Service Marketing in Hospitality and Tourism Industry: Presented by - Ankit Agarwal PRN No - 18030401802
Service Marketing in Hospitality and Tourism Industry: Presented by - Ankit Agarwal PRN No - 18030401802
Service Marketing in Hospitality and Tourism Industry: Presented by - Ankit Agarwal PRN No - 18030401802
Tourism Industry
1
What is the meaning of HOSPITALITY?
• Hospitality is the act of kindness in welcoming and looking after
the basic needs of guests or strangers, mainly in relation to food,
drink and accommodation.
• A contemporary explanation of Hospitality refers to the
relationship process between a guest and a host.
• Hospitality marketing is unique because it deals with the tangible
product, like a bed in the hotel or food in the restaurant, but it also
deals with the intangible aspects of the hospitality and tourism
industry.
• It is about the experience in a trip and social status it brings
eating in a fine-dining restaurant.
The tourism marketing mix
product
price place
variable
Intangibl Insepara
e ble
Touris
promoti m Physical
on service evidence
people process
Characteristics of Services
5
Intangibility
• High risk associated with services. It is difficult to evaluate
service before the experience. Furthermore, lack of
tangibility after the experience
6
Inseparability
• The customer becomes part of Service encounter = Moment
of truth.
• Managing employees
– Communication training
– Empowerment
• Managing customers
– What do you expect customers to do?
– Interaction with other customers
7
Variability
Lack of consistency
• Managing consistency
• Standardized procedure: industrialize service and cutting
interaction
• Customized: taking care of individual
• Educate customers
• Train contact and non-contact employees
• Manage suppliers’ quality
8
Perishability
Lack of ability to inventory
Capacity and demand management
• Managing demand
Understanding demand patterns
Price, Shift demand
Reservation, Overbooking
Create promotional events
• Managing capacity
Cross-train employees
Schedule downtime during periods of low capacity
9
Management Strategies for
Service Hospitality Business
• Tangibilizing the product
• Managing the physical surroundings
• Managing employees
• Managing perceived risk
• Managing capacity and demand
• Managing consistency
10
WHAT IS
MARKETING
MIX…..?
MARKETING MIX
General phrase used to describe the different kinds of
choices organizations have to make In the whole process
of bringing a product or services to market.”
The 7 Ps in a Marketing Mix
Traditional 4 Ps Additional 4 Ps
(as prevalent in manufacturing (common in service economy to
economy) account for the unique service
characteristics)
1. Product
2. Place 5. People
3. Promotion 6. Process
4. Price 7. Physical Evidence
PHYSICAL
PRODUCT PRICE PLACE PROMOTION PEOPLE PROCESS
EVIDENCE
1)Taking a vacation trip to Europe. Once the trip is over, you are
unable to take the product away except the pleasant experience that
lingers on.
2) This is the same when you go to a fancy restaurant you are not
only buying the meal (Product) but also experience, the ambience,
decor and the service that are provided by the restaurant.
2. Price
• Amount customers’ pay for the product or service provided.
• A quality tourism experience at a fair price is what the customer
is looking for in most cases.
• Pricing should be based upon clear-cut goals and objectives:
– Survival
– Profit maximization
– Market share
– Competition or positioning
PRICE MIX
Word of mouth
5. People
• People in the travel and tourism industry
– travel agents
– tourist guides
– hotel and restaurant staff
– transport personnel
• Play an important role in brand building and customer
satisfaction.
• It’s the no.1 area where a tourism business can go well or fairly
miserable.
• Very important all service staff members carry out excellent
service at all times
• Due to strengths of word-of-mouth online promotion:
“Service excellence is a paramount”
5. People
People MIX