Tourism and Hospitality Marketing is the activity, set to behavioral patterns of the

Marketing (THMK211) of institutions, and travel market.

processes of creating,
WHY STUDY TOURISM AND SUBSTITUTABLE -
communicating, delivering,
HOSPITALITY MARKETING? Competition in the tourism
and exchanging offerings that
industry is intensifying. With
Tourism is a social, cultural have value for customers,
new destinations emerging
and economic phenomenon clients, partners, and society
and competing in the global
which entails the movement at large. (American
marketplace, one destination
of people to countries or Marketing Association, 2013)
can easily be substituted for
places outside their usual
UNIQUE CHARACTERISTICS another destination.
environment for personal or
OF THE TOURISM INDUSTRY
business/professional MARKETING AS A
purposes. These people are INTANGIBLE - Tourism MANAGEMENT PROCESS
called visitors (which may be products cannot be touched,
The marketing management
either tourists or smelled, tasted, felt nor
process involves the
excursionists; residents or heard prior to purchase.
following key processes
non-residents) and tourism
INSEPARABLE - Since what is (Lumsdon, 1997):
has to do with their activities,
being sold is
some of which involve 1. Marketing Information
the experience, the product
tourism expenditure. System - With the advent of
and the consumer cannot be
technology, the provision for
Marketing is a social in two different places; they
a marketing information
process by which individuals have to be in the same place.
system enables the
and groups obtain what
PERISHABLE - Refers to not organization to compile an
they need and
being able to forward updated set of information
want through creating and
inventory to the next day. about its customers,
exchanging products and
Products become perishable competitors, and the
value with others. (Kotler,
when it can no longer be organization's capability and
2002)
consumed today even when effectiveness.
Unlike a need which is a no one consumed it the day
Marketing Planning - This
necessity, a want is before.
involves an analysis of the
a LUXURY wherein its
VARIABLE - Tourism marketing environment in
purchase can be denied,
experience is likely to relation to the potentials of
deferred, or delayed.
be different depending on one's business. It also
Tourism products fall into when the product is availed, involves the setting up of
the want category. who one is with, and how the objectives and an evaluation
service providers deliver the of the milestones that the
Marketing is also the art and
service at the time of company has reached. The
science of finding, retaining,
consumption. creation of marketing
and growing profitable
strategies will help increase
customers. (Kotler, Bowens, SEASONAL - Seasonality does
the business by obtaining the
& Makens, 2010) not only refer to the seasons
best fit between the
of the year or the weather
company's resources and its
conditions. It also refers
target market position.
Planning Tactical Campaigns Financing - involves
- This step ensures that planning to ensure that
practical and realistic tactical resources are available to
campaigns are conducted in maintain and improve
support of the business.
comprehensive marketing
Pricing - ensures that the
strategy.
value and cost of goods
Marketing Operations - and services offered to
Involves the challenging part customers will be at the
of implementing the planned level that customers are
strategic and tactical willing to pay.
campaigns by coordinating
Promotion - Prepares the
with all stakeholders, fine
various promotional
tuning the marketing mix as
strategies that will enable the
they unfold, and ensuring
products to be introduced INTEGRATED MARKETING
that activities are conducted
and sold to the customers COMMUNICATIONS
as planned.
APPROACH
Product/Service
Monitoring and Control -
Management - focuses on Integrated marketing
This involves the ongoing
improving a product or communication (IMCs)
process of evaluating sales
service in response to market include the planning and
data and financial
changes. It involves an coordination of all marketing
performance versus
ongoing evaluation of their mix (including traditional and
marketing activities
features in order to improve digital networking
conducted. It also includes
or modify the items as components). This method is
the handling of customer
required far superior to the single and
feedback and complaints (if
independent use of each
any) and coordination with Distribution - Involves
item.
what the staff has to say bringing the products and
about the marketing services to the customers the FACTORS THAT
campaigns. Finally, it includes best way possible. CONTRIBUTED TO THE
being aware of what the GROWTH OF IMC
competitors are doing. Selling - This is the ultimate
measure of marketing - Growth of Technology
CORE MARKETING success. Strategies on
FUNCTIONS - Incentive-based
following up the sale, closing
Compensation
the sale, and making repeat
Marketing Information
sale are crucial tasks of - Consolidation of the retail
Management - the act of
marketing. industry
compiling, organizing,
storing, analyzing, and - Database Marketing
reporting analytics based on
marketing information and
data.
WHAT IS A MARKET? Characteristics of a Market 3. Company objective and
Segment (Lumsdon, 1997) availability of resources –
is a set of actual and
decision making to make its
potential buyers of a product 1. Identifiable - specific
objectives into a reality
who shares a particular need 2. Cohesive – common to all
or want that can be satisfied 3. Measurable - can provide
through exchange an accurate estimate
relationships (Kotler et al., 4. Accessible – can be reach
2016). 5. Substantial – should be
large or small with high
TOURISM PRODUCT IS NOT
spending capacity
FOR ALL!
6. Actionable – resources and
The tourism industry aims to commitment to penetrate
target a specific set of
individuals. It is for a Factors to be considered for
particular set of buyers, Market Coverage Strategies
a niche market.
1. Company’s resources
THREE STEPS TO TARGET (budget allocated to
MARKETING marketing)
1. Market Segmentation 2. Degree of product
2. Market Targeting Homogeneity
3. Market Positioning MARKET TARGETING (standardized/identical
evaluating each segment’s product adopts
Market Segmentation - attractiveness undifferentiated or
process of dividing the and selecting one or more of concentrated)
market into distinct these market segments
3. Market Homogeneity (if
groups that might require in which to operate one’s
market is diversified,
separate products and/or business (Kotler, 2017).
differentiated should be
marketing mixes (Kotler et al, used, if market has lot of
2017). FACTORS TO CONSIDER IN similarities, use
Market Targeting - is a EVALUATING WHICH undifferentiated)
subgroup of the total SEGMENT SHOULD BE
4. Competitors Strategy
consumer market who share TARGETED
(know how to play the game
similar characteristics and 1. Segment size – current of your competition)
needs relevant to the sales volume, growth rate
purchase of a product, and high profit margins
service, or experience (Hsu, MARKET POSITIONING
2. Attractiveness – potential
2008) has everything to do with the
impact of segment to the
deliberate way by which
company
marketers would want to
position their product in
the consciousness of its
prospective customers.
Three Positioning Concepts: •The elimination of legal GENERATION X (1965-1980)
limitations and practical •values entrepreneurial
1. Unique selling proposition
obstacles to travel spirit, loyalty, independence,
(USP) - a term used to
creativity, and information
identify what makes the
GENERATIONAL TRAVEL •hardworking and value the
product or service different
TRENDS quality of life-work balance
from others. This USP may
•exposed to a wide array of
occur due to the product’s
BABY BOOMERS (1946-1964) brands and products, tends
physical attributes, added
•generation of optimism, to save more
services, personnel, location,
exploration, and •Gen X households with
or image.
achievement children are more likely to
2. Competitive advantage - •values individual choice, travel with children than
company’s advantage over community involvement, self- other generations
competitors which is gained actualization, and health and •have an average of 26
by offering greater value wellness (Li et al, 2013) vacation days per year as a
either by offering lower •most lucrative travel market result of work and family
prices or providing more •Boomers aged 55-75 have commitments
benefits to justify higher an average of 27 vacation •they like quality, major
prices. days a year (Expedia, 2018) market for business travel,
•look for value and research and are willing to spend
3. Top of mind Awareness - vacation. Cruises are popular •enjoys environmental trips.
highest level of recall that a since it provides all-inclusive Desires relaxation- beach and
brand receives. Brand value (Kotler, 2016) wellness services
occupies top spot in a •prefer travel agencies/tour •likely to participate in
consumer’s mind. operators. shopping tourism and seek
New and emerging markets •places importance on entertainment
factors (demand side) quality of accommodation, •give high importance to
service, accessibility, and word of mouth than a nice
Economic Growth in major easiness of travel, safety & brochure
source market security, value for money,
•Increase in disposable tourist information, and MILLENIALS/GENERATION Y
leisure and longer life cleanliness. (1981-1996)
expectancy •attracted to activities and •smart, creative, optimistic,
•Changes in living conditions sites that have cultural and achievement oriented, and
•Rising educational levels, historical themes. tech-savvy
access to information •Culinary tourism is also a •motivated to helping others
•Increasing international growing niche area for this and improving environment
integration of life older generation (Li et al, and making the world a
New and emerging markets 2013) better place because of their
factors (supply side) community orientation.
•Development of and •resilient, committed, and
investment in infrastructure loyal when dedicated to an
•Continuous tourism product idea, cause, or product
development
•seen as the next big •said to have a powerful THE SENIOR MARKET -
consumer spending market influence on family holidays SILVER MARKET /THIRD-AGE
as they put travel a top as their parents prefer to TOURISM
priority consult them before booking •Mature market/ retirees/
•Millenials who have the trips empty nesters
lowest household income as •budget conscious and •SKI (Spend Kids Inheritance)
they are just starting their usually begin their travel •have time, money, and
career are most likely to go without a set destination in desire to travel
into debt for travel mind •look for retirement as an
•have an average of 35 •have an average of 29 opportunity
vacation days a year vacation days per year •limitations and constraints
•word of mouth from friends •heavily influenced by social such as safety and security,
and relatives influences their media for travel decision health issues, availability,
travel decision making making costs, family responsibilities,
•Travel guidebooks are also •wifi is an absolute necessity, poor information about
the primary source of likely to book hotels on free suitable options, and
information preferred by Gen internet access previous experiences
Y •open-minded, bucket list
•Pursues non mainstream oriented, and look for off the
THE YOUTH MARKET
destinations which can offer beaten path locations-
•long-distance youth
more meaningful adventure tourism market.
travelers are primarily unique
experiences (Asia and Europe •mindful of the planet and
experience-seekers
are their ideal destinations) effects of their travel decision
Factors that fueled the Youth
•Similar to Gen X, Millenials
Travel Participation (Richards
also long for relaxation and TYPES OF MARKETS
et al, 2006)
joins environmental Family Market
1. Increased participation in
excursions Promotional materials should
higher education
be made available early,
2. Increased travel budgets
GENERATION Z/ZENNIALS dispersed in a variety of
3. Work and travel
(1997-2012) media sources and designed
combinations
•largest cohort alive with for spouses of the same age.
4. The rise of low-
over two billion people
cost/budget airlines
globally or 26% of the world's Three types of decision
5. Shorter employment
population makers:
contracts
•has been raised with the Joint – longest period of time
6. Global rise of internet
changes caused by the Husband - more on outdoor
culture
internet, smartphones, recreation, spends largest
7. Growth of independent
available network, and digital amount of money
travel guide books
media Wife – fewest information
•highly educated, socially sources, shortest duration,
and environmentally aware, and least expensive
creative, innovative, and able
to multi-task in progressively
changing environments
MICE MARKET backpacking tourism trips by an average of 2.9
•connected but not limited approach. days for leisure.
to business travel •Natural and historical
•conference tourism- refers LGBTQ+ MARKET sightseeing appeal to this
to all activities associated •LGBT tourism refers to the market
with planning, travel to, and development and marketing
participation in conferences of tourism products and WELLNESS TOURISM
and meetings both domestic services to lesbian, gays, •Wellness tourism is a travel
and international (Ladkin, bisexual, or transgender with the pursuit of
2006) people (IGLTA). maintaining or enhancing
•Incentive travel- most •This market is recognized as one's personal holistic
lucrative of the mice market. a segment that travels with wellbeing-balance of the
A reward for employees or greater frequency and physical, mental, emotional,
business partners hence higher-than-average and spiritual domains of
luxury. spending patterns (UNWTO, human life.
•cost, location, and 2017) •Often merged with medical
accessibility, time & duration •being welcomed and tourism- use of evidenced-
of the conference, technical respected unfortunately not based medical healing
requirements, size of assured in all countries services both invasive and
conference, room where is is more dangerous non-invasive.
configuration, destination or friendlier for LGBT people •Preventive, Proactive, and
image, and leisure to live in and travel to. Lifestyle enhancing activities
opportunities are most •Canada, Malta, Sweden are like fitness, healthy eating,
important elements in venue ranked as the most LGBT relaxation, pampering, and
selection. friendly countries healing treatments are some
•Philippines is ranked 92nd of motivations of tourists
SOLO TRAVEL MARKET who engage in this type of
•fastest-growing market as BLEISURE MARKET tourism.
shifts in social structure and (BUSINESS AND LEISURE)
lifestyles, such as self- •This trend has two CONSUMER BEHAVIOR
partnering, childless couples, components: refers to the process and
and latter marriages, 1) Spouses or children tag activities people engage in
continuously contribute to along on trips for a few days when searching for, selecting,
massive change in travel of family fun and purchasing, using, evaluating,
demand. 2) lone leisure and sports and disposing of products
•Solo travelers prefer activities often by younger and services to satisfy
freedom and flexibility but a travelers. their needs and
more structured and •Business travelers take six desires (Belch and Belch,
organized lifestyle. business trips or 3.9 days per 2008).
•Most studies conducted year
were designed from a gender •Their desire to find an
and age related perspective appropriate work-life balance
or from adventure and makes them extend their
FACTORS THAT INFLUENCE Push-pull theoretical
CONSUMER BEHAVIOR framework is a popular 2.Culture - Collective mental
theory to explain the reason programming of the human
1.Motivations why the tourists decide to mind which distinguishes one
•Inner drives that make visit the destination rather group of people from
people take a specific plan of than other place, the kind of another.
action to satisfy their needs. experience they want to get 3.Age and Gender
•Need is the gap between and the type of activity they - Age pertains to number of
what customers have and want to do. years a person has been
what they would like to living.
have (Hudson, 2008) PUSH FACTORS - Gender influences
•Kotler et al (2010) argued - Escape from mundane consumer behavior. The
that needs become a environment female market is steadily
motive when it is aroused to - Exploration and evaluation increasing and has been
a sufficient level of intensity of self observed to be more
that prompts a person to - Relaxation discriminating than its male
take action. - Prestige counterpart. The gay market
- Regression is also seen by marketers as a
- Enhancing market with a set of
Kinships/Relationships preferences distinct from the
- Facilitating social male and female.
interaction
4.Social Class - is one’s
PULL FACTORS position within the society
- Novelty/Variety seeking and is determined by factors
- Education such as income, wealth,
"TRAVELER’S MOTIVES AND education, occupation, family
BEHAVIORS ARE SELF- prestige, and value of home
ORIENTED" or neighborhood.

These theories are classified 5.Lifestyle -is a

into eight explanations of person’s pattern of living as
travel (Krippendorf, 1987). expressed in one’s activities,
- Recuperation and interests, and opinions
Regeneration
- Compensation and social
Travel is motivated by “going integration
away from” rather than - Escape
"going toward” something - Communication
- Freedom and self-
determination
- Self realization
- Happiness
- Broadening of the mind
6. Life Cycle- refers to the Allocentrics prefer what is
stages an individual goes new, unstructured, exotic, or
through in their lifetime. unusual.

Pearce (1993) suggested Psychocentrics are those who

a Family Life Cycle prefer the structured and
Model which explains that familiar.
travel patterns and
Midcentrism means tourist
destinations differ as people
could portray characteristics
move on through the cycle.
of both depending on the
7.Reference Groups situation or season.
•are known to be a set of
people who have a direct or ORGANIZATIONAL BUYER
indirect influence on other BEHAVIOUR
people’s attitudes or
behavior (a family member, a
teacher, a classmate, a
boss/colleague, priest/pastor
in your church)

•Extended to other
experienced travelers and
food experts through their
blogs

8.Personality and Self- Cohen (1972), a sociologist of

concept tourism, classifies tourists
•Personality refers to into four types, based on the
distinguishing psychological degree to which they seek
characteristics that lead to familiarity and novelty: the
relatively consistent and drifter, the explorer, the
enduring responses to the individual mass tourist, and
environment. the organized mass tourist.
•Self-concept pertains to his C. STEWART’S MODEL OF
personal mental picture HOLIDAY TAKING
Henley Centre by Stewart
BENEFITS OF SERVICE
(1993)
QUALITY
Plog's Tourist Motivation 1.Bubble travelers- have low
1. Customer Retention
Model (1974) classifies affluence, low travel
2. Avoidance of Price
travelers as allocentrics or experience, and observe
Competition
psychocentrics. Plog foreign culture from a
3. Retention of Good
adds "energy" as a bubble. This gives them basic
Employees
determinant of (high or low) confidence to travel.
4. Reduction of Costs
levels of activity.
2.Idealized-experience
seekers- have more affluence
and a base of overseas travel
experience, which gives them
more confidence.

3.Wide-horizon
travelers- have more
affluence, greater
confidence, and more travel
experiences: now ready for
more individually oriented
travel to a wider range of
destinations.

4.Total immersers- do not

seek to merely observe but
to be exposed fully to
another culture’s language,
food, heritage, and lifestyle

D. THE NON-USERS
Ex-users- stopped using the
products for various reasons

Need to be persuaded-
Customers who are aware of
the product but need to be
convinced to purchase

Not aware - Customers who

are not aware of the
product/service existence