THC 007:

TOURISM &
HOSPITALITY
MARKETING
INTRODUCTION
In this chapter, we will be discussing the definition of marketing in hospitality industry as
well as marketing and consumers perspective. It will also discuss the fundamentals and
characteristics of marketing; its benefits and core principles of marketing.

RATIONALE
The purpose behind tourism marketing is to promote the business, make it stand out from
rivals, and generate brand awareness. Hospitality sales are different from consumer good
sales.
 INTENDED LEARNING OUTCOMES

At the end of this module, students are expected to:

A. Understand how to define and select target markets

B. Establish marketing plans and programs.

C. Implement, control and evaluation of marketing plans.

MARKETING IN THE HOSPITALITY
INDUSTRY

HOSPITALITY

Hospitality is the act of welcoming and caring for another,

creating a safe and comfortable environment for them to
experience, often rooted in kindness, generosity, and a genuine
desire to make them feel valued and respected.
MARKETING IN THE HOSPITALITY
INDUSTRY
HOSPITALITY INDUSTRY

- The hospitality industry is defined into various categories:

A. Hotel and Lodging Industry - provides rooms for rent, lodging, relaxing,
food and fine living services
Example: Hotels, Motels and Lodging Houses

B. Food and Dining - provides quality dining experience with the focus on
menu offerings and good service
Example: Restaurants, Fast-food

C. Travel - provides air land and sea transportation for pleasure and good
service
Example: Airlines, Shipping Lines
MARKETING IN THE HOSPITALITY
INDUSTRY
D. Entertainment - provides activity for diversion attention and
amusement.
Example: Bars, Clubs

E. Wellness - provides physical well-being for health and fitness.

Example. Massage Parlors Beauty Shops

F. Shopping Centers - provides one-stop shopping convenience which

provides various commodities and services.
 HISTORY OF THE HOSPITALITY
INDUSTRY
Restaurants with white tablecloths, hotels with grand ballrooms business executives pampered by
their favorite airlines with personalized matches and reserved seats - these are traditional and, to
some extent, obsolete images of the hospitality industry.

Today, more than just personalized matches are gone. New images of the industry abound, created by
the way in which airlines, hotels and restaurants have developed and marketed products and services
to meet the changing needs of consumers.

Historically, the consumer's perception of the industry centered on full service independent hotels,
business travelers, and the “glory” of travel. But because of the changing consumer's needs, market
competition and the rise of the Information Technology. The list below shows important events,
people who are pioneers of the Hospitality Industry.
 YEAR EVENTS
1800 Private rooms become the norms in hotels

1859 First elevator is installed in a hotel in New York, USA

1869-1990 The waiters and bartenders association is formed. Conrad Hilton, the father of hotels
change the image of Hotel Branding. He is a pioneer in Hotel Services
1929 The first airport hotel opened in Oakland California, USA
1946 The hotel industry experiences its highest occupancy rate ever - 95%

1950s Kemmons Wilson founded the Holiday Inn Hotels, which caters interstate auto
travelers. Across the market, the name "Holiday Inn” became synonymous with the
word “motel”. This is the beginning of era motels
1960s Market segmentation and product segmentation begin in earnest in the hotel industry

1970s Spectacular design and architecture (exemplified by the Hyatt Hotel) establish a new
era of the hotel
1980s Major developments in computers, telecommunications, and other technological areas
result in sophisticated reservation systems.
Full product segmentation occurs in lodging with brands ranging from economy/budget
lines to full-service hotels, at-suite properties, resorts and mega-hotels
1990s Travel-related companies emerge in lodging and air transportation
Travel purchasing systems emerge
2000s The wide use of wireless systems, internet and advance communications technologies
Consumer driven technology results in paperless airline tickets, keyless doors, athome
purchasing delivery systems by the use of wireless and internet technologies
 A MARKETING PERSPECTIVE IN THE HOSPITALITY
INDUSTRY
As products and services offered by the hospitality industry have evolved, so has the marketing of these
products and services. Marketing focuses on the needs of the buyer. In today's hospitality industry, the
audience of buyers has become complex. Not only the firm's products or services have buyers, but so
do the hospitality firms themselves. Marketing must be aware of and relate to the total audience or
buyer's needs.

A CONSUMER PERSPECTIVE OF THE INDUSTRY

Marketers create a marketing message that sells products and services by understanding the consumer's
perspective. As a matter of fact, if the marketing process is thorough in its research and analysis of the
consumer, then it can perform yet another service for the hospitality firm. This is to influence product
development or to recommend changes to services offered so they are more in line with what
consumers express as their needs. Marketing cannot succeed if the product or service offering is not in-
line with its consumer's needs.
TOURISM
Tourism is the temporary movement of people to places outside their usual environment for personal or
professional purposes, involving activities, experiences, and interactions associated with that
environment.

MARKETING CUSTOMER ORIETATION

● Customer needs are first priority: This principle puts the customer's needs and wants at the
center of every marketing decision. The company actively seeks to understand what customers
desire and tailor their products, services, and messaging accordingly.
● Ongoing marketing research: Continuous research helps companies stay informed about
customer preferences, market trends, and competitor activities. This data is crucial for adapting
strategies and ensuring ongoing relevance.
● Knowing customer conceptions: Understanding how customers perceive your brand, products,
and services is vital. This involves actively listening to customer feedback, analyzing customer
interactions, and conducting market research to gather insights.
● Analysis of strength and weaknesses: This process involves evaluating your company's
internal capabilities and external opportunities to identify both your strengths and weaknesses in
the marketplace. This analysis informs strategic planning and resource allocation.
● Long-term planning: A customer-oriented company thinks beyond immediate gains and focuses
on building long-term relationships with customers. This requires strategic planning that
anticipates future needs and trends in the market.
● Adapted to market changes: Being customer-oriented means having the flexibility to adapt to
changing market dynamics and customer preferences. This includes adjusting product offerings,
messaging, and overall marketing strategies to remain competitive.
● Inter-organization cooperation: When all departments within a company work together to
prioritize customer needs, results are better. This includes collaboration between marketing,
sales, customer service, and other teams to ensure a seamless customer experience.
● Partnership with related organization: Building partnerships with complementary
organizations can benefit both parties by expanding reach, offering bundled services, and
creating additional value for customers.
MARKETING

is a continuous, sequential process through which

management in the hospitality and travel industry plans,
researches, implements, controls and evaluates activities
designed to satisfy both customers’ needs and wants and
their own organization’s objectives.
 SIX MARKETING FUNDAMENTALS
1. SATISFYING CUSTOMER NEEDS AND WANTS: This is the core principle of marketing. It's
about understanding what your target audience needs and desires, and then developing products,
services, and messaging that effectively address them. A successful marketing strategy revolves
around creating value for customers that solves their problems or fulfills their wishes.

2. CONTINUOUS NATURE OF MARKETING: Marketing isn't a one-time activity. It's an ongoing

process of adapting to changing markets, customer preferences, and competitor behavior. This requires
constant monitoring, research, and adjustment of your marketing strategies to stay relevant and
effective.

3. SEQUENTIAL STEPS IN MARKETING: Effective marketing follows a defined process with

several key steps, such as market research, target audience identification, product development,
pricing strategy, distribution planning, and promotional activities. Each step informs the next and
works together to achieve your marketing goals.
4. KEY ROLE OF MARKETING RESEARCH: Gathering and analyzing data about your target
market, competitors, and the overall market landscape is crucial for making informed marketing
decisions. This research helps you understand what customers want, identify opportunities, and assess
the effectiveness of your strategies.

5. INTERDEPENDENCE OF HOSPITALITY AND TRAVEL ORGANIZATIONS: In the tourism

industry, different businesses like hotels, airlines, tour operators, and local attractions are
interconnected. They rely on each other's success to attract visitors and create a positive overall travel
experience. Collaboration and partnership between these organizations are vital for a thriving tourism
ecosystem.

6. ORGANIZATION-WIDE AND MULTI-DEPARTMENT EFFORT: Effective marketing isn't

just the responsibility of the marketing department. It requires collaboration and input from various
departments within a company, such as sales, production, customer service, and finance. Everyone
works together to ensure that the customer experience is consistent and aligns with the overall
marketing strategy.
THE PRICE OF MARKETING:

P - PLANNING: Establishing the roadmap for your marketing efforts. This involves setting
goals, identifying target audiences, defining your brand positioning, and outlining strategies to
achieve success.
R - RESEARCH: Gathering and analyzing data to inform your marketing decisions. This includes
market research, competitor analysis, customer feedback, and understanding industry trends.
I - IMPLEMENTATION: Putting your plan into action. This involves executing your chosen
marketing strategies, such as launching campaigns, creating content, managing social media, and
running advertising.
C - CONTROL: Monitoring and tracking the performance of your marketing efforts. This involves
measuring key metrics, identifying areas for improvement, and making adjustments to your strategies
as needed.
E - EVALUATION: Assessing the overall effectiveness of your marketing efforts. This involves
analyzing the results of your campaigns, understanding their impact on your goals, and identifying
areas for future improvement.