Marketing of Hospitality

REJITHA C R

UNIT III
Marketing of hospitality :- Perspectives of Tourism, Hotel and Travel services Airlines, Railway, Passenger and Goods Transport - Leissure services.

HOSPITALITY MARKETING
ORIGIN:
The word HOSPITALITY is derived from the Latin hospes, which is formed from hostis, which originally meant a STRANGER.

 Hospitality refers to the reception and entertainment of guests, visitors or strangers with liberality and goodwill. Hospitality frequently refers to the hospitality industry jobs in hotels, restaurants, casinos, catering, resorts, clubs and any other service position that deals with tourists.

 The concept of Hospitality Services, also known as accommodation sharing, hospitality exchange and home stay networks, refers to centrally organized social networks of individuals who trade accommodation without monetary exchange.

DEFINITION
A total system designed to plan, price, promote, and make available to selected markets, hospitality products and services in the form of benefits and experiences that create satisfied guests and achieve organizational objectives.

Transition of Hospitality Marketing

Product-centered outlook to market centered outlook Marketer concentrates on competition rather than negotiation Resource accumulation to resource management Today, opportunity as learning experience

 Longstanding relationship with its customers Transaction- based information system to Relationship-based information system Network membership than self contained business to face future challenges

Hospitality marketing orientation

Hospitality services marketing are highly dynamic in nature. It is involved more with providing services to customers than supplying goods.

Supplier/ Provider Orientation Sales Orientation Promotional Orientation Marketing Orientation

Supplier/ Provider Orientation

Situation where the market demand is higher or there is a scarcity of resources, provider orientation is a better option. As per this approach, industry focuses on internal operations, activities and procedures Guests are expected to adjust to the hospitality offerings.

Sales orientation
Believes in cut-throat competition and concentrates on forceful sales through competitive pricing Service provider does not bother about the profits. Lack of standardization of products and services.

Promotional Orientation
Importance to the promotional activities Service provider feels that forceful selling does not work unless promotional activities are undertaken to build awareness and image of the service Service will not survive without promotional activities Concept ignores the importance of guest needs and wants and focuses more on sales volume

Marketing orientation (Customer orientation)

Focuses on the needs and wants of the guests in hospitality services Proper survey regarding guest preferences and tastes are conducted before providing services Based on the collected information, services are developed and provided More popular due to the competition More flexible, change-oriented and responsive to markets

Traditional marketing orientation Vs. Modern marketing orientation

Identify Customer needs, wants

Provider Strengths Start Business Provide Service Guest Reaction

Mobilize Resources

Identify Target market

Provide service

Guest reaction

Feedback

Importance of Hospitality Marketing

Encompasses a wide range of activities related to travel Service oriented business providing a wide variety of services from food, accommodation, shopping, entertainment to the travelers

 It is increasingly becoming important to the economic well being of the society Ushers changes in technology, socioeconomic environments, Lifestyles and rising guest expectations The hospitality industry gains its importance as it brings in foreign exchange earnings to the country by promoting its natural resources and destinations

Assignment
Briefly describe the characteristics of services on the basis of hospitality services with examples and what are its means of implications and ways to overcome the implications of service characteristics?
Not more than five pages Last date: 22.07.2013 (Monday) at 2.00 pm In the assignment format (Hard copy)

Types of marketing in service industries

There are 3 interlinked groups that work to develop, promote and deliver services.
The company The customers The providers(whoever it is that actually deliver the service to customers)

 There are three types of marketing that must be

External marketing Interactive marketing Internal marketing

Service triangle
COMPANY

INTERNAL MARKETING

EXTERNAL MARKETING

EMPLOYEES INTERACTIVE MARKETING

CUSTOMERS

Managing Customer Expectations and Perceptions of Hospitality Services One should understand that it is highly difficult for any company or service firm to meet all expectations of all of its customers. Expectations of every customer are changing and increasing. A firm should look to the determinants of expectations and check the firms capabilities

 Hence, the service provider should set an optimum level of service expectation for its customer as very high expectation can lead to highly dissatisfied customer Customers derive maximum satisfaction out of unprompted and unsolicited employee actions.

TYPE OF SERVICE

PRINCIPAL EXPECTATIONS

HOTEL

Provide a Clean Room Provide a secure room Treat me like a Guest

PROBLEM

EXPECTATION VALUE

POTENTIAL GAP

SOLUTION

RISK LEVEL OF SATISFACTION

SACRIFICE

Hospitality Service Encounter

Hospitality service encounter is referred to as an interaction between hospitality service provider and guests. The success or failure of such an encounter depends on factors like attitudes, skills, expectations, desires, and personalities.

 The guests come with a whole lot of expectations about the quality of service and the service provider brings human resource, training, and other resources along with management expectations. If the guest expectations is less or equals the service provider's expectations then the service encounter is successful. If not there comes a GAP

 At the time of checking into a hotel, the following service encounters might take place: Arrival of guest at the entrance Greeting Reception Luggage handling Trip to room Entry into the room Hospitality encounters may be simple or complex, standard or custom, low-tech or high-tech, remoter or friendly, low or high skill, frequent or occasional. The service provider must identify the critical components of each of the encounter.

Marketing Mix of Hospitality Services

Product Price Promotion Place People Physical evidence Process

HOTEL MARKETING

Hotel Industry
Hotels are a major service industry in India A number of international hotel chains have come to India, either independently or with a tie-up with an Indian partner The GOIs tourism department has also realized their importance and started classifying them on the basis of the standard of their facilities

Some basic assumptions regarding hotel marketing

Hotel customers are referred to as guests as they receive hospitality by way of accommodation, food and drink or all for which they pay A hotel is immovable Some hotel facilities are quickly perishable

 The capital investment in a hotel industry is generally high and the gestation period for adequate returns on the investment is normally long The demand for hotel facilities has a variety which a few manufactured products have.

Hotel Market Segments

Independent Guests Groups Special groups

Hotel Products
The hotel product has a number of components like accommodation, food and beverage, recreation and health, shops, car rental service. But of all these, the accommodation and food and beverage components are the primary ones.

 The accommodation component of the hotel product requires a clear identification of the type of clientele the hotel wishes to attract and serve. The food and beverage component of the basic hotel product offers greater scope for flexibility.

Pricing
It is difficult for a hotel to exercise differential pricing except for certain specific purposes. These may typically be differentials in tariffs and prices during the peak and lean seasons. However, by and large, hotel pricing tends to follow or conform to pricing standards applicable to the particular city area or resort; to competitive hotels and so on.

Distribution
The hotel does not journey to its customers to consummate a sale. It is the reverse that takes place- customers come to the hotel. Hotel distribution relies on interdependence with other industries serving travelers and tourists such as the transportation industry, travel agents and tour operators, shopping and entertainment providers.

 Cooperative distribution:
Which operates in passing on traffic overflow from one hotel to its neighbour, on a reciprocal basis, without affecting regular business with the main intermediaries in the distribution system

Franchising

Communications
Communication element of the hotel marketing mix is most important as it is directly responsible for bringing customers to the hotel. Hotel marketing communications are either direct or indirect.

 The direct communications are through

Personal selling Advertising Sales promotion Direct mail

Indirect communications for hotels include

public relations publicity

 The major elements of the hotel communication mix are

Mass media advertising Direct mail Sales promotion Public relations Publicity