Chapter

5

THE TOURISM AND HOSPITALITY PRODUCT
Prepared by Simon Hudson, Haskayne School of Business University of Calgary

5-1

The Tourism and Hospitality Product

Chapter

5

Topics
• Components of the tourism and hospitality product • Various levels of products or services • Tools used in product planning • Packaging and branding • New product development in the tourism and hospitality sector
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5-3 . – Examples • airline or train = transportation • hotel = shelter and rest.The Tourism and Hospitality Product Chapter 5 Three Levels of Product: Core • Core product – the basic need function served by the generic product.

5-4 . design. brand name.The Tourism and Hospitality Product Chapter 5 Three Levels of Product: Tangible • Tangible product – specific features and benefits residing in the product itself – Examples: • styling. quality. etc.

after-sales guarantees.The Tourism and Hospitality Product Chapter 5 Three Levels of Product: Augmented • Augmented product – the add-ons that are extrinsic to the product itself but which may influence the decision to purchase – features may include credit terms. car parking etc 5-5 .

The Tourism and Hospitality Product Chapter 5 Three Levels of Product 5-6 .

The Tourism and Hospitality Product Chapter 5 Elements of Physical Evidence 5-7 .

and any tangible components that facilitate performance or communication of the service 5-8 .The Tourism and Hospitality Product Chapter 5 Physical Evidence and the Servicescape • Servicescape – the environment in which the service is delivered and in which the firm and customer interact.

The Tourism and Hospitality Product Chapter 5 Response to Servicescapes • Employees and customers in service firms respond to dimensions of their physical surrounding in three ways: – cognitively – emotionally – physiologically • Those responses influence their behaviours in the environment 5-9 .

The Tourism and Hospitality Product Chapter 5 Product Planning • Product mix – portfolio of products that an organization offers to one market or several – five basic market/product options exist 5-10 .

The Tourism and Hospitality Product Chapter 5 Five Product Options 1) Several markets/multi-product mixes for each Example: – mass tour operators that offer a wide range of multi-destination packages to a variety of market segments 2) Several markets/single product for each Example: 5-11 – airlines with a product for business and economy class travellers continued. ...

a heliskiing operator targeting the very rich 5-12 . educated market 5) Single market/single product Example: .national tourist organization promoting a country 4) Single market/multi-product mix Example: .The Tourism and Hospitality Product Chapter 5 Five Product Options 3) Several markets/single product for all Example: .specialist tour operator with a range of cultural tours aimed at a wealthy.

The Tourism and Hospitality Product Chapter 5 Feature and Benefits Analysis 5-13 .

The Tourism and Hospitality Product Chapter 5 Product Life Cycle 5-14 .

The Tourism and Hospitality Product Chapter 5 Positioning • The objective is to create a distinctive place in the minds of potential customers • Four key positioning strategies 5-15 .

families with children under ten. etc. • By price and quality • a premium product such as a room at the Four Seasons Hotel • Relative to a product class • winter sports tourism category • Relative to competitors • Hertz Rental Car campaign “We try harder” 5-16 .The Tourism and Hospitality Product Chapter 5 Four Key Positioning Strategies • Relative to target market • business travellers.

a superior proposition that is distinctive from competitors and imparts meaning above and beyond the functional aspects • Snapshot: Chefs as Brands 5-17 .The Tourism and Hospitality Product Chapter 5 Branding • A brand offers the consumer relevant added value.

The Tourism and Hospitality Product Chapter 5 Advantages of Branding • helps reduce medium and long-term vulnerability to the unforeseen external events • reduces risk for the consumer at the point of purchase • facilitates accurate marketing segmentation by attracting some and repelling other consumer segments • provides the focus for the integration of stakeholder effort • strategic weapon for long-range planning in tourism 5-18 .

The Tourism and Hospitality Product Chapter 5 Brandicide • It has been suggested that companies can commit „brandicide‟ by stretching a well-known brand too far • Think of a brand that has done this. – What was it that killed it off? – Take a tourism brand you are familiar with and keep stretching it. • How far can you go? 5-19 .

The Tourism and Hospitality Product Chapter 5 Packaging • Packaging – the process of combining two or more related and complementary offerings into a single-price offering – customer benefits include: • • • • ability to budget for trips increased convenience greater economy opportunity to experience previously unfamiliar activities and attractions • opportunity to design components of a package for specialized interests. 5-20 .

packages are attractive for the following reasons: – improve profitability – smooth business patterns – allow joint marketing opportunities – effective tool to tailor tourism products for specific target markets 5-21 .The Tourism and Hospitality Product Chapter 5 Packaging and Tourism • For tourism operations.

The Tourism and Hospitality Product Chapter 5 Product Options in New and Existing Markets 5-22 .

The Tourism and Hospitality Product Chapter 5 New Service Development (NSD) Model 5-23 .

The Tourism and Hospitality Product Chapter 5 Examples of New Products • • • • • • 5-24 Gourmet holidays Mobile check in Smart glasses Flying casinos Branded hotel floors Iceberg tourism .

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