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Chapter
THE TOURISM
ANDHOSPITALITY
PRODUCT
5
Prepared by
Simon Hudson, Haskayne School of Business
University of Calgary
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Chapter
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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Chapter
Three Levels of Product: Core
• Core product
– the basic need function served bythe generic product.
– Examples
• airline or train = transportation• hotel = shelter and rest.
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Three Levels of Product: Tangible
• Tang ible product
– specific features and benefitsresiding in the product itself
– Examples:
• styling, quality, brand name, design,etc.
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Chapter
Three Levels of Product:Augmented
• Augmented p roduct
– the add-ons that are extrinsic to theproduct itself but which may
influence the decision to purchase
– features may include credit terms,
after-sales guarantees, car parking
etc
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Three Levels of Product
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Elements of Physical Evidence
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Physical Evidence and theServicescape
• Servicescape
– the environment in which the service is
delivered and in which the firm and
customer interact, and any tangible
components that facilitate performance or
communication of the service
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Chapter
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
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Chapter
Product Planning
• Product mix
– portfolio of products that an organization
offers to one market or several
– five basic market/product options exist
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Chapter
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:
– airlines with a product for business and economy
class travellers continued...
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Five Product Options3) Several markets/single product for all
Example:
- national tourist organization promoting a country
4) Single market/multi-product mix
Example:
- specialist tour operator with a range of cultural
tours aimed at a wealthy, educated market
5) Single market/single product
Example:
- a heliskiing operator targeting the very rich
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Chapter
Feature and Benefits Analysis
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Chapter
Product Life Cycle
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Chapter
Positioning
• The objective is to create a distinctive
place in the minds of potential
customers
• Four key positioning strategies
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Four Key Positioning Strategies
• Relative to target market
• business travellers, 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”
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Branding
• A brand offers the consumer relevant
added value, a superior proposition
that is distinctive from competitors and
imparts meaning above and beyond
the functional aspects
• Snapshot: Chefs as Brands
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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
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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?
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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.
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Packaging and Tourism
• For tourism operations, 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
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Chapter
Product Options in New and
Existing Markets
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New Service Development (NSD)
Model
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Examples of New Products
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• Gourmet holidays
• Mobile check in
• Smart glasses
• Flying casinos
• Branded hotel floors• Iceberg tourism
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