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TOURISM AND HOSPITALITY
• There are two main industries that make up the travel industry:
Tourism & Hospitality.
• Tourism is described as an activity that is serviced by a number of
industries, such as
hospitality and transport.
• There are three principle strands of locations for tourist activity
within the industry:
1. Domestic tourism: concerned with people taking holidays, short
breaks and trips in their own country.
1
TOURISM AND
HOSPITALITY…
2. Outbound tourism: concerned with people leaving their
country of residence to visit another country.
3. Inbound tourism: concerned with people entering a country
other than their own for holidays and trips.
2
TOURISM AND
HOSPITALITY…• Hospitality term is being used more often to refer to ‘hotel and
catering’ (accommodation, food and beverage services).
• These three services (accommodation, food and beverage) can be
offered independently or in combination.
• According to CATHSSETA hospitality industry covers catering at
conferences and meetings, hospitals, prisons, mines, school and
university hostels, and company canteens.
3
TOURISM MARKETING
• Tourism marketing is a new phenomenon that has developed
during the last decade.
• Tourism is categorised as part of the services sector of an
economy.
• The major difference between marketing in tourism and
marketing in other service sectors is that tourism marketer is
competing for the consumer’s spare time and disposable
income.
4
SPECIAL CHARACTERISTICS OF
SERVICES
• ‘Good are produced. Services are performed or provided.’
(Rathmell, 1974:1)
1. Intangibility: service offering cannot be inspected or tested in
advance and cannot be brought to the consumer. Consumer are
unsure of exactly what they are purchasing.
2. Inseparability: Services are sold first and then created and
consumed at the same time. The production and consumption of
tourism offerings are inseparable.
5
SPECIAL CHARACTERISTICS OF
SERVICES…
• The servuction model (Service production=servuction)
• There are four factors that influence customer’s service
experiences:
(a) Servicescape: The physical environment in which services
are delivered, and in which consumers and employees
interact.
(b) Contact personnel
(c) Other customers
(d) Organisations and systems
6
SPECIAL CHARACTERISTICS
OF SERVICES…
• Variability or heterogeneity: Tourism offerings are different,
they varies. Therefore, a service performance is unique to
each consumer.
• Perishability: Tourism offerings cannot be saved, stored,
resold or returned. They are perishable. Therefore,
perishability describes offerings that cannot be saved, stored,
resold or returned.
7
SPECIFIC FEATURES OF
TOURISM SERVICES
• Non-ownership
• Seasonality
• Fixed location
• Loyalty
• High costs
• Distribution channels
• Interdependence of tourism offerings
• External shocks and events
8
MARKETING MANAGEMENT
STRATEGIES FOR TOURISM
BUSINESSES
• Tangibilising the offerings
• Managing employees
• Managing perceived risk
• Managing supply and demand
• Managing consistancy
9
SERVICES MARKETING
TRIANGLE
Organisation
Internal Marketing External Marketing
(Enabling the promise) (Setting the promise)
Employees Consumers
Interactive Marketing
(Delivering the promise)
10
TOURISM MARKETING
MANAGEMENT APPROACHES
• Use of the extended marketing mix.
• Greater significance of word of mouth communication.
• More use of emotional appeals in promotions.
• Stronger emphasis on personal selling.
• Increased importance of relationships with suppliers, carriers
and intermediaries.
11
THE TOURISM MARKETING
ENVIRONMENT
• The microbusiness environment
1. Marketing service agencies
2. Competitors
3. Suppliers
4. Consumers
5. Financial companies
6. Marketing intermediaries
7. Publics
8. Transport
12
Major competitive forces in
the microenvironment
• REFER TO PAGE 54
13
THE MACROBUSINESS
ENVIRONMENT
• Political and legal (Sanctions, increased number of airlines, SA
as a tourist destination, increased co-operation & co-
ordination in SADC)
• Socio-cultural and Demographic (Fashion & tastes, changes in
lifestyle, the role of women in society, crime & prostitution,
the growth in subcultures, age & race structure, geographic
shifts in populations, the family life cycle model, education,
household size, birth rates and death rates, and the living
standards measure)
• Natural ( The environment, health issues, & natural disasters)
• Technological (The company, competitors & consumers)
• Economic 14
Global, regional, national and
local flows of tourists.
• Refer to page 72-80.
15
ENVIRONMENTAL SCANNING
• A SWOT analysis: used in the marketing stage with the aim of
highlighting the environmental factors that have either
positive or a negative impact on a tourism organisation.
• A SWOT analysis forms part of a marketing audit.
• As part of this analysis, the marketer should:
1. Identify positive and negative influences.
2. Control those influences that can be controlled.
3. Use those influences that can contribute to competitive
advantage.
4. Overcome or defend against potentially damaging
influences.
16
ENVIR. SCANNING…
• Environmental scanning is used to do the following:
1. Scanning macroenvironments for warning signs and
environmental changes that will affect the organisation.
2. Monitoring environments for specific trends and patterns.
3. Forecasting future directions of environmental changes.
4. Assessing current and future trends in terms of the effect
such changes could have on the organisation
BENEFITS OF AN ENVIR. SCAN:
1. Increased managerial awareness of envir. influences.
2. The ability of management to focus attention on influences
and strategic change.
3. Improved decision-making
4. The ability to anticipate opportunities and threats, and to
devise appropriate responses.
17
ENVIRONMENTAL
APPROACHES
• The irregular approach :
-This consist of ad hoc studies that are done when they are
needed, they are carried out when specific events that may
affect the tourism organisation arise.
• The regular approach :
-It focuses on the periodically updated studies of particular
events of special interest.
• The continuous approach:
- This approach focuses on regularly monitoring a variety of
environmental components and provides inputs to the standard
marketing planning process.
18

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Tourism and hospitality

  • 1. TOURISM AND HOSPITALITY • There are two main industries that make up the travel industry: Tourism & Hospitality. • Tourism is described as an activity that is serviced by a number of industries, such as hospitality and transport. • There are three principle strands of locations for tourist activity within the industry: 1. Domestic tourism: concerned with people taking holidays, short breaks and trips in their own country. 1
  • 2. TOURISM AND HOSPITALITY… 2. Outbound tourism: concerned with people leaving their country of residence to visit another country. 3. Inbound tourism: concerned with people entering a country other than their own for holidays and trips. 2
  • 3. TOURISM AND HOSPITALITY…• Hospitality term is being used more often to refer to ‘hotel and catering’ (accommodation, food and beverage services). • These three services (accommodation, food and beverage) can be offered independently or in combination. • According to CATHSSETA hospitality industry covers catering at conferences and meetings, hospitals, prisons, mines, school and university hostels, and company canteens. 3
  • 4. TOURISM MARKETING • Tourism marketing is a new phenomenon that has developed during the last decade. • Tourism is categorised as part of the services sector of an economy. • The major difference between marketing in tourism and marketing in other service sectors is that tourism marketer is competing for the consumer’s spare time and disposable income. 4
  • 5. SPECIAL CHARACTERISTICS OF SERVICES • ‘Good are produced. Services are performed or provided.’ (Rathmell, 1974:1) 1. Intangibility: service offering cannot be inspected or tested in advance and cannot be brought to the consumer. Consumer are unsure of exactly what they are purchasing. 2. Inseparability: Services are sold first and then created and consumed at the same time. The production and consumption of tourism offerings are inseparable. 5
  • 6. SPECIAL CHARACTERISTICS OF SERVICES… • The servuction model (Service production=servuction) • There are four factors that influence customer’s service experiences: (a) Servicescape: The physical environment in which services are delivered, and in which consumers and employees interact. (b) Contact personnel (c) Other customers (d) Organisations and systems 6
  • 7. SPECIAL CHARACTERISTICS OF SERVICES… • Variability or heterogeneity: Tourism offerings are different, they varies. Therefore, a service performance is unique to each consumer. • Perishability: Tourism offerings cannot be saved, stored, resold or returned. They are perishable. Therefore, perishability describes offerings that cannot be saved, stored, resold or returned. 7
  • 8. SPECIFIC FEATURES OF TOURISM SERVICES • Non-ownership • Seasonality • Fixed location • Loyalty • High costs • Distribution channels • Interdependence of tourism offerings • External shocks and events 8
  • 9. MARKETING MANAGEMENT STRATEGIES FOR TOURISM BUSINESSES • Tangibilising the offerings • Managing employees • Managing perceived risk • Managing supply and demand • Managing consistancy 9
  • 10. SERVICES MARKETING TRIANGLE Organisation Internal Marketing External Marketing (Enabling the promise) (Setting the promise) Employees Consumers Interactive Marketing (Delivering the promise) 10
  • 11. TOURISM MARKETING MANAGEMENT APPROACHES • Use of the extended marketing mix. • Greater significance of word of mouth communication. • More use of emotional appeals in promotions. • Stronger emphasis on personal selling. • Increased importance of relationships with suppliers, carriers and intermediaries. 11
  • 12. THE TOURISM MARKETING ENVIRONMENT • The microbusiness environment 1. Marketing service agencies 2. Competitors 3. Suppliers 4. Consumers 5. Financial companies 6. Marketing intermediaries 7. Publics 8. Transport 12
  • 13. Major competitive forces in the microenvironment • REFER TO PAGE 54 13
  • 14. THE MACROBUSINESS ENVIRONMENT • Political and legal (Sanctions, increased number of airlines, SA as a tourist destination, increased co-operation & co- ordination in SADC) • Socio-cultural and Demographic (Fashion & tastes, changes in lifestyle, the role of women in society, crime & prostitution, the growth in subcultures, age & race structure, geographic shifts in populations, the family life cycle model, education, household size, birth rates and death rates, and the living standards measure) • Natural ( The environment, health issues, & natural disasters) • Technological (The company, competitors & consumers) • Economic 14
  • 15. Global, regional, national and local flows of tourists. • Refer to page 72-80. 15
  • 16. ENVIRONMENTAL SCANNING • A SWOT analysis: used in the marketing stage with the aim of highlighting the environmental factors that have either positive or a negative impact on a tourism organisation. • A SWOT analysis forms part of a marketing audit. • As part of this analysis, the marketer should: 1. Identify positive and negative influences. 2. Control those influences that can be controlled. 3. Use those influences that can contribute to competitive advantage. 4. Overcome or defend against potentially damaging influences. 16
  • 17. ENVIR. SCANNING… • Environmental scanning is used to do the following: 1. Scanning macroenvironments for warning signs and environmental changes that will affect the organisation. 2. Monitoring environments for specific trends and patterns. 3. Forecasting future directions of environmental changes. 4. Assessing current and future trends in terms of the effect such changes could have on the organisation BENEFITS OF AN ENVIR. SCAN: 1. Increased managerial awareness of envir. influences. 2. The ability of management to focus attention on influences and strategic change. 3. Improved decision-making 4. The ability to anticipate opportunities and threats, and to devise appropriate responses. 17
  • 18. ENVIRONMENTAL APPROACHES • The irregular approach : -This consist of ad hoc studies that are done when they are needed, they are carried out when specific events that may affect the tourism organisation arise. • The regular approach : -It focuses on the periodically updated studies of particular events of special interest. • The continuous approach: - This approach focuses on regularly monitoring a variety of environmental components and provides inputs to the standard marketing planning process. 18