IDOL Institute of Distance and Online Learning ENHANCE YOUR QUALIFICATION, ADVANCE YOUR CAREER.
BTT 2MARKETING MANAGEMENT All right are reserved with CU-IDOL Tourism Marketing Course Code: BTT112 Semester: Third Unit: 10 www.cuidol.in
CHALLENGES AND STRATEGIES 33 COURSE OBJECTIVES COURSE OUTCOMES • The course aims to provide basic knowledge of different tourism products of India. • To Equip the student with the understanding of domestic destinations. • To enrich student with knowledge of diversified tourism resources and products www.cuidol.in Q 101) INSTITUTE OF DAISllTAriNgChEt aArNeDreOsNeLrvINeEdLwEiAthRNCIUN-GIDOL
CHALLENGES AND STRATEGIES 43 UNIT OBJECTIVES UNIT INTRODUCTION • After learning this unit, the student will be able to . • • Recall the marketing techniques used in Tourism sector. • Explain the challenges faced in Tourism Marketing. • Describe the new challenges faced during after Corona period. • Identify the Marketing strategies in Tourism. www.cuidol.in Q 101) INSTITUTE OF DAISllTAriNgChEt aArNeDreOsNeLrvINeEdLwEiAthRNCIUN-GIDOL
Introduction 5 • Tourism has evolved into one of today's most significant social, economic, and cultural phenomena. • In other words, tourism is one of the most lucrative industries in the global economy. • With over a billion people flying around the world each year, this segment of the economy generates trillions of dollars in revenue. • Tourism accounts for 9% of the gross domestic product, and one out of every eleven new jobs is created in this industry. • According to the United Nations World Tourism Organization, the number of foreign visitors will reach 1.8 billion by 2030. www.cuidol.in All right are reserved with CU-IDOL
Introduction 6 • Key Obstacles: Catering to Special Interest Groups • Hotels, resorts, and vacation communities that appeal to small, niche groups need marketing platforms tailored to their needs • As an adult-only destination, the hotel had to appeal to a specific demographic of adults seeking a child-free atmosphere. • The hotel also decided to find new ways to engage visitors and foster a sense of independence to help market the resort. • This posed a problem because Hawaii is usually associated with family vacations. www.cuidol.in All right are reserved with CU-IDOL
Introduction 7 • The increased focus on marketing in the services industry has raised questions about what the main components or elements of a marketing mix for services are, or should be. • If the elements selected for a service aren't all-inclusive, there's a risk that a difference will develop between consumer demand and the firm's marketing bid. • As a result, in the sense of service marketing, the conventional Marketing Mix of the 4 Ps (Product, Price, Promotion, and Place) should be reconsidered. • The standard mix was created by the Harvard School of Business using a much longer list of twelve variables. • The idea gained traction over time, and the combination was implemented to capture the demand. • The Marketing Mix has always been a source of contention, especially in the context of services. • As a result, marketing experts have added several more to the simple 4P platform and recognised the need for a unique service mix. • Some people have divided the mix into categories based on the types of services they provide; for example, banking and airlines have their own mix. Various mix components for professional services have been proposed by others. www.cuidol.in All right are reserved with CU-IDOL
Introduction 8 • There are three factors that decide whether or not an element must be included in the marketing mix of a Process company • The amount of money spent on a specific ingredient in the Marketing Mix: It must be calculated how significant the factor is in the overall expenditure of the organisation. • The perceived degree of market receptivity in cases of monopoly or government bodies, prices are set externally, and thus cannot be included in the mix. • Allocation of responsibilities : This is so because, a well defined and well structured Marketing Mix needs a very clear cut allocation of authority and consequentially, responsibilities. • Because the 4Ps model is so limited in its application to the service industry, the need for a 5th P is becoming increasingly apparent. People, Processes and Physical evidence (5th P) are those elements which demand special emphasis in service marketing. • In addition to these, as all the elements of Marketing Mix revolve around customer satisfaction, this is sometimes considered as a separate Marketing Mix element by itself. • This Unit explains the necessity of having Fifth P, the three components of Fifth P i.e. People, Processes and Physical Evidence, and the use of Fifth P in tourism marketing. www.cuidol.in All right are reserved with CU-IDOL
Introduction 9 • Essentially, Marketing Mix represents all those factors that need to be considered while determining the marketing strategy. • Since the choice of a marketing strategy depends upon the organization’s policies and objectives, the elements included in the Marketing Mix and the amount of attention directed to each of them differs from organisation to organisation. • The type of service provided and the demand for it determines the Marketing Mix to a very large extent. , In tourism marketing, the main objective is to motivate more and more people to visit different places thereby enhancing the image of the location/destination and also to increase the revenues. • In tourism marketing, the product is intangible and it covers a wide range of facilities provided to the tourists. • A product in tourism is the place of destination and what one may experience while proceeding to visit or while visiting the particular place. • It includes the total package of transportation facilities, food and accommodation facilities, special attractions, etc. along with the core product which may be, for eg.; temples in Madurai, Taj Mahal in Agra, or the Himalayan backdrop in Darjeeling. Pricing brings revenue to business. • Pricing decisions in service marketing are crucial. They play a very significant role in building an image for the service. The price may also give you a hint or an impression of the standard. www.cuidol.in All right are reserved with CU-IDOL
Introduction 10 • A high-priced service is more likely to be perceived as high-quality. For example, a five-star hotel may charge many times more than its cost (i.e., the cost incurred in producing the service) in order to improve its public image. • Some tourism marketing services, such as providing tourist information, may be government sponsored and thus free of charge. • Other activities, such as transportation and lodging, may be charged based on the services provided. As a result of the immediacy of delivery, there may be special considerations on price. • Prices could be adjusted to reflect seasonal variations in demand and special circumstances, such as discounts offered on bulk ticket purchases, etc. • The location and method of service delivery are referred to as \"place.\" The environment in which the service is delivered and how it is delivered form a part of the perceived value and benefits of the service because the place of production and the place of consumption of the service are the same. • Either the service provider or the consumer can transact at the other's location, or they can transact at a third location. www.cuidol.in All right are reserved with CU-IDOL
Introduction 11 • Tourism marketing, like other products and services, requires promotion. It's perhaps more relevant in this context because people are more reliant on promotional activities to make decisions. • The four elements listed above are important in tourism marketing, but they are insufficient. • Other factors that influence marketing strategies include statutory requirements that foreign nationals must meet before entering a country, special concessions provided by the government to visit certain locations from time to time to encourage tourism, employee behavioural requirements, and so on, all of which can be used effectively in tourism marketing by effective marketing. • All of these aspects must be considered separately, with adequate attention paid to each, and can thus be covered by a separate element of the Marketing Mix, dubbed the Fifth P. • Under this aspect, referred to as the Fifth P, the significance of individuals, processes, and physical proof, as well as their marketing consequences, can be studied separately. • It is even more critical in tourism marketing to emphasise the Fifth P (especially Physical evidence) because it will help to increase the perceived value of a commodity that is intangible in and of itself. • The Fifth P should be emphasised more in tourism because it involves the provision of services that satisfy an individual's need for visual delight and exotic senses. www.cuidol.in All right are reserved with CU-IDOL
Introduction 12 • Key Transportation Issues: Improving Customer Experience • Airlines aren't known for putting a premium on passenger comfort; in reality, their profitability has always come at the expense of passenger comfort. • When revenue is measured by the number of flights and seats that can be filled, however, adding more seats is often the solution to growing income. • Airlines face a challenge in seeking tourism marketing options that can attract new customers while also providing convenience and improving the passenger experience. www.cuidol.in All right are reserved with CU-IDOL
Introduction 13 • Travel Agents in the Retail Sector • Key Obstacles: There Are Too Many Options • From online booking engines to travel blogs, today's travellers have a plethora of options for studying, organising, and booking travel. • while reports show that Millennials are relying on travel agents in record numbers, navigating the endless options available through both travel agents and online resources remains a challenge. • Millennials are looking for exclusive vacation experiences that will change the way they vacation, making it difficult for travel agents to express such experiences. www.cuidol.in All right are reserved with CU-IDOL
Introduction 14 • Operators of Tours • Market Shifts are a major challenge.More customers are searching for more than just on-site WiFi and facilities when choosing a mode of transportation; they want the consumer experience to begin online. • Just 5% of their charter bus tour and service revenues came from the Internet 10 years ago, according to an interview with James River Transportation in LCT Magazine. • However, 60 percent of their reservations requests are now quotes that are converted or requests made through online sales, which is a significant increase. • However, current travellers aren't the only ones looking for a user experience that begins with a first online touch point. • In addition, tour operators are seeing a rapid change in the long- term tour market, as fewer Millennials and Generation are taking tours. www.cuidol.in All right are reserved with CU-IDOL
Introduction 15 • Retail / Souvenir Shops and Shopping Centers • Off-Season Slump is a major issue. During periods of low tourism, retail centres and souvenir shops in tourist destinations face a drop in revenue and foot traffic. And the retail slump isn't limited to tourist hotspots. • Burberry, the fashion house, blamed a recent slump in revenue on a decrease in visitor spending. • If smaller shops and souvenir shops do not strategize and implement a travel and tourism marketing strategy, they will face the same fate as Burberry at the end of each tourist season. www.cuidol.in All right are reserved with CU-IDOL
Introduction 16 • Restaurants are a type of establishment. • Key Obstacles: Remaining Top-of-Mind. In a tourist destination, a well-trafficked place already has a built-in reputation and ability to remain top-of-mind. • Restaurants and eateries that are trying to stay relevant in a sea of food options, or that are off the beaten path, face a difficult task. • Restaurants must look for innovative tourism marketing solutions in addition to continuous discounts and promotions to maintain a steady flow of customers. • Museums, temples, gardens, and theme parks are all great places to visit. Attracting Changing Demographics is a major challenge. • Museums, temples, gardens, and theme parks frequently cater to a small, focused audience. Initially, Disney catered to families with small children. • Museums and temples are popular with history and culture buffs, and gardens are popular with nature lovers. • Key attraction sites will lose sales and relevance in a flooded market if they are unable to broaden their focus and attract a broader demographic. www.cuidol.in All right are reserved with CU-IDOL
Introduction 17 • Tourism Marketing Faces New Challenges • Taxation, travel marketing, infrastructure problems, defence, and cross-border regulations are among the top challenges facing tourism. There are far too many tourist destinations that are unprepared for tourists. • Tourists and travellers can find travel marketing to be exaggerated at times. • The tourism industry also faces a major challenge in the form of fluctuating prices and cost inflation. • New threats seem to emerge often, affecting the entire industry. www.cuidol.in All right are reserved with CU-IDOL
Introduction 18 • Coronavirus's Effect on Global Tourism • The coronavirus health crisis has wreaked havoc on the global economy, especially the tourism industry. According to the World Tourism Organization (WTO), tourism revenue will drop by 300 to 500 billion dollars in 2020, accounting for one-third of the 1,500 billion dollars produced in 2019. • Despite the fact that the coronavirus outbreak has had a short-term negative impact on the tourism industry, it is raising awareness of a number of problems, including inadequate risk management in the travel industry, viral globalisation, and disease travel by visitors across borders. • This is also an opportunity to reconsider tourism from a critical standpoint. • There are many places where tourism could be transformed to become more responsible, sustainable, and socially creative. www.cuidol.in All right are reserved with CU-IDOL
Introduction 19 • Vacation Costs & Inflation • Currency exchange rate fluctuations are one of the main obstacles that the tourism industry faces. • Long-term tourism prices are particularly difficult to forecast due to the inability to know the value of a currency, and the fallout from this monetary uncertainty is already affecting several tourism support structures. • The tourism industry is seasonal by nature and does not guarantee a consistent flow of revenue across the year, which can be problematic for the overall business model. • Inflation is increasing at an unprecedented rate, forcing restaurants to increase prices or reduce service. • The transportation industry has been hit particularly hard. • The airline industry is particularly at risk. • Airlines are reliant on both the food and fuel industries. • Airlines will only slash services and increase fares if they are already on the verge of bankruptcy. As a result of this situation, leisure travellers are deterred from taking costly holidays, which has a negative impact on the tourism industry as a whole. www.cuidol.in All right are reserved with CU-IDOL
Introduction 20 • Tourism and Taxes • In certain countries, the tourism industry is heavily taxed. • Service tax, luxury tax, shipping tax, aircraft fuel tax, and other transportation taxes are all imposed across the industry, from tour operators to transporters to airlines to hotels. • Furthermore, these tax rates appear to differ across states in the United States. • All of these taxes are eventually passed on to travellers in some form or another, stifling the industry's growth. www.cuidol.in All right are reserved with CU-IDOL
Introduction 21 • Tourist Security and Risk • The traveler's safety will always be the most important factor. • For several years, security has been a major issue in the development of tourism. Improper law and order, terrorist threats, and political instability have a negative impact on foreign tourists' feelings. • Despite economic development, tourism is vulnerable to natural and man-made crises, which are unforeseeable events that impact traveller trust in a tourist destination, whether the danger is actual or perceived. • Already, the events of the twenty-first century have continued to concentrate attention on terrorism and political groups as security threats to travel. • Natural disasters such as pandemics, tsunamis, earthquakes, flooding, volcanoes, and avalanches have an effect on tourism. • Any unforeseen incident that affects traveller interest in a destination and interferes with the ability to function normally is referred to as a crisis. www.cuidol.in All right are reserved with CU-IDOL
Introduction 22 • Border and Regulatory Issues • Regulatory questions, such as visa procedures, are regarded as roadblocks. • Tourists avoid some destinations due to the difficulty of obtaining visas. • A number of projects in the tourism infrastructure and hotel industries have been delayed due to a lack of timely licences and approvals. • However, in order to reap the benefits of the tourism industry, the government should focus on building proper infrastructure, expediting clearances, and enacting successful policies to control the industry and win international tourists' confidence. • Technological Change Drivers • Technology is quickly infiltrating all facets of existence. • Technology will shape and promote the future of tourism. • The Internet has levelled the tourism marketing playing field. • With a good website, small remote destinations can compete on an equal footing with tourism's behemoths. Tourism businesses will be able to become more profitable and sustainable as a result of the convergence of information and communication technologies. www.cuidol.in All right are reserved with CU-IDOL
Introduction 23 • Human Resources and Expertise • Only a well-educated, well-trained, bright, energetic, multilingual, and entrepreneurial workforce who understands the essence of tourism and has technical training would be able to meet the challenges that the tourism sector faces. • Trained human resources of high quality in tourism would give businesses a competitive advantage and enable them to add value to their services. www.cuidol.in All right are reserved with CU-IDOL
THE CHALLENGES OF TOURISM MARKETING 24 • One of the many sectors that is very volatile is the travel industry. For example, tourism is not immune to political or social changes, economic fluctuations, or government regulations. • Sure, the majority of these events are beyond your and your business's influence. Keep in mind, however, that you should always be mindful of your surroundings and be prepared to use adaptive strategies as soon as possible • Here are five major challenges that the travel industry is currently facing and must overcome. • 1.Tourism Infrastructures • Governments, tourist boards, and destination marketing companies must all work together to improve the current framework in a proactive manner. • Future problems are likely to arise in this area as well. When we talk about people in this context, we're referring to everyone who works for the company, either directly or indirectly, and plays a significant role in achieving the firm's goals. • As in any other service organisation, people play a crucial role in tourism marketing. This is due to the fact that customers consider the people who provide the service to be a part of the product. • The people who actually provide the service are the airhostesses on an airline, tourist guides at a historic site, restaurant waiters, and so on. www.cuidol.in All right are reserved with CU-IDOL
THE CHALLENGES OF TOURISM MARKETING 25 • 2.Globalization in the Tourism Industry • As a result of globalisation, more consistent criteria and protocols are being developed. • Travel companies or destination marketing and advertising organisations (DMOs) have a unique selling proposition (USP) in that they provide a one-of-a-kind and unusual experience. • As a result, the travel industry strives to provide products that allow the average tourist or tourist to experience something new. In today's travel aspirations, uniqueness is a crucial component. • Tourist boards and travel agencies must understand how to communicate with international visitors. • They must use translation services to create multilingual websites, important travel information, and vital signs that can accurately guide tourists. • The tourism industry is among the most heavily taxed. A close examination of the taxes imposed on airline tickets and resort areas reveals how taxes can have a significant impact on tourists. • To keep the formula stable, the travel industry must provide competitively priced services. • Governments should also take into account the fact that tourists already contribute to the regional economy through purchases, travel retail, and other tourism-related expenses. www.cuidol.in All right are reserved with CU-IDOL
THE CHALLENGES OF TOURISM MARKETING 26 • 3.Safety And Security In Tourism • Players in the industry must work to improve visitor and tourist safety infrastructure. • Collaboration with local law enforcement, the common council, and local governments can yield positive results. • To increase protection and caution without suppressing the travelling experience within the country, federal governments must work toward sourcing for even more workforce and economic resources. • The big question right now is whether or not these issues will recur. • Some of these challenges, on the other hand, may present growth opportunities for travel companies, tourist boards, and location marketing and advertising firms. • It would be unthinkable for private travelling services to make significant changes in the case of the others, which include external factors. • The travel industry must band together and be willing to negotiate and revise its terms – sometimes with federal governments and labour unions. • It must also agree to adapt to changing trends and circumstances. www.cuidol.in All right are reserved with CU-IDOL
THE CHALLENGES OF TOURISM MARKETING 27 • 4.Publicity for Travel • Vacationers and travellers may perceive travel marketing to be insufficient, false, or exaggerated at times. • To change this perception, advertising companies must work to develop innovative marketing strategies to entice the new breed of discerning and educated travellers. • Furthermore, technological disruptions, as well as the influence of social media, indicate that this is a time of both opportunities and threats. • To find their way right into visitors' itineraries, travel marketing professionals must look to harness both technology and creative thinking. They must, however, consider local content. • The shared economy's allure. Peer-to-peer travel is becoming increasingly popular. www.cuidol.in All right are reserved with CU-IDOL
THE CHALLENGES OF TOURISM MARKETING 28 • People would have been considered a blunder a few years ago if they were mentioned as part of the marketing mix. • However, in recent years, there has been a growing recognition of the importance of paying adequate attention to the role of people in achieving marketing objectives. • This is true of all service-oriented businesses, as there can be no service if there are no people to provide it. The quality of service provided cannot be standardised because there is always a human element involved, and it is dependent on the individual's state at the time of service provision. • Controlling service activities is made more difficult as a result. As a result, ensuring a satisfied customer necessitates careful consideration of this factor. • It's worth noting that the majority of jobs in the tourism industry appear to be mundane. • The organization will succeed if this routine is transformed into a one-of-a-kind experience for the customer. However, this is not a simple task, and many organizations view it as such. • People can be viewed as a separate element of the Marketing Mix, allowing for more focused attention to be paid to them in order to maximize their productivity. • People can be trained to meet the specific needs of their jobs, motivated to have a customer-centric mindset, and rewarded for making the desired contribution. www.cuidol.in All right are reserved with CU-IDOL
THE CHALLENGES OF TOURISM MARKETING 29 • Employees are assigned roles based on the type of work they do, their position in the organization's hierarchy, and the amount of contact they have with the final customers. The amount of attention that needs to be paid to customers in tourism marketing is determined by the extent to which the employees come into contact with them. • 1.Tourists in Close Quarters: • They are employees who work directly in tourism marketing, such as tourism office receptionists. • Tourist information, for example. These individuals interact with a diverse group of potential customers who are looking for information and advice on a variety of tourism-related topics. • It's critical that they know everything there is to know about the destination. Package tours organised by the government and other agencies, special attractions of various locations at specific times, and possible estimates of money and time requirements. • Each trip should include any additional information that a tourist might find useful. • These individuals should be well-trained and motivated to provide pleasant, responsive service to tourists on a daily basis. • They should be enthusiastic and friendly, with a good understanding of different people's needs and the ability to advise them appropriately without downplaying or exaggerating the importance of any particular location based on their own bias. www.cuidol.in All right are reserved with CU-IDOL
THE CHALLENGES OF TOURISM MARKETING 30 • 2.People in Medium Contact With Tourists : • These are individuals who are not directly involved in encouraging and motivating potential tourists, but who play a critical role in designing, developing, and implementing various marketing programmes based on customer needs. • These individuals are responsible for conducting research, gathering information, preparing brochures and other promotional materials, and keeping tourism marketers up to date on current trends. • Employees in this group should cultivate a sense of customer responsiveness, consider the needs of various tourist segments, and try to direct them appropriately by providing all necessary details. • Keep in mind that customers make the majority of their purchasing decisions based on brochures. • Many major manufacturers, on the other hand, are now using video films and slides to promote their products. www.cuidol.in All right are reserved with CU-IDOL
THE CHALLENGES OF TOURISM MARKETING 31 • III) People Who Have Minimal Contact With Tourists • Not everyone involved in planning and development activities will have direct contact with the end users. Their job is to create appealing schemes and develop tourism- development strategies at various levels. • The basic duties at this stage include coordinating the various activities of the organisation, internal marketing, liaison with outside agencies, and so on. • Continuous feedback about the various programmes and initiatives is to be taken from the people who are in direct touch with the customers so as to implement the improvements t needed by the public from time to time. • High-Street Travel Agents Are Dying • Do you recall how we used to book vacations before the internet • When we had a real-life conversation with a real-life human being at a real-life travel agency? Isn't it a little frightening now? • Gone are the days of scribbling on a pamphlet and taking the travel agent's word for it. • Fortunately, unlike in the days of crossing your fingers, the travel agents had not strategically removed the structure website other than your resort from the advertising and marketing shots. www.cuidol.in All right are reserved with CU-IDOL
THE CHALLENGES OF TOURISM MARKETING 32 • We can also avoid one-on-one conversations by utilising new technologies such as online chat and chatbots. • High street travelling representatives have taken a big hit as a result of this unrelenting shift to electronic. • Granted, this isn't exactly new or unique to this year. However, the trend of booking vacations online continues to be a challenge for high-street travel agents, particularly independent chains. • Younger generations, in particular, are less likely to have ever visited a travel agency and prefer to make their reservations online. • Chatbots, in particular, appeal to millennials' desire for pleasure, and they prefer this type of interaction over all others. • Expedia, a travel booking website, is an example of a company that makes use of this technology. Facebook Messenger users can book flights using the app. • It also promotes the top five hotel options in their prime location. www.cuidol.in All right are reserved with CU-IDOL
THE CHALLENGES OF TOURISM MARKETING 33 • The user is redirected to the Expedia website where they can book directly by clicking any of the recommended hotels. Following a transaction, the user receives a message with a link to their itinerary in Messenger. Simple things. • Some argue that we should not yet dismiss the high-street travel agent in favour of online competitors. • There are currently a number of innovative and inspiring initiatives, such as virtual reality (VR) with immersive content, that travel agents are attempting to entice customers back into their stores. • Some of these actions were also successful, yielding a 40 percent return on investment in some cases. • If you're a high-street travel agent, here are a few other strategies you can use to compete with your online counterparts. • Online travel agents are popular because they meet today's demand for immediate gratification while still providing a streamlined approach to travel analysis, reservation, and payment. • By offering online and mobile payment options, you can ensure that your payment process is as simple as possible. • To strengthen your travel service, a good rule is to form mutually beneficial relationships with other market players. You can both increase the offer and the reach/customer base by reaching out to new relationships and markets. Encourage customers to write online reviews and reviews about their in-store reservation experience. www.cuidol.in All right are reserved with CU-IDOL
THE CHALLENGES OF TOURISM MARKETING 34 • Management of Social Media and Credibility • For most of us, booking a vacation is a significant financial investment and an event that we look forward to all year. As a result, we intend to meticulously plan every detail of the itinerary, right down to the last detail. • Anything that even remotely threatens this has the potential to elicit a strong emotional response (we've all seen those old Airline episodes). • Whether it was a delayed flight, a lack of service from your travel agent, or poor hotel service, we used to have to wait until we returned from vacation to write a letter or send an email of complaint. Then there was Twitter. • We were able to share our bad experiences and frustrations with airlines, hotels, and tour operators on a large, public platform all of a sudden. • To some extent, we've come to expect the ordinary, low-level, frequent complaints made via social media, such as flight delays, and these social outbursts aren't usually extremely damaging to the company's image. • Some situations can quickly escalate, such as a social media firestorm. Companies in the travel industry must ensure that they are adequately qualified to manage their reputation in the event of a public relations crisis. www.cuidol.in All right are reserved with CU-IDOL
THE CHALLENGES OF TOURISM MARKETING 35 • So, what steps can those in the travel industry take to better manage their online reputation? Here are some short tips for managing your online reputation: • Interact with online feedback as much as possible, with as many people as possible, even if they aren't in your favour. • Interact with people who are talking about your company on social media. • It can be done this with the help of tools and platforms like Google signals and Social Mentions. • You won't be able to engage with everyone, so make a strategy and learn when to react and when not to react. • Be honest and open to any kind of criticism or feedback. • In the event that your company does mess up, do something wrong, act like if you own it, offer a real apology, and more support to anybody impacted. • Remain authentic and polite in any online communications or discussions. www.cuidol.in All right are reserved with CU-IDOL
THE CHALLENGES OF TOURISM MARKETING 36 • Ongoing Popularity Peer To Peer Travel Or Sharing Economies • Is there a conflict between the sharing economy and the travel and hospitality industries? Yes, it had a significant impact, just as the web's appearance had an impact on how airlines and travel agencies conduct business. This is known as the sharing economy. • Actively networking in order to create a system that divides tasks or workloads among peers. • Peers are participants in the application who are equally privileged and equipped. • It is frequently less expensive than purchasing a similar product or service from a well-established company. Couch Surfing and other alternative lodgings are putting pressure on online travel agencies and hotels. • Airbnb is a great example of these recurring events; it is becoming more popular than initially thought, forcing hotels to step up their game. • For example, acquiring new websites and market exposure is critical for some online travel companies, such as Expedia. • While these types of online platforms are becoming more popular, there will always be people who prefer the security and high-end of a hotel stay and who have the means to do so. • There will, of course. As a result, new business concepts, such as Airbnb and Airbnb Plus, which provide high-end lodging options, will continue to emerge www.cuidol.in All right are reserved with CU-IDOL
THE CHALLENGES OF TOURISM MARKETING 37 • Managing a service or product industry is an extremely difficult task. However, each industry faces its own set of challenges. • Some of the challenges that a service industry manager faces in managing, growing, and profiting are discussed below; however, these factors do not easily apply to the product industry. • Customers cannot see or hold services before purchasing them because they are intangible. • As a result, buyers are unsure of the service's quality and believe they are taking a chance. • A buyer is unable to envision and assess a service in advance. From the seller's point of view, promoting, controlling quality, and determining the price of the service he provides is difficult. • The intangible nature of service, unlike products, creates challenges for both the client and the company. • In the service industry, defining and improving quality is a difficult task. Services, unlike products, are frequently produced and consumed at the same time. • As a result,service quality management must deal with issues that the product industry never has to deal with. In the product industry, the manufacturer has numerous opportunities to test his products before they are released onto the market. www.cuidol.in All right are reserved with CU-IDOL
THE CHALLENGES OF TOURISM MARKETING 38 • In the service industry, a customer must first gain trust in the company before purchasing its services. The client's level of trust in the service organisation is frequently given precedence over the services provided and their value proposition. • The service industry competes not only with other service industries, but also with its customers, who often wonder whether they should hire a service at all. • Most product companies employ dedicated salespeople, whereas in the service industry, salespeople are frequently service providers. • It takes a lot of effort to coordinate marketing, operations, and human resource efforts. • The service industry relies on passion. Every day, the more passion, spirit, and desire among the service staff, the more revenue and success are generated. • In the service industry, there is a direct link between employee enthusiasm and financial success, and vice versa. Employees must be kept motivated at all times, and efforts must be made to maintain employee loyalty. • While testing new services is always difficult, communicating about these services at the same time is also difficult. • The service industry has a difficult time establishing prices. • Another major issue faced by the service industry is standardization versus personalization. www.cuidol.in All right are reserved with CU-IDOL
THE CHALLENGES OF TOURISM MARKETING 39 • A customer will be satisfied, dissatisfied, or delighted depending on the quality of their service experience. Knowing what a customer expects helps you develop a strategy for meeting and exceeding those expectations. • Customer Dissatisfaction: When a service fails to meet the customer's expectations, this is called customer dissatisfaction. • The customer does not believe that he or she is getting a good deal. For the customer, it's a difficult time. • Customer Satisfaction: In this case, the service provider meets the customer's expectations and provides a positive experience. However, such a customer is not a fan of the brand and could easily switch to a competitor based on price, discounts, or freebies. • Customer Delight: This is an ideal situation in which the service provider is able to exceed the customer's expectations, resulting in a Magic Moment. • Customers who have formed a strong bond with a brand are loyal, consistent, and unlikely to switch to another. www.cuidol.in All right are reserved with CU-IDOL
THE CHALLENGES OF TOURISM MARKETING 40 • Search Engines Monopoly Of The Online Travel Space • Google Flights, Hotels, and Maps, it's clear that the search engine behemoth has gradually encroached on, and continues to expand into, the online travel sector. • The launch of Google Flights, as well as the ability to book directly from the SERPs, has been a game changer in the industry. • Some Google Flights supporters argue that it has many advantages over Sky scanner and other flight search aggregation websites because it is clean, ad-free, and easily distinguishable. • However, and perhaps most notably, Google Flights often appears at the top of the SERPs. Of course, this means that travel companies offering a similar service would have less room on the front page. This isn't the only thing Google is after. • Google Trips is another travel-related service provided by Google. • Many that are loyal to the brand name praise the fact that it can be combined with a variety of other Google items, such as Google Calendar and Google Now. Google is clearly making major inroads into the travel industry. • It is now common for tourists and vacationers to use various systems such as Sky scanner, Expedia, and Airbnb to gather information and book their vacations. • All right are reserved with CU-IDOL www.cuidol.in
THE CHALLENGES OF TOURISM MARKETING 41 • However, in the future, it's possible that we'll use Google to study, plan, and complete publication journeys. So, what can you do to protect your service income from such quest behemoths? Well, one thing that immediately comes to mind when comparing various other online travel carriers is the lack of a human component. • Airlines and other travel carriers can take advantage of this to build a brand that emphasises the human connection in the travel experience. • Do you own a travel agency or work in the travel industry? Have you discovered any new challenges in the industry? • The Strategies • Your company's unique objectives or expectations that must be met within a certain timeframe. • Achieving a certain degree of revenue growth in a certain amount of time. • Increasing profitability by a certain amount for a certain period of time. • Achieving a certain market share level in a specific time frame. • Diversifying the product line to reduce market risk. www.cuidol.in All right are reserved with CU-IDOL
THE CHALLENGES OF TOURISM MARKETING 42 • Marketing Leader Strategy • Significant skill and dedication are required to create this process. It's not convenient to be the best in terms of amount and value of sales or bookings. Such control allows the company to set market benchmarks or conditions, making it difficult for rivals to stay in business. • A reasonable marketing audit compares the volume of a company's products to that of competitors, as well as their contribution to the company's earnings and expenses. • This could help in decision-making so that the company can develop its plan for the next few years. • Other causes, such as changes in applicable legislation or new economic conditions, can also be considered important. • A thorough diagnosis necessitates the development of an analysis a thorough understanding of current and future developments in each of the business segments in the organization's best interests • In terms of this strategy, the company should create a management or item differentiation policy. • In this way, it may be possible to avoid the risk of attempting to be the best at everything while excelling at none. www.cuidol.in All right are reserved with CU-IDOL
THE CHALLENGES OF TOURISM MARKETING 43 • Operators have shifted their focus to mass market, low-cost methods; smaller operators have relied on expertise, whether in terms of geography, activity type, or market served.” Assume that one of the tour operators decides to specialise in planning package vacations for customers in a particular region of the United States. • Local airport departures, free transportation to the airport, or complimentary parking at the airport are some of the benefits of this category. • Many customers will be happy to pay a slightly higher price for the convenience of a regional departure and the added benefits. • When it appears to clients that this local tour operator or travel agency is contributing to the local economy and participating in local community events, residents will prioritize this organization when planning their vacations. • Diversification is especially valuable in this method when the company spreads its risk across several markets and sees the opportunity to purchase a new trademark name. • One of the most basic methods of distinguishing services is through advertising. www.cuidol.in All right are reserved with CU-IDOL
THE CHALLENGES OF TOURISM MARKETING 44 • Advertising creates and strengthens significant barriers for new businesses entering a market. To overcome the awareness and brand commitment of well-known companies, any newcomer must purchase exposure. • The “Follower” Approach • If the company does not achieve short-term success and does not become the market leader, it can use this structure to maintain a strong position in the market near the leader. • As a result, the company will have a significant market share and, of course, will pursue a similar strategic direction as the market leader. • The method is based on extensive rival intelligence, versatility, and tactical projects that are completed quickly. When market conditions permit, the ultimate goal will be to become a competitor to the market leader. • This strategy can be tweaked to focus on specific types of products that aren't offered by competitors. • It can also focus on quality, validating a higher rate than the major competitors by adding value. • As an example of this strategy, major hotel chains have observed a steady increase in the number of female employees to whom they cater; as a result, they have had to respond by providing more feminine decor, cosmetic mirrors, hairdryers, and so on. www.cuidol.in All right are reserved with CU-IDOL
THE CHALLENGES OF TOURISM MARKETING 45 • The Challenger Approach • Because of resource constraints, this structure is used when a company is unable to pursue a market leader's or follower's strategy. • This strategy is used to establish a company's market position by emulating the market leader's approach in a diluted form. The company would be slower to react to market changes and less inventive, even though it is more effective in staying within an external zone of competition. • The strategy's main goal is to imitate the successful formula of market leaders in order to remain competitive. • Remember to create a product-positioning map that reveals the clients' perceptions of existing companies competing in specific fields. • This can be extremely beneficial to a business that is already in the market or one that is considering launching a new product. • By keeping a close eye on market leaders' practises and learning from their successes and mistakes, time and money can be saved. Finding the advantages of a marketing leader means that you are aware of and can compete more efficiently. www.cuidol.in All right are reserved with CU-IDOL
THE CHALLENGES OF TOURISM MARKETING 46 • Niche Marketing Strategy • When a company recognises that what it wants to use covers a limited number of consumer segments or, on the other hand, that there is a limited market that can be reached rapidly, this is welcomed. • The presumption is based on the fact that there would be a small number of competitors. • Concentrating on a specific market, identifying its needs, and then creating products and promotions that are appropriate for that market can be an effective strategy, especially for smaller companies with limited resources but a deep understanding of their target audience. • These companies may operate in niche markets that are too small to attract market leaders. Those who want to build deeper and more direct relationships with their clients should use a centred approach. • Relevant Actions You Can Take To Improve Your Brand Marketing Utilize Contextual Marketing • Instead of waiting it out till the next flourishing travel season, stores can seek to move their products to an online E-commerce shop and transform themselves. www.cuidol.in All right are reserved with CU-IDOL
THE CHALLENGES OF TOURISM MARKETING 47 • Instead of merely providing, for example, one theme souvenirs at a specific location, on a specific destination, an online shop can improve brand awareness selling those locations best souvenirs worldwide or nationwide. • Constructing a contextual marketing campaign can also help develop a personal connection with your audience. • Essentially, contextual marketing is everything about understanding one’s audience and utilising the best message at the correct time to connect with them. • When what and how we interact, whether in our expert interactions or individual lives, is directly relevant to our audience, as they will know the context of the message. Without context, we lose significance. • Widen Your Digital Footprint • There are many difficulties to continually remain on top of mind to both locals and travellers trying to find new experiences. • You can, for example, make a campaign to engage all social media complaints that you can intercept. You can improve your services and response on the most popular social media platforms. www.cuidol.in All right are reserved with CU-IDOL
THE CHALLENGES OF TOURISM MARKETING 48 • You can partner with micro-influencers with a widespread reach. • As all brands do, you also need to also embrace natural and paid search to stay at the top of search engine rankings. Empower your happiest customers to develop social proof and audience trust, to leave any kind of reviews. • Enhance Customer Experience • Discovering methods to improve the client experience provides significant obstacles to travel marketing for companies like airlines. The market likewise needs to fill more seats and potentially decrease advantages and features to make more revenue. • It takes more than just using a rotating menu of treats or increasing ticket expenses to get more legroom and increase convenience. • More and more brands are converting towards social media crusades to establish brand awareness. • To focus on customer experience, you can rely on travel and tourism marketing to showcase innovative stories. www.cuidol.in All right are reserved with CU-IDOL
THE CHALLENGES OF TOURISM MARKETING 49 • Develop Amazing Travel Experiences • Too many options in a crowded market may provide limitless variety and cost points for tourists, but make it tough for the travel market to bring in new customers. • However, companies can look towards the pattern of Millennials craving experiential travel to curate remarkable experiences. • However, when you design that “off-the-beaten-path” experience, how do you market it to an audience? • Utilizing YouTube and social networks, influencers can target specific niche fans, also increasing brand name awareness, publicising those distinguished experiences. • A number of different marketing strategies can be used for destination marketing purposes, helping to boost overall awareness of a destination and increase the number of people who actually visit. • Below, you will find more information about 14 of these strategies and how destination marketing organisations can use them to get results. www.cuidol.in All right are reserved with CU-IDOL
MARKETING STRATEGIES TO ATTRACT MORE VISITORS 50 • Define the Unique Selling Points • Arguably the single most important step for any organisation engaging in destination marketing is to take the time to clearly define what makes your destination unique. • There are a huge range of ways a destination can stand out, such as unique activities to offer visitors, or unique natural features, like mountains, beaches or volcanoes. • It could be that your location has a fascinating history, or unique landmarks, like the Eiffel Tower, the Empire State Building, or the Great Wall of China. • Perhaps the culture of the location is its unique selling point and visitors would want to travel to experience local events, museums or sports clubs. • Try to identify as many USPs as possible. www.cuidol.in All right are reserved with CU-IDOL
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