Marketing of Hospitality

8/13/2019 Marketing of Hospitality

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Marketing of Hospitality

REJITHA C R


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UNIT III

Marketing of hospitality :- Perspectives

of Tourism, Hotel and Travel services -

Airlines, Railway, Passenger andGoods Transport - Leissure services.


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HOSPITALITY MARKETING

ORIGIN:

The word HOSPITALITY isderived from the Latin hospes, which is

formed from hostis, which originally

meant a STRANGER.


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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 positionthat deals with tourists.


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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.


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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.


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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


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Longstanding relationship with its

customers

Transaction- based information system

to Relationship-based information

system

Network membership than self

contained business to face future

challenges


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Hospitality marketing

orientation

Hospitality services marketing are

highly dynamic in nature.

It is involved more with providing

services to customers than supplying

goods.


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Supplier/ Provider Orientation

Sales Orientation Promotional Orientation

Marketing Orientation


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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.


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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.


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Promotional Orientation

Importance to the promotional activities

Service provider feels that forceful selling

does not work unless promotional

activities are undertaken to buildawareness 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


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Traditional marketing orientation

Vs.

Modern marketing orientation


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ProviderStrengths

StartBusiness

ProvideService

GuestReaction

Identify Customerneeds, wants

MobilizeResources

Identify Targetmarket

Provide service

Guest reaction

Feedback


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Importance of Hospitality

Marketing

Encompasses a wide range of activities

related to travel

Service oriented business providing awide variety of services from food,

accommodation, shopping,

entertainment to the travelers


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Assignment

Briefly describe the characteristics ofservices on the basis of hospitality

services with examples and what are its

means of implications and ways toovercome 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)


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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)


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There are three types of marketing that

must be

External marketing

Interactive marketing

Internal marketing


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COMPANY

EMPLOYEES CUSTOMERS

INTERNAL MARKETING EXTERNAL MARKETING

INTERACTIVE MARKETING

Service triangle

M i C t E t ti


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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


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Hence, the service provider should set

an optimum level of service

expectation for its customer as very

high expectation can lead to highlydissatisfied customer

Customers derive maximum

satisfaction out of unprompted andunsolicited employee actions.


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TYPE OF SERVICE PRINCIPAL EXPECTATIONS

HOTELProvide a Clean RoomProvide a secure room

Treat me like a Guest


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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.


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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 managementexpectations.

If the guest expectations is less or

equals the service provider'sexpectations then the service encounter

is successful. If not there comes a GAP


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At the time of checking into a hotel, the following

service encounters might take place:

Arrival of guest at the entranceGreeting

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.

M k i Mi f


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Marketing Mix of

Hospitality Services

Product

Price

Promotion Place

People

Physical evidence Process


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HOTEL MARKETING


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Hotel Industry

Hotels are a major service industry inIndia

A number of international hotel chains

have come to India, eitherindependently or with a tie-up with an

Indian partner

The GOIs tourism department has alsorealized their importance and started

classifying them on the basis of the

standard of their facilities


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Some basic assumptions

regarding hotel marketing

Hotel customers are referred to as

guests as they receive hospitality by

way of accommodation, food and drinkor all for which they pay

A hotel is immovable

Some hotel facilities are quicklyperishable


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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.


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Hotel Market Segments

Independent Guests

Groups

Special groups


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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.


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The accommodation component of

the hotel product requires a clear

identification of the type of clientele

the hotel wishes to attract andserve.

The food and beverage component

of the basic hotel product offersgreater scope for flexibility.


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Pricing

It is difficult for a hotel to exercisedifferential pricing except for certain

specific purposes.

These may typically be differentials intariffs and prices during the peak and lean

seasons.

However, by and large, hotel pricing tendsto follow or conform to pricing standards

applicable to the particular city area or

resort; to competitive hotels and so on.


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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.


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Cooperative distribution:

Which operates in passing on traffic

overflow from one hotel to its neighbour,

on a reciprocal basis, without affectingregular business with the main

intermediaries in the distribution system

Franchising


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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.


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The direct communications are through

Personal selling

Advertising

Sales promotion

Direct mail

Indirect communications for hotels

include

public relations

publicity


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The major elements of the hotel

communication mix are

Mass media advertising

Direct mail

Sales promotion

Public relations

Publicity

Marketing of Hospitality

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