CHAPTER 6

PROMOTING TO

TARAGET MARKETS

LESSONS:

6.1 CUSTOMER DEMOGRAPHICS

6.2 THE BUSINESS TRAVELER

6.3 THE LEISURE TRAVELER

6.4 THE INTERNATIONAL TRAVELER

Goals:

Define Target MarketExplain role of demographicsDefine Business TravelerDescribe trends affecting travelersDefine Leissure TravelDescribe trends in leisure travelDescribe importance of international travel

Hotel and motels must determine whom they wish to have as their clients and study these target markets to be successful.

TARAGET MARKET

TARAGET MARKET IS:

The specific group of people that a business intends to reach for customers You must know the needs and wants of the

group You must know their preferences and specific

information about the group

Demographics:

Specific information about a target market which includes: Customers’ age Gender Marital status Income Educational Level Attitudes

Niche Marketing

Involves selling goods and services to a smaller, uniquely defined group Examples:

Business travelers Leisure travelers Sports travelers Families Senior Citizens

(most sought after group) Ethnic groups

Market Segment

Group within a larger market who share one or more characteristics Example

There are millions of country music fans but there is a smaller market segment that just likes to go to Branson, Missouri for the shows

Five Elements Of Market Segmentation

1. Geographic Segmentation: dividintg markets into physical locations such as South, Midwest, West Coast, East Coast

2. Demographic Segmentation: focuses on income, profession, gender, education level

3. Psychographics: focuses on attitudes and lifestyles-ex. fans of athletic teams, gamblers, theater goers, stock car racing

Five Elements Of Market Segmentation

4. Product Usage: customers that use a particular product or service

5. Benefits Derived: the value people attach to a product or service, such as the enjoyment they get from staying at the beachfront hotel instead of inland or the pleasure they get when eating at a restaurant instead of a fast food outlet

More Demographics

Seniors are a growing segment of hospitality market, many are retired business executives that have money

Seniors like travel and dining

They like to travel with people their own age

Seniors are made up of more women than men (4 to 1)

More Demographics

Baby Boomers: Born in the 50s and early 60s, raised in more prospereous times, use credit, huge potential market, seek expensive hospitality venues, more luxury

More Demographics

Interactive Marketing: like a high-tech Yellow page Directory

Involves putting information about local history, culture, restaurants, museums, and other attractions on the guest room television

The guest selects what ads they want to see, what they want to know about in the area

The Business Traveler

Travel to meetings, conferences, and trade shows

Often use airlinesThis type of travel

is at an all time high

Business Traveler Trends

Take about 10 trips per yearAverage stay of 4 daysOnly about 15% shopped

for travel dealsOften took spouse with

themUsually have the latest

technology with them

Traveler Trends

Health Trend: “staying healthy” is high priority, exercise areas are important, spas, recreational facilities

Dining Styles: good dining is a favorite reason to travel, also alcoholic drinks

More Female Executives: nearly 50% of business travelers are women, very few women travel with their children

Women Travelers: What they want

Responsive service from the hotel Less night travel Pay more attention to hotel security More often order room service Prefer separate vanities, make-up

mirrors Use hair dryers more Use airport shuttles more Tour cities on trip more often than

males

The Leisure Traveler

Travel taken solely for vacation or pleasure

Examples: Family vacations Weekend getaways Cruises Guided tours Ballgames

The Leisure Traveler

Adventure Travel Hard Adventure Travel: requires

physical strength and endurance for such things as whitewater rafting, snorkeling, scuba diving, off-road biking

Soft Adventure Travel: includes activities that require less rigorous exertion, such as a cruise ship tour of Alaska, birdwatching in Texas

The Leisure Traveler

Casinos Gaming industry is large and

growing Sometimes set up on boats Raise millions of tax dollars for

schools, roads, and other public works

Provides many jobs Las Vegas is the premier casino

city Have added children attractions

The Leisure Traveler

Preferences: Hotels with basic cable

and irons with ironing boards

In-room coffee makers Premium TV channels Pay-per-view TV USA Today Newspaper

Senior Travelers

Soon will be the largest target market They have greater disposable incomes They have more time to travel Half of the Baby-Boomer

generation will live to be 100 Seniors seek experiences that are

educational and are an adventure They expect high-quality facilities

and services

Alternative Leisure Lodging

Timeshares: Lodging properties owned by

multiple families and individuals

Available to each owner for one week during the year

Property taxes and interested paid on Timeshare loans are tax deductible

Partnerships allow you to trade for different locations

Incremental Revenue

Sales to new customers outside the normal distribution channel

Prime example: Internet customers on Priceline.com and Cheap Tickets which sell more than 20,000 airline tickets a day that would otherwise go unsold

International Traveler

International Travel is on the riseThe number of Americans

traveling internationally is almost 100 million

Average spending is $3,500 eachMust have passports, visas,

immunization records, international driving permits, and other documents

International Traveler

Usually stay longer Expect to pay higher prices Often want long-term

commitments from facilities for return trips

Usually expect earlier check-in and later check-out times

Appreciate special touches that make them feel at home-special meals-beverages

Research

You must learn as much as possible about your destination when planning a trip to avoid problems

Travel Agents

More than 200,000 U.S. travel agents account for almost 80% of the airline, cruise, and package tour sales

They book more than 50% of all car rentals

Types of Travel Agents

Full-Service: make money on commissions

Specialists or Destination agents: focus on travel niche such as trip to on country

Rebaters: return part of commission to traveler to give them lowest price

Fee-based: charge clients a fee

Insurance

Most think it’s a good idea Flight insurance covers death and injury Baggage and personal effect insurance

covers damage to your stuff Trip cancellation and interruption

insurance applies to charter and package tours that are canceled

Automobile insurance is a good idea if you drive a rental car outside the U.S.

Personal health and accident can cover you outside the U.S.- your regular health insurance may not be good in another country

Making Reservations

Booking reservations through an agent usually does not increase cost

Agents usually make their money from commissions

Rates vary greatly between peak and off-peak seasons

When at a hotel, the Concierges can provide personalized service, travel information, transportation, restaurant and entertainment suggestions