Competition in the Competition in the Tourism IndustryTourism Industry

By: Holli Howard By: Holli Howard

20102010

The tourism industry is a competitive The tourism industry is a competitive business that must keep up with the latest business that must keep up with the latest trends for survival. Attracting and pleasing trends for survival. Attracting and pleasing the customer is the prime motive of the customer is the prime motive of hospitality marketing. hospitality marketing.

How do you make decisions about How do you make decisions about which hotel, restaurant, activity you which hotel, restaurant, activity you choose? What are the factors that lead you choose? What are the factors that lead you to consider, evaluate, and select one facility to consider, evaluate, and select one facility over another? over another?

Work with a group. Identify five Work with a group. Identify five advertising campaigns of restaurants, advertising campaigns of restaurants, hotels, airlines, or cruise lines. Discuss ways hotels, airlines, or cruise lines. Discuss ways they are meeting the high expectations of they are meeting the high expectations of the modern consumer in their marketing the modern consumer in their marketing material. material.

What is competition?What is competition? Who is your target market?Who is your target market? Niche Market-new market in tourism that bases Niche Market-new market in tourism that bases

travel on specific interesttravel on specific interest Travel for disabled, Adventure travel, Travel for disabled, Adventure travel,

Geotourism, AgritourismGeotourism, Agritourism List some businesses in the tourism industry that List some businesses in the tourism industry that

are considered competitors.are considered competitors. Explain the similarities and differences of these Explain the similarities and differences of these

businesses using a Venn diagram.businesses using a Venn diagram.

Understanding the CustomerUnderstanding the Customer

Demographics-characteristics of a target Demographics-characteristics of a target market, such as age, income, gender, and market, such as age, income, gender, and level of education.level of education.

These factors are related to choices that These factors are related to choices that management makes about pricing, management makes about pricing, amenities, and services. amenities, and services.

Psychographics-lifestyle of Psychographics-lifestyle of customer(hobbies, interest etc.).customer(hobbies, interest etc.).

Geographics-where customer lives, works, Geographics-where customer lives, works, travels.travels.

Product Usage- frequent or loyal Product Usage- frequent or loyal customers.customers.

Services with a SmileServices with a Smile

Service Marketing-marketing an Service Marketing-marketing an intangible product (a service).intangible product (a service).

Customers are “purchasing” an Customers are “purchasing” an experience.experience.

Attention to service, customer Attention to service, customer preference, and staff training.preference, and staff training.

Product PositioningProduct Positioning

Positioning (branding)-the creation of an Positioning (branding)-the creation of an image for a product in the minds of image for a product in the minds of customers, specifically in relation to customers, specifically in relation to competitive products, including services. competitive products, including services.

Advertisements and commercials help Advertisements and commercials help create images for positioning, or create images for positioning, or branding. branding.

Explain the difference in the positioning of Explain the difference in the positioning of a Big Mac and a hamburger from Chili’s. a Big Mac and a hamburger from Chili’s.

Competition in the AirCompetition in the Air

Hub and spoke system-an effective Hub and spoke system-an effective network for an airline formed by a network for an airline formed by a hub, or a large airport, connected to hub, or a large airport, connected to other smaller airports called spokes. other smaller airports called spokes.

Must increase passenger loyalty Must increase passenger loyalty (frequent-flyer programs)(frequent-flyer programs)

PricePriceAmenities while flyingAmenities while flying

Competition on the SeaCompetition on the Sea

List some well known cruise lines. List some well known cruise lines. What makes them different?What makes them different?

Ports-of-callPorts-of-callPricePriceAmenities Amenities

Destination CompetitionDestination Competition

Successful destinations offer Successful destinations offer something for everyone.something for everyone.

Seasonality can be a prime factor for Seasonality can be a prime factor for choice of destination, but it can also choice of destination, but it can also limit year around revenue. limit year around revenue.

Destinations can not afford to be Destinations can not afford to be one-season operations. one-season operations.

Competitive AdvantageCompetitive Advantage

An advantage over competitors due An advantage over competitors due to greater value to consumers to greater value to consumers through lower prices or more through lower prices or more benefits. benefits.

Value can include individualized Value can include individualized service, complimentary beverages, service, complimentary beverages, cooked-to-order breakfasts, turn-cooked-to-order breakfasts, turn-down service, concierge service, down service, concierge service, décor, or upscale amenities.décor, or upscale amenities.

Price CompetitionPrice Competition

Businesses do research to find out Businesses do research to find out what their competitors are charging what their competitors are charging for the same or similar products. for the same or similar products.

To be competitive, business must To be competitive, business must price its products lower than its price its products lower than its competitors or offer a product that is competitors or offer a product that is seen as having a higher value or seen as having a higher value or quality. quality.

Keeping ahead of the Keeping ahead of the CompetitionCompetition

Market Research-provides Market Research-provides information that enables business to information that enables business to stay competitive. stay competitive.

Visit Smith Travel Research website Visit Smith Travel Research website to discover new trends in the to discover new trends in the industry. industry.

Keep customer happy is always a Keep customer happy is always a way to stay competitive in the way to stay competitive in the industry. industry.