The problems of marketing in tourism are somewhat different from those of traditional product marketing. The differences are the result of the characteristics of toursim supply and demand. In manufacturing, goods are produced, stored, and sold. Touris...
The problems of marketing in tourism are somewhat different from those of traditional product marketing. The differences are the result of the characteristics of toursim supply and demand. In manufacturing, goods are produced, stored, and sold. Tourism supply cannot be stored.
This puts a great deal of pressure on producers to plan the proper amounts of facilites effectively and, having developed these facilities to keep them used as fully as possible. This in itself creates another kind if problem for tourism supply is relatively fixed. A second important factor that makes tourism different from other industries is that the service provided is in fact an amalgram of several services and some products. Most vacations have information, transportation, lodging, food and beverage, attraction, and activity components. These components are usually offered by different organizations and may be marketed directly to the tourist by the individual organizations.
A third factor that makes tourism different from other industries is the role of travel intermediaries. Because tourist services are located at a distance from potential customers, specialized organizations that operate between the producer and the tourist - are often necessary to bridge the gap.
The last factor that makes tourism different from other industries relates to demand. Tourism demand is highly elastic, seasonal in nature, and influenced by subjective factors such as taste and fashion as well as the more objective factors such as price. In many cases, the services and experiences sought can be provided by any number of destinations or organizations, with particular emphasis on no one in particular.
Once the positioning and marketing objective have been devloped for each selected target market, tourism marketing mixes can be designed. Traditional approaches to marketing suggest that a marketing mix is comprised of 4 components. Often these are called the 4P's of marketing. Various authors in the field of tourism have suggested that there are additional components to the marketing mix in travel enterprise. Because of the uniqueness of tourism marketing, it has been recommended that packaging, programming, people, and partnership be considered as four additional marketing mix conponents. The traditional 4P's then expands to 8P's(product, price, promotion, place, packaging, programming, people, and partnership).
Among them packaging and programming are two additional marketing-mix components that are unique to the tourism industry. They are especially significant because they can be used to help travel enterprose cope with the prblems of the immediate perishability of services and the difficulties of matching demand volumes with supply capacities. Another important feature of packaging and programming is that they provide a means of matching services and products with the multitude of package for special-interest groups.
Packaging is also significant because it brings together many of the elements of the destination mix and combines the services and products of several tourism organization. The package is more convenient for the customer, since it includes several service and products at an all-inclusive price. Other advantages of packages and programs are as following.
Customer-related reasons;
① Greater convenience ② Greater economy ③ Ability to budget for trips ④ Implicit assurance of consistent quality ⑤ Satisfaction of specialezed interests ⑥ Added dimension to traveling
Participant-related reasons
① Increaced business in off-peak periods ② Enhanced appeal to specifid target markets ③ Attraction of new target markets ④ Easier business forecasting and improved efficiency ⑤ Use of complementary facilities, attraction, and events ⑥ Flexibility to capitalize on new market trends ⑦ Stimulation of repeat and more frequent usage ⑧ Increased per capita publicity value of unique packages ⑨ Public relations and publicity value of unique packages ⑩ Increased customer satisfaction
Programming refers to the offering of special activities, events, or other types of programs to increace customer spending or to give added appeal to a package or other tourism survice. Many vacation packages include some form of programming, such as escorted ground tours, sports instruction, entertainment events, and so on.
Steps in developing effective package and to make a package successful as followings.
① Include attractions on demand-generations.
② Provide value to the customer.
③ Offer consistent quality and compatibility among elements.
④ Be well plnned and coordinated.
⑤ Provide a distinctive customer benefit
⑥ Convert all the details.
Next is to give the customer the right amount of value, yet still make an acceptable profit.
The answer lies in a careful, step-by-step approach to package pricing employing the break-even analysis-technique.
① Identify and Quantify fixed costs.
② Identify and Quantify valuable costs.
③ Calculate total package cost per person.
④ Add a makeup for profit.
⑤ Calculate single supplement.