augmented reality, VR allows customers to virtually experience a recreation of a hotel room or
explore nearby attractions.
Mobile Technology:
Hotels and resorts are now leveraging mobile platforms for their guest loyalty, company branding,
advertising, cross-selling, and marketing programs. Mobile apps are now a must-have for hotels and other
related businesses. Various hotel management software is also available on the market today.Mobile apps
in the hospitality industry have been tested and proven to deliver excellent customer experience. Mobile-
friendly websites and apps, as well as live and updated information, drive growth in the overall business.
Moreover, mobile technology bridges the gap between the customer and the hotel itself.
Personalized Guest Experience:
The struggle to attract, convert, and retain customers is always present in the hospitality industry.
Personalization of services is the latest development to transform the hospitality sector. Thus, going after
a personalized guest experience has become a powerful and transforming trend in the hospitality business.
With the diversity of the hospitality industry, the personalization of services was not possible until recently.
Capturing and using guest data for more relevant engagement can be a complicated task. But once done,
however, hotels realize it is well worth the effort.
A New Generation of Travelers:
While reports vary on traveler characteristics and demographics, they all agree on one thing: the new
generation is leading the pack in shaping the industry. Likewise, for hospitality businesses around the world,
change is the new norm. To keep the business stable, developments must be made to attract this new
generation of travelers. Industry leaders now carry the burden of understanding this new generation’s
characters and preferences, which seemed to have changed rapidly, from Millennials and now to the so-
called Generation Z. According to several reports, Generation Z is about to take over Millennials in
population numbers and their estimated buying power.
Global Tourism:
As countries start lifting travel restrictions and with hope spreading with the rollout of vaccines, we can
expect the tourism industry to benefit from the “revenge spending” spree that many consumers will
undertake. The industry will see a revival as customers start spending on things, they have been denied
during the lockdowns such as travel, dining-in at restaurants, and in-person entertainment (US Travel
Association, 2021). Of course, coordinated health protocols will still be in place to protect both travelers
and workers. Additionally, more countries and businesses will rely on technology (especially touchless
technology), affordable transportation, and offers that enrich travel experiences to revive and drive global
tourism in the time of the pandemic.
Smart Technology:
Technology revolutionizes many types of businesses, especially in the hospitality space where businesses
now need to rely on touchless sales points amid the pandemic. It not only offers a variety of cost savings
but also opens better revenue opportunities. Hotel technology covers operations, guest services, and
marketing, and it further allows hotel owners to achieve higher levels of profitability.Moreover, smart
technology enhances guest experiences. Occupancy sensors, for example, can better cater to guest needs,
and they can also automate guest interactions. This allows hotels to stay informed of their guests’
preferences and personalize their services for specific individuals based on the guest’s previous visits.
Online Travel Agents:
The hospitality business is also seeing a trend in online travel agents or OTAs. In the past decades, OTAs
merely handled organizing hotel accommodations. Now, OTAs are diversifying their businesses, expanding
into apartments and vacation rentals, as well as activities and tours, ridesharing, food delivery, and
restaurants. Popular mostly among Millennials, OTAs will continue to expand their role in travel in the
future. Online travel agents also benefit more from niche travel markets as well, such as culinary and
wedding vacations.
Big Data:
More on the technological side, hotels and other related businesses are grasping the concept of big data.
Big data, by definition, refers to an extremely large and varied set of data that businesses come across daily.
In the hospitality industry, these data sets are often about customer interactions and customer behavior. Big
data is now a key concept that those in the hospitality sector must be aware of. Moreover, it identifies
patterns and trends in the business. It also brings various benefits to a company. Among these are
improvements to revenue management, targeted marketing, customer experience, and additional service.
Questions:
1. Outline the marketing strategies for the Tourism and Hospitality industry.
2. Discuss the future trends in the Tourism and Hospitality industry.