Competition in the Tourism Industry

1. Competition in the Tourism Industry By: Holli Howard 2010

2. The tourism industry is a competitive business that must keep up with the latest trends for survival. Attracting and pleasing the customer is the prime motive of hospitality marketing. How do you make decisions about which hotel, restaurant, activity you choose? What are the factors that lead you to consider, evaluate, and select one facility over another? Work with a group. Identify five advertising campaigns of restaurants, hotels, airlines, or cruise lines. Discuss ways they are meeting the high expectations of the modern consumer in their marketing material.

3. What is competition? • Who is your target market? • Niche Market-new market in tourism that bases travel on specific interest • Travel for disabled, Adventure travel, Geotourism, Agritourism • List some businesses in the tourism industry that are considered competitors. • Explain the similarities and differences of these businesses using a Venn diagram.

4. Understanding the Customer • Demographics-characteristics of a target market, such as age, income, gender, and level of education. • These factors are related to choices that management makes about pricing, amenities, and services. • Psychographics-lifestyle of customer(hobbies, interest etc.). • Geographics-where customer lives, works, travels. • Product Usage- frequent or loyal customers.

5. Services with a Smile • Service Marketing-marketing an intangible product (a service). • Customers are “purchasing” an experience. • Attention to service, customer preference, and staff training.

6. Product Positioning • Positioning (branding)-the creation of an image for a product in the minds of customers, specifically in relation to competitive products, including services. • Advertisements and commercials help create images for positioning, or branding. • Explain the difference in the positioning of a Big Mac and a hamburger from Chili’s.

7. Competition in the Air • Hub and spoke system-an effective network for an airline formed by a hub, or a large airport, connected to other smaller airports called spokes. • Must increase passenger loyalty (frequent-flyer programs) • Price • Amenities while flying

8. Competition on the Sea • List some well known cruise lines. What makes them different? • Ports-of-call • Price • Amenities

9. Destination Competition • Successful destinations offer something for everyone. • Seasonality can be a prime factor for choice of destination, but it can also limit year around revenue. • Destinations can not afford to be one-season operations.

10. Competitive Advantage • An advantage over competitors due to greater value to consumers through lower prices or more benefits. • Value can include individualized service, complimentary beverages, cooked-to-order breakfasts, turn-down service, concierge service, décor, or upscale amenities.

11. Price Competition • Businesses do research to find out what their competitors are charging for the same or similar products. • To be competitive, business must price its products lower than its competitors or offer a product that is seen as having a higher value or quality.

12. Keeping ahead of the Competition • Market Research-provides information that enables business to stay competitive. • Visit Smith Travel Research website to discover new trends in the industry. • Keep customer happy is always a way to stay competitive in the industry.